- Successfully Completed the Sale of HHI for $4.3 Billion in
Cash, Subject to Customary Purchase Price Adjustments
- Net Proceeds from the Transaction After Tax and Fees are
Expected to be $3.8 Billion
- Repaid $1.55 Billion of Outstanding Debt and Entered into an
Accelerated Share Repurchase Agreement for $500 Million of Its
Common Stock
- Ended the Quarter in a Net Cash Position with $2.9 Billion
of Cash and $2.1 Billion of Debt
- Net Sales Decreased 10.1% Driven by Retailer Inventory
Reduction Strategy Leading to Lower Replenishment Orders, Slower
Category POS and Unfavorable Foreign Currency, Offset by Positive
Pricing Adjustments
- Net Loss from Continuing Operations of $172.2 Million and
Adjusted EBITDA of $98.5 Million Grew 23% Year over Year, Including
$5.3 Million of Investment Income
- Maintaining Fiscal 2023 Earnings Framework and Expect Net
Sales to Decline Mid Single-Digits to Prior Year and, Excluding
Investment Income, Adjusted EBITDA to be Down Low to Mid
Single-Digits
Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or
the “Company”), a leading global branded consumer products and home
essentials company focused on driving innovation and providing
exceptional customer service, today reported results from
continuing operations for the third quarter of fiscal 2023 ended
July 2, 2023.
“I am proud of our global Spectrum Brands team for all their
efforts and tireless dedication to the Company. We have been
challenged by a number of unanticipated developments throughout
this year, including lower consumer demand resulting in significant
sales volatility to our retail customers, cooler weather in the
third quarter exacerbating this trend for our Home and Garden
business, and the DOJ lawsuit to block the sale of our HHI business
unit.“ said David Maura, Chairman and Chief Executive Officer of
Spectrum Brands.
"While we are disappointed with our top-line performance in the
quarter, I am pleased with the fact that our focus on profitability
is paying off as we exceeded third quarter EBITDA expectations,
excluding investment income. We expect some of these short-term
demand headwinds to continue in the fourth quarter and, therefore,
expect to be towards the lower end of our earnings framework,
excluding the investment income from the HHI proceeds. We also
believe there is still excess inventory in the retail channel as
well as our balance sheet, particularly in kitchen appliances.
Going into fiscal 24, one of our goals is to continue to improve
the health of our inventory."
Mr. Maura continued, "with the close of the HHI transaction, we
have become a net debt free company. Our balance sheet is stronger
than it has ever been and we have taken a major step in the
direction of becoming a faster growing, higher margin, pure play
Global Pet Care and Home & Garden company. We have also repaid
$1.6 billion of our outstanding debt and are returning capital to
shareholders through a $500 million accelerated share repurchase
program. In addition, our team is now able to refocus all their
energy on our core businesses and with the stronger balance sheet,
we believe we are very well positioned to drive long-term growth
and profitability."
Fiscal 2023 Third Quarter Highlights
Three Month Periods
Ended
(in millions, except per share and
%)
July 2, 2023
July 3, 2022
Variance
Net sales
$
735.5
$
818.0
$
(82.5
)
(10.1
)%
Gross profit
263.5
276.0
(12.5
)
(4.5
)%
Operating (loss) income
(124.7
)
38.7
(163.4
)
n/m
Net (loss) income from continuing
operations
(172.2
)
3.0
(175.2
)
n/m
Diluted earnings per share from continuing
operations
$
(4.27
)
$
0.07
$
(4.34
)
n/m
Non-GAAP Operating Metrics
Adjusted EBITDA from continuing
operations
$
98.5
$
80.1
$
18.4
23.0
%
Adjusted EPS from continuing
operations
$
0.75
$
0.54
$
0.21
38.9
%
n/m = not meaningful
- Net sales decreased 10.1% with a decrease in organic net sales
of 9.7%, excluding the impact of $3.5 million of unfavorable
foreign exchange rates. Net sales declined due to retailer
inventory management strategies and slower than expected category
POS, offset by positive pricing adjustments.
- Gross profit decreased due to reduced volume while gross profit
margin increased from the improved pricing, cost improvements, and
favorable mix.
- Operating loss increased with the recognition of a goodwill
impairment of $111.1 million, intangible asset impairment of $53.7
million and prior year gain from remeasurement of contingent gain
liability partially offset by lower distribution costs, fixed cost
reduction efforts, and reduced project spend on restructuring,
optimization and strategic transaction initiatives.
- Net loss increase and diluted earnings per share decrease from
continuing operations were primarily driven by the increase in
operating loss and interest costs.
- Adjusted EBITDA increased 23.0% and adjusted EBITDA margin
increased 360 basis points attributable to lower distribution
costs, fixed cost reduction initiatives and positive pricing
impact, partially offset by the reduction in sales volume.
- Adjusted diluted EPS increased to $0.75 per share due to higher
Adjusted EBITDA and a reduction in outstanding shares.
Fiscal 2023 Third Quarter Segment Level Data
Global Pet Care (GPC)
Three Month Periods
Ended
(in millions, except %)
July 2, 2023
July 3, 2022
Variance
Net sales
$
272.3
$
290.2
$
(17.9
)
(6.2
)%
Operating income
38.2
19.9
18.3
92.0
%
Operating income margin
14.0
%
6.9
%
710
bps
Adjusted EBITDA
$
53.6
$
40.9
$
12.7
31.1
%
Adjusted EBITDA margin
19.7
%
14.1
%
560
bps
The decrease in net sales was mainly driven by continued
softness in the global aquatics category, especially in the
subcategory of equipment and environments. Companion Animals
category grew in the EMEA and Latin America regions but declined in
North America partially due to aggressive portfolio management
which resulted in the decision to exit several non-strategic
categories. Sales in EMEA increased due to growth in Companion
Animal category driven by strong dog and cat food sales. The sales
were also helped by prior year price increases and new positive
pricing adjustments in EMEA. Organic net sales decreased 6.4%,
excluding favorable foreign currency impacts of $0.8 million.
Operating income, Adjusted EBITDA and margins increased due to
lower distribution costs compared to prior year disruptions,
positive pricing adjustments, savings from prior year cost
reduction initiatives, and additional cost reduction actions in the
current year. This was partially offset by lower volumes.
Home & Garden (H&G)
Three Month Periods
Ended
(in millions, except %)
July 2, 2023
July 3, 2022
Variance
Net sales
$
186.6
$
198.5
$
(11.9
)
(6.0
)%
Operating income
26.2
36.2
(10.0
)
(27.6
)%
Operating income margin
14.0
%
18.2
%
(420
)
bps
Adjusted EBITDA
$
38.6
$
42.8
$
(4.2
)
(9.8
)%
Adjusted EBITDA margin
20.7
%
21.6
%
(90
)
bps
The net sales decrease was primarily driven by unanticipated
adverse weather leading to lower POS and lower than expected
replenishment orders for the pest control category. Lower than
anticipated POS late in the quarter also drove retailers to
continue to be conservative with their inventory planning and to
further reduce inventory. Cleaning products sales increased by low
single digits, but the category POS remained challenged as consumer
demand for cleaning products continues to decline post COVID and
the performance in the category remains below expectations.
The lower operating income, Adjusted EBITDA and margins were
driven by the impact of the sales decline and continued inflation
partially offset by positive pricing, benefits of prior year fixed
cost restructuring and operational cost reductions from cost
improvement initiatives. Operating income was also impacted by
impairment of intangible assets.
Home & Personal Care (HPC)
Three Month Periods
Ended
(in millions, except %)
July 2, 2023
July 3, 2022
Variance
Net sales
$
276.6
$
329.3
$
(52.7
)
(16.0
)%
Operating (loss) income
(156.8
)
14.4
(171.2
)
n/m
Operating (loss) income margin
(56.7
%)
4.4
%
(6,110
)
bps
Adjusted EBITDA
$
11.4
$
3.6
$
7.8
216.7
%
Adjusted EBITDA margin
4.1
%
1.1
%
300
bps
n/m = not meaningful
The decrease in net sales is primarily due to category decline
from lower consumer demand in kitchen appliances. Sales in
International markets grew across Personal Care and Kitchen
Appliances categories. However, sales in North America were lower
due to lower consumer demand, increased competitive activities and
continued retailer inventory management. Organic net sales
decreased 14.7%, excluding unfavorable foreign currency impact of
$4.3 million.
The operating loss was driven by impairment of goodwill and
intangible assets as well as lower volume. The increase in Adjusted
EBITDA and margins is driven by cost improvement initiatives,
including reduction of operating expenses initiated in the prior
year and additional actions undertaken during the second quarter of
fiscal 23, positive pricing and favorable cost environment from
ocean freight declines. This was partially offset by unfavorable
foreign currency in LATAM and lower volume.
Liquidity and Debt
As of the end of the quarter, the Company had a cash balance of
$2,930 million and $2,101 million of debt outstanding, consisting
of $2,012 million of senior unsecured notes and $89 million of
finance leases. Subsequent to the end of the quarter, the Company
paid down an additional $450 million of senior unsecured notes,
which were callable at par.
The Company ended the quarter in a net positive cash position,
compared to a proforma net leverage of 6.3 times at the end of the
previous quarter.
Fiscal 2023 Earnings Framework
Spectrum Brands continues to expect reported net sales to
decline by mid single-digits in Fiscal 2023, with foreign exchange
expected to have a negative impact based upon current rates. Fiscal
2023 Adjusted EBITDA, excluding investment income, is expected to
decline by low to mid single-digits.
From a capital structure perspective, while we are currently in
a net cash position, the Company is targeting a long-term net
leverage ratio of 2.0 - 2.5 times after full deployment of HHI sale
proceeds.
Conference Call/Webcast Scheduled for 9:00 A.M. Eastern Time
Today
Spectrum Brands will host an earnings conference call and
webcast at 9:00 a.m. Eastern Time today, August 11, 2023. The live
webcast and related presentation slides will be available by
visiting the Event Calendar page in the Investor Relations section
of Spectrum Brands' website at www.spectrumbrands.com. Participants
may register here. Instructions will be provided to ensure
the necessary audio applications are downloaded and installed.
Users can obtain these at no charge.
A replay of the live broadcast will be accessible through the
Event Calendar page in the Investor Relations section of the
Company’s website.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings is a home-essentials company with a
mission to make living better at home. We focus on delivering
innovative products and solutions to consumers for use in and
around the home through our trusted brands. We are a leading
supplier of specialty pet supplies, lawn and garden and home pest
control products, personal insect repellents, shaving and grooming
products, personal care products, and small household appliances.
Helping to meet the needs of consumers worldwide, Spectrum Brands
offers a broad portfolio of market-leading, well-known and widely
trusted brands including Tetra®, DreamBone®, SmartBones®, Nature’s
Miracle®, 8-in-1®, FURminator®, Healthy-Hide®, Good Boy®, Meowee!®,
OmegaOne®, Spectracide®, Cutter®, Repel®, Hot Shot®, Rejuvenate®,
Black Flag®, Liquid Fence®, Remington®, George Foreman®, Russell
Hobbs®, Black+Decker®, PowerXL®, Emeril Lagasse®, and Copper Chef®.
For more information, please visit www.spectrumbrands.com. Spectrum
Brands – A Home Essentials Company™
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. Within this document, including the tables that follow,
reference is made to organic net sales, adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA), adjusted
EBITDA margin, and adjusted earnings per share (EPS). Management
believes that organic net sales provide for a more complete
understanding of underlying business trends of regional and segment
performance by excluding the impact of foreign currency exchange
fluctuations and the impact of acquisitions (when applicable) when
there is no comparable sales in the prior period. Organic sales
growth is calculated by comparing organic net sales to net sales in
the prior comparative period. The effect of changes in foreign
currency exchange rates is determined by translating the period’s
net sales using the foreign currency exchange rates that were in
effect during the prior comparative period. Adjusted EBITDA is a
metric used by management to evaluate segment performance and
frequently used by the financial community, which provides insight
into an organization’s operating trends and facilitates comparisons
between peer companies, because 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 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.
Adjusted EBITDA margin reflects adjusted EBITDA as a percentage of
net sales. Management uses adjusted diluted EPS as a useful measure
for providing further insight into our operating performance
because it eliminates the effects of certain items that are not
comparable from one period to the next. An income tax adjustment is
included in adjusted diluted EPS to exclude the impact of the
valuation allowance against deferred taxes and other tax-related
items in order to reflect a normalized ongoing effective tax rate
of 25.0%. 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. Supplemental tables
have been provided within the Appendix to this document to
demonstrate reconciliation of non-GAAP measurements to the most
comparable GAAP measure.
Forward-Looking Statements
We have made or implied certain forward-looking statements in
this document. All statements, other than statements of historical
facts included or incorporated by reference in this document,
including, without limitation, statements or expectations regarding
our business strategy, future operations, financial condition,
estimated revenues, projected costs, inventory management, earnings
power, projected synergies, prospects, plans and objectives of
management, outcome of any litigation and information concerning
expected actions of third parties are forward-looking statements.
When used in this document, the words future, anticipate, pro
forma, seek, intend, plan, envision, estimate, believe, belief,
expect, project, forecast, outlook, earnings framework, goal,
target, could, would, will, can, should, may and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words.
Since these forward-looking statements are based upon our
current expectations of future events and projections and are
subject to a number of risks and uncertainties, many of which are
beyond our control and some of which may change rapidly, actual
results or outcomes may differ materially from those expressed or
implied herein, and you should not place undue reliance on these
statements. Important factors that could cause our actual results
to differ materially from those expressed or implied herein
include, without limitation: (1) the COVID-19 pandemic, economic,
social and political conditions or civil unrest, terrorist attacks,
acts of war, natural disasters, other public health concerns or
unrest in the United States or the international markets impacting
our business, customers, employees (including our ability to retain
and attract key personnel), manufacturing facilities, suppliers,
capital markets, financial condition and results of operations, all
of which tend to aggravate the other risks and uncertainties we
face; (2) the impact of a number of local, regional and global
uncertainties could negatively impact our business; (3) the
negative effect of the armed conflict between Russia and Ukraine
and its impact on those regions and surrounding regions, including
on our operations and on those of our customers, suppliers and
other stakeholders; (4) our increased reliance on third-party
partners, suppliers and distributors to achieve our business
objectives; (5) the impact of expenses resulting from the
implementation of new business strategies, divestitures or current
and proposed restructuring and optimization activities, including
changes in inventory and distribution center changes which are
complicated and involve coordination among a number of
stakeholders, including our suppliers and transportation and
logistics handlers; (6) the impact of our indebtedness and
financial leverage position on our business, financial condition
and results of operations; (7) the impact of restrictions in our
debt instruments on our ability to operate our business, finance
our capital needs or pursue or expand business strategies; (8) any
failure to comply with financial covenants and other provisions and
restrictions of our debt instruments; (9) the effects of general
economic conditions, including the impact of, and changes to
tariffs and trade policies, inflation, recession or fears of a
recession, depression or fears of a depression, labor costs and
stock market volatility or monetary or fiscal policies in the
countries where we do business; (10) the impact of fluctuations in
transportation and shipment costs, fuel costs, commodity prices,
costs or availability of raw materials or terms and conditions
available from suppliers, including suppliers’ willingness to
advance credit; (11) interest rate fluctuations; (12) changes in
foreign currency exchange rates that may impact our purchasing
power, pricing and margin realization within international
jurisdictions; (13) the loss of, significant reduction in or
dependence upon, sales to any significant retail customer(s),
including their changes in retail inventory levels and management
thereof; (14) competitive promotional activity or spending by
competitors, or price reductions by competitors; (15) the
introduction of new product features or technological developments
by competitors and/or the development of new competitors or
competitive brands; (16) changes in consumer spending preferences
and demand for our products, particularly in light of economic
stress and the COVID-19 pandemic; (17) our ability to develop and
successfully introduce new products, protect intellectual property
and avoid infringing the intellectual property of third parties;
(18) our ability to successfully identify, implement, achieve and
sustain productivity improvements, cost efficiencies (including at
our manufacturing and distribution operations) and cost savings;
(19) the seasonal nature of sales of certain of our products; (20)
the impact weather conditions may have on the sales of certain of
our products; (21) the effects of climate change and unusual
weather activity as well as our ability to respond to future
natural disasters and pandemics and to meet our environmental,
social and governance goals; (22) the cost and effect of
unanticipated legal, tax or regulatory proceedings or new laws or
regulations (including environmental, public health and consumer
protection regulations); (23) public perception regarding the
safety of products that we manufacture and sell, including the
potential for environmental liabilities, product liability claims,
litigation and other claims related to products manufactured by us
and third parties; (24) the impact of existing, pending or
threatened litigation, government regulation or other requirements
or operating standards applicable to our business; (25) the impact
of cybersecurity breaches or our actual or perceived failure to
protect company and personal data, including our failure to comply
with new and increasingly complex global data privacy regulations;
(26) changes in accounting policies applicable to our business;
(27) our discretion to adopt, conduct, suspend or discontinue any
share repurchase program or conduct any debt repayments,
redemptions, repurchases or refinancing transactions (including our
discretion to conduct purchases or repurchases, if any, in a
variety of manners including open-market purchases, privately
negotiated transactions, tender offers, redemptions, or otherwise);
(28) our ability to utilize net operating loss carry-forwards to
offset tax liabilities; (29) our ability to successfully integrate
the February 18, 2022, acquisition of the home appliances and
cookware products business from Tristar Products, Inc. into the
Company's Home and Personal Care ("HPC") business and realize the
benefits of this acquisition; (30) our ability to successfully
integrate the May 28, 2021 acquisition of the Rejuvenate business
and tradename from For Life Products, LLC into the Company's Home
& Garden ("H&G") business and realize the benefits of this
acquisition; (31) our ability to separate the Company's HPC
business and create an independent Global Appliances business on
expected terms, and within the anticipated time period, or at all,
and to realize the potential benefits of such business; (32) our
ability to create a pure play consumer products company composed of
our Global Pet Care ("GPC") and H&G business and to realize the
expected benefits of such creation, and within the anticipated time
period, or at all; (33) our ability to successfully implement
further acquisitions or dispositions and the impact of any such
transactions on our financial performance; (34) the impact of
actions taken by significant stockholders; and (35) the
unanticipated loss of key members of senior management and the
transition of new members of our management teams to their new
roles; and (36) the other risk factors set forth in the securities
filings of Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC,
including the 2022 Annual Report and subsequent Quarterly Reports
on Form 10-Q.
Some of the above-mentioned factors are described in further
detail in the sections entitled Risk Factors in our annual and
quarterly reports, as applicable. You should assume the information
appearing in this document is accurate only as of the end of the
period covered by this document, or as otherwise specified, as our
business, financial condition, results of operations and prospects
may have changed since that date. Except as required by applicable
law, including the securities laws of the United States and the
rules and regulations of the United States Securities and Exchange
Commission , we undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise, to reflect actual results
or changes in factors or assumptions affecting such forward-looking
statements.
SPECTRUM BRANDS HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
Three Month Periods
Ended
Nine Month Periods
Ended
(in millions, except per share
amounts)
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
Net sales
$
735.5
$
818.0
$
2,178.1
$
2,383.0
Cost of goods sold
472.0
542.0
1,498.2
1,632.1
Gross profit
263.5
276.0
679.9
750.9
Selling
137.0
161.9
401.4
457.9
General and administrative
81.1
94.3
253.4
289.3
Research and development
5.3
6.1
16.6
22.0
Impairment of goodwill
111.1
—
111.1
—
Impairment of intangible assets
53.7
—
120.7
—
Gain from remeasurement of contingent
consideration liability
—
(25.0
)
(1.5
)
(25.0
)
Total operating expenses
388.2
237.3
901.7
744.2
Operating (loss) income
(124.7
)
38.7
(221.8
)
6.7
Interest expense
38.9
26.0
103.9
72.4
Interest income
(5.4
)
(0.1
)
(5.6
)
(0.5
)
Other non-operating expense, net
0.1
7.8
0.1
7.9
(Loss) income from continuing operations
before income taxes
(158.3
)
5.0
(320.2
)
(73.1
)
Income tax expense (benefit)
13.9
2.0
(33.0
)
(20.8
)
Net (loss) income from continuing
operations
(172.2
)
3.0
(287.2
)
(52.3
)
Income from discontinued operations, net
of tax
2,031.8
29.9
2,072.7
109.8
Net income
1,859.6
32.9
1,785.5
57.5
Net income from continuing operations
attributable to non-controlling interest
0.2
—
0.5
—
Net income from discontinued operations
attributable to non-controlling interest
0.2
0.2
0.3
0.7
Net income attributable to controlling
interest
$
1,859.2
$
32.7
$
1,784.7
$
56.8
Amounts attributable to controlling
interest
Net (loss) income from continuing
operations attributable to controlling interest
$
(172.4
)
$
3.0
$
(287.7
)
$
(52.3
)
Net income from discontinued operations
attributable to controlling interest
2,031.6
29.7
2,072.4
109.1
Net income attributable to controlling
interest
$
1,859.2
$
32.7
$
1,784.7
$
56.8
Earnings Per Share
Basic earnings per share from continuing
operations
$
(4.27
)
$
0.07
$
(7.06
)
$
(1.28
)
Basic earnings per share from discontinued
operations
50.34
0.73
50.87
2.67
Basic earnings per share
$
46.07
$
0.80
$
43.81
$
1.39
Diluted earnings per share from continuing
operations
$
(4.27
)
$
0.07
$
(7.06
)
$
(1.28
)
Diluted earnings per share from
discontinued operations
50.34
0.73
50.87
2.67
Diluted earnings per share
$
46.07
$
0.80
$
43.81
$
1.39
Weighted Average Shares
Outstanding
Basic
40.4
40.8
40.7
41.0
Diluted
40.4
41.0
40.7
41.0
SPECTRUM BRANDS HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (Unaudited)
Nine Month Periods
Ended
(in millions)
July 2, 2023
July 3, 2022
Cash flows from operating
activities
Net cash provided (used) by operating
activities from continuing operations
$
72.5
$
(180.8
)
Net cash provided by operating activities
from discontinued operations
31.8
42.4
Net cash provided (used) by operating
activities
104.3
(138.4
)
Cash flows from investing
activities
Purchases of property, plant and
equipment
(44.3
)
(45.3
)
Proceeds from disposal of property, plant
and equipment
3.0
0.1
Proceeds from sale of discontinued
operations, net of cash
4,334.7
—
Business acquisitions, net of cash
acquired
—
(272.1
)
Other investing activity
(0.1
)
(0.1
)
Net cash provided (used) by investing
activities from continuing operations
4,293.3
(317.4
)
Net cash used by investing activities from
discontinued operations
(11.8
)
(18.0
)
Net cash provided (used) by investing
activities
4,281.5
(335.4
)
Cash flows from financing
activities
Payment of debt
(1,141.1
)
(9.8
)
Proceeds from issuance of debt
—
775.0
Payment of debt issuance costs
(2.3
)
(7.6
)
Payment of contingent consideration
—
(1.9
)
Treasury stock purchases
—
(134.0
)
Accelerated share repurchase
(500.0
)
—
Dividends paid to shareholders
(51.6
)
(51.5
)
Share based award tax withholding
payments, net of proceeds upon vesting
(11.3
)
(24.5
)
Net cash (used) provided by financing
activities from continuing operations
(1,706.3
)
545.7
Net cash used by financing activities from
discontinued operations
(0.8
)
(2.7
)
Net cash (used) provided by financing
activities
(1,707.1
)
543.0
Effect of exchange rate changes on cash
and cash equivalents
7.8
(11.5
)
Net change in cash, cash equivalents and
restricted cash in continuing operations
2,686.5
57.7
Cash, cash equivalents, and restricted
cash, beginning of period
243.7
190.0
Cash, cash equivalents, and restricted
cash, end of period
$
2,930.2
$
247.7
SPECTRUM BRANDS HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (Unaudited)
(in millions)
July 2, 2023
September 30, 2022
Assets
Cash and cash equivalents
$
2,930.2
$
243.7
Trade receivables, net
371.0
247.4
Other receivables
100.1
95.7
Inventories
527.9
780.6
Prepaid expenses and other current
assets
51.2
51.2
Current assets of business held for
sale
—
1,816.7
Total current assets
3,980.4
3,235.3
Property, plant and equipment, net
274.7
263.8
Operating lease assets
116.7
82.5
Deferred charges and other
45.1
38.7
Goodwill
858.6
953.1
Intangible assets, net
1,078.9
1,202.2
Total assets
$
6,354.4
$
5,775.6
Liabilities and Shareholders'
Equity
Current portion of long-term debt
$
459.2
$
12.3
Accounts payable
460.6
453.1
Accrued wages and salaries
36.3
28.4
Accrued interest
34.3
27.6
Income tax payable
606.5
15.5
Other current liabilities
186.1
187.5
Current liabilities of business held for
sale
—
463.7
Total current liabilities
1,783.0
1,188.1
Long-term debt, net of current portion
1,619.2
3,144.5
Long-term operating lease liabilities
98.7
56.0
Deferred income taxes
139.6
60.1
Other long-term liabilities
154.0
57.8
Total liabilities
3,794.5
4,506.5
Shareholders' equity
2,558.7
1,263.2
Non-controlling interest
1.2
5.9
Total equity
2,559.9
1,269.1
Total liabilities and equity
$
6,354.4
$
5,775.6
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
NET SALES AND ORGANIC NET SALES
The following is a summary of net sales by segment for the three
and nine month periods ended July 2, 2023 and July 3, 2022:
(in millions, except %)
Three Month Periods
Ended
Nine Month Periods
Ended
July 2, 2023
July 3, 2022
Variance
July 2, 2023
July 3, 2022
Variance
GPC
$
272.3
$
290.2
$
(17.9
)
(6.2
)%
$
846.5
$
887.5
$
(41.0
)
(4.6
)%
H&G
186.6
198.5
(11.9
)
(6.0
)%
411.3
470.3
(59.0
)
(12.5
)%
HPC
276.6
329.3
(52.7
)
(16.0
)%
920.3
1,025.2
(104.9
)
(10.2
)%
Net Sales
$
735.5
$
818.0
(82.5
)
(10.1
)%
$
2,178.1
$
2,383.0
(204.9
)
(8.6
)%
We define organic net sales as reported net sales excluding the
effect of changes in foreign currency exchange rates and
acquisitions. We believe this non-GAAP measure provides useful
information to investors because it reflects regional and operating
segment performance from our activities without the effect of
changes in currency exchange rate and acquisitions. We use organic
net sales as one measure to monitor and evaluate our regional and
segment performance. Organic growth is calculated by comparing
organic net sales to reported net sales in the prior year. The
effect of changes in currency exchange rates is determined by
translating the current period net sales using the currency
exchange rates that were in effect during the prior period. Net
sales are attributed to the geographic regions based on the country
of destination. We exclude net sales from acquired businesses in
the current year for which there are no comparable sales in the
prior period. The following is a reconciliation of reported sales
to organic sales for the three and nine month period ended July 2,
2023 compared to reported net sales for the three and nine month
periods ended July 3, 2022:
July 2, 2023
Three Month Periods Ended
(in millions, except %)
Net Sales
Effect of Changes in
Currency
Net Sales Excluding Effect of
Changes in Currency
Effect of Acquisitions
Organic Net Sales
Net Sales July 3, 2022
Variance
GPC
$
272.3
$
(0.8
)
$
271.5
$
—
$
271.5
$
290.2
$
(18.7
)
(6.4
)%
H&G
186.6
—
186.6
—
186.6
198.5
(11.9
)
(6.0
)%
HPC
276.6
4.3
280.9
—
280.9
329.3
(48.4
)
(14.7
)%
Total
$
735.5
$
3.5
$
739.0
$
—
$
739.0
$
818.0
(79.0
)
(9.7
)%
July 2, 2023
Nine Month Periods Ended
(in millions, except %)
Net Sales
Effect of Changes in
Currency
Net Sales Excluding Effect of
Changes in Currency
Effect of Acquisitions
Organic Net Sales
Net Sales July 3, 2022
Variance
GPC
$
846.5
$
20.7
$
867.2
$
—
$
867.2
$
887.5
$
(20.3
)
(2.3
)%
H&G
411.3
(0.1
)
411.2
—
411.2
470.3
(59.1
)
(12.6
)%
HPC
920.3
41.7
962.0
(89.9
)
872.1
1,025.2
(153.1
)
(14.9
)%
Total
$
2,178.1
$
62.3
$
2,240.4
$
(89.9
)
$
2,150.5
$
2,383.0
(232.5
)
(9.8
)%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA
MARGIN
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation,
Amortization) is a non-GAAP metric used by management that we
believe provides useful information to investors because it
reflects ongoing operating performance and trends of our segments
excluding certain non-cash based expenses and non-recurring items
during each of the comparable periods 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. Further,
adjusted EBITDA is a measure used for determining the Company’s
debt covenant. EBITDA is calculated by excluding the Company’s
income tax expense, interest expense, depreciation expense and
amortization expense from intangible assets from net income.
Adjusted EBITDA further excludes the following:
- Share based compensation costs consist of costs associated with
long-term incentive compensation arrangements that generally
consist of non-cash, stock-based compensation;
- Incremental amounts attributable to strategic transactions and
business development initiatives including, but not limited to, the
acquisition or divestitures of a business, costs to effect and
facilitate a transaction, including such cost to integrate or
separate the respective business. These amounts are excluded from
our performance metrics as they are reflective of incremental
investment by the Company towards business development activities,
incremental costs attributable to such transactions and are not
considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Incremental amounts realized towards restructuring and
optimization projects including, but not limited to, costs towards
the development and implementation of strategies to optimize
operations and improve efficiency, reduce costs, increase revenues,
increase or maintain our current profit margins, including
recognition of one-time exit or disposal costs. These amounts are
excluded from our ongoing performance metrics as they are
reflective of incremental investment by the Company towards
significant initiatives controlled by management, incremental costs
directly attributable to such initiatives, indirect impact or
disruption to operating performance during implementation, and are
not considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Unallocated shared costs associated with discontinued
operations from certain shared and center-led administrative
functions the Company's business units excluded from income from
discontinued operations as they are not a direct cost of the
discontinued business but a result of indirect allocations,
including but not limited to, information technology, human
resources, finance and accounting, supply chain, and commercial
operations. Amounts attributable to unallocated shared costs would
be mitigated through subsequent strategic or restructuring
initiatives, transition services agreements, elimination of
extraneous costs, or re-allocations or absorption of existing
continuing operations following the completed sale of the
discontinued operations;
- Non-cash purchase accounting adjustments recognized in earnings
from continuing operations subsequent to an acquisition, including,
but not limited to, the costs attributable to the step-up in
inventory value and the incremental value in operating lease assets
with below market rent, among others;
- Non-cash gain from the reduction in the contingent
consideration liability associated with the Tristar Business
acquisition in the prior year;
- Non-cash asset impairments or write-offs realized and
recognized in earnings from continuing operations, including
impairments from property, plant and equipment, operating and
finance lease assets, and goodwill and other intangible
assets;
- Impact from the early settlement of foreign currency cash flow
hedges in the prior year, resulting in subsequent assumed losses at
the original stated maturities of foreign currency cash flow hedges
in our EMEA region that were settled early due to changes in the
Company's legal entity organization structure and forecasted
purchasing strategy of HPC finished goods inventory within the
region, resulting in the recognition of excluded gains in the prior
year intended to mitigate cost through the year ending September
30, 2023;
- Incremental costs recognized by the HPC segment attributable to
the realization of product recalls initiated in the prior
year;
- Incremental reserves for non-recurring litigation or
environmental remediation activity, including the proposed
settlement of outstanding litigation at our H&G and HPC
segments attributable to significant and unusual nonrecurring
claims with no previous history or precedent, and any subsequent
changes in estimate or remeasurement realized upon settlement;
and
- Other adjustments primarily attributable to (1) costs
associated with Salus as they are not considered a component of the
continuing commercial products company; (2) key executive severance
related costs; (3) insurable losses associated with hurricane
damages at a key supplier of our Glofish business and loss realized
from misapplied funds during the three and nine month period ended
July 2, 2023.
Adjusted EBITDA margin is calculated as adjusted EBITDA as a
percentage of reported net sales for the respective periods.
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA and adjusted EBITDA
margin for the three month period ended July 2, 2023.
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
38.0
$
26.2
$
(156.5
)
$
(79.9
)
$
(172.2
)
Income tax expense
—
—
—
13.9
13.9
Interest expense
—
—
—
38.9
38.9
Depreciation
4.1
1.8
2.8
3.4
12.1
Amortization
5.6
2.8
2.1
—
10.5
EBITDA
47.7
30.8
(151.6
)
(23.7
)
(96.8
)
Share based compensation
—
—
—
4.8
4.8
Tristar integration
—
—
1.0
—
1.0
HHI divestiture
—
—
—
4.0
4.0
HPC separation initiatives
—
—
—
0.5
0.5
Fiscal 2023 restructuring
0.5
—
0.4
—
0.9
Russia closing initiatives
—
—
0.2
—
0.2
Global ERP transformation
—
—
—
3.7
3.7
HPC brand portfolio transitions
—
—
0.7
—
0.7
Other project costs
0.2
—
0.7
0.3
1.2
Unallocated shared costs
—
—
—
5.3
5.3
Non-cash purchase accounting
adjustments
—
—
0.5
—
0.5
Impairment of equipment and operating
lease assets
5.2
—
(1.6
)
—
3.6
Impairment of goodwill
—
—
111.1
—
111.1
Impairment of intangible assets
—
8.0
45.7
—
53.7
Early settlement of foreign currency cash
flow hedges
—
—
0.7
—
0.7
Legal and environmental
—
(0.2
)
1.7
—
1.5
HPC product recall
—
—
1.9
—
1.9
Adjusted EBITDA
$
53.6
$
38.6
$
11.4
$
(5.1
)
$
98.5
Net sales
$
272.3
$
186.6
$
276.6
$
—
$
735.5
Adjusted EBITDA margin
19.7
%
20.7
%
4.1
%
—
13.4
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA and adjusted EBITDA
margin for the three month period ended July 3, 2022.
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
18.8
$
36.3
$
12.6
$
(64.7
)
$
3.0
Income tax expense
—
—
—
2.0
2.0
Interest expense
—
—
—
26.0
26.0
Depreciation
4.0
1.8
2.9
3.6
12.3
Amortization
5.6
2.8
4.7
—
13.1
EBITDA
28.4
40.9
20.2
(33.1
)
56.4
Share based compensation
—
—
—
(0.7
)
(0.7
)
Tristar acquisition
—
—
5.6
—
5.6
Armitage integration
0.1
—
—
—
0.1
Omega integration
0.1
—
—
—
0.1
HHI divestiture
—
—
—
0.6
0.6
HPC separation initiatives
—
—
—
10.7
10.7
Coevorden operations separation
1.9
—
—
—
1.9
Fiscal 2022 restructuring
3.1
0.6
3.7
0.7
8.1
Russia closing initiatives
(1.4
)
—
1.8
—
0.4
Global ERP transformation
—
—
—
3.4
3.4
HPC brand portfolio transition
—
—
0.3
—
0.3
GPC distribution center transition
8.4
—
—
—
8.4
Global productivity improvement
program
0.2
—
0.5
0.5
1.2
Other project costs
0.1
—
0.4
3.6
4.1
Unallocated shared costs
—
—
—
7.0
7.0
Non-cash purchase accounting
adjustments
—
—
4.3
—
4.3
Gain from remeasurement of contingent
consideration liability
—
—
(25.0
)
—
(25.0
)
Early settlement of foreign currency cash
flow hedges
—
—
(8.2
)
—
(8.2
)
Salus and other
—
1.3
—
0.1
1.4
Adjusted EBITDA
$
40.9
$
42.8
$
3.6
$
(7.2
)
$
80.1
Net Sales
$
290.2
$
198.5
$
329.3
$
—
$
818.0
Adjusted EBITDA margin
14.1
%
21.6
%
1.1
%
—
9.8
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA and adjusted EBITDA
margin for the nine month period ended July 2, 2023.
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
91.3
$
(20.8
)
$
(198.2
)
$
(159.5
)
$
(287.2
)
Income tax benefit
—
—
—
(33.0
)
(33.0
)
Interest expense
—
—
—
103.9
103.9
Depreciation
11.6
5.4
9.0
10.2
36.2
Amortization
16.6
8.6
6.2
—
31.4
EBITDA
119.5
(6.8
)
(183.0
)
(78.4
)
(148.7
)
Share based compensation
—
—
—
12.5
12.5
Tristar integration
—
—
10.7
—
10.7
HHI divestiture
—
—
—
6.9
6.9
HPC separation initiatives
—
—
—
4.0
4.0
Coevorden operations separation
2.7
—
—
—
2.7
Fiscal 2023 restructuring
2.5
—
2.8
—
5.3
Fiscal 2022 restructuring
0.1
0.2
—
0.4
0.7
Russia closing initiatives
—
—
2.9
—
2.9
Global ERP transformation
—
—
—
8.5
8.5
HPC brand portfolio transitions
—
—
2.1
—
2.1
Other project costs
1.1
2.1
0.9
4.8
8.9
Unallocated shared costs
—
—
—
18.1
18.1
Non-cash purchase accounting
adjustments
—
—
1.4
—
1.4
Gain from remeasurement of contingent
consideration liability
—
—
(1.5
)
—
(1.5
)
Impairment of equipment and operating
lease assets
7.9
—
0.2
—
8.1
Impairment of goodwill
—
—
111.1
—
111.1
Impairment of intangible assets
—
56.0
64.7
—
120.7
Early settlement of foreign currency cash
flow hedges
—
—
4.6
—
4.6
Legal and environmental
—
(0.2
)
1.7
—
1.5
HPC product recall
—
—
3.8
—
3.8
Salus and other
3.3
0.1
0.3
1.3
5.0
Adjusted EBITDA
$
137.1
$
51.4
$
22.7
$
(21.9
)
$
189.3
Net sales
$
846.5
$
411.3
$
920.3
$
—
$
2,178.1
Adjusted EBITDA margin
16.2
%
12.5
%
2.5
%
—
8.7
%
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(continued)
The following is a reconciliation of reported net income (loss)
from continuing operations to adjusted EBITDA and adjusted EBITDA
margin for the nine month period ended July 3, 2022.
(in millions, except %)
GPC
H&G
HPC
Corporate
Consolidated
Net income (loss) from continuing
operations
$
49.1
$
50.7
$
12.7
$
(164.8
)
$
(52.3
)
Income tax benefit
—
—
—
(20.8
)
(20.8
)
Interest expense
—
—
—
72.4
72.4
Depreciation
11.1
5.4
9.2
10.9
36.6
Amortization
17.1
8.6
14.2
—
39.9
EBITDA
77.3
64.7
36.1
(102.3
)
75.8
Share based compensation
—
—
—
11.4
11.4
Tristar acquisition and integration
—
—
20.0
—
20.0
Rejuvenate integration
—
7.0
—
—
7.0
Armitage integration
1.4
—
—
—
1.4
Omega integration
1.5
—
—
—
1.5
HHI divestiture
—
—
—
6.1
6.1
HPC separation initiatives
—
—
—
15.4
15.4
Coevorden operations separation
7.3
—
—
—
7.3
Fiscal 2022 restructuring
3.1
0.6
3.7
0.7
8.1
Russia closing initiatives
0.2
—
3.8
—
4.0
Global ERP transformation
—
—
—
9.4
9.4
HPC brand portfolio transitions
—
—
0.3
—
0.3
GPC distribution center transition
28.3
—
—
—
28.3
Global productivity improvement
program
0.9
—
2.5
1.8
5.2
Other project costs
0.2
—
0.6
9.9
10.7
Unallocated shared costs
—
—
—
20.7
20.7
Non-cash purchase accounting
adjustments
—
—
7.8
—
7.8
Gain from remeasurement of contingent
consideration liability
—
—
(25.0
)
—
(25.0
)
Early settlement of foreign currency cash
flow hedges
—
—
(8.2
)
—
(8.2
)
Legal and environmental
—
(0.5
)
—
—
(0.5
)
Salus and other
—
1.3
—
0.4
1.7
Adjusted EBITDA
$
120.2
$
73.1
$
41.6
$
(26.5
)
$
208.4
Net Sales
$
887.5
$
470.3
$
1,025.2
$
—
$
2,383.0
Adjusted EBITDA margin
13.5
%
15.5
%
4.1
%
—
8.7
%
ADJUSTED DILUTED EPS
We define adjusted diluted earnings per share (EPS) as reported
diluted EPS excluding the effect of one-time, non-recurring
activity and volatility associated with our income tax expense. The
Company believes that adjusted diluted EPS provides further insight
and comparability in operating performance as it eliminates the
effects of certain items that are not comparable from one period to
the next. Adjustments to diluted EPS include the following:
- Incremental amounts attributable to strategic transactions and
business development initiatives including, but not limited to, the
acquisition or divestitures of a business, costs to effect and
facilitate a transaction, including such cost to integrate or
separate the respective business. These amounts are excluded from
our performance metrics as they are reflective of incremental
investment by the Company towards business development activities,
incremental costs attributable to such transactions and are not
considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Incremental amounts realized towards restructuring and
optimization projects including, but not limited to, costs towards
the development and implementation of strategies to optimize
operations and improve efficiency, reduce costs, increase revenues,
increase or maintain our current profit margins, including
recognition of one-time exit or disposal costs. These amounts are
excluded from our ongoing performance metrics as they are
reflective of incremental investment by the Company towards
significant initiatives controlled by management, incremental costs
directly attributable to such initiatives, indirect impact or
disruption to operating performance during implementation, and are
not considered recurring or reflective of the continuing ongoing
operations of the consolidated group or segments;
- Unallocated shared costs associated with discontinued
operations from certain shared and center-led administrative
functions the Company's business units excluded from income from
discontinued operations as they are not a direct cost of the
discontinued business but a result of indirect allocations,
including but not limited to, information technology, human
resources, finance and accounting, supply chain, and commercial
operations. Amounts attributable to unallocated shared costs would
be mitigated through subsequent strategic or restructuring
initiatives, transition services agreements, elimination of
extraneous costs, or re-allocations or absorption of existing
continuing operations following the completed sale of the
discontinued operations;
- Non-cash purchase accounting adjustments recognized in earnings
from continuing operations subsequent to an acquisition, including,
but not limited to, the costs attributable to the step-up in
inventory value and the incremental value in operating lease assets
with below market rent, among others;
- Non-cash gain from the reduction in the contingent
consideration liability associated with the Tristar Business
acquisition in the prior year;
- Non-cash asset impairments or write-offs realized and
recognized in earnings from continuing operations, including
impairments from property, plant and equipment, operating and
finance lease assets, and goodwill and other intangible
assets;
- Impact from the early settlement of foreign currency cash flow
hedges in the prior year, resulting in subsequent assumed losses at
the original stated maturities of foreign currency cash flow hedges
in our EMEA region that were settled due to changes in the
Company's legal entity organization structure and forecasted
purchasing strategy of HPC finished goods inventory within the
region, resulting in the recognition of excluded gains in the prior
year intended to mitigate costs through the year ending September
30, 2023;
- Incremental costs recognized by the HPC segment attributable to
the realization of product recalls initiated in the prior
year;
- Incremental reserves for non-recurring litigation or
environmental remediation activity, including the proposed
settlement of outstanding litigation at our H&G and HPC
segments attributable to significant and unusual nonrecurring
claims with no previous history or precedent, and any subsequent
change in estimate or remeasurement realized upon settlement;
- Incremental interest costs realized during the three and nine
month periods ended July 2, 2023 for fees paid towards the
amendment to the credit agreement to temporarily increase the
maximum consolidated leverage ratio and incremental cost from the
write off of debt issuance costs for the early extinguishment of
debt and termination of the incremental revolver after the closing
of the HHI divestiture;
- Other adjustments primarily attributable to (1) costs
associated with Salus as they are not considered a component of the
continuing commercial products company; (2) key executive severance
related costs; (3) insurable losses and cost recovery associated
with hurricane damages at a key supplier of our Glofish business
and loss realized from misapplied funds during the three and nine
month period ended July 2, 2023; and
- Income tax adjustment to diluted EPS is to exclude the impact
of adjusting the valuation allowance against deferred taxes and
other tax related items in order to reflect a normalized ongoing
effective tax rate of 25.0% for the three and nine month periods
ended July 2, 2023 and July 3, 2022 based upon enacted corporate
tax rate in the United States.
SPECTRUM BRANDS HOLDINGS, INC. OTHER
SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED DILUTED EPS (continued)
The following is a reconciliation of reported diluted EPS from
continuing operations to adjusted diluted EPS from continuing
operations for the three and nine month periods ended July 2, 2023
and July 3, 2022.
Three Month Periods
Ended
Nine Month Periods
Ended
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
Diluted EPS from continuing operations, as
reported
$
(4.27
)
$
0.07
$
(7.06
)
$
(1.28
)
Adjustments:
Tristar acquisition and integration
0.02
0.14
0.26
0.49
HHI divestiture
0.10
0.01
0.17
0.15
HPC separation initiatives
0.01
0.26
0.10
0.38
Coevorden operations separation
—
0.05
0.07
0.18
Rejuvenate integration
—
—
—
0.17
Armitage integration
—
—
—
0.03
Omega integration
—
—
—
0.04
Fiscal 2023 restructuring
0.04
—
0.07
—
Fiscal 2022 restructuring
(0.02
)
0.20
0.08
0.20
Russia closing initiatives
—
0.01
0.07
0.10
Global ERP transformation
0.09
0.08
0.21
0.23
HPC brand portfolio transitions
0.02
0.01
0.05
0.01
GPC distribution center transition
—
0.21
—
0.69
Global productivity improvement
program
—
0.03
—
0.13
Other project costs
0.01
0.10
0.18
0.26
Unallocated shared costs
0.13
0.17
0.44
0.51
Non-cash purchase accounting
adjustments
0.01
0.11
0.03
0.19
Gain from remeasurement contingent
consideration liability
—
(0.61
)
(0.04
)
(0.61
)
Impairment on equipment and operating
leases
0.09
—
0.20
—
Impairment of goodwill
2.75
—
2.73
—
Impairment on intangible assets
1.33
—
2.96
—
Early settlement of foreign currency cash
flow hedges
0.02
(0.20
)
0.11
(0.20
)
Legal and environmental
0.04
—
0.04
(0.01
)
HPC product recalls
0.05
—
0.09
—
Debt amendment and financing costs
0.21
—
0.27
—
Salus and other
0.02
0.03
0.16
0.04
Pre-tax adjustments
$
4.92
$
0.60
$
8.25
$
2.98
Income tax adjustment
0.10
(0.13
)
(0.90
)
(0.82
)
Total adjustments
$
5.02
$
0.47
$
7.35
$
2.16
Diluted EPS from continuing operations, as
adjusted
$
0.75
$
0.54
$
0.29
$
0.88
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810488509/en/
Investor/Media Contact: Faisal Qadir 608-278-6207
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