Spectrum Brands Holdings, Inc. · NYSE:SPB

Spectrum Brands — FY2017 Earnings Presentation

29 slides from Spectrum Brands's earnings presentation, Nov 16, 2017

  1. Slide 1: Fiscal 2017 Full Year and Fourth Quarter Earnings Call

    Global Batteries & Appliances Pet, Home Fiscal 2017 Full Year and & Garden Fourth Quarter Earnings Call Hardware & November 16, 2017 Home Improvement Global Auto Care

  2. Slide 2: Agenda

    Agenda  Introduction Dave Prichard Vice President, Investor Relations  FY17 Highlights and Andreas Rouvé FY18 Outlook Chief Executive Officer  Financial and Doug Martin Business Unit Review Chief Financial Officer  Q&A Andreas Rouvé Doug Martin 2

  3. Slide 3: Forward-Looking Statements

    Forward-Looking Statements Certain matters discussed in this presentation, with the exception of historical matters, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding our

  4. Slide 4: Reconciliation of Non-GAAP Financial Measurements

    Reconciliation of Non-GAAP Financial Measurements Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this presentation, including the table

  5. Slide 5: FY17 Highlights and FY18 Outlook

    Global Batteries & Appliances Pet, Home FY17 Highlights and & Garden FY18 Outlook Hardware & Home Improvement Andreas Rouvé Chief Executive Officer Global Auto Care

  6. Slide 6: FY17 Highlights

    FY17 Highlights  Finished a challenging FY17 with solid Q4 performance • Organic sales grew 3.1% net of acquisitions and the favorable currency impact; excluding the exit of low-margin, non-strategic business, sales growth was 4.2% • Organic adjusted EBITDA grew 5% with margin expansion of 50 basis

  7. Slide 7: FY18 Outlook

    FY18 Outlook  We are optimistic about delivering organic net sales and adjusted EBITDA growth in FY18 and have guided to another record year of adjusted free cash flow  Growth driven by focus to have our superior quality and superior value products wherever and however the consumer chooses to shop

  8. Slide 8: Financial and Business Unit Review

    Global Batteries & Appliances Pet, Home Financial and & Garden Business Unit Review Hardware & Home Improvement Doug Martin Chief Financial Officer Global Auto Care

  9. Slide 9: Financial Review (1/2)

    Financial Review (1/2)  Q4 reported net sales of $1.32 billion increased 5.8%  Organic net sales grew 3.1%, excluding favorable Fx of $12.4 million and acquisition sales of $20.8 million, and also including the negative impact from planned exits of unprofitable businesses of approximately $14 mill

  10. Slide 10: Financial Review (2/2)

    Financial Review (2/2)  FY17 reported interest expense of $211 million decreased $39 million from $250 million last year driven by the benefits of our 4% Euro-denominated notes issued last September and repricing of U.S. term loans in October 2016 and again in April of 2017, partially offset by int

  11. Slide 11: Global Auto Care

    Global Auto Care  Q4 reported net sales grew 1.9% against solid growth last year driven by improvement in Europe and Asia- Pacific  U.S. revenues essentially unchanged as higher appearance product sales were offset by lower refrigerant revenues primarily due to cooler weather and tighter auto reta

  12. Slide 12: Hardware & Home Improvement

    Hardware & Home Improvement  Strong Q4 reported net sales and adjusted EBITDA increases of 6.3% and 10.6%, respectively, resulting in an 80 basis point reported margin improvement to 21.9%  Solid growth in residential security and plumbing in the core U.S. business as well as in Canada  Sales neg

  13. Slide 13: Global Pet Supplies

    Global Pet Supplies  Q4 reported net sales grew 5.1% due to PetMatrix and GloFish acquisition sales of $20.8 million; organic sales fell 6.1% excluding acquisitions and favorable Fx of $2.3 million  Reported adjusted EBITDA improved 5.5% from the acquisitions with a 10 basis point reported margin

  14. Slide 14: Home and Garden

    Home and Garden  Strong double-digit Q4 growth; reported net sales and adjusted EBITDA increases of 26% and 62%, respectively, resulting in a 590 basis point reported margin improvement to 27%  Solid growth in all categories driven by favorable POS, coupled with increased replenishment orders from

  15. Slide 15: Personal Care (Remington)

    Personal Care (Remington)  Strong Q4 with growth in nearly every region; reported net sales increased 5.6% and 3.9% excluding positive Fx of $2 million  Improvement led by solid growth in the U.S. and Asia- Pacific and moderate growth in Europe and Latin America  Global e-commerce sales increased

  16. Slide 16: Small Appliances

    Small Appliances  Q4 reported net sales decreased 2.9% and 3.6% excluding favorable Fx of $1.1 million  Higher European and Latin American sales were more than offset by lower U.S. and Canadian revenues as a result of sluggish POS, increased competitor promotions and retailer adjustments  Reporte

  17. Slide 17: Global Batteries

    Global Batteries  Q4 reported net sales increased 5.6% and, excluding positive Fx of $4.5 million, organic revenues grew 3.5%  Solid growth again in Europe as well as in Latin America and Asia-Pacific; U.S. revenues were essentially unchanged including a modest positive benefit from the hurricanes

  18. Slide 18: Financial Review

    Financial Review  Strong liquidity position at the end of FY17  Generated record adjusted free cash flow in FY17 of $587 million, within our guidance range of $575-$590 million, primarily from strong working capital management, and surpassing FY16 adjusted free cash flow of $535 million and FY15 a

  19. Slide 19: FY18 Guidance

    FY18 Guidance  Reported net sales expected to grow above category rates for most categories, including the anticipated positive impacts from Fx of approximately 160-180 basis points based on current rates  Expect to deliver record adjusted free cash flow between $620-$640 million: • Full-year inte

  20. Slide 20: Questions and Answers

    Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care

  21. Slide 21: Appendix

    Global Batteries & Appliances Pet, Home & Garden Appendix Hardware & Home Improvement Global Auto Care

  22. Slide 22: Consolidated Statements of Income (unaudited)

    SPECTRUM BRANDS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) Thre e Mont h P e riod E nde d Twe lve Mont h P e riod E nde d (in millions, e xc e pt pe r sha re a mount s) S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 N

  23. Slide 23: Consolidated Statements of Cash Flow (unaudited)

    SPECTRUM BRANDS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) Twe lve Mont h P e riod E nde d (in millions) S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 Ca sh flows from ope ra t ing a c t ivit ie s Net income $ 297.1 $ 357.6 Adjustments to reconcile net income to net ca

  24. Slide 24: Consolidated Statements of Financial Position (unaudited)

    SPECTRUM BRANDS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited) (in millions) S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 Asse t s Cash and cash equivalents $ 168.2 $ 275.3 Trade receivables, net 526.1 482.6 Other receivables 43.4 55.6 Inventories 775.5 740.6 Pre

  25. Slide 25: Reconciliation of GAAP Diluted EPS to Adjusted Diluted EPS

    SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE Thre e Mont h P e riod E nde d Twe lve Mont h P e riod E nde d S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 Dilut

  26. Slide 26: Net Sales Summary

    SPECTRUM BRANDS HOLDINGS, INC. NET SALES SUMMARY Thre e mont h pe riod e nde d Twe lve Mont h P e riod E nde d (in millions, e xc e pt % ) S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 V a ria nc e S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 V a ria nc e Consumer batteries $ 23

  27. Slide 27: Reconciliation of GAAP Net Income to Adjusted EBITDA (Q4)

    SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, ORGANIC ADJUSTED EBITDA Thre e Mont h P e riod E nde d S e pt e mbe r 3 0 , 2 0 17 (in millions) G BA HHI PET H&G G AC Corpora t e Consolida t e d Net income (loss) $ 58.2 $ 47.3 $ (5.3) $ 26

  28. Slide 28: Reconciliation of GAAP Net Income to Adjusted EBITDA (Full Year)

    SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, ORGANIC ADJUSTED EBITDA Twe lve mont h pe riod e nde d S e pt e mbe r 3 0 , 2 0 17 (in millions) G BA HHI PET H&G G AC Corpora t e Consolida t e d Net income (loss) $ 230.1 $ 184.0 $ 28.8 $ 1

  29. Slide 29: Reconciliation of GAAP Cash Flow to Adjusted Free Cash Flow

    SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP CASH FLOW FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (in millions) S e pt e mbe r 3 0 , 2 0 18 S e pt e mbe r 3 0 , 2 0 17 S e pt e mbe r 3 0 , 2 0 16 Net cash provided from operating activities $ 740 - 750 $ 665 $ 615 Cash interest cha

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