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Jul 02, 2023
Spectrum Brands Q3 2023 Earnings Report
Reported third quarter fiscal 2023 results, including the successful completion of the sale of HHI and repayment of outstanding debt.
Key Takeaways
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
Spectrum Brands
Spectrum Brands
Forward Guidance
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.