Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Q1 2025 Earnings Presentation
27 slides from Spectrum Brands's earnings presentation, Feb 6, 2025
Slide 1: Fiscal 2025 First Quarter Earnings Call
Fiscal 2025 First Quarter Earnings Call February 6, 2025
Slide 2: Introduction, CEO Overview, Financial & Business Review, Q&A
• Introduction – Joanne Chomiak Senior Vice President, Tax and Treasury • CEO Overview – David Maura Chairman and Chief Executive Officer • Financial & Business Review – Jeremy Smeltser Chief Financial Officer • Q&A – David Maura and Jeremy Smeltser
Slide 3: Forward-looking Statements
Forward-looking Statements 3 We have made or implied certain forward-looking statements in this document. Statements or expectations regarding our business strategy, future operations or condition, estimated revenues, projected costs, inventory management, earnings power, prospects, plans and object
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures 4 Our consolidated results contain non-GAAP metrics such as organic net sales, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow. While we believe organic net sales and adjusted EBITDA are useful supplemental information, such adjusted resu
Slide 5: CEO Overview
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ CEO Overview David Maura SWEAT | RESISTANT
Slide 6: Q1 Headlines
Q1 Headlines 6 Summary Delivered Net Sales growth of 1.2% and organic Net Sales growth of 1.9% fueled by brand-building investments and strong holiday e-commerce sales for HPC Delivered Adjusted EBITDA of $77.8 million, a 26.9% improvement over last year’s results excluding investment income Gross M
Slide 7: FY25 Strategic Priorities
FY25 Strategic Priorities Spectrum Brands WE MAKE LIVING BETTER AT HOME™ Invest in our Brands Drive Long- term Growth Support Expand Core eCommerce ff Categories & Invest in Expansion Adjacencies Invest in Inventory Innovation
Slide 8: Outstanding Shares & Share Repurchases
Outstanding Shares & Share Repurchases 8 Share Repurchases Repurchased Repurchased Total Purchased 15.3 11.0 Million Million 15.3 Million Shares ~26.0 Million* Total Shares Outstanding 41.0Million ~41.0 Million ~36.6% TotalShares Total SharesOutstanding Outstanding $1.2 Billion Reduction Spent Prior
Slide 9: FY25 Earnings Framework
FY25 Earnings Framework 9 NET ADJUSTED ADJUSTED FREE (1) SALES EBITDA CASH FLOW Low single-digit growth to Mid to high single-digit ~50% Adjusted prior year growth to prior year EBITDA Conversion Expecting growth driven by brand- Volume and cost improvement initiatives Targeting incremental inventor
Slide 10: Financial and Business Review
Financial and Business Review Jeremy Smeltser
Slide 11: First Quarter 2025
First Quarter 2025 11 KEY TAKEAWAYS Net Sales Adj. EBITDA • Organic net sales increase driven by an extended fall season and retailer inventory 1.2% -7.7% build timing in H&G and e-commerce growth in HPC partially offset by a strategic acceleration of orders by retailers into prior quarter related t
Slide 12: Q1 FY25 Financial Review
Q1 FY25 Financial Review 12 Interest Expense -$13.0 vs. LY $0.6B $0.2B Debt outstanding Cash and cash equivalents Revolver Usage(1) $9M $491M Cash strategic transactions, restructuring, and other unusual, non-recurring items -$7.5M vs. LY Ended the period at 1.08x net leverage (1) In use revolver re
Slide 13: First Quarter 2025 Global Pet Care
First Quarter 2025 Global Pet Care 13 Net Sales Adj. EBITDA KEY TAKEAWAYS -6.1% -2.3% • Organic net sales decreased due to a strategic pull forward of retailer orders into prior quarter in preparation for S/4Hana ERP implementation and global category softness in Aquatics partially offset by Interna
Slide 14: First Quarter 2025 Home & Garden
First Quarter 2025 Home & Garden 14 Fourth Quarter KEY TAKEAWAYS 2023 N e t S a l e s Adj. EBITDA Home & Garden 27.9% $10.0m • Organic net sales increased due to an extended fall season, retailer inventory build timing and accelerated retailer orders in advance of S/4HANA ERP implementation. • Adjus
Slide 15: First Quarter 2025 Home & Personal Care
First Quarter 2025 Home & Personal Care 15 Net Sales Adj. EBITDA KEY TAKEAWAYS 1.4% flat • Organic net sales increased by continued strength in e-commerce; growth in Personal Care offset by declines in Home Appliances outside of EMEA. • Adjusted EBITDA is flat compared to prior year due to increased
Slide 16: FY25 Earnings Framework
FY25 Earnings Framework 16 NET ADJUSTED ADJUSTED FREE (1) SALES EBITDA CASH FLOW Low single-digit growth to Mid to high single-digit ~50% Adjusted prior year growth to prior year EBITDA Conversion Expecting growth driven by brand- Volume and cost improvement initiatives Targeting incremental invento
Slide 17: FY25 – Full Year Expectations
FY25 – Full Year Expectations 17 Cash Taxes Cash Transactions CAPEX D&A $40M - $45M $30M - $40M $50M - $60M $115M - $125M Cash Payments of Capital Expenditures Depreciation and Cash Taxes Restructuring, Optimization Amortization and Strategic Initiatives
Slide 18: CEO Takeaways
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ CEO Takeaways David Maura SWEAT | RESISTANT |
Slide 19: CEO Key Takeaways
CEO Key Takeaways 19 S T R O N G S TA R T I N Q 1 • Delivered top line growth by investing in our brands 1 • After successful implementation of S/4Hana in our North American Global Pet Care business in early Q1, successfully deployed in our Home and Garden business in Q2 TA K I N G A C T I O N T O C
Slide 20: Appendix
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ Appendix SWEAT : | RESISTANT |
Slide 21: Condensed Consolidated Statements of Income
SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) {in millions, except per share amounts) Net sales Cost of goods sold Gross profit Selling, general & administrative Operating income Interest expense Interest income Gain from early extinguishment of debt Other no
Slide 22: Condensed Consolidated Statements of Cash Flow
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Three Month Periods Ended {in millions) December 29, 2024 December 31, 2023 Cash flows from operating activities Net cash (used) provided by operating activities f
Slide 23: Condensed Consolidated Statements of Financial Position
SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (in millions) December 29, 2024 ‘Assets Cash and cash equivalents Trade receivables, net ther recewables Inventories Prepaid expenses and other current assets Total current assets Property, plant and e
Slide 24: Net Sales and Organic Net Sales
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited) NET SALES AND ORGANIC NET SALES The following is a summary of net sales by segment for the three month periods ended December 29, 2024 and December 31, 2023: (in millions, except
Slide 25: Adjusted EBITDA and Adjusted EBITDA Margin
‘SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited) ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN The following is a reconciliation of reported net income from continuing operations to adjusted EBITDA and adjusted EBITDA margin for the three month periods ended December 29, 2024
Slide 26: Adjusted Diluted EPS
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ ‘SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited) ADJUSTED DILUTED EPS ‘The following Is a reconciliation of reported diluted EPS from continuing operations to adjusted diluted EPS from continuing ‘operations for the three month
Slide 27: Adjusted Free Cash Flow
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ ‘SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited) ADJUSTED FREE CASH FLOW The following is a reconciliation of reported cash flow from continuing operations to adjusted free cash flow for the three month periods ended December 2
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