Spectrum Brands Holdings Inc (SPB)

[Enterprising Investor]

Spectrum Brands Holdings Reduces Debt in Excess of $410 Million, Expects to End Fiscal 2016 with Total Leverage Below 4 Times (9/27/16)

MIDDLETON, Wis.--(BUSINESS WIRE)--Spectrum Brands Holdings, Inc. (NYSE: SPB) announced today in excess of $410 million of cumulative term debt reduction during its fiscal year and anticipates ending fiscal 2016 on September 30 with total leverage below 4 times. The Company is attending the Deutsche Bank 24th Annual Leveraged Finance Conference today.

Spectrum Brands also reiterated expectations for fiscal 2016 adjusted net cash provided from operating activities after purchases of property, plant and equipment (adjusted free cash flow) to be between $505-$515 million.

Free Cash Flow

Our definition of free cash flow, which is a non-GAAP financial measure, takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy. We believe free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases and meet its working capital requirements. Our definition of free cash flow may be different from definitions used by other companies. We also use free cash flow, as defined, as one measure to monitor and evaluate performance.
The following is a reconciliation of forecast net cash provided from operating activities to the Company’s forecasted cash flow for the fiscal year ending September 30, 2016:

Forecasted range (in millions)
 
F2016

Net Cash provided from Operating Activities, as adjusted: $605-$625

Purchases of property, plant and equipment: (100)-(110)

Free cash flow: $505-$515

About Spectrum Brands Holdings, Inc.

Spectrum Brands Holdings, a member of the Russell 1000 Index, is a global consumer products company offering an expanding portfolio of leading brands providing superior value to consumers and customers every day. The Company is a leading supplier of consumer batteries, residential locksets, residential builders’ hardware, plumbing, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn and garden and home pest control products, personal insect repellents, and auto care products. Helping to meet the needs of consumers worldwide, our Company offers a broad portfolio of market-leading, well-known and widely trusted brands including Rayovac®, VARTA®, Kwikset®, Weiser®, Baldwin®, National Hardware®, Pfister®, Remington®, George Foreman®, Russell Hobbs®, Black+ Decker®, Tetra®, Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®, FURminator®, IAMS®, Eukanuba®, Digest-eeze™, Healthy-Hide®, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot®, Black Flag®, Liquid Fence®, Armor All®, STP® and A/C PRO®. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in approximately 160 countries. Based in Middleton, Wisconsin, Spectrum Brands Holdings generated net sales of approximately $4.69 billion in fiscal 2015. For more information, visit www.spectrumbrands.com.

http://www.businesswire.com/news/home/20160927005273/en/Spectrum-Brands-Holdings-Reduces-Debt-Excess-410