NYSE$SPB

Spectrum Brands Holdings Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported a challenging year-end with sales declining slightly due to unfavorable foreign currency impact and retailers reducing inventory levels, but cost reduction actions partially offset the impact.

Spectrum Brands Holdings reported a 1.1% decrease in net sales, impacted by unfavorable foreign exchange rates and lower replenishment orders from retailers reducing inventory. The company is focused on maximizing free cash flow and deleveraging the balance sheet, with expectations of low single-digit net sales growth and low double-digit EBITDA growth for fiscal year 2023.

  • Net sales decreased 1.1% due to unfavorable foreign exchange rates and lower replenishment orders.
  • Adjusted EBITDA decreased by $4.4 million due to reduced sales volumes and unfavorable currency impact.
  • The company expects low single-digit net sales growth and low double-digit EBITDA growth for fiscal 2023.
  • Spectrum Brands anticipates collecting $4.3 billion upon completion of the sale of HHI, expected by the end of June 2023.

Headline financials

Total Revenue

$750M

Previous: $1.16B-35.2%
EPS (adj)

$0.48

Previous: $1.11-56.8%
Adjusted EBITDA

$74.7M

Previous: $79.1M-5.6%
Capital Expenditures

$18.7M

Previous: $300K+6133.3%
Free Cash Flow

$65.9M

Previous: $273M-75.9%
Net Income

-$24.8M

Previous: $6.1M-506.6%
Operating Income

$16.4M

Previous: -$4M+510.0%
Gross Profit

$240M

Previous: $258M-7.2%
Cash & Equivalents

$244M

Previous: $188M+29.7%
Total Assets

$5.78B

Previous: $5.34B+8.1%
Stock-Based Comp

-$1.2M

Previous: $5.4M-122.2%

Revenue & EPS history

Spectrum Brands · Revenue · Quarterly

$750M

Q4 2022-35.2%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Spectrum Brands · $741M total across 3 segments · Q4 2023

  • Home & Personal Care
    $323M
  • Global Pet Care
    $292M
  • Home & Garden
    $125M

Forward guidance

Spectrum Brands expects low single-digit reported net sales growth and low double-digit adjusted EBITDA growth in fiscal 2023.

Tailwinds

  • Low single-digit net sales growth expected in Fiscal 2023.
  • Fiscal 2023 adjusted EBITDA is expected to increase by low double-digits.
  • Targeting a long-term net leverage ratio of 2.0 - 2.5 times after full deployment of HHI sale proceeds.
  • Additional Pricing Actions Expected to Offset Projected Inflationary Increases and Unfavorable Currency Impact
  • The Company Expects to Return to Free Cash Flow Generation in Fiscal 2023 with over $200 Million of Inventory Reduction

Headwinds

  • Foreign exchange is expected to have a negative impact based upon current rates.
  • Macro-economic environment to continue in fiscal 2023
  • Expects the DOJ lawsuit
  • Higher interest rates
  • Period of low demand growth

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 Q4 2022

Historical avgQ4 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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