Spectrum Brands (SPB) to Provide Guidance at 2018 CAGNY Conference
Spectrum Brands Holdings, Inc. (NYSE: SPB), a global consumer products company offering a portfolio of leading brands providing superior value to consumers and customers every day, announced it will provide guidance during its presentation today at 4:00 p.m. Eastern Time at the 2018 Consumer Analyst Group of New York (CAGNY) Conference.
Spectrum Brands expects fiscal 2018 adjusted EBITDA from continuing operations to be between $657-$674 million, including the negative impact of $15-$20 million from facility consolidations and inflation headwinds, compared to $639 million in fiscal 2017.
The Company also anticipates receiving between $3.6-$3.7 billion of gross proceeds by the end of calendar 2018 as a result of previously announced plans to divest its Global Batteries and Appliances businesses. This includes $2 billion of gross proceeds from a definitive contract signed in January to sell the Company’s Global Battery and Lighting business to Energizer Holdings, Inc. (NYSE: ENR).
Spectrum Brands continues to expect fiscal 2018 reported net sales from continuing operations to increase above category rates for most categories, including the anticipated modest positive impact from foreign exchange based on current rates. The Company also continues to expect fiscal 2018 net cash provided from operating activities after purchases of property, plant and equipment (adjusted free cash flow), which includes discontinued operations, will be between $620-$640 million.
SPECTRUM BRANDS HOLDINGS, INC. | |||||||||||
RECONCILIATION OF FORECASTED GAAP NET INCOME TO FORECASTED ADJUSTED EBITDA | |||||||||||
Twelve Month Period Ending September 30, 2018 (in millions) | Continuing Operations | Discontinued Operations | Consolidated | ||||||||
Net income | $ | 312 - 324 | $ | 120 - 128 | $ | 432 - 452 | |||||
Income tax expense (benefit) | (58) - (53) | 36 - 38 | (22) - (15) | ||||||||
Interest expense | 155 - 162 | 55 - 58 | 210 - 220 | ||||||||
Depreciation and amortization | 125 - 130 | 70 - 75 | 195 - 205 | ||||||||
EBITDA | 540 - 557 | 285 - 295 | 825 - 852 | ||||||||
Share based compensation | 44 | 6 | 50 | ||||||||
Acquisition and integration related charges | 12 - 13 | 7 - 8 | 19 - 21 | ||||||||
Restructuring and related charges | 40 - 42 | 1 | 41 - 43 | ||||||||
Inventory acquisition step-up | 1 | — | 1 | ||||||||
Pet safety recall | 12 - 14 | — | 12 - 14 | ||||||||
Other | 5 - 6 | — | 5 - 6 | ||||||||
Adjusted EBITDA | $ | 657 - 674 | $ | 300 - 310 | $ | 957 - 984 |