Spectrum Brands Holdings Reports Preliminary, Unaudited Results For Fiscal 2012 and Key Metrics

  Spectrum Brands Holdings Reports Preliminary, Unaudited Results For Fiscal
  2012 and Key Metrics

             Results Meet or Exceed Full-Year Financial Guidance

          Delivered Strong Growth in Net Income and Adjusted EBITDA;
                    Fiscal 2012 Net Sales at Record Levels

Business Wire

MADISON, Wis. -- October 22, 2012

Spectrum Brands Holdings, Inc. (NYSE:SPB), a global and diversified consumer
products company with market-leading brands, today announced selected
preliminary, unaudited financial results for fiscal 2012, which ended on
September 30, 2012, and achievement of financial guidance for the 2012 fiscal
year.

  *Net income of $48.6 million in fiscal 2012 compared to a net loss of $75.2
    million in fiscal 2011.
  *Record net sales of $3.25 billion in fiscal 2012 increased 2.1 percent
    versus $3.19 billion a year ago; excluding negative foreign exchange
    impact, net sales grew 4.3 percent versus prior year.
  *Record adjusted EBITDA of $485.3 million in fiscal 2012 increased 6.2
    percent versus $457.1 million in the prior year; excluding unfavorable
    foreign exchange impact, adjusted EBITDA grew 9.7 percent versus a year
    ago.
  *Fiscal 2012 net cash provided from operating activities after purchases of
    property, plant and equipment (free cash flow) was approximately $208
    million, surpassing the Company’s goal of at least $200 million of free
    cash flow and its fiscal 2011 free cash flow of $191 million.
  *Global Batteries & Appliances segment net sales of $2.25 billion in fiscal
    2012 were essentially unchanged versus prior year; excluding negative
    foreign exchange impact, net sales grew 2.7 percent. Adjusted EBITDA of
    $307.7 million increased slightly compared with $306.9 million a year ago;
    excluding negative foreign exchange impact, adjusted EBITDA grew 6.5
    percent to $327.0 million versus prior year.
  *Global Pet Supplies segment net sales of $615.5 million in fiscal 2012
    grew 6.3 percent versus $578.9 million in fiscal 2011; excluding
    unfavorable foreign exchange impact, net sales increased 7.7 percent
    compared with the previous year. Adjusted EBITDA of $113.1 million
    increased 14.1 percent versus $99.1 million a year ago.
  *Home and Garden segment net sales of $387.0 million in fiscal 2012
    increased 9.4 percent versus $353.9 million in the prior year. Adjusted
    EBITDA of $86.9 million grew 12.0 percent compared with $77.6 million last
    year.
  *Strong liquidity position at fiscal 2012 year-end with a cash balance of
    approximately $158 million and zero cash drawn on ABL facility.
  *Total debt at fiscal 2012 year-end was approximately $1,665 million.
  *Fiscal 2012 year-end target leverage ratio (total debt to adjusted EBITDA)
    of approximately 3.4 times was achieved with cumulative Senior Secured
    Term Loan voluntary prepayments of $150 million in the fourth quarter.
  *Cash interest expense in fiscal 2012 was approximately $154 million,
    excluding the cash tender of the 12% Senior Subordinated Notes of
    approximately $25 million.

The Company issued certain preliminary, unaudited results for fiscal 2012 in
advance of its near-term plans to secure funding for its proposed $1.4 billion
cash acquisition of the Hardware & Home Improvement Group of Stanley Black &
Decker (NYSE: SWK), which was announced on October 9, 2012. Spectrum Brands
does not currently expect to update this information prior to the release of
its fiscal 2012 results.

Spectrum Brands tentatively plans to issue its fiscal 2012 full-year and
fourth quarter results after the market close on Wednesday, November 14, to be
followed by an investor conference call. Details for the conference call will
be announced in early November.

“Spectrum Brands achieved strong results in fiscal 2012, including record
sales, adjusted EBITDA and free cash flow, and met or exceeded our financial
guidance for the year,” said Dave Lumley, Chief Executive Officer of Spectrum
Brands. “In the face of extraordinary, negative foreign currency impacts,
challenging European economies, and ongoing commodity and Asian supply chain
cost increases, we delivered outstanding fiscal 2012 results. On a constant
currency basis, our fiscal 2012 net sales and adjusted EBITDA grew a solid 4
percent and 10 percent, respectively, versus last year.

“These preliminary results reflect the strength of our brands and the value
they provide to retailers and consumers, as well as our focus on operational
efficiency and execution,” Mr. Lumley said. “We look forward to announcing our
final results in November.”

About Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc.

Spectrum Brands Holdings, Inc., a member of the Russell 2000 Index,is a
global and diversified consumer products company and a leading supplier of
batteries, shaving and grooming products, personal care products, small
household appliances, specialty pet supplies, lawn & garden and home pest
control products, personal insect repellents and portable lighting. Helping to
meet the needs of consumers worldwide, the Company offers a broad portfolio of
market-leading, well-known and widely trusted brands including Rayovac®,
Remington®, Varta®, George Foreman®, Black & Decker®, Toastmaster®,
Farberware®, Tetra®, Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®,
FURminator®, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot® and Black
Flag®.Spectrum Brands Holdings' products are sold by the world's top 25
retailers and are available in more than one million stores in approximately
140 countries. Spectrum Brands Holdings generated net sales of approximately
$3.25 billion in fiscal 2012.For more information, visit
www.spectrumbrands.com.

Non-GAAP 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. For example, excluding the
impact of currency exchange rate fluctuations may provide additional
meaningful reflection of underlying business trends. In addition, within this
release, including the tables attached hereto, reference is made to adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA). See
attached Table, “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA,”
for a reconciliation of GAAP Net Income (Loss) to adjusted EBITDA for the
twelve months ended September 30, 2012 versus the twelve months ended
September 30, 2011 on a consolidated basis and for each of the Company’s
business segments. Adjusted EBITDA is a metric used by management 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 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 EBITDA excludes certain items
that are unusual in nature or not comparable from period to period. The
Company’s management believes that free cash flow is useful to both management
and investors in their analysis of the Company’s ability to service and repay
its debt and meet its working capital requirements. Free cash flow should not
be considered in isolation or as a substitute for pretax income (loss), net
income (loss), cash provided by (used in) operating activities or other
statement of operations or cash flow statement data prepared in accordance
with GAAP or as a measure of profitability or liquidity. In addition, the
calculation of free cash flow does not reflect cash used to service debt and
therefore, does not reflect funds available for investment or discretionary
uses. 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.

Preliminary Nature of Results

We have not yet finalized our financial results for our fiscal 2012 year ended
September 30, 2012. The preliminary estimated financial results described
herein are unaudited and subject to revision pending the completion of the
accounting and financial reporting processes necessary to complete our
financial closing procedures and financial statements for our fiscal 2012
year. The foregoing preliminary estimates of our financial results were
prepared by management. Management believes that such preliminary estimates
have been prepared on a reasonable basis, and such preliminary estimates are
based upon a number of assumptions, estimates and business decisions that are
inherently subject to significant business fluctuations, economic conditions
and competitive uncertainties and contingencies, many of which are beyond our
control, and represent, to the best of management’s knowledge, our expected
results. However, because this information is preliminary, it should not be
relied on as indicative of our future actual results. We do not intend to
update or otherwise revise the preliminary estimates to reflect future events.

Forward-Looking Statements

Certain matters discussed in this news release and other oral and written
statements by representatives of the Company regarding matters such as the
Company’s estimates of its unaudited fiscal 2012 results may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. We have tried, whenever possible, to identify
these statements by using words like “future,” “anticipate”, “intend,” “plan,”
“estimate,” “believe,” “expect,” “project,” “forecast,” “could,” “would,”
“should,” “will,” “may,” and similar expressions of future intent or the
negative of such terms. 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. Actual results may differ
materially as a result of (1) Spectrum Brands Holdings’ ability to manage and
otherwise comply with its covenants with respect to its significant
outstanding indebtedness, (2) our ability to finance, complete the acquisition
of, integrate, and to realize synergies from, the combined businesses of
Spectrum Brands and the Hardware & Home Improvement Group of Stanley Black &
Decker, (3) risks related to changes and developments in external competitive
market factors, such as introduction of new product features or technological
developments, development of new competitors or competitive brands or
competitive promotional activity or spending, (4) changes in consumer demand
for the various types of products Spectrum Brands Holdings offers, (5)
unfavorable developments in the global credit markets, (6) the impact of
overall economic conditions on consumer spending, (7) fluctuations in
commodities prices, the costs or availability of raw materials or terms and
conditions available from suppliers, (8) changes in the general economic
conditions in countries and regions where Spectrum Brands Holdings does
business, such as stock market prices, interest rates, currency exchange
rates, inflation and consumer spending, (9) Spectrum Brands Holdings’ ability
to successfully implement manufacturing, distribution and other cost
efficiencies and to continue to benefit from its cost-cutting initiatives,
(10) Spectrum Brands Holdings’ ability to identify, develop and retain key
employees, (11) unfavorable weather conditions and various other risks and
uncertainties, including those discussed herein and those set forth in the
securities filings of each of Spectrum Brands Holdings, Inc. and Spectrum
Brands, Inc., including each of their most recently filed Annual Report on
Form 10-K or Quarterly Reports on Form 10-Q.

Spectrum Brands Holdings also cautions the reader that its estimates of
trends, market share, retail consumption of its products and reasons for
changes in such consumption are based solely on limited data available to
Spectrum Brands Holdings and management’s reasonable assumptions about market
conditions, and consequently may be inaccurate, or may not reflect significant
segments of the retail market. Spectrum Brands Holdings also 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. Spectrum Brands
Holdings 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.

Table A
SPECTRUM BRANDS HOLDINGS, INC.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
for the twelve months ended September 30, 2012
(Unaudited)
($ in millions)
                                                                    
                Global                                                     Consolidated
                Batteries    Global     Home                 Unallocated   Spectrum
                &            Pet        and      Corporate   Items (a)     Brands
                Appliances   Supplies   Garden                             Holdings,
                                                                           Inc.
                                                                           
Net income
(loss), as      $   221.6    $  69.8    $ 70.6   $ (61.1 )   $  (252.3 )   $    48.6
adjusted (a)
                                                                           
Income tax          -           -         -        -            60.4            60.4
expense
Interest            -           -         -        -            191.9           191.9
expense
Acquisition
and
integration         14.9        5.4       2.1      8.6          -               31.1
related
charges
Restructuring
and related        7.6        10.1     0.9     1.0        -             19.6
charges
                                                                           
Adjusted EBIT       244.1       85.3      73.6     (51.5 )      -               351.5
Depreciation
and                63.6       27.7     13.3    29.2       -             133.8
amortization
(b)
                                                                           
Adjusted        $   307.7    $  113.1   $ 86.9   $ (22.4 )   $  -         $    485.3
EBITDA
                                                                           
                                                                           
Note: Amounts calculated prior to rounding
                                                                           
(a) It is the Company's policy to record Income tax expense and Interest expense on a
consolidated basis. Accordingly, such amounts are not reflected in the results of the
operating segments and presented within Unallocated Items.
(b) Included within depreciation and amortization is amortization of unearned
restricted stock compensation.


Table B
SPECTRUM BRANDS HOLDINGS, INC.
Selected Financial Data
(Unaudited)
($ millions)
                                               
for the year ended September 30, 2012
Cash                                             $ 158
                                                 
Total Debt                                       $ 1,665
                                                 
for the twelve months ended September 30, 2012
                                                 
Gross Profit                                     $ 1,116
                                                 
Capital expenditures                             $ 47
                                                 
Capital interest                                 $ 154
                                                   

Table C
SPECTRUM BRANDS HOLDINGS, INC.
Reconciliation of Cash Flow from Operating Activities to Free Cash Flow
for the twelve months ended September 30, 2012
(Unaudited)
($ millions)
                                                
Net Cash provided from Operating Activities           $     255
                                                      
Purchases of property, plant and equipment                 (47    )
                                                      
Free Cash Flow                                        $     208    

Contact:

Spectrum Brands Holdings, Inc.
Dave Prichard, 608-278-6141
 
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