Small appliance maker Spectrum Brands Holdings announced its third consecutive record first quarter, with adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) of $125.1 million.
Spectrum reported consolidated net sales of $848.8 million for the first quarter of fiscal 2012, down 1.4% from $861.1 million in 1Q 2011. Spectrum reported that the decrease was driven by the timing of net sales as well as by the elimination of some unprofitable North American promotions in the small electrical appliances category.
Spectrum's 1Q fiscal 2012 gross profit was $284.0 million, down from $299.3 million in 1Q 2011. Strong expense controls and cost improvement initiatives helped grow 1Q fiscal 2012 operating income by 21.0% to $83.7 million, up from $69.2 million in 1Q fiscal 2011. Operating income as a percentage of net sales improved to 9.9% versus 8.0% in fiscal 2011.
The company reported net income of $13.1 million for the first quarter of fiscal 2012, compared to a net loss of $19.8 million in 1Q fiscal 2011.
It was the third consecutive year that Spectrum delivered record first-quarter consolidated adjusted EBITDA: $125.1 million, up 1.9% from $122.7 million in 1Q fiscal 2011.
"With our solid first quarter reported today, we believe we are on target to deliver yet another year of measured growth and additional value creation in fiscal 2012," said Dave Lumley, CEO. "We posted strong EPS in the quarter versus a loss per share in 2011, and, perhaps most importantly, achieved a third consecutive first-quarter record for adjusted EBITDA of $125 million, a 2% improvement.
"Our lower net sales were a function of the timing of retailer orders between our fiscal fourth and fiscal first quarters this year versus last year and our decision to eliminate low margin North American appliance promotions in the holiday season," Lumley said. "We expect our revenue growth to accelerate in the second half of fiscal 2012 based upon distribution gains we have already secured."
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