View:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
August 7, 2007
-------------------------------------
(Date of earliest event reported)
SPECTRUM BRANDS, INC.
------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Wisconsin 001-13615 22-2423556
------------------------------- ------------- -------------------------------
(State or other Jurisdiction (Commission (IRS Employer
of Incorporation) File No.) Identification No.)
Six Concourse Parkway, Suite 3300, Atlanta, Georgia 30328
---------------------------------------------------------
(Address of principal executive offices, including zip code)
(770) 829-6200
--------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
-----------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
(a) The following information, including the Exhibit attached hereto, is
being furnished pursuant to this Item 2.02 and shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, except as shall be expressly set forth by specific
reference in such filing.
On August 7, 2007, Spectrum Brands, Inc. issued a press release discussing its
estimated financial results for its third fiscal quarter ending July 1, 2007. A
copy of the press release is furnished as Exhibit 99.1 to this report.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) 99.1 Press Release dated August 7, 2007 issued by Spectrum Brands, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 7, 2007 SPECTRUM BRANDS, INC.
By: /s/ Anthony L. Genito
----------------------------------
Name: Anthony L. Genito
Title: Senior Vice President,
Chief Financial Officer and
Chief Accounting Officer
EXHIBIT INDEX
Exhibit Description
- ------- -----------
99.1 Press Release dated August 7, 2007 issued by Spectrum Brands, Inc.
Exhibit 99.1
Spectrum Brands Reports Third Quarter 2007 Financial Results
ATLANTA--(BUSINESS WIRE)--Aug. 7, 2007--Spectrum Brands,
Inc.,(NYSE:SPC) a global consumer products company with a diverse
portfolio of world-class brands, announced third quarter net sales of
$442.0 million and a net loss of $0.15 per share for the quarter ended
July 1, 2007. Excluding certain items which management believes are
not indicative of the company's on-going normalized operations, the
company generated a diluted loss per share of $0.16. These items
include:
-- pretax restructuring and related charges of $30.6 million, or
$0.43 per share, associated with company-wide cost reduction
initiatives;
-- income from discontinued operations, net of tax, of $22.8
million, or $0.45 per share, related to the company's Home &
Garden business, which is being held for sale, and
-- other charges of $0.5 million net of tax, or $0.01 per share.
The company's third quarter 2006 earnings per share of $0.05
included earnings from discontinued operations, net of tax, of $0.35
per share, restructuring and related charges of $0.10 per share and
other adjustments of $0.03 per share.
Spectrum Brands' third quarter net sales were $442.0 million, an
increase of 3.4 percent compared with net sales of $427.5 million in
the comparable period last year. The Global Batteries and Personal
Care business segment generated year over year sales growth of four
percent, as the positive impact of foreign currency translation and
sales growth in Latin America partially offset weaker sales in North
America. Global battery sales increased two percent and Remington
branded product sales increased eight percent. The Global Pet Supplies
business segment reported sales growth of two percent. Favorable
foreign exchange rates had a $15.9 million positive impact on
companywide net sales during the quarter. Reported net sales exclude
the impact of the company's Home & Garden division, which is accounted
for as a discontinued operation. Home & Garden generated $258.4
million in net sales during the quarter, a year over year decline of
4.6 percent attributable to unfavorable weather conditions during the
quarter.
Gross profit and gross margin for the quarter were $164.2 million
and 37.1 percent, respectively, versus $156.4 million and 36.6 percent
for the same period last year. Restructuring and related charges of
$4.1 million were included in the current quarter's cost of goods
sold; cost of goods sold in the comparable period last year included
$2.7 million in similar charges. Excluding these restructuring and
related charges, gross margin improved as the positive impact of price
increases and manufacturing cost efficiencies offset increased raw
material costs.
Spectrum generated third quarter operating income of $3.7 million
versus $10.5 million in the same quarter of fiscal 2006. The primary
reason for the decline was a significant increase in restructuring and
related charges of $30.6 million in fiscal 2007 compared with $6.8
million in the prior year, which more than offset a $7.8 million
reduction in operating expenses in the current quarter.
Commenting on third quarter results, Spectrum Brands Chief
Executive Officer Kent Hussey stated, "Our overall portfolio continues
to make progress and we are confident that we are taking the right
actions for the long-term to drive revenue growth, reduce costs and
create sustainable value. As we previously disclosed, our third
quarter financial results were lower than we had anticipated; however,
we did see year over year improvement in sales, operating expenses and
EBITDA. Looking forward, we expect further year over year improvement
in EBITDA in the fourth quarter of 2007 and beyond, largely driven by
cost reduction actions already completed or underway. In order to
restore a more normal capital structure to the business as quickly as
possible, we have decided to sell an attractive strategic asset.
Details of the sale will be announced when the sale process is
formally initiated within the next several weeks. Our Home & Garden
business will continue to be treated as a business held for sale,
although the timing of the sale process for that asset is yet to be
determined."
Third Quarter Segment Results
The Global Batteries and Personal Care segment reported net sales
of $307.0 million, compared with $295.2 million reported last year.
Foreign exchange translation contributed $14.3 million. Global battery
sales showed year over year growth of two percent. North American
battery sales were negatively impacted by the timing of shipments and
caution on the part of retailers regarding retail inventory levels.
Rayovac alkaline battery sales to consumers at retail increased nine
percent, in line with category results, primarily driven by the
successful implementation of price increases in January 2007. In
Europe, the positive impact of the strong Euro was more than enough to
offset the impact of negative product mix shifts, resulting in sales
growth of four percent. Latin American battery sales showed year over
year growth of twenty percent, benefiting from pricing and product
mix. Remington branded products grew eight percent during the quarter,
driven by distribution and market share gains in both Latin America
and Europe. Segment profitability for Global Batteries and Personal
Care was $27.4 million versus last year's $10.0 million. In addition
to increased sales, the improvement was driven by lower operating
expenses resulting from cost cutting initiatives throughout the
business.
Global Pet Supplies net sales were $135.0 million as compared with
$132.3 million in the prior year. Companion animal product sales grew
nine percent, while global aquatics sales were flat. Favorable foreign
exchange translation contributed $1.6 million. Segment profitability
for the quarter was $14.4 million compared with $17.7 million last
year, primarily a function of temporary transportation and warehousing
costs associated with global realignment initiatives.
Spectrum's Home & Garden business, which is held for sale,
contributed income from discontinued operations of $22.8 million
during the quarter as compared with $17.5 million in the prior year.
Unseasonable weather conditions caused a year over year net sales
decline of 4.6 percent. However, operating expenses showed an
improvement of $15.2 million as business performance experienced
significant improvement versus the prior year. The company maintained
or grew market share in most of its product categories, including
fertilizers, controls, repellants and seed. Consumer purchases of
Spectrum Brands' home and garden products at retail during the quarter
were flat as compared with the prior year period.
Corporate expense was $7.5 million versus $10.4 million in the
prior year period. The improvement was primarily attributable to cost
cutting initiatives associated with the global realignment the company
announced in January.
Interest expense increased to $41.2 million from $31.4 million in
the comparable prior year period, due to higher debt levels and higher
interest rates.
Webcast Information
Spectrum Brands will hold a conference call at 8:30 a.m. (ET) on
August 7 to further discuss its third quarter results. The call will
be accessible via webcast through the company's website,
www.spectrumbrands.com, and will be archived online until August 21.
Non-GAAP Measurements
Within this release, reference is made to adjusted diluted
earnings per share. See attached Table 3, "Reconciliation of GAAP to
Adjusted Diluted Earnings Per Share," for a complete reconciliation of
diluted earnings per share on a GAAP basis to adjusted diluted
earnings per share. Spectrum Brands management and some investors use
adjusted diluted earnings per share as one means of analyzing the
company's current and future financial performance and identifying
trends in its financial condition and results of operations. Spectrum
Brands provides this information to investors to assist in meaningful
comparisons of past, present and future operating results and to
assist in highlighting the results of on-going operations. While
Spectrum Brands management believes that adjusted diluted earnings per
share provides 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
About Spectrum Brands, Inc.
Spectrum Brands is a global consumer products company and a
leading supplier of batteries, portable lighting, lawn and garden
products, household insect control, shaving and grooming products,
personal care products and specialty pet supplies. Spectrum Brands'
products are sold by the world's top 25 retailers and are available in
more than one million stores in 120 countries around the world.
Headquartered in Atlanta, Georgia, Spectrum Brands generated net sales
of $2.5 billion in fiscal 2006 and has approximately 8,400 employees
worldwide. 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. Actual results may differ materially from
these statements as a result of (1) changes 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,
(2) changes in consumer demand for the various types of products
Spectrum Brands offers, (3) changes in the general economic conditions
where Spectrum Brands does business, such as stock market prices,
interest rates, currency exchange rates, inflation, consumer spending
and raw material costs, (4) the company's ability to successfully
implement manufacturing, distribution and other cost efficiencies, and
various other factors, including those discussed herein and those set
forth in Spectrum Brands' securities filings, including the most
recently filed Annual Report on Form 10-K.
The company 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 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.
Attached
Table 1 - Condensed Consolidated Statements of Operations
Table 2 - Supplemental Financial Data
Table 3 - Reconciliation of GAAP to Adjusted Diluted Earnings Per
Share
Table 1
SPECTRUM BRANDS, INC.
Condensed Consolidated Statements of Operations
For the three and nine months ended July 1, 2007 and July 2, 2006
(Unaudited)
(In millions, except per share amounts)
THREE MONTHS
----------------------------
F2007 F2006 INC(DEC)
(a) %
------- -------
Net sales $442.0 $427.5 3.4%
Cost of goods sold 273.7 268.4
Restructuring and related charges 4.1 2.7
------- -------
Gross profit 164.2 156.4 5.0%
Selling 94.9 94.3
General and administrative 33.0 40.3
Research and development 6.1 7.2
Restructuring and related charges 26.5 4.1
Goodwill and intangibles impairment - -
------- -------
Total operating expenses 160.5 145.9
Operating income 3.7 10.5
Interest expense 41.2 31.4
Other expense (income), net 0.9 (0.1)
------- -------
(Loss) Income from continuing
operations before income taxes (38.4) (20.8)
Income tax (benefit) expense (8.2) (5.8)
------- -------
(Loss) Income from continuing
operations (30.2) (15.0)
Income (Loss) from discontinued
operations, net of tax 22.8(b) 17.5(b)
------- -------
Net (loss) income $(7.4) $2.5
======= =======
Average shares outstanding (e) 50.8 49.5
(Loss) Income from continuing operations $(0.60) $(0.30)
Income (Loss ) from Discontinued
operations 0.45 0.35
------- -------
Basic (loss) earnings per share $(0.15) $0.05
======= =======
Average shares and common stock
equivalents outstanding (d) (e) 50.8 51.6
(Loss) Income from continuing operations $(0.60) $(0.29)
Income (Loss) from Discontinued
operations 0.45 0.34
------- -------
Diluted (loss) earnings per share $(0.15) $0.05
======= =======
NINE MONTHS
------------------------------
F2007 F2006 INC(DEC)
(a) %
-------- --------
Net sales $1,446.3 $1,408.4 2.7%
Cost of goods sold 891.8 864.8
Restructuring and related charges 16.8 4.4
-------- --------
Gross profit 537.7 539.2 -0.3%
Selling 319.8 292.5
General and administrative 115.2 119.9
Research and development 19.7 21.5
Restructuring and related charges 37.7 9.1
Goodwill and intangibles impairment 214.0 -
-------- --------
Total operating expenses 706.4 443.0
Operating income (168.7) 96.2
Interest expense 142.1 91.0
Other expense (income), net 4.5 (5.2)
-------- --------
(Loss) Income from continuing
operations before income taxes (315.3) 10.4
Income tax (benefit) expense (57.4) 3.8
-------- --------
(Loss) Income from continuing
operations (257.9) 6.6
Income (Loss) from discontinued
operations, net of tax (5.8)(b) (1.2)(c)
-------- --------
Net (loss) income $(263.7) $5.4
======== ========
Average shares outstanding (e) 50.8 49.5
(Loss) Income from continuing
operations $(5.08) $0.13
Income (Loss ) from Discontinued
operations (0.11) (0.02)
-------- --------
Basic (loss) earnings per share $(5.19) $0.11
======== ========
Average shares and common stock
equivalents outstanding (d) (e) 50.8 51.0
(Loss) Income from continuing
operations $(5.08) $0.13
Income (Loss) from Discontinued
operations (0.11) (0.02)
-------- --------
Diluted (loss) earnings per share $(5.19) $0.11
======== ========
(a) The Company's Home & Garden business, discontinued effective
October 1, 2006, is excluded from continuing operations for all
periods presented. Certain amounts have been reclassified in the
three and nine months ended July 2, 2006 to conform to the current
year classification and present this business as discontinued
operations.
(b) For the three months ended July 1, 2007 and July 2, 2006 and nine
months ended July 1, 2007, reflects the after-tax net income (loss)
of the Company's Home & Garden business for which the Company
discontinued operations effective October 1, 2006.
(c) For the nine months ended July 2, 2006, includes the $4.1 million
after-tax net income of the Company's Home & Garden business for
which the Company discontinued operations effective October 1, 2006.
In addition, includes the $5.3 million after-tax net loss of the
fertilizer technology and Canadian professional fertilizer business
of Nu-Gro (including an estimated loss on disposal of $3.8 million)
for which the Company discontinued operations effective October 1,
2005.
(d) For the three and nine months ended July 1, 2007, we have not
assumed the exercise of common stock equivalents as the impact would
be antidilutive.
(e) Per share figures calculated prior to rounding.
Table 2
SPECTRUM BRANDS, INC.
Supplemental Financial Data
For the three and nine months ended July 1, 2007 and July 2, 2006
(Unaudited)
($ In millions)
Supplemental Financial Data F2007 F2006
- ------------------------------ --------- ---------
Cash $ 176.2 $ 13.1
Trade receivables, net (a) $ 263.5 $ 374.3
Days Sales Outstanding (b) 53 50
Inventory, net (a) $ 333.1 $ 461.0
Inventory Turnover (c) 3.6 3.4
Total Debt $2,654.6 $2,282.9
THREE MONTHS NINE MONTHS
------------------- -------------------
Supplemental Cash Flow Data F2007 F2006 F2007 F2006
- ------------------------------ --------- --------- --------- ---------
Depreciation and amortization,
excluding amortization of
debt issuance costs $ 24.2 $ 18.4 $ 60.7 $ 53.3
Capital expenditures $ 5.6 $ 19.3 $ 18.4 $ 46.9
THREE MONTHS NINE MONTHS
------------------- -------------------
Supplemental Segment Sales & F2007 F2006 F2007 F2006
Profitability
- ------------------------------ --------- --------- --------- ---------
Net Sales
- ------------------------------
Global Batteries & Personal
Care $ 307.0 $ 295.2 $1,031.1 $1,005.5
Global Pet Supplies 135.0 132.3 415.2 402.9
--------- --------- --------- ---------
Total net sales $ 442.0 $ 427.5 $1,446.3 $1,408.4
========= ========= ========= =========
Segment Profit
- ------------------------------
Global Batteries & Personal
Care $ 27.4 $ 10.0 $ 89.3 $ 85.8
Global Pet Supplies 14.4 17.7 49.1 54.4
--------- --------- --------- ---------
Total segment profit 41.8 27.7 138.4 140.2
Corporate 7.5 10.4 38.6 30.5
Restructuring and related
charges 30.6 6.8 54.5 13.5
Goodwill and intangibles
impairment - - 214.0 -
Interest expense 41.2 31.4 142.1 91.0
Other expense, net 0.9 (0.1) 4.5 (5.2)
--------- --------- --------- ---------
(Loss) Income from
continuing operations
before income taxes $ (38.4) $ (20.8) $ (315.3) $ 10.4
========= ========= ========= =========
Note: As of January 1, 2007, the Company began managing its business
in three reportable segments: (i) Global Batteries & Personal Care,
which consists of the Company's world-wide battery, shaving and
grooming, personal care and portable lighting business; (ii) Global
Pet Supplies, which consists of the acquired United Pet Group, Tetra
and Jungle Labs businesses; and (iii) Home & Garden, which consists
of the discontinued Home and Garden Business. In connection with this
realignment of reportable segments, costs associated with Global
Operations, consisting of research and development, manufacturing
management, global purchasing, quality operations and inbound supply
chain, which were previously reflected in Corporate expenses, have
been embedded within each of the operating segments. In addition,
certain general and administrative expenses necessary to reflect the
operating segments on a stand alone basis, which were previously
reflected as Corporate expenses, have been allocated to the operating
segments. Accordingly, Corporate expenses include only those general
and administrative expenses associated with corporate overhead and
long-term compensation plans. All prior periods presented above have
been restated to reflect the changes described above.
(a) Trade receivables, net and Inventory, net as of July 1, 2007
exclude amounts related to our discontinued Home & Garden business as
these amounts are classified as Assets held for sale, effective
October 1, 2006. Comparable balances as of July 2, 2006 include
amounts for our Home & Garden business.
(b) Reflects actual days sales outstanding at end of period.
(c) Reflects cost of sales (excluding restructuring and related
charges) during the last twelve months divided by inventory as of the
end of the period.
Table 3
SPECTRUM BRANDS, INC.
Reconciliation of GAAP to Adjusted Diluted Earnings Per Share
For the three and nine months ended July 1, 2007 and July 2, 2006
(Unaudited)
THREE MONTHS NINE MONTHS
-------------------- -------------------
F2007 F2006 F2007 F2006
------- ------- ------- ------
Diluted (loss) earnings per
share, as reported $(0.15) $0.05 $(5.19) $0.11
Adjustments, net of tax:
Restructuring and related
charges 0.43(a) 0.10(b) 0.70(c) 0.18(d)
Goodwill impairment - - 3.76(e) -
Re-financing costs - - 0.46(f) -
Disposition costs - - 0.05(g) -
Discontinued operations (0.45)(h) (0.35)(h) 0.11(h) 0.02(i)
Other adjustments 0.01(j) (0.03)(k) (0.10)(l)(0.11)(m)
------- ------- ------- ------
(0.01) (0.28) 4.98 0.10
Diluted (loss) earnings per
share, as adjusted $(0.16) $(0.23) $(0.21) $0.21
======= ======= ======= ======
Note: Per share figures calculated prior to rounding.
(a) For the three months ended July 1, 2007, reflects $21.6 million,
net of tax, of restructuring and related charges as follows: (i) $4.0
million for the integration of United and Tetra; (ii) $.6 million for
a series of actions in Europe and Latin America to reduce operating
costs and rationalize operating structure; and (iii) $17.0 million
for the Global restructuring announced January 10, 2007.
(b) For the three months ended July 2, 2006, reflects $5.0 million,
net of tax, of restructuring and related charges as follows: (i) $3.6
million primarily for the integration of United and Tetra and (ii)
$1.4 million for a series of actions in Europe to reduce operating
costs and rationalize operating structure.
(c) For the nine months ended July 1, 2007, reflects $35.4 million,
net of tax, of restructuring and related charges as follows: (i)
$10.6 million for the integration of United and Tetra; (ii) $4.4
million for a series of actions in Europe and Latin America to reduce
operating costs and rationalize operating structure; and (iii) $20.4
million for the Global restructuring announced January 10, 2007.
(d) For the nine months ended July 2, 2006, reflects $9.4 million, net
of tax, of restructuring related charges as follows: (i) $5.1 million
primarily for the integration of United and Tetra and (ii) $4.3
million for a series of actions in Europe to reduce operating costs
and rationalize operating structure.
(e) For the nine months ended July 1, 2007, reflects an impairment
charge of $191.2 million, net of tax, for the write-off of goodwill
of our North America batteries and personal care business (which as
of January 1, 2007 is included in our Global Batteries and Personal
care business segment) as a result of an impairment evaluation in
accordance with SFAS 142, "Goodwill and Other Intangible Assets."
(f) For the nine months ended July 1, 2007 reflects $23.5 million, net
of tax, of charges associated with a refinancing of the Company's
debt as follows: (i) $16.0 million write-off of deferred financing
fees associated with the Senior term debt and the $350 8 1/2% Senior
subordinated notes and (ii) $7.6 million pre-payment penalty
associated with the Senior term debt. The above charges have been
included in interest expense.
(g) For the nine months ended July 1, 2007 general and administrative
expenses include $2.5 million, net of tax, representing professional
fees incurred in connection with the sale of the Company's Home &
Garden business discontinued effective October 1, 2006.
(h) Reflects the (income) loss from discontinued operations, net of
tax, of the Company's Home & Garden business, discontinued effective
October 1, 2006.
(i)For the nine months ended July 2, 2006, includes the $4.1 million
after-tax net income of the Company's Home & Garden business for
which the Company discontinued operations effective October 1, 2006.
In addition, includes the $5.3 million after-tax net loss of the
fertilizer technology and Canadian professional fertilizer business
of Nu-Gro (including an estimated loss on disposal of $3.8 million)
for which the Company discontinued operations effective October 1,
2005.
(j) For the three months ended July 1, 2007, general and
administrative expenses include $1.7 million, net of tax benefit,
related to expiring taxes and related penalties, associated with the
Company's provision for presumed credits applied to the Brazilian
excise tax on manufactured products, which expired in the current
period. Interest expense includes $.6 million, net of tax benefit,
related to interest charges associated with the Company's provision
for presumed credits applied to the Brazilian excise tax on
manufactured products. In addition, the Company, based on its current
estimate of profits for fiscal 2007, after excluding certain items
which management believes are not indicative of the Company's on-
going normalized operations, reduced its full year tax benefit from
42 percent to 30 percent resulting in incremental tax expense of $2.8
million.
(k) For the three months ended July 2, 2006, general and
administrative expenses include $1.1 million, net of tax benefit,
related to expiring taxes and related penalties, associated with the
Company's provision for presumed credits applied to the Brazilian
excise tax on manufactured products, which expired in the current
period. In addition, interest expense includes $.3 million, net of
tax benefit, related to interest charges associated with the
Company's provision for presumed credits applied to the Brazilian
excise tax on manufactured products.
(l) For the nine months ended July 1, 2007, general and administrative
expenses include $4.1 million, net of tax benefit, related to
expiring taxes and related penalties, associated with the Company's
provision for presumed credits applied to the Brazilian excise tax on
manufactured products, which expired in the current period. In
addition, interest expense includes $1.5 million, net of tax benefit,
related to interest charges associated with the Company's provision
for presumed credits applied to the Brazilian excise tax on
manufactured products.
(m) For the nine months ended July 2, 2006, general and administrative
expenses include $1.4 million, net of tax benefit, related to
expiring taxes and related penalties, associated with the Company's
provision for presumed credits applied to the Brazilian excise tax on
manufactured products, which expired in the current period. Other
income includes a $5.2 million net of tax, gain on sale of the
Company's Bridgeport, CT and Madison, WI manufacturing facilities. In
addition, interest expense includes $.9 million related to interest
charges associated with the Company's provision for presumed credits
applied to the Brazilian excise tax on manufactured products. In
addition, cost of goods sold includes $.1 million, net of tax
expense, reflecting an inventory valuation adjustment related to the
fair value write-up of Jungle Lab inventory in accordance with the
requirements of SFAS 141.
CONTACT: Spectrum Brands, Inc.
Investor Contact:
Nancy O'Donnell, 770-829-6208
VP Investor Relations, Spectrum Brands
or
Sard Verbinnen & Co for Spectrum Brands
Media Contact:
Victoria Hofstad or Jamie Tully, 212-687-8080