Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Q3 2024 Earnings Presentation
29 slides from Spectrum Brands's earnings presentation, Aug 8, 2024
Slide 1: Fiscal 2024 Third Quarter Earnings Call
Fiscal 2024 Third Quarter Earnings Call August 8, 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 and may make additional oral forward-looking statements from time to time. All statements, other than statements of historical facts included or incorporated by reference in this document, includ
Slide 4: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 4 Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this document, including the tables that
Slide 5: CEO Overview
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ CEO Overview David Maura
Slide 6: Q3 FY24 Headlines and Review
Q3 FY24 Headlines and Review 6 Summary Delivered on our commitment with top line growth across all three businesses, with Net Sales improvement of 6.0% and organic sales growth of 7.1% Delivered Adjusted EBITDA including investment income of $106.3 million, up from $99 million, while increasing inve
Slide 7: FY24 Strategic Priorities
FY24 Strategic Priorities 7 Improve operational efficiency Improve Capital investments to drive long operational term competitiveness efficiency Invest in Brands Invest in people and upgrade Invest Invest in talent Bring fewer bigger and innovate people and better innovations culture Drive a culture
Slide 8: Outstanding Shares & Share Repurchases
Outstanding Shares & Share Repurchases 8 Share Repurchases Repurchased 13.2Repurchased Million ASR – 6.6 Million 28.0 Million* 11.0 Million Open Market/10b5-1 – 6.5 Million Total Shares Outstanding ~ 32% Reduction 41.0 41.0Million Million $1,017 Million Spent Total TotalShares SharesOutstanding
Slide 9: FY24 Earnings Framework
FY24 Earnings Framework 9 NET ADJUSTED SALES EBITDA Flat to prior year ~ 20% growth to prior year Lower first half sales from consumer Lower cost inventory and operational demand softness in small kitchen efficiencies partially offset by investment appliance category within HPC and North in the busi
Slide 10: Financial and Business Review
Financial and Business Review Jeremy Smeltser
Slide 11: Third Quarter 2024
Third Quarter 2024 11 KEY TAKEAWAYS Net Sales Adj. EBITDA • Growth in organic sales driven by favorable weather and improved retailer 6.0% 7.9% inventory health in H&G as well as e- commerce growth across all segments $106M • Excluding $13M of investment income, $779M $99M Adjusted EBITDA was $94M $
Slide 12: Q3 FY24 Financial Review
Q3 FY24 Financial Review 12 Interest Expense -$14.6M vs. LY $30M $0.6B $0.3B $16M Debt outstanding Cash and short- Q3 FY23 Q3 FY24 term investments (1) Revolver usage(2) $10 M $490 M Cash strategic transactions, restructuring, and other unusual non-recurring items +$0.2M vs. LY In use Available $10M
Slide 13: Third Quarter 2024 Global Pet Care
Third Quarter 2024 Global Pet Care 13 Net Sales Adj. EBITDA KEY TAKEAWAYS 3.6% 5.8% • Organic net sales increase driven by strength in Companion Animal largely due to continued e-commerce gains $282M $272M $57M $54M • EBITDA increase was driven by lower cost inventory, higher volume, favorable mix a
Slide 14: Third Quarter 2024 Home & Garden
Third Quarter 2024 Home & Garden 14 Fourth Quarter 2023 N e t S a l e s Adj. EBITDA KEY TAKEAWAYS Home & Garden 13.1% 12.2% • Net sales increase due to favorable weather and improved retailer inventory health partially offset by sales decline in $211M Cleaning category $43M $187M $39M • EBITDA incre
Slide 15: Third Quarter 2024 Home & Personal Care
Third Quarter 2024 Home & Personal Care 15 Net Sales Adj. EBITDA KEY TAKEAWAYS 3.5% 3.5% • Organic net sales growth driven by e- commerce gains in Personal Care category $286M $277M $11M $12M • EBITDA increase was driven by increased volume, lower cost inventory, and cost improvement initiatives par
Slide 16: FY24 Earnings Framework
FY24 Earnings Framework 16 NET ADJUSTED SALES EBITDA Flat to prior year ~ 20% growth to prior year Lower first half sales from consumer Lower cost inventory and operational demand softness in small kitchen efficiencies partially offset by appliance category within HPC and North investment in the bus
Slide 17: FY24 – Full Year Expectations
FY24 – Full Year Expectations 17 Cash Taxes Cash transactions CAPEX D&A $35M - $40M ~$50M $45M - $55M $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 YTD PERFORMANCE • Incremental investments in business yielding 1 results • E-commerce continues to be an area of growth across all segments CURRENT FOCUS • Continue to lean into the opportunities in front of 2 us • Adapt to evolving market conditions to deliver on our fin
Slide 20: Appendix
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ Appendix
Slide 21: Condensed Consolidated Statements of Income
21 SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Month Periods Ended Nine Month Periods Ended (in millions, except per share amounts) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net sales $ 779.4 $ 735.5 $ 2,190.2 $ 2,178.1 Cost of goods sold
Slide 22: Condensed Consolidated Statements of Cash Flow
22 SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Nine Month Periods Ended (in millions) June 30, 2024 July 2, 2023 Cash flows from operating activities Net cash provided by operating activities from continuing operations $ 178.4 $ 72.5 Net cash (used) prov
Slide 23: Condensed Consolidated Statements of Financial Position
23 SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (in millions) June 30, 2024 September 30, 2023 Assets Cash and cash equivalents $ 157.7 $ 753.9 Short term investments 149.1 1,103.3 Trade receivables, net 619.2 477.1 Other receivables 85.3 84.5 In
Slide 24: Net Sales Summary and Organic Net Sales Reconciliation
24 SPECTRUM BRANDS HOLDINGS, INC. NET SALES SUMMARY (Unaudited) Three Month Periods Ended Nine Month Periods Ended (in millions, except %) June 30, 2024 July 2, 2023 Variance June 30, 2024 July 2, 2023 Variance GPC $ 282.2 $ 272.3 $ 9.9 3.6 % $ 849.0 $ 846.5 $ 2.5 0.3 % H&G 211.0 186.6 24.4 13.1 % 4
Slide 25: Reconciliation of GAAP Net Income to Adjusted EBITDA, Q3 2024
25 SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) Three Month Period Ended June 30, 2024 (in millions, except %) GPC H&G HPC Corporate Consolidated Net income (loss) from continuing operations $ 48.0 $ 38.4 $ (0.5) $ (66.8)
Slide 26: Reconciliation of GAAP Net Income to Adjusted EBITDA, Q3 2023
26 SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) Three Month Period Ended July 2, 2023 (in millions, except %) GPC H&G HPC Corporate Consolidated Net income (loss) from continuing operations $ 38.0 $ 26.2 $ (156.5) $ (79.9)
Slide 27: Reconciliation of GAAP Net Income to Adjusted EBITDA, Nine Months 2024
27 SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) Nine Month Period Ended June 30, 2024 (in millions, except %) GPC H&G HPC Corporate Consolidated Net income (loss) from continuing operations $ 144.6 $ 18.3 $ 84.7 $ (161.2)
Slide 28: Reconciliation of GAAP Net Income to Adjusted EBITDA, Nine Months 2023
28 SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) Nine Month Period Ended July 2, 2023 (in millions, except % GPC H&G HPC Corporate Consolidated Net income (loss) from continuing operations $ 91.3 $ (20.8) $ (198.2) $ (159.5
Slide 29: Reconciliation of GAAP Diluted EPS to Adjusted Diluted EPS
29 SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE (Unaudited) Three Month Periods Ended Nine Month Periods Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Diluted EPS from continuing operations, as reported $ 0.66 $
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