Spectrum Brands Holdings Q3 Profit Down

(RTTNews) - Spectrum Brands Holdings, Inc (SPB), a diversified consumer products company, Tuesday reported a decrease in third-quarter net income, reflecting an income tax expense and higher interest expense. The Board also approved a new stock buyback program.

For the three-month period, the company reported net income of $36.1 million or $0.69 per share, compared with $58.7 million or $1.13 per share during the same quarter last year. This year's net income includes a $20 million tax expense, higher non-cash stock compensation expense and higher restructuring and related charges.

Excluding special items, adjusted earnings per share were $0.90 in the third quarter. On average, four analysts polled by Thomson Reuters expected earnings per share of $1.10 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales were $1.09 billion, including the HHI acquisition, a 32.1 percent increase from $824.8 million a year ago. Analysts expected the company to report revenues of $1.11 billion.

Looking forward, the company said including HHI, it still expects fiscal 2013 net sales of between $4.06 billion and $4.1 billion and adjusted EBITDA of between $640 million and $650 million. Analysts expect the company to generate revenues of $4.10 billion.

Further, in a separate statement, Spectrum Brands said its board approved a new $200 million common stock repurchase program, effective for 24 months. Also in another statement issued by the company, it announced an $100 million of term debt reduction to date and reiterated its plan to pay down a total of at least $200 million of term debt in fiscal 2013 that ends on September 30.

"We expect to pay down additional term debt in our current fourth quarter and remain on track to reach a total leverage ratio of approximately 4.4 times or less at the end of fiscal 2013, prior to any impact of the planned refinancing of our 9.5 percent senior secured notes," said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings.

Separately, Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc. also announced a cash tender offer and consent solicitation with respect to the $950 million aggregate outstanding principal amount of Spectrum Brands, Inc.'s 9.500 percent Senior Secured Notes due 2018.