Spectrum Brands reports record Q1 sales
The acquisition of Stanley’s Hardware and Home Improvement (HHI) division loomed large over Spectrum Brand’s first-quarter report, boosting sales to new heights while generating a net-loss on one-time costs.
Spectrum reported record net sales of $870.3 million, including the HHI and FURminator acquisitions, up 2.5% in the first quarter of fiscal 2013, which consisted of two fewer shopping days, versus $848.8 million a year ago. Excluding negative foreign exchange impact, net sales grew 3.2%.
On the bottom line, the company’s net loss of $13.4 million was driven by one-time acquisition and integration costs of $20.8 million and interest expense of $28.8 million, primarily from the impact of the HHI acquisition.
Spectrum’s brand names include Rayovac, Kwikset, Weiser, Baldwin, National Hardware, Pfister and Remington.
“We delivered record results in the first quarter, again putting us on track to achieve a fourth consecutive record year of financial performance from the legacy business with improvements weighted to the second half of the year,” said Dave Lumley, CEO of Spectrum Brands Holdings. “In the face of holiday and global retail environment softness, negative foreign currency impacts, cautious consumer spending heightened by fiscal cliff worries and fewer shopping days, our businesses performed well and demonstrated again that our Spectrum Value Model is working effectively and resonating with retailers and consumers."
The company said HHI has become its fourth operating segment, bringing "significant, accelerated financial growth in fiscal 2013 and beyond." It’s products include residential locksets, residential builders’ hardware and faucets with largely number-one market positions in North America, Spectrum said.
The Hardware & Home Improvement (HHI) business was acquired Dec. 17. In the first quarter, the segment recorded net sales of $34.0 million, a net loss, as adjusted, of $3.5 million, and adjusted EBITDA of $3.2 million.
Adjusted EBITDA was negatively impacted by a $1.6 million accrual adjustment necessary due to a change in contractual terms relative to product returns with a large unnamed retailer.
Industry rallies for City of Hope
Las Vegas — One in two men and one in three women will be diagnosed with cancer in their lifetime. The hardware and home building industry are working to change those numbers.
The 2013 City of Hope Spirit of Life Celebration held here on the eve of the International Builders’ Show marked the culmination of a year of fundraising. City of Hope’s Hardware and Homebuilding Industry (HHI) honored Joe DeAngelo, president and CEO of HD Supply, with its 2013 Spirit of Life Award.
The Spirit of Life Award is City of Hope’s most prestigious philanthropic honor, presented annually to an industry leader who has demonstrated outstanding business and altruistic achievement. City of Hope is a leading research, treatment and education center for cancer, diabetes, HIV/AIDS and other life-threatening diseases.
During the year, fundraising efforts for the Southern California cancer treatment and research facility generated $800,000 for CIty of Hope. DeAngelo was the man of the hour during the banquet, accepting the 2013 Spirit of Life honor and chief fundraiser mantle from the 2012 honoree, Ray Griffith, retiring CEO of Ace Hardware Corp.
Designated as a comprehensive cancer center, the highest honor bestowed by the National Cancer Institute, City of Hope is a founding member of the National Comprehensive Cancer Network. Its lifesaving research and treatment advances improve the lives of people around the nation, and numerous breakthrough cancer drugs are based on technology pioneered at City of Hope. Further, its commitment to compassionate patient care and its approach to individualized treatment are considered models for supportive care in the United States.
In a speech referring to his trip to the City of Hope facility in California, DeAngelo said he was struck by the complete confidence of the staff, and the care they provide to patients. "Together, we’re going to fight and cure these life threatening diseases," he said. "Tonight, we are a single team focused on making that happen."
DeAngelo served in a variety of executive roles at General Electric before joining Stanley Works where he was executive VP, responsible for its tools group and corporate-wide functions, including marketing, technology, operations and distribution. In 2003 he led the turnaround of the business, improving asset efficiencies and productivity that led to a 100% increase in share.
Paul Hylbert of Kodiak Building Partners; Bruce Merino, formerly of Home Depot; and Mark Baker, CEO of Orchard Supply Hardware also addressed the crowd of supporters from the hardware and home improvement industry. The industry over the years has raised some $150 million for City of Hope.
“We are privileged to honor Joe DeAngelo, whose leadership at HD Supply has been instrumental in a tremendous growth in business even during a weakened economic period,” said Al Olsen, senior director of development for City of Hope. “It is fitting that he receives The Spirit of Life Award, which recognizes an honoree’s outstanding leadership and contributions to the community and his profession. HD Supply has supported City of Hope and has made significant contributions through an annual event since they became the new company in 2007.”
For those who give a damn
It’s hard to say which quote inspires more sense of duty: the one from Ed Quinn, the TW Perry chairman who helped create the Yellow Ribbon Fund; or the one from Jessica Allen, a Yellow Ribbon Fund staffer who helps ease the many burdens of wounded veterans.
Here’s what Gaithersburg, Md.-based TW Perry’s Quinn said about the creation of the Fund back in 2005, when he and some other Maryland businessmen decided to do something — anything — to help patients of the National Naval Medical Center: “We were just local business guys who gave a damn, who cared about these kids.”
And here’s what Allen said about her role in the lives of wounded veterans: “What I do is take some of the suck out of this.”
Allen’s experience is colored by both sides of charitable activity. Her life changed Jan. 22, 2010, at 8 a.m., when she learned that her husband was injured while on patrol in Afghanistan. “My whole world now is taking care of wounded warriors,” she said.
The above quotes come from an article in the HCN Daily called, “Yellow Ribbon Fund strikes chord with LBM industry.”
It wasn’t just another article. There was something about the sincerity and commitment of Quinn, Allen and others engaged in helping veterans that sparked HCN into action.
They inspired the HCN Helping Veterans Crusade.
More than just a logo, the editorial crusade marks the beginning of a commitment to follow the stories and promote the charities at homechannelnews.com. The crusade marks a commitment to getting the word out about organizations and programs that help veterans.
There are so many. There’s the Yellow Ribbon Fund, which makes life easier for wounded vets. There’s Homes for Heroes that’s building a home for Jessica Allen’s family. And there’s Dealers Helping Heroes, the new program from the National Lumber and Building Material Dealers Association (NLBMDA).
We’ll be covering these and many more organizations like them in the months ahead. And we’ll keep track of the many ways the industry can help with a dedicated area at homechannelnews.com.
If our humble effort can strike awareness that leads to one more successful match of need with charity, we’ll take it.