ATLANTA--(BUSINESS WIRE)--Nov. 5, 2008--Spectrum Brands, Inc.
(NYSE: SPC) (the "Company") announced today that on November 4, 2008,
it received written notice from the New York Stock Exchange (the
"NYSE") that the Company did not satisfy one of the NYSE's standards
for continued listing applicable to the Company's common stock. The
NYSE noted specifically that the Company was "below criteria" for the
NYSE's continued listing standards because both its average total
market capitalization was less than $75 million over a 30 trading-day
period and, at the same time, its stockholders' equity was less than
$75 million. As of October 31, 2008, the Company's 30 trading-day
average market capitalization was approximately $72.4 million.
Under the applicable NYSE rules, the Company has 45 calendar days
from receipt of the notice to submit a plan that demonstrates its
ability to achieve compliance with the continued listing standards
within 18 months of receipt of the notice. Upon receipt of the
Company's plan, the NYSE has 45 calendar days to review and determine
whether the Company has made a reasonable demonstration of its ability
to come into conformity with the relevant standards within the 18
month period. The NYSE will either accept the plan, at which time the
Company will be subject to ongoing monitoring for compliance with this
plan, or the NYSE will not accept the plan and the Company will be
subject to suspension and delisting proceedings. As required by the
NYSE's rules, the Company plans to notify the NYSE within 10 business
days of receipt of the non-compliance notice of the Company's intent
to submit a plan to remedy its non-compliance.
"While we are extremely disappointed in the recent performance of
our stock, which was pressured during the last few months by an
extremely volatile market as well as by the distribution of over 12
million shares held by our largest shareholder, Thomas H. Lee
Partners, a private equity firm, in conjunction with the winding down
of one of its investment funds, we do not believe that this
notification reflects the performance of our businesses," said Kent
Hussey, CEO of Spectrum Brands. "Although we are still in the process
of finalizing our full year fiscal 2008 financial results and plan to
report these results on November 11, 2008, I am pleased with the
market share gains and expanded distribution that we've been able to
achieve in our Global Batteries & Personal Care and Global Pet
Supplies Business Segments this past quarter. In addition, we ended
the fiscal year with approximately $105 million in cash and $108
million of availability on our $225 million ABL and in compliance with
the requirements under our senior and subordinated debt agreements."
If the average closing price of the Company's common stock is less
than $1.00 over a consecutive 30 trading-day period, the Company is
subject to receive a formal written notice from the NYSE regarding its
non-compliance with an additional NYSE continued listing standard (the
"Closing Price Rule"). As of October 31, 2008, the 30 trading-day
average closing share price of the Company's common stock was $1.37,
and the closing price of the Company's common stock on November 4,
2008 was $0.67. The Company believes that it will become out of
compliance with this continued listing standard unless the market
price of its common stock increases significantly in the near term. In
order to remain in compliance with the Closing Price Rule, the share
price and the consecutive 30 trading-day closing price of the
Company's common stock must be above $1.00 within six months from the
date the Company receives formal notice of non-compliance from the
NYSE. Should the Company fail to meet these standards at the
expiration of the six month period, the NYSE will commence suspension
and delisting procedures.
The Company's common stock remains listed on the NYSE under the
symbol "SPC," but will be assigned a ".BC" indicator by the NYSE to
signify that the Company is not currently in compliance with the
NYSE's continued listing standards.
About Spectrum Brands, Inc.
Spectrum Brands is a global consumer products company and a
leading supplier of consumer batteries, lawn and garden care products,
specialty pet supplies, shaving and grooming products, household
insect control products, personal care products and portable lighting.
Helping to meet the needs of consumers worldwide, included in its
portfolio of widely trusted brands are Rayovac(R), Varta(R),
Remington(R), Tetra(R), Marineland(R), Nature's Miracle(R), Dingo(R),
8-In-1(R), Spectracide(R), Schultz(R), Cutter(R), Repel(R), and
HotShot(R). Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in more
than 120 countries around the world. Headquartered in Atlanta,
Georgia, Spectrum Brands generated fiscal year 2007 net sales of $2.6
billion. The Company's stock trades on the New York Stock Exchange
under the symbol SPC.
Certain matters discussed in this news release, with the exception
of historical matters, may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are subject to a number of risks and uncertainties that
could cause results to differ materially from those anticipated as of
the date of this release. These risks and uncertainties include (1)
the risk that the NYSE notice disrupts current plans and operations;
(2) difficulty or unanticipated expenses in connection with timely
developing a plan to achieve compliance that is acceptable to the
NYSE, (3) the potential for the Company to be considered below
criteria with respect to other NYSE listing standards and (4) other
factors, which can be found in the Company's securities filings,
including the most recently filed Annual Report on Form 10-K or
Quarterly Report on Form 10-Q.
The Company cautions the reader that undue reliance should not be
placed on any forward-looking statements, which speak only as of the
date of this release. The Company undertakes no duty or responsibility
to update any of these forward-looking statements to reflect events or
circumstances after the date of this report or to reflect actual
outcomes.
CONTACT: Spectrum Brands, Inc.
Investor Contact:
Carey Phelps, 770-829-6208
DVP Investor Relations
or
Sard Verbinnen & Co for Spectrum Brands
Media Contact:
Kara Findlay, 212-687-8080 or
Matt Benson, 415-618-8750
SOURCE: Spectrum Brands, Inc.
