(CORRECTS OPENING PRICE, FIRST SENTENCE)
Spectrum Brands Holdings, Inc. (NYSE: SPB) shares burst out of the gate Wednesday morning, after the Middleton, Wisc.-based company reported results from continuing operations for the fourth quarter.
Spectrum delivered net sales growth of 1.9% and organic sales growth of 3.2%. It also experienced a net loss of $79 million driven by impairments. Adjusted EBITDA growth of 5.2% with 50 basis points of margin expansion.
Net sales were $993 million, compared to $974 million in the prior-year quarter. Gross profit registered at $334 million, compared to $346 million.
Higher net sales were driven by growth in residential security, partially offset by declines in builders’ hardware and plumbing. In addition to price increases across all product categories, growth was driven by new product innovation in residential security.
Gross profit margin decreased 190 basis points as higher input costs, tariffs and accelerated depreciation related to Latin America plant closures were partially offset by positive pricing and productivity.
Operating loss was driven by the impairment of Home & Personal Care goodwill and other intangible assets, higher input costs and tariffs, higher depreciation and amortization, and higher restructuring charges.
Spectrum Brands completed fiscal 2019 with a strong liquidity position, including a cash balance of approximately $627 million and approximately $779 million available on its $800 million Cash Flow Revolver.
As of the end of the fourth quarter of fiscal 2019, the Company had approximately $2,385 million of debt outstanding, consisting of approximately $2,132 million of senior unsecured notes and approximately $170 million of capital leases and other obligations.
Shares rocketed $7.10, or 13.9%, to $58.36
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