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Press Release: Spectrum Brands Holdings Reports -6-

· 02/05/2021 06:30
CONTACT: Investor/Media Contact:(in millions) September 30, 2021 ------------------------------------------- -------------------- Net cash flow from operating activities 285 - 305 Purchases of property, plant and equipment (85) - (95) Transaction related costs and taxes 50 - 60 ----------------- Adjusted free cash flow 250 - 270Three month period ended (in millions) HHI HPC GPC H&G Corporate Consolidated -------------- ------ ------ ------ ------ ------------- ---------------- Adjusted EBITDA $42.8 $36.4 $31.5 $(3.3) $ (5.2) $ 102.2 Proforma compensation program change (0.6) (0.4) (0.4) (0.2) (2.6) (4.2) ----- ----- ----- ----- --------- ---------- --- Proforma Adjusted EBITDA $42.2 $36.0 $31.1 $(3.5) $ (7.8) $ 98.0 ==== ==== ==== ==== ===== ====== ====Three Month Period Ended January 3, 2021 (in millions, except %) HHI HPC GPC H&G Corporate Consolidated -------------- ---------- ---------- ---------- --------- ----------- ------------------ Net income (loss) from continuing operations $ 89.4 $ 38.2 $ 34.0 $(0.5) $ (87.9) $ 73.2 Income tax expense -- -- -- -- 19.8 19.8 Interest expense -- -- -- -- 36.7 36.7 Depreciation and amortization 8.6 8.8 9.7 4.9 3.7 35.7 ------ ------ ------ ----- ---------- ------------ EBITDA 98.0 47.0 43.7 4.4 (27.7) 165.4 Share and incentive based compensation -- -- -- -- 8.1 8.1 Restructuring and related charges 0.2 2.6 1.5 -- 4.9 9.2 Transaction related charges -- 1.3 7.6 -- 11.7 20.6 Gain on Energizer investment -- -- -- -- (6.0) (6.0) Inventory acquisition step-up -- -- 0.8 -- -- 0.8 Other -- -- -- 6.0 -- 6.0 ------ ------ ------ ----- ---------- ------------ Adjusted EBITDA $ 98.2 $ 50.9 $ 53.6 $10.4 $ (9.0) $ 204.1 ----- ----- ----- ---- ------ -------- Net Sales $408.7 $378.5 $275.5 $82.3 $ -- $ 1,145.0 ----- ----- ----- ---- ------ -------- Adjusted EBITDA Margin 24.0% 13.4% 19.5% 12.6% -- 17.8% ====== ====== ====== ===== ========== ============ Three Month Period Ended December 29, 2019 (in millions, except %) HHI HPC GPC H&G Corporate Consolidated -------------- ---------- ---------- ---------- ---------- ------------- ------------------ Net income (loss) from continuing operations $ 34.2 $ 24.9 $(53.3) $(8.6) $ (34.9) $ (37.7) Income tax expense -- -- -- -- 0.7 0.7 Interest expense -- -- -- -- 34.8 34.8 Depreciation and amortization 8.1 8.8 16.1 5.2 3.5 41.7 ------ ------ ------ ----- --------- ---------- ---- EBITDA 42.3 33.7 (37.2) (3.4) 4.1 39.5 Share and incentive based compensation -- -- -- -- 14.5 14.5 Restructuring and related charges 0.5 1.1 10.3 0.1 15.4 27.4 Transaction related charges -- 1.6 1.4 -- 1.1 4.1 Unrealized gain on Energizer investment -- -- -- -- (38.5) (38.5) Loss on assets held for sale -- -- 32.8 -- -- 32.8 Write-off from impairment of intangible assets -- -- 24.2 -- -- 24.2 Other -- -- -- -- (1.8) (1.8) ------ ------ ------ ----- --------- ---------- --- Adjusted EBITDA $ 42.8 $ 36.4 $ 31.5 $(3.3) $ (5.2) $ 102.2 ----- ----- ----- ---- ----- ------ ---- Net Sales $297.7 $322.1 $205.8 $45.9 $ -- $ 871.5 ----- ----- ----- ---- ----- ------ ---- Adjusted EBITDA Margin 14.4% 11.3% 15.3% (7.2) % --% 11.7% ====== ====== ====== ===== ========= ========== ===

The following is a reconciliation of reported net income (loss) from continuing operations to adjusted EBITDA for the three month periods ended January 3, 2021 and December 29, 2019, including the calculation of adjusted EBITDA margin for each of the respective periods.

Compensation Program Change

During the fourth quarter ended September 30, 2020, the Company made a change to its annual management incentive plans ("MIP") payout that previously provided for the issuance of stock for a designated pool of recipients in lieu of cash. The annual MIP payout was fully funded through cash distributions with no stock issuance. Our operating performance metric of Adjusted EBITDA excludes any consideration for stock-based compensation expense. Additionally, the Company had historically recognized all stock based compensation costs in the prior periods.

The program change continued into fiscal 2021 and beyond. Any MIP payouts will be paid in cash and reflected as a reduction to EBITDA and Adjusted EBITDA. Beginning in fiscal 2021, the Company has recognized a portion of the MIP compensation as a component of the segment EBITDA which may impact comparability of segment results with the three month period ended December 29, 2019. Although not expected to be material to operating results, we have included proforma financial information below to reflect the compensation charge related to the compensation program change as if it were not considered stock compensation at the beginning of 2020 fiscal year and have allocated it to the segment EBITDA for the three month period ended December 29, 2019 for comparability.

The following is a reconciliation of the forecasted net cash flow from operating activities to adjusted free cash flow for the year ending September 30, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210205005073/en/

Kevin Kim 608-278-6148

(END) Dow Jones Newswires

February 05, 2021 06:30 ET (11:30 GMT)