Spectrum Brands Holdings reported record fiscal 2013 third quarter results.
Spectrum Brands is a global consumer products company selling batteries, small electric appliances, and consumables such as insecticides and pet care products. Spectrum's appliance brands include Remington, George Foreman, Black & Decker Home, Juiceman, and Russell Hobbs.
In the quarter that ended June 30, 2013, net sales were $1.09 billion, including the Hardware & Home Improvement (HHI) acquisition, for an increase of 32.1% in third quarter of fiscal 2013 compared to $824.8 million in 3Q fiscal 2012. Including HHI in the previous year's fiscal 3Q on a pro forma basis, net sales increased 1.1%.
Net income in the quarter was $36.1 million, down from $58.7 million in the third quarter of fiscal 2012.
"Our third quarter adjusted EBITDA of $188.5 million, including HHI, increased 2%, or 3% on a constant currency basis, with an adjusted EBITDA margin at a solid 17.3%," said Spectrum Brands CEO Dave Lumley.
"Of particular note is our 11th consecutive quarter of year-over-year adjusted EBITDA growth for legacy Spectrum Brands, a record that dates to the first quarter of fiscal 2011," Lumley said. He said growth factors included focused spending, strong control of variable costs, increased savings from continuous improvement programs, and growth in Europe. "It is important to note that this record quarterly profitability and margin performance was achieved even as we continue to make important, timely and major investments in Remington personal care consumables, global e-commerce, battery performance and production, and HHI new product development and marketing, all of which will help drive future growth."
Spectrum Brands reaffirmed its outlook for a fourth consecutive year of record profitability for its legacy business, and expects net sales and profit growth in the fourth quarter of fiscal 2013. Spectrum Brands estimated fiscal 2013 total company net sales to be $4,060 million to $4,100 million and adjusted EBITDA of $640 million to $650 million.
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