Spectrum Brands(SPB)2025-02-06 15:04Financial Performance - Net sales for the three-month period ended December 29, 2024, increased to 692.2 million in the same period last year, representing a growth of 1.5%[15] - Gross profit rose to 244.9 million in the prior year, reflecting an increase of 5.5%[15] - Operating income significantly improved to 25.0 million, marking an increase of 78.8%[15] - Net income from continuing operations was 17.5 million, which is a year-over-year increase of 40.0%[15] - Basic earnings per share from continuing operations increased to 0.51, representing a growth of 70.6%[15] - Net income for the three-month period ended December 29, 2024, was 29.2 million for the same period in 2023[18] - Comprehensive loss for the three-month period ended December 29, 2024, was 45.5 million in the same period of 2023[18] - Total segment adjusted EBITDA increased to 78.7 million for the same period in 2023, representing an increase of 10.9%[81] - Net income from continuing operations attributable to controlling interest was 17.4 million in the prior year, reflecting a growth of 39.7%[84] Assets and Liabilities - Total assets decreased to 3,842.3 million at the end of the previous quarter[13] - Total liabilities decreased to 1,700.6 million, indicating a reduction of 6.7%[13] - The company’s total shareholders' equity as of December 29, 2024, was 2,300.8 million as of December 31, 2023[20] - Total debt as of December 29, 2024, is 577.7 million on September 30, 2024[44] Cash Flow - Cash flows from operating activities from continuing operations showed a net cash used of 18.1 million in the same period of 2023[24] - Total cash, cash equivalents, and restricted cash at the end of the period was 445.4 million at the end of the same period in 2023[24] - The company reported a net cash used by financing activities of (439.8) million in the same period of 2023[24] - Cash flows from operating activities decreased by (71.9) million, primarily due to increased working capital needs[116] - Cash flows from investing activities dropped by 342.5 million, mainly due to lower debt repayment and share repurchase activity[118] Inventory and Expenses - Inventories increased to 462.1 million, reflecting a rise of 9.8%[13] - Selling, general & administrative expenses decreased to 14.0 million for the three-month period ended December 29, 2024, slightly down from 4.8 million related to strategic transactions and restructuring initiatives for both December 29, 2024, and December 31, 2023[95] - Exit and disposal costs for the three months ended December 29, 2024, were 260.0 million, down from 92.1 million from 348.1 million from 51.5 million for the three months ended December 29, 2024, slightly down from 52.7 million in the prior year[81] - The H&G segment showed a significant improvement with adjusted EBITDA of 9.3 million for the three months ended December 29, 2024, compared to a loss of 26.7 million for both periods, indicating stable performance[81] Shareholder Returns - The company declared a dividend of 0.42 per share in the previous year[15] - The company made cash dividend payments of 0.47 per share, down from 0.42 per share, in the prior year[118] Other Financial Metrics - The effective tax rate for the three-month period ended December 29, 2024, was 32.5%, a decrease from 41.6% for the same period in 2023[67] - Interest expense significantly decreased by 67.7% to 19.2 million due to reduced debt borrowings[100] - Adjusted EBITDA decreased to 84.3 million in the same period of 2023, a decline of 7.7%[92] - Adjusted EBITDA margin was 11.1% for the three months ended December 29, 2024, down from 12.2% in the prior year[92] Legal and Regulatory Matters - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09, which will be effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[29][31] - The company continues to assess the impact of the OECD's Pillar Two framework, which introduces a global minimum corporate income tax of 15%[68] - The company is actively engaged in litigation related to the Tristar Business acquisition, which has resulted in significant operational challenges and increased costs[72]