- Net Sales Decreased 1.2% Driven by Slower Category POS and
Planned Exit of Non-Strategic Categories
- Fourth Quarter Net Income from Continuing Operations was
$53.5 Million with Adjusted EBITDA of $113.7 Million
- Excluding Investment Income of $32.5 Million, Adjusted
EBITDA was $81.2 Million
- The Company Expects to Deliver Low Single-Digit Net Sales
Decline and High Single-Digits Adjusted EBITDA Growth for Fiscal
2024, Excluding the Impact of Investment Income, with Adjusted
EBITDA Growth in All Business Units
Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or
the “Company”), a leading global branded consumer products and home
essentials company focused on driving innovation and providing
exceptional customer service, today reported results from
continuing operations for the fourth quarter ended September 30,
2023.
“We have concluded a pivotal year for the business as we close
out our fourth quarter. We have already paid down $1.6 billion of
our outstanding debt with the proceeds from the sale of our HHI
business and have ended the year in a net cash position. We have
reduced our inventory by over $300 million since the beginning of
the year while improving fill rates across all businesses. We have
also improved our margin structure by driving cost improvements and
exiting non-core unproductive categories. With the latest financial
results for the quarter, we have started to transition our business
from defending against the various headwinds and preserving cash to
leaning into the opportunities that a strong balance sheet and
improved margins present to us,” said David Maura, Chairman and
Chief Executive Officer of Spectrum Brands.
Continuing, Mr. Maura commented, “I am excited about fiscal 2024
as we enter the new fiscal year with a strong balance sheet,
healthier margins and better inventory profile. Our focus during
fiscal 2024 will be investing in our people, our brands and
supporting new products initiatives to drive long-term growth in
our businesses. We started increasing our investments in marketing
and advertising during the fourth quarter and will continue that
trend going forward. We believe the overall macro-economic
environment will continue to deteriorate and will result in
top-line pressure, particularly in our Home and Personal Care
business. However, we have taken the right steps to position each
of our businesses to grow EBITDA with an overall EBITDA expectation
of high single-digit growth.”
Fiscal 2023 Fourth Quarter Highlights
Three Month Periods
Ended
(in millions, except per share and
%)
September 30, 2023
September 30, 2022
Variance
Net sales
$
740.7
$
749.5
$
(8.8
)
(1.2
)%
Gross profit
244.4
239.5
4.9
2.0
%
Operating income
16.2
16.4
(0.2
)
(1.2
)%
Net income (loss) from continuing
operations
53.5
(24.8
)
78.3
n/m
Diluted earnings per share from continuing
operations
$
1.50
$
(0.61
)
$
2.11
n/m
Non-GAAP Operating Metrics
Adjusted EBITDA from continuing
operations
$
113.7
$
74.7
$
39.0
52.2
%
Adjusted EPS from continuing
operations
$
1.36
$
0.48
$
0.88
183.3
%
n/m = not meaningful
- Net sales decreased 1.2%. Excluding the impact of $11.3 million
of favorable foreign exchange rates, organic net sales decreased
2.7%. Net sales were lower primarily due to continued lower
consumer demand for kitchen appliances products and the negative
impact of exiting several non-strategic categories in the GPC
business.
- Gross profit and margin increased due to improved pricing and
cost improvements, partially offset by unfavorable transaction
fx.
- Operating income was relatively flat despite lower volumes due
to gross profit improvements, operating spend reduction
initiatives, and lower project spend on restructuring and
integration.
- Net income and diluted earnings per share increased due to
lower interest expense, interest income, gains from debt
repurchases and income tax benefit. Lower share count also
contributed to higher diluted earnings per share.
- Adjusted EBITDA increased $39.0 million, driven by gross profit
improvements and interest income.
- Adjusted diluted EPS increased 183.3% due to increased Adjusted
EBITDA, lower interest expense and lower share count.
Fiscal 2023 Fourth Quarter Segment Level Data
Global Pet Care (GPC)
Three Month Periods
Ended
(in millions, except %)
September 30, 2023
September 30, 2022
Variance
Net Sales
$
292.4
$
287.8
$
4.6
1.6
%
Operating Income
43.2
26.2
17.0
64.9
%
Operating Income Margin
14.8
%
9.1
%
570
bps
Adjusted EBITDA
$
53.5
$
48.4
$
5.1
10.5
%
Adjusted EBITDA Margin
18.3
%
16.8
%
150
bps
Higher net sales were attributable to positive price and foreign
currency impact offset by volume decline particularly from slower
aquatic environment sales. The companion animals category grew
despite the negative impact of the decision to exit several
non-strategic categories. The EMEA region posted strong sales
growth in companion animal driven by dog and cat food sales.
Excluding favorable foreign exchange impacts of $6.5 million,
organic net sales decreased 0.7%.
Operating income, Adjusted EBITDA and margins increased due to
positive pricing adjustments, favorable mix from the decision to
exit non-strategic SKUs, lower distribution costs compared to prior
year disruptions, lower freight costs and savings from cost
reduction actions taken earlier in the year. This was partially
offset by lower volumes in aquatics.
Home & Garden (H&G)
Three Month Periods
Ended
(in millions, except %)
September 30, 2023
September 30, 2022
Variance
Net Sales
$
125.2
$
116.8
$
8.4
7.2
%
Operating Income
15.8
6.4
9.4
146.9
%
Operating Income Margin
12.6
%
5.5
%
710
bps
Adjusted EBITDA
$
21.0
$
13.1
$
7.9
60.3
%
Adjusted EBITDA Margin
16.8
%
11.2
%
560
bps
The net sales increase was primarily driven by commercial
investments and favorable weather conditions leading to POS growth
in both controls and household repellent categories. Spectracide
and Hot Shot brands experienced double digit POS growth aided by
increased advertising spend, leading to higher replenishment
orders.
Higher operating income, adjusted EBITDA and margins were driven
by higher volumes and related fixed cost absorption and the impact
of cost-saving actions initiated earlier in the year. The business
experienced higher product costs from raw material and labor, in
line with expectations.
Home & Personal Care (HPC)
Three Month Periods
Ended
(in millions, except %)
September 30, 2023
September 30, 2022
Variance
Net Sales
$
323.1
$
344.9
$
(21.8
)
(6.3
)%
Operating (Loss) Income
(16.3
)
15.3
(31.6
)
n/m
Operating (Loss) Income Margin
(5.0
%)
4.4
%
(940
)
bps
Adjusted EBITDA
$
20.3
$
28.0
$
(7.7
)
(27.5
)%
Adjusted EBITDA Margin
6.3
%
8.1
%
(180
)
bps
n/m = not meaningful
The decrease in net sales was driven by lower consumer demand,
particularly in the kitchen appliances category. Sales were also
impacted by continued higher retailer inventory for air fryers in
the US market. Sales increased in personal care and garment care
categories. Net of favorable foreign exchange impacts of $4.8
million, organic net sales declined by $26.6 million, or 7.7%.
Operating income, adjusted EBITDA and margins decreased from
lower volume and unfavorable transactional foreign exchange
impacts. This was partially offset by savings from various cost
savings initiatives and lower ocean freight rates. Operating income
was also impacted by some product disposals.
Liquidity and Debt
As of the end of the fiscal year, the Company had a cash balance
of $754 million plus $1,103 million of short-term investments
consisting of term deposits with a maturity greater than 3 months
but less than 12 months, and approximately $1,574 million of debt
outstanding, consisting of approximately $1,488 million of senior
unsecured notes and approximately $86 million of finance lease
obligations.
The Company ended the quarter in a net positive cash position,
taking into consideration short-term investments.
Fiscal 2023 Earnings Framework
Spectrum Brands expects low single-digit reported net sales
decline in Fiscal 2024, with foreign exchange expected to have a
slightly negative impact based upon current rates. Fiscal 2024
adjusted EBITDA is expected to increase by high single-digits.
From a capital structure perspective, the Company is targeting a
long-term net leverage ratio of 2.0 - 2.5 times after full
deployment of HHI sale proceeds.
Conference Call/Webcast Scheduled for 9:00 A.M. Eastern Time
Today
Spectrum Brands will host an earnings conference call and
webcast at 9:00 a.m. Eastern Time today, November 17, 2023. The
live webcast and related presentation slides will be available by
visiting the Event Calendar page in the Investor Relations section
of Spectrum Brands’ website at www.spectrumbrands.com. Participants
may register for the call here. Instructions will be provided to
ensure the necessary audio applications are downloaded and
installed. Users can obtain these at no charge.
Following the call, a replay of the live broadcast also will be
accessible through the Event Calendar page in the Investor
Relations section of the Company’s website.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings is a home-essentials company with a
mission to make living better at home. We focus on delivering
innovative products and solutions to consumers for use in and
around the home through our trusted brands. We are a leading
supplier of specialty pet supplies, lawn and garden and home pest
control products, personal insect repellents, shaving and grooming
products, personal care products, and small household appliances.
Helping to meet the needs of consumers worldwide, Spectrum Brands
offers a broad portfolio of market-leading, well-known and widely
trusted brands including Tetra®, DreamBone®, SmartBones®, Nature’s
Miracle®, 8-in-1®, FURminator®, Healthy-Hide®, Good Boy®, Meowee!®,
OmegaOne®, Spectracide®, Cutter®, Repel®, Hot Shot®, Rejuvenate®,
Black Flag®, Liquid Fence®, Remington®, George Foreman®, Russell
Hobbs®, Black+Decker®, PowerXL®, Emeril Lagasse®, and Copper Chef®.
For more information, please visit www.spectrumbrands.com. Spectrum
Brands – A Home Essentials Company™
Non-GAAP Measurements
Management believes that certain non-GAAP financial measures may
be useful in providing additional meaningful comparisons between
current results and results in prior periods. Management believes
that organic net sales provide for a more complete understanding of
underlying business trends of regional and segment performance by
excluding the impact of currency exchange rate fluctuations and the
impact of acquisitions. In addition, within this release, including
the supplemental information attached hereto, reference is made to
adjusted diluted EPS, adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), and adjusted EBITDA margin.
Adjusted EBITDA is a metric used by management to evaluate segment
performance and frequently used by the financial community which
provides insight into an organization’s operating trends and
facilitates comparisons between peer companies, since interest,
taxes, depreciation and amortization can differ greatly between
organizations as a result of differing capital structures and tax
strategies. Adjusted EBITDA also is one of the measures used for
determining compliance with the Company’s debt covenants. Adjusted
EBITDA excludes certain items that are unusual in nature or not
comparable from period to period. Adjusted EBITDA margin reflects
adjusted EBITDA as a percentage of net sales of the Company. The
Company’s management uses adjusted diluted EPS as one means of
analyzing the Company’s current and future financial performance
and identifying trends in its financial condition and results of
operations. Management believes that adjusted diluted EPS is a
useful measure for providing further insight into our operating
performance because it eliminates the effects of certain items that
are not comparable from one period to the next. An income tax
adjustment is included in adjusted diluted EPS to exclude the
impact of the valuation allowance against deferred taxes and other
tax-related items in order to reflect a normalized ongoing
effective tax rate. The Company provides this information to
investors to assist in comparisons of past, present and future
operating results and to assist in highlighting the results of
on-going operations. While the Company’s management believes that
non-GAAP measurements are useful supplemental information, such
adjusted results are not intended to replace the Company’s GAAP
financial results and should be read in conjunction with those GAAP
results. Other Supplemental Information has been provided to
demonstrate reconciliation of non-GAAP measurements discussed above
to most relevant GAAP financial measurements.
Forward-Looking Statements
We have made, implied or incorporated by reference certain
forward-looking statements in this document. All statements, other
than statements of historical facts included or incorporated by
reference in this document, without limitation, statements or
expectations regarding our business strategy, future operations,
financial condition, estimated revenues, projected costs, inventory
management, earnings power, projected synergies, prospects, plans
and objectives of management, outcome of any litigation and
information concerning expected actions of third parties are
forward-looking statements. When used in this document, the words
future, anticipate, pro forma, seeks, intend, plan, envision,
estimate, believe, belief, expect, project, forecast, outlook,
earnings framework, goal, target, could, would, will, can, should,
may and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Since these
forward-looking statements are based upon our current expectations
of future events and projections and are subject to a number of
risks and uncertainties, many of which are beyond our control and
some of which may change rapidly, actual results or outcomes may
differ materially from those expressed or implied herein, and you
should not place undue reliance on these statements. Important
factors that could cause our actual results to differ materially
from those expressed or implied herein include, without limitation:
(1) the economic, social and political conditions or civil unrest,
terrorist attacks, acts of war, natural disasters, other public
health concerns or unrest in international markets impacting our
business, customers, employees (including our ability to retain and
attract key personnel), manufacturing facilities, suppliers,
capital markets, financial condition, and results of operations,
all of which tend to aggravate the other risks and uncertainties we
face; (2) the impact of a number of local, regional and global
uncertainties could negatively impact our business; (3) the
negative effect of the armed conflict between Russia and Ukraine
and the Israel-Hamas war and their impact on those regions and
surrounding regions, including on our operations and on those of
our customers, suppliers, and other stakeholders; (4) our increased
reliance on third-party partners, suppliers, and distributors to
achieve our business objectives; (5) the impact of expenses
resulting from the implementation of new business strategies,
divestitures or current and proposed restructuring and optimization
activities, including changes in inventory and distribution center
changes which are complicated and involve coordination among a
number of stakeholders, including our suppliers and transportation
and logistics handlers; (6) the impact of our indebtedness and
financial leverage position on our business, financial condition,
and results of operations; (7) the impact of restrictions in our
debt instruments on our ability to operate our business, finance
our capital needs or pursue or expand business strategies; (8) any
failure to comply with financial covenants and other provisions and
restrictions of our debt instruments; (9) the effects of general
economic conditions, including the impact of, and changes to
tariffs and trade policies, inflation, recession or fears of a
recession, depression or fears of a depression, labor costs, and
stock market volatility or monetary or fiscal policies in the
countries where we do business; (10) the impact of fluctuations in
transportation and shipment costs, fuel costs, commodity prices,
costs or availability of raw materials or terms and conditions
available from suppliers, including suppliers’ willingness to
advance credit; (11) interest rate fluctuations; (12) changes in
foreign currency exchange rates that may impact our purchasing
power, pricing, and margin realization within international
jurisdictions; (13) the loss of, significant reduction in, or
dependence upon, sales to any significant retail customer(s),
including their changes in retail inventory levels and management
thereof; (14) competitive promotional activity or spending by
competitors, or price reductions by competitors; (15) the
introduction of new product features or technological developments
by competitors and/or the development of new competitors or
competitive brands; (16) changes in consumer spending preferences
and demand for our products, particularly in light of economic
stress and the COVID-19 pandemic; (17) our ability to develop and
successfully introduce new products, protect our intellectual
property and avoid infringing the intellectual property of third
parties; (18) our ability to successfully identify, implement,
achieve and sustain productivity improvements, cost efficiencies
(including at our manufacturing and distribution operations), and
cost savings; (19) the seasonal nature of sales of certain of our
products; (20) the impact weather conditions may have on the sales
of certain of our products; (21) the effects of climate change and
unusual weather activity as well as our ability to respond to
future natural disasters and pandemics and to meet our
environmental, social and governance goals; (22) the cost and
effect of unanticipated legal, tax or regulatory proceedings or new
laws or regulations (including environmental, public health, and
consumer protection regulations); (23) public perception regarding
the safety of products that we manufacture and sell, including the
potential for environmental liabilities, product liability claims,
litigation and other claims related to products manufactured by us
and third parties; (24) the impact of existing, pending or
threatened litigation, government regulation or other requirements
or operating standards applicable to our business; (25) the impact
of cybersecurity breaches or our actual or perceived failure to
protect company and personal data, including our failure to comply
with new and increasingly complex global data privacy regulations;
(26) changes in accounting policies applicable to our business;
(27) our discretion to adopt, conduct, suspend or discontinue any
share repurchase program or conduct any debt repayments,
redemptions, repurchases or refinancing transactions (including our
discretion to conduct purchases or repurchases, if any, in a
variety of manners including open-market purchases, privately
negotiated transactions, tender offers, redemptions, or otherwise);
(28) our ability to utilize net operating loss carry-forwards to
offset tax liabilities from future taxable income; (29) our ability
to successfully integrate the February 18, 2022, acquisition of the
home appliances and cookware products business acquired from
Tristar Products, Inc. (the "Tristar Business") into the Company's
Home and Personal Care ("HPC") business and realize the benefits of
this acquisition; (30) our ability to successfully integrate the
May 28, 2021 acquisition of the Rejuvenate business and tradename
from For Life Products, LLC into the Company's Home & Garden
("H&G") business and realize the benefits of this acquisition;
(31) our ability to separate the Company's HPC business and create
an independent Global Appliances business on expected terms, and
within the anticipated time period, or at all, and to realize the
potential benefits of such business; (32) our ability to create a
pure play consumer products company composed of our Global Pet Care
("GPC") and H&G business and to realize the expected benefits
of such creation, and within the anticipated time period, or at
all; (33) our ability to successfully implement further
acquisitions or dispositions and the impact of any such
transactions on our financial performance; (34) the impact of
actions taken by significant stockholders; (35) the unanticipated
loss of key members of senior management and the transition of new
members of our management teams to their new roles; and (36) the
other risk factors set forth in the securities filings of Spectrum
Brands Holdings, Inc. and SB/RH Holdings, LLC, including the 2022
Annual Report and subsequent Quarterly Reports on Form 10-Q.
Some of the above-mentioned factors are described in further
detail in the sections entitled “Risk Factors” in our annual and
quarterly reports, as applicable. You should assume the information
appearing in this document is accurate only as of the date hereof.
Except as required by applicable law, including the securities laws
of the United States and the rules and regulations of the United
States Securities and Exchange Commission, we undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, to reflect actual results or changes in factors or
assumptions affecting such forward-looking statements.
SPECTRUM BRANDS HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
INCOME (Unaudited)
Three Month Periods
Ended
Twelve Month Periods
Ended
(in millions, except per share
amounts)
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net sales
$
740.7
$
749.5
$
2,918.8
$
3,132.5
Cost of goods sold
496.3
510.0
1,994.5
2,142.1
Gross profit
244.4
239.5
924.3
990.4
Selling
143.3
139.7
544.7
597.6
General and administrative
79.0
82.2
332.4
371.4
Research and development
5.9
4.7
22.5
26.7
Gain from remeasurement of contingent
consideration liability
—
(3.5
)
(1.5
)
(28.5
)
Impairment of goodwill
—
—
111.1
—
Impairment of intangible assets
—
—
120.7
—
Total operating expenses
228.2
223.1
1,129.9
967.2
Operating income (loss)
16.2
16.4
(205.6
)
23.2
Interest expense
23.1
27.0
127.0
99.4
Interest income
(32.7
)
(0.1
)
(38.3
)
(0.6
)
Gain from debt repurchase
(7.9
)
—
(7.9
)
—
Other non-operating expense, net
3.7
6.8
3.8
14.7
Income (loss) from continuing operations
before income taxes
30.0
(17.3
)
(290.2
)
(90.3
)
Income tax (benefit) expense
(23.5
)
7.5
(56.5
)
(13.3
)
Net income (loss) from continuing
operations
53.5
(24.8
)
(233.7
)
(77.0
)
(Loss) income from discontinued
operations, net of tax
(37.1
)
39.9
2,035.6
149.7
Net income
16.4
15.1
1,801.9
72.7
Net (loss) income from continuing
operations attributable to non-controlling interest
(0.4
)
0.1
0.1
0.2
Net income from discontinued operations
attributable to non-controlling interest
—
0.2
0.3
0.9
Net income attributable to controlling
interest
$
16.8
$
14.8
$
1,801.5
$
71.6
Amounts attributable to controlling
interest
Net income (loss) from continuing
operations attributable to controlling interest
$
53.9
$
(24.9
)
$
(233.8
)
$
(77.2
)
Net (loss) income from discontinued
operations attributable to controlling interest
(37.1
)
39.7
2,035.3
148.8
Net income attributable to controlling
interest
$
16.8
$
14.8
$
1,801.5
$
71.6
Earnings Per Share
Basic earnings per share from continuing
operations
$
1.52
$
(0.61
)
$
(5.92
)
$
(1.89
)
Basic earnings per share from discontinued
operations
(1.05
)
0.97
51.57
3.64
Basic earnings per share
$
0.47
$
0.36
$
45.65
$
1.75
Diluted earnings per share from continuing
operations
$
1.50
$
(0.61
)
$
(5.92
)
$
(1.89
)
Diluted earnings per share from
discontinued operations
(1.03
)
0.97
51.57
3.64
Diluted earnings per share
$
0.47
$
0.36
$
45.65
$
1.75
Dividend per share
0.42
0.42
1.68
1.68
Weighted Average Shares
Outstanding
Basic
35.6
40.8
39.5
40.9
Diluted
35.8
40.8
39.5
40.9
SPECTRUM BRANDS HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOW (Unaudited)
Twelve Month Periods
Ended
(in millions)
September 30, 2023
September 30, 2022
Cash flows from operating
activities
Net cash provided (used) by operating
activities from continuing operations
$
8.0
$
(231.5
)
Net cash (used) provided by operating
activities from discontinued operations
(417.7
)
177.7
Net cash (used) provided by operating
activities
(409.7
)
(53.8
)
Cash flows from investing
activities
Purchases of property, plant and
equipment
(59.0
)
(64.0
)
Proceeds from disposal of property, plant
and equipment
8.4
0.2
Proceeds from sale of discontinued
operations, net of cash
4,334.7
—
Business acquisitions, net of cash
acquired
—
(272.1
)
Purchase of short term investments
(1,092.0
)
—
Other investing activity
(0.2
)
—
Net cash provided (used) by investing
activities from continuing operations
3,191.9
(335.9
)
Net cash used by investing activities from
discontinued operations
(11.8
)
(23.9
)
Net cash provided (used) by investing
activities
3,180.1
(359.8
)
Cash flows from financing
activities
Payment of debt, including premium on
extinguishment
(1,646.8
)
(12.7
)
Proceeds from issuance of debt
—
740.0
Payment of debt issuance costs
(2.3
)
(7.6
)
Treasury stock purchases
(34.7
)
(134.0
)
Accelerated share repurchase
(500.0
)
—
Dividends paid to shareholders
(66.5
)
(68.6
)
Share based award tax withholding
payments, net of proceeds upon vesting
(13.0
)
(24.5
)
Payment of contingent consideration
—
(1.9
)
Net cash (used) provided by financing
activities from continuing operations
(2,263.3
)
490.7
Net cash used by financing activities from
discontinued operations
(0.8
)
(3.1
)
Net cash (used) provided by financing
activities
(2,264.1
)
487.6
Effect of exchange rate changes on cash
and cash equivalents
3.7
(20.1
)
Net change in cash, cash equivalents and
restricted cash
510.0
53.9
Cash, cash equivalents, and restricted
cash, beginning of period
243.9
190.0
Cash, cash equivalents, and restricted
cash, end of period
$
753.9
$
243.9
SPECTRUM BRANDS HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (Unaudited)
(in millions)
September 30, 2023
September 30, 2022
Assets
Cash and cash equivalents
$
753.9
$
243.7
Short term investments
1,103.3
—
Trade receivables, net
477.1
247.4
Other receivables
84.5
95.7
Inventories
462.8
780.6
Prepaid expenses and other current
assets
44.3
51.2
Current assets of business held for
sale
—
1,816.7
Total current assets
2,925.9
3,235.3
Property, plant and equipment, net
275.1
263.8
Operating lease assets
110.8
82.5
Deferred charges and other
31.8
38.7
Goodwill
854.7
953.1
Intangible assets, net
1,060.1
1,202.2
Total assets
$
5,258.4
$
5,775.6
Liabilities and Shareholders'
Equity
Current portion of long-term debt
$
8.6
$
12.3
Accounts payable
396.6
453.1
Accrued wages and salaries
46.1
28.4
Accrued interest
20.6
27.6
Income tax payable
114.5
15.5
Other current liabilities
178.4
187.5
Current liabilities of business held for
sale
—
463.7
Total current liabilities
764.8
1,188.1
Long-term debt, net of current portion
1,546.9
3,144.5
Long-term operating lease liabilities
95.6
56.0
Deferred income taxes
174.8
60.1
Other long-term liabilities
158.0
57.8
Total liabilities
2,740.1
4,506.5
Total shareholders' equity
2,517.6
1,263.2
Noncontrolling interest
0.7
5.9
Total equity
2,518.3
1,269.1
Total liabilities and equity
$
5,258.4
$
5,775.6
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
NET SALES AND ORGANIC NET SALES
The following is a summary of net sales by segment for the three
and twelve month periods ended September 30, 2023 and September 30,
2022.
Three Month Periods
Ended
Twelve Month Periods
Ended
(in millions except %)
September 30, 2023
September 30, 2022
Variance
September 30, 2023
September 30, 2022
Variance
GPC
$
292.4
$
287.8
$
4.6
1.6
%
$
1,139.0
$
1,175.3
$
(36.3
)
(3.1
)%
H&G
125.2
116.8
8.4
7.2
%
536.5
587.1
(50.6
)
(8.6
)%
HPC
323.1
344.9
(21.8
)
(6.3
)%
1,243.3
1,370.1
(126.8
)
(9.3
)%
Net Sales
$
740.7
$
749.5
(8.8
)
(1.2
)%
$
2,918.8
$
3,132.5
(213.7
)
(6.8
)%
We define organic net sales as reported net sales excluding the
effect of changes in foreign currency exchange rates and
acquisitions. We believe this non-GAAP measure provides useful
information to investors because it reflects regional and segment
performance from our activities without the effect of changes in
currency exchange rate and/or acquisitions. We use organic net
sales as one measure to monitor and evaluate our regional and
segment performance. Organic growth is calculated by comparing
organic net sales to reported net sales in the prior year. The
effect of changes in currency exchange rates is determined by
translating the period’s net sales using the currency exchange
rates that were in effect during the prior period. Net sales are
attributed to the geographic regions based on the country of
destination. We exclude net sales from acquired businesses in the
current year for which there are no comparable sales in the prior
period. The following is a reconciliation of reported sales to
organic sales for the three and twelve month periods ended
September 30, 2023 compared to reported net sales for the three and
twelve month periods ended September 30, 2022.
September 30, 2023
Three Month Periods Ended
(in millions, except %)
Net Sales
Effect of Changes in
Currency
Organic Net Sales
Net Sales September 30,
2022
Variance
GPC
$
292.4
$
(6.5
)
$
285.9
$
287.8
$
(1.9
)
(0.7
)%
H&G
125.2
—
125.2
116.8
8.4
7.2
%
HPC
323.1
(4.8
)
318.3
344.9
(26.6
)
(7.7
)%
Total
$
740.7
$
(11.3
)
$
729.4
$
749.5
$
(20.1
)
(2.7
)%
September 30, 2023
Twelve Month Periods Ended
(in millions, except %)
Net Sales
Effect of Changes in
Currency
Net Sales Excluding Effect of
Changes in Currency
Effect of Acquisitions
Organic Net Sales
Net Sales September 30,
2022
Variance
GPC
$
1,139.0
$
14.1
$
1,153.1
$
—
$
1,153.1
$
1,175.3
$
(22.2
)
(1.9
)%
H&G
536.5
—
536.5
—
536.5
587.1
(50.6
)
(8.6
)%
HPC
1,243.3
36.9
1,280.2
(89.9
)
1,190.3
1,370.1
(179.8
)
(13.1
)%
Total
$
2,918.8
$
51.0
$
2,969.8
$
(89.9
)
$
2,879.9
$
3,132.5
$
(252.6
)
(8.1
)%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA
MARGIN
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation,
Amortization) is a non-GAAP metric used by management that we
believe provides useful information to investors because it
reflects ongoing operating performance and trends of our segments
excluding certain non-cash based expenses and/or non-recurring
items during each of the comparable periods and facilitates
comparisons between peer companies since interest, taxes,
depreciation and amortization can differ greatly between
organizations as a result of differing capital structures and tax
strategies. Further, adjusted EBITDA is a measure used for
determining the Company’s debt covenant. EBITDA is calculated by
excluding the Company’s income tax expense, interest expense,
depreciation expense and amortization expense (from intangible
assets) from net income. Adjusted EBITDA further excludes the
following:
- Share based compensation costs consist of costs associated with
long-term compensation arrangements that generally consist of
non-cash, stock-based compensation;
- Incremental amounts attributable to strategic transactions and
business development initiatives including, but not limited to, the
acquisition or divestitures of a business, costs to effect and
facilitate a transaction, including such cost to integrate or
separate the respective business. These amounts are excluded from
our performance metrics as they are reflective of incremental
investment by the Company towards business development activities,
incremental costs attributable to such transactions and are not
considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Incremental amounts realized towards restructuring and
optimization projects including, but not limited to, costs towards
the development and implementation of strategies to optimize
operations and improve efficiency, reduce costs, increase revenues,
increase or maintain our current profit margins, including
recognition of one-time exit or disposal costs. These amounts are
excluded from our ongoing performance metrics as they are
reflective of incremental investment by the Company towards
significant initiatives controlled by management, incremental costs
directly attributable to such initiatives, indirect impact or
disruption to operating performance during implementation, and are
not considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Unallocated shared costs associated with discontinued
operations from certain shared and center-led administrative
functions the Company's business units excluded from income from
discontinued operations as they are not a direct cost of the
discontinued business but a result of indirect allocations,
including but not limited to, information technology, human
resources, finance and accounting, supply chain, and commercial
operations. Amounts attributable to unallocated shared costs would
be mitigated through subsequent strategic or restructuring
initiatives, TSAs, elimination of extraneous costs, or
re-allocations or absorption of existing continuing operations
following the completed sale of the discontinued operations;
- Non-cash purchase accounting adjustments recognized in earnings
from continuing operations subsequent to an acquisition, including,
but not limited to, the costs attributable to the step-up in
inventory value and the incremental value in operating lease assets
with below market rent, among others;
- Non-cash asset impairments or write-offs realized and
recognized in earnings from continuing operations, including
impairments from property, plant and equipment, operating and
finance leases, and goodwill and other intangible assets;
- Non-cash gain from the remeasurement of the contingent
consideration liability associated with the Tristar Business
acquisition, recognized during the years ended September 30, 2023
and 2022;
- Non-cash gain realized from the repurchase of debt obligations
at a discount, net deferred financing costs, during the three and
twelve month periods ended September 30, 2023.
- Incremental reserves for non-recurring litigation or
environmental remediation activity including the proposed
settlement of outstanding litigation at our H&G and HPC
segments attributable to significant and unusual nonrecurring
matters with no previous history or precedent recognized during the
three and twelve month periods ended September 30, 2023 and
2022;
- Impact from the early settlement of foreign currency cash flow
hedges in the prior year, resulting in subsequent assumed losses at
the original stated maturities of foreign currency cash flow hedges
in our EMEA region that were settled early due to changes in the
Company's legal entity organizational structure and forecasted
purchasing strategy of HPC finished goods inventory within the
region, resulting in the recognition of excluded gains during the
year ended September 30, 2022 intended to mitigate costs through
the year ending September 30, 2023;
- Incremental costs recognized by the HPC segment during the
three month and twelve month periods ended September 30, 2023 for
the approved disposal of select product SKUs and models associated
with the acquired brands from the Tristar Business acquisition
after assessing, among other things, performance and quality
standards and the business risks associated with the continued
support and distribution such products. HPC management has
suspended further sale of the selected products as part of a shift
in its strategy of distribution and development within its brand
portfolio and avoid deterioration and further reduction in the
value of acquired brands and supported products;
- Incremental costs recognized by the HPC segment attributable to
the realization of product recalls initiated by the Company with
costs realized during the years ended September 30, 2023 and
2022;
- Other adjustments primarily attributable to (1) costs
associated with Salus as they are not considered a component of the
continuing commercial products company; (2) key executive severance
related costs; (3) asset write-off for exit of certain GPC brands
within China during year ended September 30, 2022, and (4)
write-off of cost based investment previously held by the GPC
segment during the year ended September 30, 2022.
Adjusted EBITDA margin is calculated as adjusted EBITDA as a
percentage of reported net sales for the respective periods.
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA for the three month
period ended September 30, 2023, including the calculation of
adjusted EBITDA margin.
Three Month Period Ended September 30,
2023
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
42.7
$
15.7
$
(17.6
)
$
12.7
$
53.5
Income tax benefit
—
—
—
(23.5
)
(23.5
)
Interest expense
—
—
—
23.1
23.1
Depreciation
3.6
1.8
2.9
4.4
12.7
Amortization
5.6
2.9
2.4
—
10.9
EBITDA
51.9
20.4
(12.3
)
16.7
76.7
Share based compensation
—
—
—
4.7
4.7
Tristar Business integration
—
—
0.8
—
0.8
HHI divestiture
—
—
—
1.5
1.5
HPC separation initiatives
—
—
—
0.2
0.2
Fiscal 2023 restructuring initiatives
0.6
—
1.5
—
2.1
Fiscal 2022 restructuring initiatives
(0.4
)
—
—
—
(0.4
)
Global ERP transformation
—
—
—
2.8
2.8
Russia closing initiatives
—
—
0.2
—
0.2
HPC brand portfolio transitions
—
—
0.4
—
0.4
Other project costs
0.2
0.5
1.4
0.2
2.3
Impairment of equipment and operating
lease assets
1.2
0.1
1.5
—
2.8
Non-cash purchase accounting
adjustments
—
—
0.5
—
0.5
Gain from debt repurchase
—
—
—
(7.9
)
(7.9
)
Legal and environmental
—
—
1.5
—
1.5
Early settlement of foreign currency cash
flow hedges
—
—
0.3
—
0.3
HPC product disposal
—
—
20.6
—
20.6
HPC product recall
—
—
3.9
—
3.9
Salus and other adjustments
—
—
—
0.7
0.7
Adjusted EBITDA
$
53.5
$
21.0
$
20.3
$
18.9
$
113.7
Net sales
$
292.4
$
125.2
$
323.1
$
—
$
740.7
Adjusted EBITDA margin
18.3
%
16.8
%
6.3
%
—
15.4
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net (loss) income
from continuing operations to adjusted EBITDA for the three month
period ended September 30, 2022, including the calculation of
adjusted EBITDA margin.
Three Month Period Ended September 30,
2022
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
25.9
$
6.5
$
13.1
$
(70.3
)
$
(24.8
)
Income tax expense
—
—
—
7.5
7.5
Interest expense
—
—
—
27.0
27.0
Depreciation
3.7
1.8
3.2
3.6
12.3
Amortization
5.5
2.8
2.1
—
10.4
EBITDA
35.1
11.1
18.4
(32.2
)
32.4
Share based compensation
—
—
—
(1.3
)
(1.3
)
Tristar Business integration
—
—
4.3
—
4.3
Rejuvenate integration
—
(0.2
)
—
—
(0.2
)
Armitage integration
0.1
—
—
—
0.1
Omega production integration
3.1
—
—
—
3.1
HHI divestiture
—
—
—
0.2
0.2
HPC separation initiatives
—
—
—
3.7
3.7
Coevorden operations divestiture
1.5
—
—
—
1.5
Fiscal 2022 restructuring initiatives
0.5
0.1
1.1
—
1.7
Global ERP transformation
—
—
—
3.7
3.7
GPC distribution center transition
7.5
—
—
—
7.5
Global productivity improvement
program
—
—
(0.2
)
0.1
(0.1
)
Russia closing initiatives
(0.2
)
—
(2.0
)
—
(2.2
)
HPC brand portfolio transitions
—
—
0.9
—
0.9
Other project costs
(0.1
)
—
(0.1
)
1.6
1.4
Unallocated shared costs
—
—
—
6.8
6.8
Non-cash purchase accounting
adjustments
—
—
0.5
—
0.5
Legal and environmental
—
2.0
—
—
2.0
Early settlement of foreign currency cash
flow hedges
—
—
3.1
—
3.1
Gain from remeasurement of contingent
consideration liability
—
—
(3.5
)
—
(3.5
)
HPC product recall
—
—
5.5
—
5.5
Salus and other adjustments
0.9
0.1
—
2.6
3.6
Adjusted EBITDA
$
48.4
$
13.1
$
28.0
$
(14.8
)
$
74.7
Net sales
$
287.8
$
116.8
$
344.9
$
—
$
749.5
Adjusted EBITDA margin
16.8
%
11.2
%
8.1
%
—
%
10.0
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA for the twelve month
period ended September 30, 2023, including the calculation of
adjusted EBITDA margin.
Twelve Month Period Ended September 30,
2023
(in millions, except for %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
134.0
$
(5.0
)
$
(215.8
)
$
(146.9
)
$
(233.7
)
Income tax benefit
—
—
—
(56.5
)
(56.5
)
Interest expense
—
—
—
127.0
127.0
Depreciation
15.2
7.3
11.8
14.6
48.9
Amortization
22.2
11.5
8.6
—
42.3
EBITDA
171.4
13.8
(195.4
)
(61.8
)
(72.0
)
Share based compensation
—
—
—
17.2
17.2
Tristar Business integration
—
—
11.5
—
11.5
HHI divestiture
—
—
—
8.4
8.4
HPC separation initiatives
—
—
—
4.2
4.2
Coevorden operations divestiture
2.7
—
—
—
2.7
Fiscal 2023 restructuring initiatives
3.0
—
4.4
—
7.4
Fiscal 2022 restructuring initiatives
(0.3
)
0.2
—
0.5
0.4
Global ERP transformation
—
—
—
11.4
11.4
Russia closing initiatives
—
—
3.2
—
3.2
HPC brand portfolio transitions
—
—
2.5
—
2.5
Other project costs
1.3
2.5
2.3
5.1
11.2
Impairment of equipment and operating
lease assets
9.0
0.1
1.7
—
10.8
Impairment of goodwill
—
—
111.1
—
111.1
Impairment of intangible assets
—
56.0
64.7
—
120.7
Unallocated shared costs
—
—
—
18.0
18.0
Non-cash purchase accounting
adjustments
—
—
1.9
—
1.9
Gain from remeasurement of contingent
consideration liability
—
—
(1.5
)
—
(1.5
)
Gain from debt repurchase
—
—
—
(7.9
)
(7.9
)
Legal and environmental
—
(0.2
)
3.2
—
3.0
Early settlement of foreign currency cash
flow hedges
—
—
4.9
—
4.9
HPC product disposal
—
—
20.6
—
20.6
HPC product recall
—
—
7.7
—
7.7
Salus and other adjustments
3.5
0.1
0.3
1.7
5.6
Adjusted EBITDA
$
190.6
$
72.5
$
43.1
$
(3.2
)
$
303.0
Net sales
$
1,139.0
$
536.5
$
1,243.3
$
—
$
2,918.8
Adjusted EBITDA margin
16.7
%
13.5
%
3.5
%
$
—
10.4
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA for the twelve month
period ended September 30, 2022, including the calculation of
adjusted EBITDA margin.
Twelve Month Period Ended September 30,
2022
(in millions, except for %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
75.2
$
57.2
$
25.4
$
(234.8
)
$
(77.0
)
Income tax benefit
—
—
—
(13.3
)
(13.3
)
Interest expense
—
—
—
99.4
99.4
Depreciation
14.8
7.2
12.4
14.6
49.0
Amortization
22.6
11.4
16.3
—
50.3
EBITDA
112.6
75.8
54.1
(134.1
)
108.4
Share based compensation
—
—
—
10.2
10.2
Tristar Business acquisition and
integration
—
—
24.3
—
24.3
Rejuvenate integration
—
6.8
—
—
6.8
Armitage integration
1.4
—
—
—
1.4
Omega production integration
4.6
—
—
—
4.6
HHI divestiture
—
—
—
6.3
6.3
HPC separation initiatives
—
—
—
19.1
19.1
Coevorden operations divestiture
8.8
—
—
—
8.8
Fiscal 2022 restructuring initiatives
3.6
0.7
4.9
0.6
9.8
Global ERP transformation
—
—
—
13.1
13.1
GPC distribution center transition
35.8
—
—
—
35.8
Global productivity improvement
program
0.8
—
2.4
1.9
5.1
Russia closing initiatives
—
—
1.9
—
1.9
HPC brand portfolio transitions
—
—
1.3
—
1.3
Other project costs
0.1
—
0.5
11.5
12.1
Unallocated shared costs
—
—
—
27.6
27.6
Non-cash purchase accounting
adjustments
—
—
8.3
—
8.3
Legal and environmental
—
1.5
—
—
1.5
Gain from remeasurement of contingent
consideration liability
—
—
(28.5
)
—
(28.5
)
Early settlement of foreign currency cash
flow hedges
—
—
(5.1
)
—
(5.1
)
HPC product recall
—
—
5.5
—
5.5
Salus and other adjustments
0.9
1.4
—
2.5
4.8
Adjusted EBITDA
$
168.6
$
86.2
$
69.6
$
(41.3
)
$
283.1
Net sales
$
1,175.3
$
587.1
$
1,370.1
$
—
$
3,132.5
Adjusted EBITDA margin
14.3
%
14.7
%
5.1
%
—
9.0
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED DILUTED EPS
We define adjusted diluted EPS as reported diluted EPS excluding
the effect of one-time, non-recurring activity and volatility
associated with our income tax expense. The Company believes that
adjusted diluted EPS provides further insight and comparability in
operating performance as it eliminates the effects of certain items
that are not comparable from one period to the next. Adjustments to
diluted EPS include the following:
- Incremental amounts attributable to strategic transactions and
business development initiatives including, but not limited to, the
acquisition or divestitures of a business, costs to effect and
facilitate a transaction, including such cost to integrate or
separate the respective business. These amounts are excluded from
our performance metrics as they are reflective of incremental
investment by the Company towards business development activities,
incremental costs attributable to such transactions and are not
considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Incremental amounts realized towards restructuring and
optimization projects including, but not limited to, costs towards
the development and implementation of strategies to optimize
operations and improve efficiency, reduce costs, increase revenues,
increase or maintain our current profit margins, including
recognition of one-time exit or disposal costs. These amounts are
excluded from our ongoing performance metrics as they are
reflective of incremental investment by the Company towards
significant initiatives controlled by management, incremental costs
directly attributable to such initiatives, indirect impact or
disruption to operating performance during implementation, and are
not considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Unallocated shared costs associated with discontinued
operations from certain shared and center-led administrative
functions the Company's business units excluded from income from
discontinued operations as they are not a direct cost of the
discontinued business but a result of indirect allocations,
including but not limited to, information technology, human
resources, finance and accounting, supply chain, and commercial
operations. Amounts attributable to unallocated shared costs would
be mitigated through subsequent strategic or restructuring
initiatives, TSAs, elimination of extraneous costs, or
re-allocations or absorption of existing continuing operations
following the completed sale of the discontinued operations.
- Non-cash purchase accounting adjustments recognized in earnings
from continuing operations subsequent to an acquisition, including,
but not limited to, the costs attributable to the step-up in
inventory value and the incremental value in operating lease assets
with below market rent, among others;
- Non-cash asset impairments or write-offs realized and
recognized in earnings from continuing operations, including
impairments from property, plant and equipment, operating and
finance leases, and goodwill and other intangible assets;
- Non-cash gain from the remeasurement of the contingent
consideration liability associated with the Tristar Business
acquisition, recognized during the years ended September 30, 2023
and 2022;
- Non-cash gain realized from the repurchase of debt obligations
at a discount, net deferred financing costs, during the three and
twelve month periods ended September 30, 2023;
- Incremental reserves for non-recurring litigation or
environmental remediation activity including the proposed
settlement of outstanding litigation at our H&G and HPC
segments attributable to significant and unusual nonrecurring
matters with no previous history or precedent recognized during the
three and twelve month periods ended September 30, 2023 and
2022.
- Impact from the early settlement of foreign currency cash flow
hedges in the prior year, resulting in subsequent assumed losses at
the original stated maturities of foreign currency cash flow hedges
in our EMEA region that were settled early due to changes in the
Company's legal entity organizational structure and forecasted
purchasing strategy of HPC finished goods inventory within the
region, resulting in the recognition of excluded gains during the
year ended September 30, 2022 intended to mitigate costs through
the year ending September 30, 2023;
- Incremental costs recognized by the HPC segment attributable to
the realization of product recalls initiated by the Company with
costs realized during the three and twelve month periods ended
September 30, 2023 and 2022;
- Incremental costs recognized by the HPC segment during the year
ended September 30, 2023 for the approved disposal of select
product SKUs and models associated with the acquired brands from
the Tristar Business acquisition after assessing, among other
things, performance and quality standards and the business risks
associated with the continued support and distribution such
products. HPC management has suspended any further sale of the
selected products as part of a shift in its strategy of
distribution and development within its brand portfolio and avoid
deterioration and further reduction in the value of acquired brands
and supported products;
- Incremental interest costs realized during the three and twelve
month period ended September 30, 2023 for fees paid towards the
amendment to the credit agreement to temporarily increase the
maximum consolidated leverage ratio and incremental cost from the
write-off of debt issuance costs for the early extinguishment of
debt and termination of the incremental revolver after the closing
of the HHI divestiture;
- Other adjustments are primarily attributable to (1) costs
associated with Salus as they are not considered a component of the
continuing commercial products company and (2) key executive
severance related costs, (3) asset write-off for exit of certain
GPC brands within China during the three and twelve month period
ended September 30, 2022, and (4) write-off of cost based
investment previously held by the GPC segment during the three and
twelve month period ended September 30, 2022; and
- Income tax adjustment to diluted EPS is to exclude the impact
of adjusting the valuation allowance against deferred taxes and
other tax related items in order to reflect a normalized ongoing
effective tax rate of 25.0% based upon enacted corporate tax rate
in the United States.
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED DILUTED EPS
The following is a reconciliation of reported diluted EPS from
continuing operations to adjusted diluted EPS for the three and
twelve month periods ended September 30, 2023 and September 30,
2022.
Three Month Period
Ended
Twelve Month Period
Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Diluted EPS from continuing operations, as
reported
$
1.50
$
(0.61
)
$
(5.92
)
$
(1.89
)
Adjustments:
Tristar Business acquisition and
integration
0.02
0.11
0.29
0.59
Rejuvenate integration
—
—
—
0.17
Armitage integration
—
—
—
0.04
Omega production integration
—
0.08
—
0.11
HHI divestiture
0.04
0.01
0.21
0.15
HPC separation initiatives
—
0.09
0.11
0.47
Coevorden operations divestiture
—
0.04
0.07
0.21
Fiscal 2023 restructuring initiatives
0.06
—
0.19
—
Fiscal 2022 restructuring initiatives
(0.01
)
0.04
0.01
0.24
Global ERP transformation
0.08
0.09
0.29
0.32
GPC distribution center transition
—
0.19
—
0.88
Global productivity improvement
program
—
—
—
0.13
Russia closing initiatives
0.01
(0.05
)
0.08
0.05
HPC brand portfolio transitions
0.01
0.02
0.06
0.03
Other project costs
0.02
0.03
0.20
0.30
Impairment of equipment and operating
lease assets
0.08
—
0.27
—
Impairment of goodwill
—
—
2.82
—
Impairment of intangible assets
—
—
3.06
—
Unallocated shared costs
—
0.17
0.46
0.67
Non-cash purchase adjustments
0.01
0.01
0.05
0.20
Gain from remeasurement of contingent
consideration liability
—
(0.09
)
(0.04
)
(0.70
)
Gain from debt repurchase
(0.22
)
—
(0.20
)
—
Legal and environmental
0.04
0.05
0.08
0.04
Early settlement on foreign currency cash
flow hedges
0.01
0.08
0.13
(0.13
)
HPC product disposal
0.58
—
0.52
—
HPC product recall
0.11
0.14
0.20
0.13
Debt refinancing costs
0.06
—
0.33
—
Salus and other
0.06
0.08
0.22
0.12
Total pre-tax adjustments
0.96
1.09
9.41
4.02
Income tax adjustment
(1.10
)
—
(1.96
)
(0.77
)
Total adjustments
(0.14
)
1.09
7.45
3.25
Diluted EPS from continuing operations, as
adjusted
$
1.36
$
0.48
$
1.53
$
1.36
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231116206347/en/
Investor/Media Contact: Faisal Qadir
608-278-6207
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