Core Insights - Spectrum Brands Holdings Inc. (SPB) is positioned for growth due to strategic efforts, including increased pricing, cost improvements, and a favorable product mix [1][8] - The company has faced challenges such as soft demand in small kitchen appliances and volume declines in certain pet channels, impacting its second-quarter fiscal 2024 results [2][10] - Despite these challenges, SPB projects flat reported sales year over year for fiscal 2024, with adjusted EBITDA expected to grow in the low-double digits [3] Financial Performance - In the second quarter of fiscal 2024, Spectrum Brands' top line fell by 1.5% year over year, while organic net sales dipped by 1.6% [2] - The Zacks Consensus Estimate for fiscal 2024 sales is $2.92 billion, indicating a growth of 0.1% year over year, while earnings per share (EPS) is estimated at $4.68, reflecting a significant growth of 205.9% [11] Strategic Initiatives - The company is implementing its Global Productivity Improvement Plan (GPIP) to enhance operational efficiency and effectiveness, focusing on consumer insights and growth-enabling functions [3][9] - Spectrum Brands is committed to improving operational efficiencies, streamlining its organizational structure, and solidifying liquidity while transforming into a pure-play global Pet and Home & Garden business [7] Market Position - Spectrum Brands has gained 9.6% in stock value over the past year, outperforming the industry, which saw a decline of 3.8% [12] - The company has been proactive in cost management, including fixed cost reductions and decreased advertising spending, to drive margins [8]

(Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Deal Overview On July 2, 2024, Spectrum Brands Holdings Inc. (NYSE: SPB, $85.00; Market Capitalization: $2.5 billion) announced a plan to spin-off its Home & Personal care ("HPC") business. After separation, Spectrum (Stub Co.) will continue focusing on its pure-play Pet, and Home & Garden businesses, which include renowned brands such as Tetra, FURminator, DreamBone, Garden Safe, EcoLogic ...

Core Viewpoint - Spectrum Brands Holdings has undergone significant changes, including the sale of its Hardware and Home Improvement segment for $4.3 billion, which is substantial given its current market capitalization of $2.60 billion. The company is also actively managing its debt, which is expected to improve its financial position despite facing revenue declines and operational challenges [3][9][20]. Financial Developments - As of the end of Q2, Spectrum Brands had cash and cash equivalents of nearly $1.25 billion and is buying back approximately $1.17 billion worth of debt, which will reduce annual interest expenses by about $51.3 million [2][4]. - The company has issued $300 million in exchangeable senior notes due in 2029, with a low interest rate of 3.375%, and has the option for initial purchasers to buy an additional $50 million [14][19]. - The net proceeds from this issuance are expected to be $291.6 million, and the company plans to allocate $50 million for stock buybacks [7][19]. Revenue and Profitability - Spectrum Brands reported a 6.8% decline in revenue from $3.13 billion to $2.92 billion from 2022 to 2023, with the Home and Personal Care segment experiencing a 9.3% drop [9][10]. - The company's net loss increased from $77 million to $233.7 million, with significant impairments totaling $175.8 million [10][18]. - In the first half of the 2024 fiscal year, revenue fell 2.2% to $1.41 billion, primarily due to a 5% decline in the Home and Personal Care segment [18]. Operational Performance - Despite revenue declines, the company reported improvements in its bottom line, transitioning from a net loss of $74.6 million to a profit of $90.2 million in the first half of the 2024 fiscal year [18]. - EBITDA increased from $90.8 million to $196.6 million, indicating operational improvements despite challenges [18][19]. Valuation and Market Position - Spectrum Brands is currently valued at an EV/EBITDA ratio of 8.4, making it the cheapest among its peers, which include companies with significantly higher ratios [21]. - The company is expected to see EBITDA growth in the low double-digit range, with a projected EBITDA of approximately $341 million for the current year [19].

Driven by such upsides, the stock has gained 20.4% in the past year, outperforming the industry's 0.3% growth. Analysts seem quite optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is pegged at $2.92 billion and $4.68, respectively, indicating year-over-year growth of 0.1% and 205.9%. Delving Deeper Spectrum Brands' initiatives like pricing, cost improvements and a favorable mix have been driving margins for a while now. The c ...

Driven by improved pricing and cost improvements, the gross margin expanded 870 bps to 38.1% in secondquarter fiscal 2024, whereas gross profit improved 27.5% year over year. Adjusted EBITDA advanced 120.2% year over year to $112.3 million in the fiscal second quarter. The adjusted EBITDA margin expanded 860 bps year over year to 15.6%, driven by better gross margins and lower operating expenses. The Zacks Consensus Estimate for Lifetime Brands' current financial year's sales and earnings per share suggests ...

Spectrum Brands Holdings Inc. (SPB) is benefiting from increased pricing, cost improvements and a favorable mix. The company is progressing well with its Global Productivity Improvement Plan, which aims at improving operating efficiency and effectiveness. In the latest developments, the company unveiled that its fully-owned subsidiary, Spectrum Brands, Inc., offered $300 million in total principal amount of its 3.375% exchangeable senior notes due 2029 in a private placement to eligible purchasers under Rul ...

Spectry 2 • CEO Overview – David Maura Chairman and Chief Executive Officer Forward-looking Statements Since these forward-looking statements are based upon our current expectations of future events and projections and are subject to a number of risks and uncertainties, many of which are beyond our control and some of which may change rapidly, actual results or outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance on these statements. Important factor ...

Spectrum Brands Holdings, Inc. (NYSE:SPB) Q2 2024 Earnings Conference Call May 9, 2024 9:00 AM ET Company Participants Joanne Chomiak – Senior Vice President-Tax and Treasury David Maura – Chairman and Chief Executive Officer Jeremy Smeltser – Chief Financial Officer Conference Call Participants Peter Grom – UBS Bob Labick – CJS Securities Chris Carey – Wells Fargo Securities Steve Powers – Deutsche Bank Operator Good day, and thank you for standing by. Welcome to the Spectrum Brands’ Second Quarter 2024 Ea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______ | Commission File No. | Name of Registrant, State of Incorporation, | IRS Employer Identification No. | | --- | --- | --- | | | Address ...

Exhibit 99.1 3001 Deming Way Middleton, WI 53562-1431 P.O. Box 620992 Middleton, WI 53562-0992 (608) 275-3340 For Immediate Release Investor/Media Contact: Joanne Chomiak 608-275-4458 Spectrum Brands Holdings Reports Fiscal 2024 Second Quarter Results Middleton, WI, May 9, 2024 - Spectrum Brands Holdings, Inc. (NYSE: SPB; "Spectrum Brands" or the "Company"), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, today ...