Spectrum Brands Holdings, Inc. (SPB) has reported a 235.85 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $89 million, or $1.49 a share in the quarter, compared with $26.50 million, or $0.44 a share for the same period last year. On an adjusted basis, earnings per share were at $1.31 for the quarter compared with $1.13 in the same period last year.
Revenue during the quarter dropped 4.46 percent to $1,249.80 million from $1,308.10 million in the previous year period. Gross margin for the quarter expanded 314 basis points over the previous year period to 38.87 percent. Total expenses were 87.32 percent of quarterly revenues, down from 89.73 percent for the same period last year. This has led to an improvement of 241 basis points in operating margin to 12.68 percent.
Operating income for the quarter was $158.50 million, compared with $134.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $236.90 million compared with $229.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 143 basis points in the quarter to 18.96 percent from 17.53 percent in the last year period.
“Fiscal 2016 was our 7th consecutive year of record financial performance,” said Andreas Rouve, chief executive officer of Spectrum Brands Holdings. “Our improvement was broad-based across most businesses and geographies. Home and Garden, Hardware and Home Improvement and Global Auto Care achieved record results. Batteries, Personal Care and Global Pet delivered strong performances. All of our core regions reported organic net sales and adjusted EBITDA growth on a currency neutral basis.
Operating cash flow improves significantly
Spectrum Brands Holdings, Inc has generated cash of $615 million from operating activities during the year, up 38.42 percent or $170.70 million, when compared with the last year.
The company has spent $98.40 million cash to meet investing activities during the year as against cash outgo of $1,279.70 million in the last year. It has incurred net capital expenditure of $94.20 million on net basis during the year, up 7.41 percent or $6.50 million from year ago.
The company has spent $487.80 million cash to carry out financing activities during the year as against cash inflow of $918.40 million in the last year period.
Cash and cash equivalents stood at $275.30 million as on Sep. 30, 2016, up 11.05 percent or $27.40 million from $247.90 million on Sep. 30, 2015.
Working capital declines
Spectrum Brands Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $537.30 million as at Sep. 30, 2016, down 23.32 percent or $163.40 million from $700.70 million on Sep. 30, 2015. Current ratio was at 1.49 as on Sep. 30, 2016, down from 1.68 on Sep. 30, 2015.
Debt comes down
Spectrum Brands Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $3,620.20 million as on Sep. 30, 2016, down 7.31 percent or $285.70 million from $3,905.90 million on Sep. 30, 2015. Total debt was 51.21 percent of total assets as on Sep. 30, 2016, compared with 53.52 percent on Sep. 30, 2015. Debt to equity ratio was at 1.96 as on Sep. 30, 2016, down from 2.43 as on Sep. 30, 2015. Interest coverage ratio improved to 2.14 for the quarter from 2.06 for the same period last year.
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