Spectrum Brands Holdings Inc. · Q3 2021 earnings

Briefing

Reported third quarter results with net sales increasing and adjusted EPS improving despite inflationary headwinds.

Spectrum Brands Holdings reported an 18.1% increase in net sales and a 12.0% increase in organic net sales for the third quarter of fiscal year 2021. Net income from continuing operations decreased by $101.7 million to $35.9 million. Adjusted EBITDA increased by 1.8% to $167.4 million. The company reiterates its 2021 earnings framework for net sales, adjusted EBITDA, and adjusted free cash flow and maintained strong financial flexibility with over $600 million of total liquidity.

• Net sales increased 18.1% and organic net sales increased 12.0%.
• Net income from continuing operations decreased $101.7 million to $35.9 million.
• Adjusted EBITDA increased 1.8% to $167.4 million driven by HHI's organic growth.
• The company reiterates its 2021 earnings framework for net sales, adjusted EBITDA, and adjusted free cash flow.

Headline financials

Revenue & EPS history

Spectrum Brands continues to expect mid-teens reported net sales growth, with foreign exchange expected to have a positive impact based upon current rates. The company continues to expect adjusted EBITDA to increase mid-teens, including inflation from transportation and commodity related costs of $120 to $130 million year over year. Adjusted free cash flow expectations continue to be between $260 million and $280 million, with plans for incremental investments in inventory levels.