SEC Filings

424B3
SPECTRUM BRANDS, INC. filed this Form 424B3 on 08/03/2016
Entire Document
 


Table of Contents

Home and Garden

 

     Three Month Period Ended                  Nine Month Period Ended               

(in millions, except %)

   July 3, 2016     June 28, 2015     Variance     July 3, 2016     June 28, 2015     Variance  

Net Sales

   $ 212.0     $ 202.3     $ 9.7         4.8   $ 414.7     $ 365.7     $ 49.0         13.4

Adjusted EBITDA

     67.0       62.4       4.6         7.4     118.3       100.0       18.3         18.3

Adjusted EBITDA Margin

     31.6     30.8     80 bps           28.5     27.3     120 bps      

Net sales for the three month period ended July 3, 2016 increased $9.7 million, or 4.8%, compared to the three month period ended June 28, 2015. The increase is attributable to increases in repellent products of $6.8 million, lawn and garden control products of $2.0 million, and household insect control products of $0.9 million. The increase across all products is driven by distribution gains with key retailers and increased retail demand of repellent products in response to the Zika virus. Net sales for the nine month period ended July 3, 2016 increased $49.0 million, or 13.4%, compared to the nine month period ended June 28, 2015. The increase is attributable to increases in repellent products of $22.0 million, lawn and garden control products of $15.7 million and household insect control products of $11.3 million. The increases are driven by distribution gains with key retailers and increased retail demand of repellent products in response to the Zika virus; coupled with warmer weather extending the outdoor season and the timing of seasonal inventory sales to retailers earlier than the prior year.

Adjusted EBITDA in the three month period ended July 3, 2016 increased $4.6 million with an improvement in Adjusted EBITDA margin of 80 bps from the three month period ended June 28, 2015. Adjusted EBITDA increased primarily due to the increase in net sales discussed above. The increase in Adjusted EBITDA margin was due to improved product mix and cost improvements. Adjusted EBITDA in the nine month period ended July 3, 2016 increased $18.3 million with an improvement in Adjusted EBITDA margin of 120 bps as compared to the nine month period ended June 28, 2015. The increase in Adjusted EBITDA is primarily due to increases in net sales discussed above. Adjusted EBITDA margin increase is due to improved product mix, and cost improvements.

Global Auto Care

 

     Three Month Period Ended                  Nine Month Period Ended               

(in millions, except %)

   July 3, 2016     June 28, 2015     Variance     July 3, 2016     June 28, 2015     Variance  

Net Sales

   $ 159.8     $ 64.4     $ 95.4         148.1   $ 353.1     $ 64.4     $ 288.7         448.3

Adjusted EBITDA

     54.2       19.2       35.0         182.3     122.0       19.2       102.8         535.4

Adjusted EBITDA Margin

     33.9     29.8     410 bps           34.6     29.8     480 bps      

Net sales for the three month period ended July 3, 2016 increased $95.4 million, which includes acquisition sales of $84.1 million, compared to the three month period ended June 28, 2015. Net sales for the nine month period ended July 3, 2016 increased $288.7 million, including $277.3 million of acquisition sales, compared to the nine month period ended June 28, 2015. For the period of May 21, 2016 through July 3, 2016, organic net sales increased $11.7 million, or 18.2%, compared to the period of May 21, 2015 through June 28, 2015, primarily driven by increased sales from A/C recharge products due to the warmer weather and the introduction of private label products with a key significant customer.

Adjusted EBITDA for the three month period ended July 3, 2016 increased $35.0 million compared to the three month period ended June 28, 2015, primarily driven by increased net sales discussed above with reduced operating expense due to cost improvements. Increase in Adjusted EBITDA margin of 410 bps is due to cost improvement and post-integration synergies. Adjusted EBITDA for the nine month period ended July 3, 2016 increased $102.8 million compared to the nine month period ended June 28, 2015 from the increase in net sales discussed above and reduction in operating expenses previously discussed. Increase in Adjusted EBITDA margin of 480 bps is due to cost improvement and post-integration synergies.

 

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