Spectrum Brands (NYSE: SPB) reported Q4 EPS of $1.72, $0.48 better than the analyst estimate of $1.24. Revenue for the quarter came in at $1.17 billion versus the consensus estimate of $1.02 billion.

• Fourth Quarter Net Sales Increased 17.9% and Organic Net Sales Increased 17.1% Reflecting Strong Growth Across All Business Units
• Fourth Quarter Operating Income and Adjusted EBITDA Increased, Driven by Strong Volumes and Gross Margins Improvement of 240 Basis Points
• Full Year Cash Flow From Operations of $290 Million; Adjusted Free Cash Flow of $254 Million
• Raising Total Savings Gross Target from Global Productivity Improvement Program from $100 Million to $150 Million
• Strong Balance Sheet with Over $1.1 Billion of Total Liquidity
• Full Year Operating Income of $243 Million and Full Year Adjusted EBITDA of $580 Million
• The Company Expects to Deliver 3% to 5% Net Sales Growth and Mid Single-Digit Adjusted EBITDA Growth for Fiscal 2021

“Our Q4 and full year financial results reflect a better, faster and stronger Spectrum Brands, with net sales, operating income and adjusted EBITDA growth. During the quarter, our net sales accelerated as we grew 17.9%, with strong growth across all business units. These top line results reflect elevated demand levels, with strong POS and improved output. This is evidence of our quick recovery from COVID-19 related supply disruptions earlier in the year. Additionally, our incremental marketing and advertising investments are paying dividends by driving stronger organic top line growth. Operating Income and Adjusted EBITDA growth was driven by strong volumes and improved gross margins. Adjusted EBITDA in Q4 2020 includes a change to our annual incentive compensation program converting to cash payment from a mix of equity and cash in order to better align with industry best practices and our peer group. This change negatively impacts comparability, with $17 million in incremental corporate expense in the quarter. If not for the change, we would have delivered $190 million in adjusted EBITDA this quarter and $597 million in the full year,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

“We believe we are better positioned today than we have ever been to drive demand as a home essentials company with consumers needing our brands and products more than ever. Additionally, with the supply chain disruptions from COVID-19 earlier in 2020 largely behind us, momentum in the business remains strong, and with continued strong demand in October, fiscal 2021 is off to a great start,” said Mr. Maura.

Fiscal 2021 Outlook

Spectrum Brands expects three to five percent reported net sales growth, with foreign exchange expected to have a slightly positive impact based upon current rates.

Fiscal 2021 adjusted EBITDA is expected to increase mid single-digits. Adjusted free cash flow is expected to be between $250 million and $270 million, with strategic investments in inventory levels and other working capital needs for the upcoming year.

For earnings history and earnings-related data on Spectrum Brands (SPB) click here.