UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report:
|
July
1, 2008 (July 1, 2008)
|
||
|
(Date
of earliest event reported)
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SPECTRUM
BRANDS, INC.
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||
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(Exact
Name of Registrant as Specified in Charter)
|
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Wisconsin
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001-13615
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22-2423556
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||
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(State
or other Jurisdiction of Incorporation)
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(Commission
File No.)
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(IRS
Employer Identification No.)
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Six Concourse Parkway, Suite
3300, Atlanta, Georgia 30328
(Address
of principal executive offices, including zip code)
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(770)
829-6200
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||
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(Registrant's
telephone number, including area code)
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N/A
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||
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(Former
Name or Former Address, if Changed Since Last Report)
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Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following
provisions:
|
□
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
□
|
Soliciting
material pursuant to Rule
14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
□
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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□
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR
240.13e-4(c))
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ITEM
7.01. REGULATION FD DISCLOSURE
On May 21, 2008,
Spectrum Brands, Inc. (the “Company”) announced
that it entered into a definitive purchase agreement with Salton Inc., a
Delaware corporation, and its wholly owned subsidiary, Applica Pet Products LLC
("Applica"),
for the sale of the Company's Global Pet Business (the "Transaction").
In connection with the Transaction, the Company is disclosing certain
information concerning the Company's Global Pet Business. Attached as
Exhibit 99.1 hereto and incorporated by reference herein is a presentation of
such information.
Item 9.01. FINANCIAL
STATEMENTS AND EXHIBITS
(d) Exhibits
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99.1
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Supplemental Regulation FD
Disclosure of Spectrum Brands, Inc., dated July 1,
2008
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: July
1, 2008
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SPECTRUM
BRANDS, INC.
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||
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By:
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/s/
Anthony L. Genito
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Name:
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Anthony
L. Genito
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Title:
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Executive
Vice President,
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Chief
Financial Officer and
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|||
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Chief
Accounting Officer
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EXHIBIT INDEX
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Exhibit
|
Description
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99.1
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Supplemental Regulation FD
Disclosure of
Spectrum Brands,
Inc., dated July 1, 2008
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Exhibit
99.1
SUPPLEMENTAL
REGULATION FD DISCLOSURE
In
this supplemental disclosure, “the Company” refers to Spectrum Brands, Inc. and
its subsidiaries, unless the context otherwise requires or it is otherwise
indicated, "LTM" with respect to any date, refers to the last twelve month
period ended on such date, "EBIT" refers to earnings before interest and taxes,
"EBITDA" refers to earnings before interest, taxes, depreciation and
amortization and "UPG" refers to United Pet Group, a subsidiary of the Company,
and UPG's subsidiaries.
United Pet Group Historical
Financials (1)
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2005
(2)
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2006
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2007
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6 months ending
4/1/07
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6 months ending
3/30/08
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LTM
3/30/08
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(unaudited)
(amounts
in millions)
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||||||
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Net
Sales
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$532.4
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$543.2
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$563
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$280.2
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$290.9
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$573.7
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Cost
of Goods Sold
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299.5
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304.8
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320.0
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159.2
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169.9
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330.7
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Gross
Profit
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232.9
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238.4
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243.0
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121.0
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121.0
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243.0
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Total
Operating Expenses
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159.5
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165.6
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174.7
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89.0
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88.8
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174.5
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Non-Operating
(Income) Expense
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(1.5)
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0.6
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0.8
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0.5
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0.4
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0.7
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Adjusted
EBIT
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74.9
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72.2
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70.2
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34.2
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31.8
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67.8
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Depreciation
and Amortization
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22.1
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21.7
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22.3
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10.9
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11.1
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22.5
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Adjusted
EBITDA
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97.0
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93.9
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92.5
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45.1
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42.9
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90.3
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Capital Expenditures
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$8.2
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$13.2
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$9.0
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$4.1
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$5.2
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$10.1
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(1)
Restructuring and related charges have been excluded for all periods
presented. UPG incurred approximately $22 million, $9 million and
$0.5 million of pretax restructuring and related charges during fiscal year
2007, fiscal year 2006 and fiscal year 2005, respectively, in connection with
rationalizing its manufacturing facilities and optimizing its distribution
network.
(2)
Fiscal year 2005 results exclude certain one time charges related to the
acquisitions of UPG and Tetra Holding GmbH and its affiliates and subsidiaries
in the consumer and commercial aquatics business.
Please
see the reconciliation of Adjusted EBIT and Adjusted EBITDA, each a non-GAAP
financial measure, to GAAP numbers set forth below.
The
Company, in the preparation of special-purpose combined statements of
selected assets, selected liabilities and parent company funding of it's
operating segments, allocates the expenses of maintaining and
operating the Company's headquarters in Atlanta, Georgia. These costs
are allocated to each of the Company's operating segments based upon the
respective operating segments net sales as a percentage of the Company's
consolidated net sales and may not be reflective of the actual value of services
received by each of the operating segments. This allocation for
fiscal year 2007 with respect to the Global Pet Business was approximately $14
million.
The
Company estimates that UPG net sales for fiscal years 2002 through 2007 and LTM
3/30/08 broken out by segment were approximately (amounts in
millions):
| (unaudited) |
2002
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2003
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2004
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2005
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2006
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2007
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LTM
3/30/08
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Aquatics
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$349
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$356
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$375
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$378
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$380
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$383
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$387
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Companion
Animal
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$96
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$111
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$133
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$154
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$163
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$180
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$187
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Total
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$445
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$467
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$508
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$532
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$543
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$563
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$574
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The Company estimates that UPG capital expenditures for the fiscal years 2002
through 2004 were approximately $8.4 million, $8.7 million and $9.4 million,
respectively.
The Company estimates that international sales for the companion animal segment
have increased from approximately $.3 million in fiscal year 2006 to
approximately $2.5 million in fiscal year 2007.
United Pet Group Net
Sales by Geographic Region
In
fiscal year 2007, the Americas accounted for 60 percent of aquatics' net sales,
followed by 30 percent in Europe and 10 percent in the Pacific Rim.
The
Company estimates that UPG's $574 million in net sales for LTM 3/30/08 could be
broken out on a geographic basis as follows: approximately $128 million, or 22
percent, in Europe, approximately $405 million, or 71 percent, in the Americas
and approximately $41 million, or 7 percent, in the Pacific Rim. The
Company further estimates that, of the $574 million in net sales, the $387
million of net sales for the aquatics segment could be broken out on a
geographic basis as follows: approximately $125 million, or 32 percent, in
Europe, approximately $223 million, or 58 percent, in the Americas and
approximately $39 million, or 10 percent, in the Pacific Rim. Also,
the Company estimates that, of the $574 million in net sales, the $187 million
of net sales for the companion animal segment could be broken out as follows:
approximately $3 million, or less than 2 percent, in Europe, approximately $182
million, or 97 percent, in the Americas and approximately $2 million, or less
than 2 percent, in the Pacific Rim.
United Pet Group Customer
Relationships
The
Company estimates that UPG's top 10 customers in fiscal year 2007 accounted for
approximately 54 percent of UPG's net sales for that period.
United Pet Group
Products
In
fiscal year 2007, UPG developed 45 new products in its aquatics segment and 170
new products in its companion animal segment.
The
Company estimates that no individual raw material for UPG products represents
more than 3 percent of the cost of goods sold and no individual supplier of
materials for UPG products represents more than 7 percent of the cost of goods
sold.
Non-GAAP Financial
Measures
Within
this Supplemental Regulation FD Disclosure, reference is made to Adjusted EBIT
and Adjusted EBITDA. Adjusted EBIT and Adjusted EBITDA are metrics
used by the Company’s management and frequently used by the financial community
which provide 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 can also be a
useful measure of a company’s ability to service debt and is one of the measures
used for determining the Company’s debt covenant compliance. Adjusted
EBIT and Adjusted EBITDA exclude certain items that are unusual in nature or not
comparable from period to period. While the Company’s management
believes that Adjusted EBIT and Adjusted EBITDA 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.
Reconciliation of GAAP to
Adjusted EBITDA
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SPECTRUM
BRANDS, INC.
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||||||||||||||||
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Adjusted
EBIT and EBITDA Reconciliation
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||||||||||||||||
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for
the twelve months ended September 30, 2005
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||||||||||||||||
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(Unaudited)
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||||||||||||||||
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($
millions)
|
||||||||||||||||
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Global
Pet Supplies
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Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
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|||||||||||||
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Income
(loss) from continuing operations, net of tax
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$ | 14.8 | $ | 182.1 | $ | (155.6 | ) | $ | 41.4 | |||||||
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Income tax expense (benefit) - continuing
operations
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- | - | 21.5 | 21.5 | ||||||||||||
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Interest expense
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- | - | 134.1 | 134.1 | ||||||||||||
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Restructuring and Related charges
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8.6 | 17.7 | - | 26.3 | ||||||||||||
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Gain on Asset Sales
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- | (0.4 | ) | - | (0.4 | ) | ||||||||||
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Inventory Valuation Adjustment
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14.4 | 23.1 | - | 37.5 | ||||||||||||
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Impact of Acquistions
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37.1 | (22.7 | ) | - | 14.4 | |||||||||||
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Adjusted
EBIT
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74.9 | 199.7 | - | 274.6 | ||||||||||||
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Depreciation and Amortization
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11.6 | 57.0 | - | 68.6 | ||||||||||||
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Impact of Acquistions - Depreciation and
Amortization
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10.5 | 10.5 | - | 21.0 | ||||||||||||
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Adjusted
EBITDA
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$ | 97.0 | $ | 267.2 | $ | - | $ | 364.2 | ||||||||
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Note: Amounts
calculated prior to rounding
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||||||||||||||||
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(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
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||||||||||||||||
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(b)
adjustment reflects restricted stock amortization which is associated with
and included in restructuring and related charges. The adjustment
negates the impact of reflecting this expense
twice.
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||||||||||||||||
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SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
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for
the twelve months ended September 30, 2006
|
||||||||||||||||
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(Unaudited)
|
||||||||||||||||
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($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
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Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | (207.4 | ) | $ | (73.0 | ) | $ | (148.6 | ) | $ | (429.1 | ) | ||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | (27.2 | ) | (27.2 | ) | ||||||||||
|
Interest expense
|
- | - | 175.9 | 175.9 | ||||||||||||
|
Restructuring and Related charges
|
8.6 | 47.5 | - | 56.1 | ||||||||||||
|
Goodwill and intangibles impairment
|
270.8 | 162.2 | - | 433.0 | ||||||||||||
|
Gain on Asset Sales
|
- | (8.0 | ) | - | (8.0 | ) | ||||||||||
|
Brazilian IPI Credit
|
- | (3.7 | ) | - | (3.7 | ) | ||||||||||
|
Restricted Stock Amortization/Restructuring (b)
|
- | 0.6 | - | 0.6 | ||||||||||||
|
Inventory Valuation Adjustment
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0.2 | - | - | 0.2 | ||||||||||||
|
Prior Year Lease adjustment
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- | 1.6 | - | 1.6 | ||||||||||||
|
Adjusted
EBIT
|
72.2 | 127.2 | - | 199.4 | ||||||||||||
|
Depreciation and Amortization
|
21.7 | 61.6 | - | 83.3 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 93.9 | $ | 188.8 | $ | - | $ | 282.7 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the twelve months ended September 30, 2007
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 46.8 | $ | (291.9 | ) | $ | (311.5 | ) | $ | (556.7 | ) | |||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | 55.7 | 55.7 | ||||||||||||
|
Interest expense
|
- | - | 255.8 | 255.8 | ||||||||||||
|
Restructuring and Related charges
|
22.4 | 75.6 | - | 98.0 | ||||||||||||
|
Restricted Stock Amortization/Restructuring (b)
|
- | (9.9 | ) | - | (9.9 | ) | ||||||||||
|
Goodwill
and intanbibles impairment
|
1.0 | 361.4 | - | 362.4 | ||||||||||||
|
Transaction costs - Home & Garden Business
|
- | 3.9 | - | 3.9 | ||||||||||||
|
Brazilian IPI Credit
|
- | (8.7 | ) | - | (8.7 | ) | ||||||||||
|
Adjusted
EBIT
|
70.2 | 130.4 | - | 200.6 | ||||||||||||
|
Depreciation and Amortization
|
22.3 | 55.1 | - | 77.4 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 92.5 | $ | 185.5 | $ | - | $ | 278.0 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the six months ended April 1, 2007
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 23.3 | $ | (203.8 | ) | $ | (75.0 | ) | $ | (255.7 | ) | |||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | (57.1 | ) | (57.1 | ) | ||||||||||
|
Interest expense
|
- | - | 132.1 | 132.1 | ||||||||||||
|
Restructuring and Related charges
|
10.9 | 16.5 | - | 27.4 | ||||||||||||
|
Goodwill impairment
|
- | 214.0 | - | 214.0 | ||||||||||||
|
Transaction
costs - Home & Garden Business
|
- | 3.9 | - | 3.9 | ||||||||||||
|
Brazilian
IPI Credit
|
- | (4.2 | ) | - | (4.2 | ) | ||||||||||
|
Adjusted
EBIT
|
34.2 | 26.4 | - | 60.6 | ||||||||||||
|
Depreciation and Amortization
|
10.9 | 25.5 | - | 36.4 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 45.1 | $ | 51.9 | $ | - | $ | 97.0 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the six months ended March 30, 2008
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 30.7 | $ | 13.3 | $ | (198.0 | ) | $ | (153.9 | ) | ||||||
|
Income
tax expense (benefit) - continuing operations
|
- | - | 82.8 | 82.8 | ||||||||||||
|
Interest expense
|
- | - | 115.4 | 115.4 | ||||||||||||
|
Goodwill and intangibles impairment
|
- | 13.2 | - | 13.2 | ||||||||||||
|
Restructuring and Related charges
|
1.1 | 9.3 | - | 10.4 | ||||||||||||
|
Restricted Stock Amortization/Restructuring (b)
|
- | - | (0.2 | ) | (0.2 | ) | ||||||||||
|
Brazilian IPI Credit
|
- | (5.5 | ) | - | (5.5 | ) | ||||||||||
|
Transaction costs - Home & Garden Business
|
- | 1.5 | - | 1.5 | ||||||||||||
|
Adjusted
EBIT
|
31.8 | 31.8 | - | 63.6 | ||||||||||||
|
Depreciation and Amortization
|
11.1 | 40.6 | - | 51.7 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 42.9 | $ | 72.4 | $ | - | $ | 115.3 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
(b)
adjustment reflects restricted stock amortization which is associated with
and included in restructuring and related charges. The adjustment
negates the impact of reflecting this expense
twice.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the three months ended July 1, 2007
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 8.7 | $ | 35.7 | $ | (52.5 | ) | $ | (8.2 | ) | ||||||
|
Income
tax expense (benefit) - continuing operations
|
- | - | (6.9 | ) | (6.9 | ) | ||||||||||
|
Interest
expense
|
- | - | 59.4 | 59.4 | ||||||||||||
|
Restructuring
and Related charges
|
5.7 | 25.2 | - | 30.9 | ||||||||||||
|
Restricted
Stock Amortization/Restructuring (b)
|
- | (9.8 | ) | - | (9.8 | ) | ||||||||||
|
Brazilian IPI Credit
|
- | (2.1 | ) | - | (2.1 | ) | ||||||||||
|
Adjusted
EBIT
|
14.4 | 49.0 | - | 63.4 | ||||||||||||
|
Depreciation
and Amortization
|
5.7 | 18.6 | - | 24.3 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 20.1 | $ | 67.6 | $ | - | $ | 87.7 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
(b)
adjustment reflects restricted stock amortization which is associated with
and included in restructuring and related charges. The adjustment
negates the impact of reflecting this expense
twice.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the three months ended September 30, 2007
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 14.8 | $ | (123.7 | ) | $ | (184.0 | ) | $ | (292.9 | ) | |||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | 119.7 | 119.7 | ||||||||||||
|
Interest expense
|
- | - | 64.3 | 64.3 | ||||||||||||
|
Goodwill and intangibles impairment
|
1.0 | 147.4 | - | 148.4 | ||||||||||||
|
Restructuring and Related charges
|
5.8 | 33.9 | - | 39.7 | ||||||||||||
|
Restricted Stock Amortization/Restructuring (b)
|
- | (0.2 | ) | - | (0.2 | ) | ||||||||||
|
Brazilian IPI Credit
|
- | (2.4 | ) | - | (2.4 | ) | ||||||||||
|
Adjusted
EBIT
|
21.6 | 55.0 | - | 76.6 | ||||||||||||
|
Depreciation and Amortization
|
5.7 | 11.0 | - | 16.7 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 27.3 | $ | 66.0 | $ | - | $ | 93.3 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
(b)
adjustment reflects restricted stock amortization which is associated with
and included in restructuring and related charges. The adjustment
negates the impact of reflecting this expense
twice.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the three months ended December 30, 2007
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 16.3 | $ | 15.2 | $ | (73.6 | ) | $ | (42.1 | ) | ||||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | 16.5 | 16.5 | ||||||||||||
|
Interest expense
|
- | - | 57.1 | 57.1 | ||||||||||||
|
Restructuring and Related charges
|
0.3 | 4.7 | - | 5.0 | ||||||||||||
|
Brazilian IPI Credit
|
- | (3.6 | ) | - | (3.6 | ) | ||||||||||
|
Adjusted
EBIT
|
16.6 | 16.3 | - | 32.9 | ||||||||||||
|
Depreciation
and Amortization
|
5.5 | 10.7 | - | 16.2 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 22.1 | $ | 27.0 | $ | - | $ | 49.1 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
SPECTRUM
BRANDS, INC.
|
||||||||||||||||
|
Adjusted
EBIT and EBITDA Reconciliation
|
||||||||||||||||
|
for
the three months ended March 30, 2008
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
($
millions)
|
||||||||||||||||
|
Global
Pet Supplies
|
Global
Batteries & Personal Care, Home & Garden Business and
Corporate
|
Unallocated
Items (a)
|
Consolidated
Spectrum Brands, Inc.
|
|||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
$ | 14.4 | $ | (1.9 | ) | $ | (124.4 | ) | $ | (111.8 | ) | |||||
|
Income tax expense (benefit) - continuing
operations
|
- | - | 66.3 | 66.3 | ||||||||||||
|
Interest expense
|
- | - | 58.3 | 58.3 | ||||||||||||
|
Goodwill and intangibles impairment
|
- | 13.2 | - | 13.2 | ||||||||||||
|
Restructuring and Related charges
|
0.8 | 4.6 | - | 5.4 | ||||||||||||
|
Restricted Stock Amortization/Restructuring (b)
|
- | - | (0.2 | ) | (0.2 | ) | ||||||||||
|
Brazilian IPI Credit
|
- | (1.9 | ) | - | (1.9 | ) | ||||||||||
|
Transaction costs - Home & Garden Business
|
- | 1.5 | - | 1.5 | ||||||||||||
|
Adjusted
EBIT
|
15.2 | 15.5 | - | 30.7 | ||||||||||||
|
Depreciation and Amortization
|
5.6 | 29.9 | - | 35.5 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 20.8 | $ | 45.4 | $ | - | $ | 66.2 | ||||||||
|
Note: Amounts
calculated prior to rounding
|
||||||||||||||||
|
(a)
It is the Company's policy to record Income tax expense (benefit), and
interest expense on a consolidated basis. Accordingly, such amounts are
not reflected in the operating results of the operating
segments.
|
||||||||||||||||
|
(b)
adjustment reflects restricted stock amortization which is associated with
and included in restructuring and related charges. The adjustment
negates the impact of reflecting this expense
twice.
|
||||||||||||||||
|
(d) the
reconciliation of last twelve months (LTM) adjusted EBIT and EBITDA for
the Global Pet Supplies operating segment as of the end of the 2nd quarter
of Fiscal 2008 is as follows:
|
||||||||||||||||
|
Adjusted EBIT 3rd Quarter of Fiscal 2007
|
$ | 14.4 | ||||||||||||||
|
Adjusted EBIT 4th Quarter of Fiscal 2007
|
21.6 | |||||||||||||||
|
Adjusted EBIT 1st Quarter of Fiscal 2008
|
16.6 | |||||||||||||||
|
Adjusted EBIT 2nd Quarter of Fiscal 2008
|
15.2 | |||||||||||||||
|
LTM Adjusted EBIT as of the end of the 2nd quarter
of
Fiscal 2008
|
$ | 67.8 | ||||||||||||||
|
Adjusted EBITDA 3rd Quarter of Fiscal 2007
|
$ | 20.1 | ||||||||||||||
|
Adjusted EBITDA 4th Quarter of Fiscal 2007
|
27.3 | |||||||||||||||
|
Adjusted EBITDA 1st Quarter of Fiscal 2008
|
22.1 | |||||||||||||||
|
Adjusted EBITDA 2nd Quarter of Fiscal 2008
|
20.8 | |||||||||||||||
|
LTM Adjusted EBITDA as of the end of the 2nd quarter
of Fiscal 2008
|
$ | 90.3 | ||||||||||||||