Company Quick10K Filing
Quick10K
Spectrum Brands Holdings
10-Q 2019-03-31 Quarter: 2019-03-31
10-Q 2018-12-30 Quarter: 2018-12-30
10-K 2018-09-30 Annual: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
10-K 2015-09-30 Annual: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-09-30 Annual: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-Q 2013-12-31 Quarter: 2013-12-31
8-K 2019-05-13 Amend Bylaw, Exhibits
8-K 2019-05-08 Earnings, Exhibits
8-K 2019-04-05 Regulation FD, Other Events, Exhibits
8-K 2019-03-21 Other Events
8-K 2019-03-13 Other Events
8-K 2019-02-19 Regulation FD, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2019-01-28 Enter Agreement, M&A, Regulation FD, Other Events, Exhibits
8-K 2019-01-23 Regulation FD, Exhibits
8-K 2019-01-23 Regulation FD, Exhibits
8-K 2019-01-02 M&A, Officers, Regulation FD, Exhibits
8-K 2018-12-31 Regulation FD, Exhibits
8-K 2018-12-11 Other Events, Exhibits
8-K 2018-11-19 Earnings, Exhibits
8-K 2018-11-15 Enter Agreement, Regulation FD, Exhibits
8-K 2018-10-26 Officers, Regulation FD, Other Events, Exhibits
8-K 2018-09-12 Officers, Other Events
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-07-13 M&A, Shareholder Rights, Officers, Amend Bylaw, Shareholder Vote, Regulation FD, Exhibits
8-K 2018-07-02 Regulation FD
8-K 2018-06-12 Shareholder Vote
8-K 2018-06-08 Enter Agreement, Other Events, Exhibits
8-K 2018-04-10 Regulation FD
8-K 2018-03-30 Other Events, Exhibits
8-K 2018-02-24 Enter Agreement, Shareholder Rights, Amend Bylaw, Regulation FD, Exhibits
8-K 2018-02-22 Regulation FD
8-K 2018-01-16 Other Events
8-K 2018-01-11 Regulation FD
YUM Yum Brands 30,820
DPZ Domino's Pizza 11,600
KBH KB Home 2,250
BOMN Boston Omaha 597
FTK Flotek Industries 194
CRT Cross Timbers Royalty Trust 74
ZOM Zomedica Pharmaceuticals 33
LIXT Lixte Biotechnology Holdings 0
DJO DJO Finance 0
ZOES Zoe's Kitchen 0
SPB 2019-03-31
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Description of Business
Note 2 – Basis of Presentation and Significant Accounting Policies
Note 3 – Divestitures
Note 4 – Acquisitions
Note 5 - Restructuring and Related Charges
Note 6 – Revenue Recognition
Note 7 - Receivables and Concentration of Credit Risk
Note 8 - Inventories
Note 9 – Property, Plant and Equipment
Note 10 - Goodwill and Intangible Assets
Note 11 - Debt
Note 12 - Derivatives
Note 13 - Fair Value of Financial Instruments
Note 14 - Employee Benefit Plans
Note 15 - Share Based Compensation
Note 16 - Income Taxes
Note 17 – Related Party Transactions
Note 18 - Commitments and Contingencies
Note 19 - Segment Information
Note 20 - Earnings per Share - Sbh
Note 21 - Guarantor Statements – Sb/Rh
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-31.1 spb-20190331xex31_1.htm
EX-31.2 spb-20190331xex31_2.htm
EX-31.3 spb-20190331xex31_3.htm
EX-31.4 spb-20190331xex31_4.htm
EX-32.1 spb-20190331xex32_1.htm
EX-32.2 spb-20190331xex32_2.htm
EX-32.3 spb-20190331xex32_3.htm
EX-32.4 spb-20190331xex32_4.htm

Spectrum Brands Holdings Earnings 2019-03-31

SPB 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 spb-20190331x10q.htm 10-Q 20190331 FORM 10Q Q2FY19

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, 2019



OR



TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to           





\

 

 

 

 



 

Picture 1

 

 

Commission File No.

 

Name of Registrant, State of Incorporation,

Address of Principal Offices, and Telephone No.

 

IRS Employer Identification No.

1-4219

 

Spectrum Brands Holdings, Inc.

(a Delaware corporation)

3001 Deming Way

Middleton, WI 53562

(608) 275-3340

www.spectrumbrands.com

 

 

74-1339132

333-192634-03

 

SB/RH Holdings, LLC

(a Delaware limited liability company)

3001 Deming Way

Middleton, WI 53562

(608) 275-3340

 

27-2812840

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):



 

 

 

 

 

 

 

 

 

Registrant

 

Large Accelerated Filer

 

Accelerated filer

 

Non-accelerated filer

 

Smaller reporting company

Spectrum Brands Holdings, Inc.

 

X

 

 

 

 

 

 

SB/RH Holdings, LLC

 

 

 

 

 

X

 

 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

 

 

 

 



SB/RH Holdings, LLC

 

 

 

 



Securities registered pursuant to Section 12(b) of the Exchange Act:

Registrant

 

Title of Each Class

 

Trading Symbol

 

Name of Exchange On Which Registered

Spectrum Brands Holdings, Inc.

 

Common Stock, $0.01 par value

 

SPB

 

New York Stock Exchange



As of May 6, 2019, there were outstanding 48,764,053 shares of Spectrum Brands Holdings, Inc.’s common stock, par value $0.01 per share.



SB/RH Holdings, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this report with a reduced disclosure format as permitted by general instruction H(2).

 

 


 

Forward-Looking Statements



We have made or implied certain forward-looking statements in this report. All statements, other than statements of historical facts included in this report, including the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding our business strategy, future operations, financial condition, estimated revenues, projected costs, projected synergies, prospects, plans and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements. When used in this report, the words anticipate,  intend,  plan,  estimate,  believe,  expect,  project,  could,  will,  should,  may and similar expressions are also intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.



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 factors that could cause our actual results to differ materially from those expressed or implied herein include, without limitation:



·

the impact of our indebtedness on our business, financial condition and results of operations;

·

the impact of restrictions in our debt instruments on our ability to operate our business, finance our capital needs or pursue or expand business strategies;

·

any failure to comply with financial covenants and other provisions and restrictions of our debt instruments;

·

the impact of actions taken by significant stockholders;

·

the impact of fluctuations in commodity prices, costs or availability of raw materials or terms and conditions available from suppliers, including suppliers’ willingness to advance credit;

·

interest rate and exchange rate fluctuations;

·

the loss of, significant reduction in, or dependence upon, sales to any significant retail customer(s);

·

competitive promotional activity or spending by competitors, or price reductions by competitors;

·

the introduction of new product features or technological developments by competitors and/or the development of new competitors or competitive brands;

·

the effects of general economic conditions, including inflation, recession or fears of a recession, depression or fears of a depression, labor costs and stock market volatility or changes in trade, monetary or fiscal policies in the countries where we do business;

·

changes in consumer spending preferences and demand for our products;

·

our ability to develop and successfully introduce new products, protect our intellectual property and avoid infringing the intellectual property of third parties;

·

our ability to successfully implement, achieve and sustain manufacturing and distribution cost efficiencies and improvements, and fully realize anticipated cost savings;

·

the seasonal nature of sales of certain of our products;

·

the effects of climate change and unusual weather activity;

·

the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection regulations);

·

public perception regarding the safety of products, that we manufacture or sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties;

·

the impact of pending or threatened litigation;

·

the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data;

·

changes in accounting policies applicable to our business;

·

our ability to utilize our net operating loss carry-forwards to offset tax liabilities from future taxable income;

·

government regulations;

·

the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring activities;

·

our inability to successfully integrate and operate new acquisitions at the level of financial performance anticipated;

·

the unanticipated loss of key members of senior management;

·

the effects of political or economic conditions, terrorist attacks, acts of war or other unrest in international markets; and

·

the transition to a new chief executive officer and such officer’s ability to determine and implement changes at the Company to improve the Company’s business and financial performance.



Some of the above-mentioned factors are described in further detail in the sections entitled “Risk Factors” in our annual and quarterly reports (including this report), as applicable. You should assume the information appearing in this report is accurate only as of the end of the period covered by this report, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since that date. Except as required by applicable law, including the securities laws of the United States (“U.S.”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”), we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.



 

 

 


 



SPECTRUM BRANDS HOLDINGS, INC.

SB/RH HOLDINGS, LLC

TABLE OF CONTENTS



This report is a combined report of Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC. The combined notes to the condensed consolidated financial statements include notes representing Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC and certain notes related specifically to SB/RH Holdings, LLC.





 

 

PART I

FINANCIAL INFORMATION

Page

Item 1.

Financial Statements

Spectrum Brands Holdings, Inc. Condensed Consolidated Financial Statements (Unaudited)



Condensed Consolidated Statements of Financial Position as of March 31, 2019 and September 30, 2018



Condensed Consolidated Statements of Income for the three and six  month periods ended March 31, 2019 and 2018



Condensed Consolidated Statements of Comprehensive Income for the three and six month periods ended March 31, 2019 and 2018



Condensed Consolidated Statement of Shareholders’ Equity for the six month periods ended March 31, 2019 and 2018



Condensed Consolidated Statements of Cash Flows for the six month periods ended March 31, 2019 and 2018

SB/RH Holdings, LLC Condensed Consolidated Financial Statements (Unaudited)



Condensed Consolidated Statements of Financial Position as of March 31, 2019 and September 30, 2018



Condensed Consolidated Statements of Income for the three and six month periods ended March 31, 2019 and April 1, 2018



Condensed Consolidated Statements of Comprehensive Income for the three and six month periods ended March 31, 2019 and April 1, 2018



Condensed Consolidated Statement of Shareholder’s Equity for the six month periods ended March 31, 2019 and April 1, 2018

10 



Condensed Consolidated Statements of Cash Flows for the six month periods ended March 31, 2019 and April 1, 2018

11 

Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC Combined (Unaudited)



Combined Notes to Condensed Consolidated Financial Statements

12 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

41 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

52 

Item 4.

Controls and Procedures

53 

PART II

OTHER INFORMATION

 

Item 1.

Legal Proceedings

54 

Item 1A.

Risk Factors

54 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

54 

Item 5.

Other Information

54 

Item 6.

Exhibits

54 

Signatures

 

55 



1

 


 

PART I. FINANCIAL INFORMATION



Item 1. Financial Statements

SPECTRUM BRANDS HOLDINGS, INC.

Condensed Consolidated Statements of Financial Position

As of March 31, 2019, and September 30, 2018 

(unaudited)





 

 

 

 

 

 

(in millions)

 

March 31, 2019

 

September 30, 2018

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

176.2 

 

$

552.5 

Trade receivables, net

 

 

470.5 

 

 

317.1 

Other receivables

 

 

95.5 

 

 

51.7 

Inventories

 

 

776.2 

 

 

583.6 

Prepaid expenses and other current assets

 

 

66.3 

 

 

63.2 

Current assets of business held for sale

 

 

 

 

2,402.6 

Total current assets

 

 

1,584.7 

 

 

3,970.7 

Property, plant and equipment, net

 

 

469.8 

 

 

500.0 

Deferred charges and other

 

 

161.0 

 

 

231.8 

Investments

 

 

237.9 

 

 

Goodwill

 

 

1,449.3 

 

 

1,454.7 

Intangible assets, net

 

 

1,583.8 

 

 

1,641.8 

Total assets

 

$

5,486.5 

 

$

7,799.0 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current portion of long-term debt

 

$

16.1 

 

$

26.9 

Accounts payable

 

 

450.4 

 

 

584.7 

Accrued wages and salaries

 

 

50.3 

 

 

55.1 

Accrued interest

 

 

33.6 

 

 

65.0 

Other current liabilities

 

 

441.4 

 

 

159.4 

Current liabilities of business held for sale

 

 

 

 

537.6 

Total current liabilities

 

 

991.8 

 

 

1,428.7 

Long-term debt, net of current portion

 

 

2,342.0 

 

 

4,624.3 

Deferred income taxes

 

 

88.5 

 

 

35.0 

Other long-term liabilities

 

 

135.6 

 

 

121.4 

Total liabilities

 

 

3,557.9 

 

 

6,209.4 

Commitments and contingencies (Note 18)

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Common Stock

 

 

0.5 

 

 

0.5 

Additional paid-in capital

 

 

2,017.5 

 

 

1,996.7 

Accumulated earnings (deficit)

 

 

387.6 

 

 

(180.1)

Accumulated other comprehensive loss, net of tax

 

 

(222.3)

 

 

(235.8)

Treasury Stock

 

 

(264.2)

 

 

Total shareholders' equity

 

 

1,919.1 

 

 

1,581.3 

Noncontrolling interest

 

 

9.5 

 

 

8.3 

Total equity

 

 

1,928.6 

 

 

1,589.6 

Total liabilities and equity

 

$

5,486.5 

 

$

7,799.0 

See accompanying notes to the condensed consolidated financial statements

2

 


 

SPECTRUM BRANDS HOLDINGS, INC.

Condensed Consolidated Statements of Income

For the three and six month periods ended March 31, 2019 and 2018

(unaudited)





 

 

 

 

 

 

 

 

 

 

 

 



 

Three Month Periods Ended

 

Six Month Periods Ended

(in millions, except per share)

 

March 31, 2019

 

March 31, 2018

 

March 31, 2019

 

March 31, 2018

Net sales

 

$

906.7 

 

$

882.6 

 

$

1,787.0 

 

$

1,804.9 

Cost of goods sold

 

 

601.0 

 

 

574.9 

 

 

1,174.7 

 

 

1,178.3 

Restructuring and related charges

 

 

0.2 

 

 

1.7 

 

 

1.0 

 

 

2.0 

Gross profit

 

 

305.5 

 

 

306.0 

 

 

611.3 

 

 

624.6 

Selling

 

 

151.4 

 

 

152.4 

 

 

306.9 

 

 

306.1 

General and administrative

 

 

83.6 

 

 

82.6 

 

 

183.0 

 

 

162.2 

Research and development

 

 

11.2 

 

 

11.5 

 

 

22.3 

 

 

23.0 

Restructuring and related charges

 

 

12.4 

 

 

18.6 

 

 

20.5 

 

 

35.5 

Transaction related charges

 

 

5.3 

 

 

9.6 

 

 

11.6 

 

 

14.9 

Total operating expenses

 

 

263.9 

 

 

274.7 

 

 

544.3 

 

 

541.7 

Operating income

 

 

41.6 

 

 

31.3 

 

 

67.0 

 

 

82.9 

Interest expense

 

 

94.2 

 

 

67.7 

 

 

151.2 

 

 

143.0 

Other non-operating expense (income), net

 

 

24.1 

 

 

 

 

24.8 

 

 

(0.7)

Loss from continuing operations before income taxes

 

 

(76.7)

 

 

(36.4)

 

 

(109.0)

 

 

(59.4)

Income tax benefit

 

 

(22.7)

 

 

(1.7)

 

 

(26.0)

 

 

(122.2)

Net (loss) income from continuing operations

 

 

(54.0)

 

 

(34.7)

 

 

(83.0)

 

 

62.8 

Income from discontinued operations, net of tax

 

 

783.6 

 

 

11.3 

 

 

700.4 

 

 

492.7 

Net income (loss)

 

 

729.6 

 

 

(23.4)

 

 

617.4 

 

 

555.5 

Net income attributable to non-controlling interest

 

 

1.0 

 

 

5.5 

 

 

1.2 

 

 

77.0 

Net income (loss) attributable to controlling interest

 

$

728.6 

 

$

(28.9)

 

$

616.2 

 

$

478.5 

Amounts attributable to controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to controlling interest

 

$

(55.0)

 

$

(32.6)

 

$

(84.2)

 

$

7.5 

Net income from discontinued operations attributable to controlling interest

 

 

783.6 

 

 

3.7 

 

 

700.4 

 

 

471.0 

Net income (loss) attributable to controlling interest

 

$

728.6 

 

$

(28.9)

 

$

616.2 

 

$

478.5 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations

 

$

(1.06)

 

$

(1.00)

 

$

(1.60)

 

$

0.23 

Basic earnings per share from discontinued operations

 

 

15.13 

 

 

0.11 

 

 

13.32 

 

 

14.52 

Basic earnings per share

 

$

14.07 

 

$

(0.89)

 

$

11.72 

 

$

14.75 

Diluted earnings per share from continuing operations

 

$

(1.06)

 

$

(1.00)

 

$

(1.60)

 

$

0.23 

Diluted earnings per share from discontinued operations

 

 

15.13 

 

 

0.11 

 

 

13.32 

 

 

14.42 

Diluted earnings per share

 

$

14.07 

 

$

(0.89)

 

$

11.72 

 

$

14.65 

Dividend per share

 

$

0.42 

 

$

 

$

0.84 

 

$

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

51.8 

 

 

32.5 

 

 

52.6 

 

 

32.4 

Diluted

 

 

51.8 

 

 

32.5 

 

 

52.6 

 

 

32.7 



See accompanying notes to the condensed consolidated financial statements

3

 


 



SPECTRUM BRANDS HOLDINGS, INC

Condensed Consolidated Statements of Comprehensive Income

For the three and six month periods ended March 31, 2019 and 2018

(unaudited)





 

 

 

 

 

 

 

 

 

 

 

 



 

Three Month Periods Ended

 

Six Month Periods Ended

(in millions)

 

March 31, 2019

 

March 31, 2018

 

March 31, 2019

 

March 31, 2018

Net income (loss)

 

$

729.6 

 

$

(23.4)

 

$

617.4 

 

$

555.5 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (loss) gain

 

 

0.3 

 

 

27.6 

 

 

(18.3)

 

 

18.3 

   Deferred tax effect

 

 

(2.6)

 

 

(3.3)

 

 

(4.9)

 

 

3.9 

   Deferred tax valuation allowance

 

 

 

 

(0.1)

 

 

0.1 

 

 

   Net unrealized (loss) gain on foreign currency translation

 

 

(2.3)

 

 

24.2 

 

 

(23.1)

 

 

22.2 

Unrealized gain (loss) on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on hedging activity before reclassification

 

 

9.1 

 

 

(18.5)

 

 

23.5 

 

 

(19.3)

Net reclassification for (gain) loss to income from continuing operations

 

 

(2.9)

 

 

4.3 

 

 

(5.7)

 

 

3.9 

Net reclassification for loss (gain) to income from discontinued operations

 

 

0.6 

 

 

(1.1)

 

 

0.5 

 

 

1.8 

   Unrealized gain (loss) on hedging instruments after reclassification

 

 

6.8 

 

 

(15.3)

 

 

18.3 

 

 

(13.6)

   Deferred tax effect

 

 

(1.9)

 

 

3.7 

 

 

(5.0)

 

 

3.8 

   Net unrealized gain (loss) on hedging derivative instruments

 

 

4.9 

 

 

(11.6)

 

 

13.3 

 

 

(9.8)

Defined benefit pension (loss) gain

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension (loss) gain before reclassification

 

 

(0.3)

 

 

(1.5)

 

 

0.8 

 

 

(2.2)

Net reclassification for loss to income from continuing operations

 

 

0.5 

 

 

0.7 

 

 

1.0 

 

 

1.2 

Net reclassification for loss to income from discontinued operations

 

 

 

 

0.1 

 

 

0.2 

 

 

0.4 

   Defined benefit pension gain (loss) after reclassification

 

 

0.2 

 

 

(0.7)

 

 

2.0 

 

 

(0.6)

   Deferred tax effect

 

 

(0.2)

 

 

0.2 

 

 

(0.5)

 

 

0.2 

   Net defined benefit pension (loss) gain

 

 

 

 

(0.5)

 

 

1.5 

 

 

(0.4)

Unrealized investment gain

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment gain before reclassification

 

 

 

 

 

 

 

 

26.0 

Net reclassification for (gain) loss to income from discontinued operations

 

 

 

 

 

 

 

 

(6.3)

   Unrealized gain on investments after reclassification

 

 

 

 

 

 

 

 

19.7 

Adjustments to intangible assets

 

 

 

 

 

 

 

 

(0.9)

Deferred tax effect

 

 

 

 

 

 

 

 

(6.7)

Net unrealized gain on investments

 

 

 

 

 

 

 

 

12.1 

Deconsolidation of discontinued operations

 

 

21.9 

 

 

 

 

21.9 

 

 

(445.9)

Net change to derive comprehensive income for the periods

 

 

24.5 

 

 

12.1 

 

 

13.6 

 

 

(421.8)

Comprehensive income (loss)

 

 

754.1 

 

 

(11.3)

 

 

631.0 

 

 

133.7 

Comprehensive income (loss) attributable to non-controlling interest

 

 

 

 

5.6 

 

 

 

 

79.6 

Comprehensive income (loss) attributable to controlling interest

 

$

754.1 

 

$

(16.9)

 

$

631.0 

 

$

54.1 



See accompanying notes to the condensed consolidated financial statements

4

 


 







SPECTRUM BRANDS HOLDINGS, INC

Condensed Consolidated Statements of Shareholder’s Equity

For the three and six month periods ended March 31, 2019 and 2018

(unaudited)











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

Total

 

Non-

 

 

Six Month Period Ended March 31, 2019

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Treasury

 

Shareholders'

 

controlling

 

Total

(in millions)

 

Shares

 

Amount

 

Capital

 

Deficit

 

Loss

 

Stock

 

Equity

 

Interest

 

Equity

Balances as of September 30, 2018

 

53.4 

 

$

0.5 

 

$

1,996.7 

 

$

(180.1)

 

$

(235.8)

 

$

 

$

1,581.3 

 

$

8.3 

 

$

1,589.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(29.2)

 

 

 

 

 

 

(29.2)

 

 

0.2 

 

 

(29.0)

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

(83.2)

 

 

 

 

 

 

(83.2)

 

 

 

 

(83.2)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

(11.0)

 

 

 

 

(11.0)

 

 

 

 

(11.0)

Treasury stock repurchases

 

(0.3)

 

 

 

 

 

 

 

 

 

 

(18.5)

 

 

(18.5)

 

 

 

 

(18.5)

Restricted stock issued and related tax withholdings

 

0.3 

 

 

 

 

7.5 

 

 

(0.2)

 

 

 

 

3.9 

 

 

11.2 

 

 

 

 

11.2 

Share based compensation

 

 

 

 

 

3.2 

 

 

 

 

 

 

 

 

3.2 

 

 

 

 

3.2 

Dividends declared

 

 

 

 

 

 

 

(22.5)

 

 

 

 

 

 

(22.5)

 

 

 

 

(22.5)

Cumulative adjustment for adoption of new accounting standards (Note 2)

 

 

 

 

 

 

 

(3.2)

 

 

 

 

 

 

(3.2)

 

 

 

 

(3.2)

Balances as of December 30, 2018

 

53.4 

 

 

0.5 

 

 

2,007.4 

 

 

(318.4)

 

 

(246.8)

 

 

(14.6)

 

 

1,428.1 

 

 

8.5 

 

 

1,436.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(55.0)

 

 

 

 

 

 

(55.0)

 

 

1.0 

 

 

(54.0)

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

783.6 

 

 

 

 

 

 

783.6 

 

 

 

 

783.6 

Sale and deconsolidation of discontinued operations

 

 

 

 

 

 

 

 

 

21.9 

 

 

 

 

21.9 

 

 

 

 

21.9 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

2.6 

 

 

 

 

2.6 

 

 

 

 

2.6 

Treasury stock repurchases

 

(4.6)

 

 

 

 

 

 

 

 

 

 

(250.0)

 

 

(250.0)

 

 

 

 

(250.0)

Restricted stock issued and related tax withholdings

 

 

 

 

 

(0.2)

 

 

 

 

 

 

0.4 

 

 

0.2 

 

 

 

 

0.2 

Share based compensation

 

 

 

 

 

10.3 

 

 

 

 

 

 

 

 

10.3 

 

 

 

 

10.3 

Dividends declared

 

 

 

 

 

 

 

(22.6)

 

 

 

 

 

 

(22.6)

 

 

 

 

(22.6)

Balances as of March 31, 2019

 

48.8 

 

$

0.5 

 

$

2,017.5 

 

$

387.6 

 

$

(222.3)

 

$

(264.2)

 

$

1,919.1 

 

$

9.5 

 

$

1,928.6 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

Total

 

Non-

 

 

Six Month Period Ended March 31, 2018

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Treasury

 

Shareholders'

 

controlling

 

Total

(in millions)

 

Shares

 

Amount

 

Capital

 

Deficit

 

Loss

 

Stock

 

Equity

 

Interest

 

Equity

Balances as of September 30, 2017

 

200.6 

 

 

2.0 

 

 

1,372.9 

 

 

(925.9)

 

 

309.0 

 

 

 

 

758.0 

 

 

1,188.9 

 

 

1,946.9 

Net income from continuing operations

 

 

 

 

 

 

 

40.0 

 

 

 

 

 

 

40.0 

 

 

57.2 

 

 

97.2 

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

467.4 

 

 

 

 

 

 

467.4 

 

 

14.2 

 

 

481.6 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

9.5 

 

 

 

 

9.5 

 

 

2.5 

 

 

12.0 

Sale and deconsolidation of HRG - Insurance Operations

 

 

 

 

 

 

 

 

 

(445.9)

 

 

 

 

(445.9)

 

 

(446.4)

 

 

(892.3)

Purchase of subsidiary stock

 

 

 

 

 

(10.3)

 

 

 

 

0.6 

 

 

 

 

(9.7)

 

 

1.7 

 

 

(8.0)

Excess of stock options and warrants

 

0.1 

 

 

 

 

1.4 

 

 

 

 

 

 

 

 

1.4 

 

 

 

 

1.4 

Restricted stock issued and related tax withholdings

 

 

 

 

 

(3.6)

 

 

 

 

 

 

 

 

(3.6)

 

 

(2.2)

 

 

(5.8)

Share based compensation

 

 

 

 

 

3.3 

 

 

 

 

 

 

 

 

3.3 

 

 

2.0 

 

 

5.3 

Dividend paid by subsidiary to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10.7)

 

 

(10.7)

Balances as of December 31, 2017

 

200.7 

 

 

2.0 

 

 

1,363.7 

 

 

(418.5)

 

 

(126.8)

 

 

 

 

820.4 

 

 

807.2 

 

 

1,627.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(32.6)

 

 

 

 

 

 

(32.6)

 

 

(2.1)

 

 

(34.7)

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

3.7 

 

 

 

 

 

 

3.7 

 

 

7.6 

 

 

11.3 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

7.0 

 

 

 

 

7.0 

 

 

5.1 

 

 

12.1 

Purchase of subsidiary stock

 

 

 

 

 

(96.3)

 

 

 

 

(5.5)

 

 

 

 

(101.8)

 

 

(148.5)

 

 

(250.3)

Excess of stock options and warrants

 

1.5 

 

 

0.1 

 

 

8.6 

 

 

 

 

 

 

 

 

8.7 

 

 

 

 

8.7 

Restricted stock issued and related tax withholdings

 

 

 

 

 

(0.7)

 

 

 

 

 

 

 

 

(0.7)

 

 

 

 

(0.7)

Share based compensation

 

 

 

 

 

(4.9)

 

 

 

 

 

 

 

 

(4.9)

 

 

(3.1)

 

 

(8.0)

Dividend paid by subsidiary to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9.1)

 

 

(9.1)

Balances as of March 31, 2018

 

202.2 

 

$

2.1 

 

$

1,270.4 

 

$

(447.4)

 

$

(125.3)

 

$

 

$

699.8 

 

$

657.1 

 

$

1,356.9 



See accompanying notes to the condensed consolidated financial statements

5

 


 

SPECTRUM BRANDS HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows

For the six month periods ended March 31, 2019 and 2018

(unaudited)





 

 

 

 

 

 



 

 

 

 

 

 



 

Six Month Periods Ended

(in millions)

 

March 31, 2019

 

March 31, 2018

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

617.4 

 

$

555.5 

Income from discontinued operations, net of tax

 

 

700.4 

 

 

492.7 

Net (loss) income from continuing operations

 

 

(83.0)

 

 

62.8 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

102.6 

 

 

68.6 

Share based compensation

 

 

21.8 

 

 

1.4 

Unrealized loss on investments

 

 

5.0 

 

 

Purchase accounting inventory adjustment

 

 

 

 

0.8 

Pet safety recall inventory write-off

 

 

 

 

1.6 

Amortization of debt issuance costs and debt discount

 

 

6.6 

 

 

11.7 

Write-off of unamortized discount and debt issuance costs

 

 

36.6 

 

 

Dividend from subsidiaries classified as discontinued operations

 

 

 

 

3.1 

Deferred tax benefit

 

 

(61.8)

 

 

(55.4)

Net changes in operating assets and liabilities

 

 

(307.5)

 

 

(351.9)

Net cash used by operating activities from continuing operations

 

 

(279.7)

 

 

(257.3)

Net cash (used) provided by operating activities from discontinued operations

 

 

(254.0)

 

 

71.5 

Net cash used by operating activities

 

 

(533.7)

 

 

(185.8)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(27.1)

 

 

(38.1)

Proceeds from sales of property, plant and equipment

 

 

0.1 

 

 

0.9 

Proceeds from sale of discontinued operations, net of cash

 

 

2,854.4 

 

 

1,520.2 

Net cash provided by investing activities from continuing operations

 

 

2,827.4 

 

 

1,483.0 

Net cash used by investing activities from discontinued operations

 

 

(5.3)

 

 

(185.1)

Net cash provided by investing activities

 

 

2,822.1 

 

 

1,297.9 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issuance of debt

 

 

136.3 

 

 

581.3 

Payment of debt, including premium on extinguishment

 

 

(2,479.9)

 

 

(998.0)

Payment of debt issuance costs

 

 

(0.1)

 

 

(0.3)

Treasury stock purchases

 

 

(268.5)

 

 

Purchases of subsidiary stock, net

 

 

 

 

(258.0)

Dividends paid to shareholders

 

 

(44.6)

 

 

Dividends paid by subsidiary to non-controlling interest

 

 

 

 

(19.7)

Share based award tax withholding payments, net of proceeds upon vesting

 

 

(2.5)

 

 

(22.7)

Other financing activities, net

 

 

 

 

10.0 

Net cash used by financing activities from continuing operations

 

 

(2,659.3)

 

 

(707.4)

Net cash (used) provided by financing activities from discontinued operations

 

 

(2.3)

 

 

118.5 

Net cash used by financing activities

 

 

(2,661.6)

 

 

(588.9)

Effect of exchange rate changes on cash and cash equivalents