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Rayovac Parent
Reports FY 2009 Financial Results

Spectrum Brands Announces Strong Fiscal 2009 Results; Investor Call Planned for January 6, 2010

Spectrum Brands Press Release (excerpted)

FlashlightNews.org - 1/5/2010


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Rayovac 300 Lumen LED Lantern

Rayovac 300 Lumen LED Lantern

ATLANTA, Ga. - Spectrum Brands (the "Company") (OTC: SPEB) yesterday afternoon filed its Form 10-K for the fiscal year ended September 30, 2009 with the Securities and Exchange Commission ("SEC") and announced its fiscal 2009 fourth quarter and full year results.

"2009 was a watershed year for Spectrum Brands," said Kent Hussey, CEO of Spectrum Brands. "We successfully completed a major financial restructuring in which we eliminated more than $800 million of debt and emerged a stronger competitor and a financially healthier business. Additionally, despite the tough economy, our product lines, many of which benefited from our value positioning, continued to perform very well and delivered improved adjusted EBITDA over fiscal 2008."

Fresh Start Reporting

In connection with the Company's emergence from bankruptcy on August 28, 2009 and the application of fresh-start reporting on August 30, 2009, in accordance with ASC Topic 852, "Reorganizations," formerly the American Institute of Certified Public Accountants' Statement of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code, the post emergence results for the Company's one month period ended September 30, 2009 (references to the Company for such period, the "Successor Company") and the results for the eleven month period ended August 30, 2009 (references to the Company for such period and for prior periods, the "Predecessor Company") are presented separately. For illustrative purposes in this earnings release, the Company has combined the separate Successor Company and Predecessor Company results to derive combined results for the three and twelve months ended September 30, 2009. However, because of various adjustments to our financial statements in connection with the adoption of fresh-start reporting, including asset valuation adjustments, adjustments to liabilities and recognition of cancellation of indebtedness income, the results of operations for the Successor Company are not comparable to those of the Predecessor Company. (See Note 2, "Voluntary Reorganization Under Chapter 11", of Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2009 for additional information on fresh-start reporting.)

Fourth Quarter and Full Year Fiscal 2009 Consolidated Financial Results

The Company reported Net Income of $1,152.8 million for the fourth quarter of 2009 and $943.2 million for the full year fiscal 2009. With only one month of history for the common stock that was issued upon the Company's emergence from Chapter 11, the Company did not include a table or discussion on the earnings per share calculation within this release for that one month, as prior periods do not reflect the Company's new capital structure.

The Company reported consolidated net sales of $589.4 million and $2,230.5 million for the fourth quarter and full year fiscal 2009, respectively. These numbers compare to $668.0 million and $2,426.6 million for the same periods, respectively, in fiscal 2008. In addition to timing differences for the fourth quarter, results were impacted by inventory de-stocking at retailers and internal SKU rationalization initiatives. Also negatively impacting sales were unfavorable foreign exchange impacts of $20.3 million for the fourth quarter and $129.4 million for the full year fiscal 2009 versus fiscal 2008 results.

Consolidated adjusted EBITDA, a non-GAAP measurement which the Company believes is a useful indicator of the operating health of the business and its trends, was $91.4 million and $309.9 million, respectively, for the fourth quarter and full year fiscal 2009. This compares to $98.2 million and $296.9 million, respectively, for the fourth quarter and full year fiscal 2008. The Company implemented numerous cost cutting and SKU rationalization initiatives throughout its business units to help drive improved adjusted EBITDA for the year. In addition, foreign exchange had negative impacts versus fiscal 2008 on consolidated adjusted EBITDA of $2.8 million for the fourth quarter and $23.9 million for the full year.

Liquidity

The Company ended fiscal 2009 on September 30, 2009 with $97.8 million in cash. Approximately $1,345 million was drawn under the Company's senior term credit facilities, and $78.2 million was drawn on the Company's $242 million ABL facility as of such date.

Investor Update Call Scheduled for January 6, 2010

The Company anticipates resuming the practice of hosting quarterly earnings calls beginning on January 6, 2010 at 4 PM, EST with the discussion of the fiscal 2009 results, included in this press release. To listen to the webcast, please visit the Investor Relations homepage on the Company's website, which can be accessed at spectrumbrands.com. A webcast replay will be available through January 20, 2010.

About Spectrum Brands, Inc.

Spectrum Brands is a global consumer products company and a leading supplier of batteries, shaving and grooming products, personal care products, specialty pet supplies, lawn & garden and home pest control products, personal insect repellents and portable lighting. Helping to meet the needs of consumers worldwide, included in its portfolio of widely trusted brands are Rayovac®, Remington®, Varta®, Tetra®, Marineland®, Nature's Miracle®, Dingo®, 8-In-1®, Spectracide®, Cutter®, Repel®, and HotShot®.Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in more than 120 countries around the world. Headquartered in Atlanta, Georgia, Spectrum Brands generates annual revenue from continuing operations in excess of $2 billion.

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