Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Q4 2024 Earnings Presentation
27 slides from Spectrum Brands's earnings presentation, Nov 15, 2024
Slide 1: Fiscal 2024 Fourth Quarter and Full Year Earnings Call
Fiscal 2024 Fourth Quarter and Full Year Earnings Call November 15, 2024
Slide 2: Agenda
2 • Introduction – Joanne Chomiak Senior Vice President, Tax and Treasury Agenda • 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, projected synergies, prospe
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
Slide 6: FY24 Headlines and Review
FY24 Headlines and Review 6 Summary Delivered on our goals on every metric – Net Sales grew 1.5%, driven in part by investments in commercial operations, innovation, advertising and marketing Delivered over 20% Adjusted EBITDA growth – FY24 Adjusted EBITDA of $372 million including Investment Income
Slide 7: FY25 Strategic Priorities
WE MAKE LIVING BETTER AT HOME™ FY25 Strategic Priorities Spectrum Brands Invest in our Brands Drive Long- term Growth Expand Core eCommerce ff Categories & Invest in Expansion Adjacencies Invest in Inventory Innovation
Slide 8: FY25 Earnings Framework
FY25 Earnings Framework 8 NET ADJUSTED ADJUSTED FREE SALES EBITDA CASH FLOW (1) Low single-digit growth to Mid to high single-digit ~50% Adjusted prior year growth to prior year EBITDA Conversion Expecting growth across all three Volume and cost improvement initiatives Targeting incremental inventor
Slide 9: Financial and Business Review
Financial and Business Review Jeremy Smeltser
Slide 10: Fourth Quarter 2024
Fourth Quarter 2024 10 KEY TAKEAWAYS Net Sales Adj. EBITDA • Organic sales growth driven by Controls and Repellent categories in H&G, and 4.5% -38.2% Home and Personal Care categories, as well as a strategic pull forward of orders by retailers in preparation for S4/Hana $774M $112M ERP implementatio
Slide 11: Q4 FY24 Financial Review
Q4 FY24 Financial Review 11 Interest Expense -$14.2M vs. LY $0.6B $0.4B $21M Debt outstanding Cash and cash equivalents $7M Q4 FY23 Q4 FY24 Revolver usage (1) $9 M $491 M Cash strategic transactions, restructuring, and other unusual non-recurring items In use Available -$8.4M vs. LY $18M $10M Ended
Slide 12: Full Year 2024
Full Year 2024 12 KEY TAKEAWAYS Net Sales Adj. EBITDA • Organic sales growth driven by volume gains particularly in e-commerce and 1.5% 35.2% improved retailer inventory health in H&G • Excluding $53M of investment income, $2,919M $2,964M $372M Adjusted EBITDA was $319M $275M • FY adjusted EBITDA in
Slide 13: Fourth Quarter 2024 Global Pet Care
Fourth Quarter 2024 Global Pet Care 13 Net Sales Adj. EBITDA KEY TAKEAWAYS 3.5% -17.2% • Organic net sales increase driven by strength in Companion Animal in part due to a strategic pull forward of orders $53M by retailers in preparation for S4/Hana ERP implementation. $303M $44M $292M • EBITDA decr
Slide 14: Fourth Quarter 2024 Home & Garden
Fourth Quarter 2024 Home & Garden 14 Fourth Quarter 2023 N e t S a l e s Adj. EBITDA KEY TAKEAWAYS Home & Garden 7.7% -9.5% • Net sales increase due to favorable weather resulting in an extended season and improved retailer inventory health $135M $125M $21M $19M • EBITDA decrease was driven by brand
Slide 15: Fourth Quarter 2024 Home & Personal Care
Fourth Quarter 2024 Home & Personal Care 15 Net Sales Adj. EBITDA KEY TAKEAWAYS 4.1% -6.4% • Organic net sales growth driven by growth in Home and Personal Care categories with continued e-commerce strength $336M $323M $20M $19M • EBITDA decrease was driven by increased brand-building investments an
Slide 16: FY25 Earnings Framework
FY25 Earnings Framework 16 NET ADJUSTED ADJUSTED FREE SALES E B I T D A (1) CASH FLOW Low single-digit growth to Mid to high single-digit ~50% Adjusted prior year growth to prior year EBITDA Conversion Expecting growth across all three Volume and cost improvement initiatives Targeting incremental in
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
Slide 19: CEO Key Takeaways
CEO Key Takeaways 19 STRONG FY24 • Returned to top line growth by investing in our 1 talent, innovation, marketing and advertising • Delivered on our objectives and executed our strategy STRATEGIC FOCUS • Navigate through geopolitical unrest, macro- 2 economic uncertainty, and a constrained consumer
Slide 20: Appendix
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ Appendix
Slide 21: Consolidated Statements of Income
{in mitions, except pe sare amounts) ‘netsales Cost of goods sold Gros prof Selng genera & adminstrative Impairment of goodwill impairment of intangible assets [Representation and warranty insurance proceeds {Gain from remeasurement of contingent consideration tabiity “Total operting expenses Operat
Slide 22: Consolidated Statements of Cash Flow
‘SPECTRUM BRANDS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) {in miltions) ‘Cash flows from operating activities Net cash provided by operating activities from continuing operations [Net cash used by operating activities from discontinued operations \Net cash provided (used) by o
Slide 23: Consolidated Statements of Financial Position
(in mitions) ‘SPECTRUM BRANDS HOLDINGS, INC. ‘CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) ‘September 30, September 30, 2024 “Assets ‘Cash and cash equivalents ‘Short term investments, ‘Trade receivables, net ‘Other receivables Inventories Prepaid expenses and other current assets Total
Slide 24: Net Sales and Organic Net Sales
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 and twelve month periods ended September 30, 2024 and September 30, 2023. ‘Three Month Periods Ended “Twelve Month Periods Ende
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 (loss) from continuing operations to adjusted EBITDA for the three and twelve ‘month periods ended September 30, 2024 and 20
Slide 26: Adjusted Diluted EPS Reconciliation
‘SPECTRUM BRANDS HOLDINGS, INC. (OTHER SUPPLEMENTAL INFORMATION (Unsudited) ‘The following isa reconcitation of reported dlluted EPS from continuing operations to adjusted diluted EPS for the three and twelve month periods ended September 30, 2024 and September 30, 2023. “Three Month Period Ended “T
Slide 27: Adjusted Free Cash Flow Reconciliation
SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited) Spectrum Brands WE MAKE LIVING BETTER AT HOME™ The following is a reconciliation of reported cash flow from continuing operations to adjusted free cash flow for the twelve month period ended September 30, 2024 and September 30
Spectrum Brands Holdings — Q4 2024 Earnings Presentation on 6ix