Spectrum Brands Holdings, Inc. (SPB) has reported 36.50 percent plunge in profit for the quarter ended Apr. 02, 2017. The company has earned $58.80 million, or $1 a share in the quarter, compared with $92.60 million, or $1.55 a share for the same period last year. On an adjusted basis, earnings per share were at $1.19 for the quarter compared with $1.16 in the same period last year.
Revenue during the quarter dropped 3.28 percent to $1,169.90 million from $1,209.60 million in the previous year period. Gross margin for the quarter expanded 65 basis points over the previous year period to 38.91 percent. Total expenses were 87.68 percent of quarterly revenues, down from 87.72 percent for the same period last year. This has led to an improvement of 4 basis points in operating margin to 12.32 percent.
Operating income for the quarter was $144.10 million, compared with $148.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $220.10 million compared with $229.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 17 basis points in the quarter to 18.81 percent from 18.98 percent in the last year period.
"Our second quarter performance was heavily impacted by delayed inventory intake by major U.S. retailers of seasonal Home & Garden and Global Auto Care products," said Andreas Rouvé, chief executive officer of Spectrum Brands Holdings.
Operating cash flow turns positiveSpectrum Brands Holdings has generated cash of $30.10 million from operating activities during the first half as against cash outgo of $144.50 million in the last year period. The company has spent $51.70 million cash to meet investing activities during the first six months as against cash outgo of $37.90 million in the last year period. It has incurred net capital expenditure of $50.50 million on net basis during the first six months, up 33.25 percent or $12.60 million from year ago period.
The company has spent $112.50 million cash to carry out financing activities during the first six months as against cash inflow of $68.10 million in the last year period.
Cash and cash equivalents stood at $137.20 million as on Apr. 02, 2017, up 2.93 percent or $3.90 million from $133.30 million on Apr. 03, 2016.
Working capital declines
Spectrum Brands Holdings has witnessed a decline in the working capital over the last year. It stood at $797 million as at Apr. 02, 2017, down 16.85 percent or $161.50 million from $958.50 million on Apr. 03, 2016. Current ratio was at 1.95 as on Apr. 02, 2017, down from 2.17 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 101 days for the last year period. Days sales outstanding were almost stable at 46 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 53 days for the quarter compared with 109 days for the previous year period. At the same time, days payable outstanding went up to 60 days for the quarter from 54 for the same period last year.
Debt comes downSpectrum Brands Holdings has recorded a decline in total debt over the last one year. It stood at $3,780.80 million as on Apr. 02, 2017, down 7.87 percent or $323 million from $4,103.80 million on Apr. 03, 2016. Total debt was 53.03 percent of total assets as on Apr. 02, 2017, compared with 56.50 percent on Apr. 03, 2016. Debt to equity ratio was at 2.06 as on Apr. 02, 2017, down from 2.41 as on Apr. 03, 2016. Interest coverage ratio improved to 2.85 for the quarter from 2.58 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
