NYSE$SPB

Spectrum Brands Holdings Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Spectrum Brands reported first quarter results with net sales increase but margins contracted due to inflationary pressures.

Spectrum Brands Holdings reported a 2.9% increase in net sales and a 1.6% increase in organic net sales for the first quarter of fiscal 2022. However, income from continuing operations decreased to a loss of $30.2 million, and adjusted EBITDA was $49.3 million, due to supply chain disruptions, input cost inflation, and higher restructuring costs. The company expects additional pricing actions to offset the majority of projected inflationary increases and maintains its 2022 earnings framework of mid-to-high single-digit net sales growth and low single-digit adjusted EBITDA growth.

  • Net sales increased by 2.9%, and organic net sales increased by 1.6%.
  • Income from continuing operations decreased to a loss of $30.2 million.
  • Adjusted EBITDA was $49.3 million, impacted by supply chain issues and inflation.
  • The company is maintaining its 2022 earnings framework with expected net sales growth and adjusted EBITDA growth.

Headline financials

Total Revenue

$757M

Previous: $1.15B-33.9%
EPS (adj)

-$0.06

Previous: $2.13-102.8%
Net Debt Leverage

4.8

Previous: 3.4+41.2%
Capital Expenditures

-$14.1M

Previous: -$11.8M-19.5%
Free Cash Flow

-$5.9M

Previous: $60.3M-109.8%
Net Income

$8.2M

Previous: $72.1M-88.6%
Operating Income

-$23.8M

Previous: $124M-119.3%
Gross Profit

$219M

Previous: $422M-48.1%
Cash & Equivalents

$205M

Previous: $225M-8.7%
Total Assets

$5.57B

Previous: $5.17B+7.7%
Stock-Based Comp

$5.6M

Previous: $6.4M-12.5%

Revenue & EPS history

Spectrum Brands · Revenue · Quarterly

$757M

Q1 2022-33.9%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Spectrum Brands · $757M total across 3 segments · Q1 2022

  • Home & Personal Care
    $380M+0.3%
  • Global Pet Care
    $302M+9.7%
  • Home & Garden
    $75.3M-8.5%

Forward guidance

Spectrum Brands continues to expect mid to high single-digit reported net sales growth in Fiscal 2022 and expects Fiscal 2022 adjusted EBITDA to increase by low-single digits. The company expects $310-$330 million of additional inflation during Fiscal 2022 and intends to offset the high inflation through additional pricing as needed.

Tailwinds

  • Expects mid to high single-digit reported net sales growth in Fiscal 2022.
  • Expects Fiscal 2022 adjusted EBITDA to increase by low-single digits.
  • Intends to offset the high inflation through additional pricing as needed.
  • Reiterating a long-term net leverage target ratio of 2.0 - 2.5 times after full deployment of HHI proceeds.
  • Consumer demand and retailer interest in our categories remain positive overall

Headwinds

  • Foreign exchange expected to have a slightly negative impact based upon current rates.
  • Expects $310-$330 million of additional inflation during Fiscal 2022.
  • Margins contracted as inflationary costs were materially higher than related price increases
  • Supply chain disruptions
  • Higher restructuring costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+18.1%

Q4 2019

Best reaction

-26.0%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.8%-5.3%-4.2%
Q1 2026+10.2%+8.9%+11.8%
Q4 2025+10.0%+2.0%+15.2%
Q2 2025+3.8%+8.4%-9.7%
Q1 2025-7.7%-7.7%-9.2%
Q4 2024-3.9%-5.3%-3.6%
Q3 2024+7.4%+9.1%+12.6%
Q2 2024+12.2%+11.8%+6.9%
Q1 2024+7.4%+6.2%+4.4%
Q4 2023-14.0%-14.6%+3.3%
Q3 2023+4.7%+2.7%+8.8%
Q2 2023+2.7%+0.7%+3.4%
Q1 2023+1.2%+2.7%-7.9%
Q4 2022-2.7%+0.3%+16.7%
Q3 2022+1.2%-3.0%-12.9%
Q2 2022+7.2%+4.0%+4.6%
Q1 2022-0.8%+3.3%-0.4%
Q4 2021+11.4%+12.4%+3.8%
Q3 2021-1.9%-1.9%-5.3%
Q2 2021+3.7%-1.6%-5.8%
Q1 2021+3.2%+1.7%+0.3%
Q4 2020+2.3%+2.7%+9.9%
Q3 2020+8.6%+6.7%+13.0%
Q2 2020-2.4%-0.7%+10.3%
Q1 2020-0.6%-4.3%-12.7%
Q4 2019+18.1%+21.3%+20.3%
Q3 2019+9.0%+6.4%+19.6%
Q2 2019+4.8%-0.0%-7.4%
Q1 2019-18.4%-14.4%-3.3%
Q4 2018-17.0%-13.4%-26.8%
Q3 2018+13.7%+13.7%+18.4%
Q2 2018-26.0%-21.9%-15.1%
Q1 2018-3.9%-7.4%-9.8%
Q4 2017+12.8%+16.7%+15.8%
Q3 2017-3.5%-3.6%-9.3%
Q2 2017-9.8%-8.9%-2.7%
Q1 2017+6.7%+4.5%+14.0%
Q4 2016-1.0%+3.8%+1.3%
Q3 2016+7.0%+7.3%+15.4%
Q2 2016+2.0%
Q1 2016+0.9%
Q4 2015+3.6%
Q3 2015-2.9%
Q2 2015+1.0%
Q1 2015+3.8%
Q4 2014-3.1%
Q3 2014+0.2%
Q2 2014-0.6%
Q1 2014+5.1%
Q4 2013+4.0%
Q3 2013+3.7%
Q2 2013-1.6%
Q1 2013+0.1%
Q4 2011-3.4%
Q4 2012-10.8%
Q3 2012+0.0%
Q2 2012+1.0%
Q1 2011+0.6%
Q1 2012+2.0%
Q2 2011+0.7%
Q4 2010+0.3%
Q3 2011+0.3%
Q3 2010+1.6%
Q2 2010-4.2%

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