Spectrum Brands Holdings Inc. · Q3 2023 earnings

Briefing

Reported third quarter fiscal 2023 results, including the successful completion of the sale of HHI and repayment of outstanding debt.

Spectrum Brands Holdings reported a decrease in net sales by 10.1% due to retailer inventory reduction strategies and slower category POS, but Adjusted EBITDA grew 23% year over year. The company successfully completed the sale of HHI for $4.3 billion and repaid $1.55 billion of outstanding debt.

• Successfully completed the sale of HHI for $4.3 Billion in Cash, Subject to Customary Purchase Price Adjustments
• Net Proceeds from the Transaction After Tax and Fees are Expected to be $3.8 Billion
• Repaid $1.55 Billion of Outstanding Debt and Entered into an Accelerated Share Repurchase Agreement for $500 Million of Its Common Stock
• Ended the Quarter in a Net Cash Position with $2.9 Billion of Cash and $2.1 Billion of Debt

Headline financials

Revenue & EPS history

Spectrum Brands continues to expect reported net sales to decline by mid single-digits in Fiscal 2023, with foreign exchange expected to have a negative impact based upon current rates. Fiscal 2023 Adjusted EBITDA, excluding investment income, is expected to decline by low to mid single-digits. The Company is targeting a long-term net leverage ratio of 2.0 - 2.5 times after full deployment of HHI sale proceeds.