Rayovac 2004 Annual Report Download - page 15
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Please find page 15 of the 2004 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.ReconciliationtoGenerallyAcceptedAccountingPrinciples(GAAP)
RayovacCorporationandSubsidiaries
TheCompanybelievesadjustingforunusualitemsintheCompany’sresultsprovidesusefulinformationregard-
ingtheCompany’sabilitytoserviceitsindebtednessandfacilitatesinvestors’andanalysts’abilitytoevaluatethe
Company’s operations excluding these unusual items. However, the following factors should be considered in
evaluatingsuchmeasures:AdjustedNetIncomeandotherrelatedadjustedfinancialmeasures(i)shouldnotbe
consideredinisolation,(ii)arenotmeasuresofperformancecalculatedinaccordancewithU.S.generallyaccepted
accounting principles (“GAAP”), (iii) should not be construed as alternatives or substitutes for income from
operations, net income or cash flows from operating activities in analyzing the Company’s operating perfor-
mance,financialpositionorcashflows(ineachcase,asdeterminedinaccordancewithGAAP)and(iv)shouldnot
beusedasindicatorsoftheCompany’soperatingperformanceormeasuresofitsliquidity.Additionally,because
allcompaniesdonotcalculateAdjustedNetIncomeandrelatedadjustedfinancialmeasuresinauniformfashion,
thecalculationspresentedhereinmaynotbecomparabletoothersimilarlytitledmeasuresofothercompanies.
Allinformationinmillions,exceptpershareamounts
Table1—AdjustedDilutedNetIncomePerShare
ImpactofUnusualItemswithintheStatementsofOperations: 2004 2003 2002 2001 2000
DilutedNetIncomePerShare(1) $1.61 $0.48 $0.90 $0.39 $1.32
UnusualItems
Unusualitemswithingrossprofitandoperatingexpenses,
netoftax(2)(3) 0.22 0.73 0.26 0.48 —
Non-operatingexpense,netoftax(4) — 0.06 — 0.18 —
Adjusteddilutednetincomepershare $1.83 $1.27 $1.16 $1.05 $1.32
Table2—AdjustedNetIncome
ImpactofUnusualItemswithintheStatementofOperations: 2004 2003 2002 2001 2000
Netincome(1) $55.8 $15.5 $29.2 $11.5 $38.4
UnusualItems
Unusualitemswithingrossprofitandoperatingexpenses,
netoftax(2)(3) 7.5 24.1 8.3 14.2 —
Non-operatingexpense,netoftax(4) — 1.9 — 5.4 —
Adjustednetincome $63.3 $41.5 $37.5 $31.1 $38.4
(1) Infiscal2002,theCompanyadoptedtheprovisionsofStatementofFinancialAccountingStandardsNo.142,GoodwillandOtherIntangible
Assets,whichrequiresthatgoodwillandintangibleassetswithindefiniteusefullivesnolongerbeamortized.SeealsoNote5inthe
NotestoConsolidatedFinancialStatementsandtheManagement’sDiscussionandAnalysisformoreinformation.
(2) TheCompanyrecordedRestructuringandrelatedchargeswithingrossprofitandoperatingexpensesduringfiscal2004,2003,2002,
and2001reflecting:(i)therationalizationofuneconomicmanufacturing,packaging,anddistributionprocesses,(ii)therealignment
ofmanufacturingcapacities,and(iii)restructuringoftheCompany’sadministrativefunctions.Infiscal2003,theCompanyrecorded
retailermarkdowncostsof$6.2millionasareductiontonetsales,aspartoftheintroductionoftheCompany’snewalkalineproduct
linepackaging.SeeNote15intheNotestoConsolidatedFinancialStatementsandtheManagement’sDiscussionandAnalysisfor
moreinformation.
(3) Infiscal2002,theCompanyrecognizedabaddebtreserveof$12.0million,netofrecoveries,attributabletothebankruptcyfilingof
akeycustomer.
(4) The Company recorded non-operating expenses in fiscal 2003 and fiscal 2001 relating to the premium on the repurchase of or
redemption of the Company’s senior term notes and write-off of debt issuance costs. See Note 6 in the Notes to Consolidated
FinancialStatementsandtheManagement’sDiscussionandAnalysisformoreinformation.
RayovacCorporation
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