Rayovac 2004 Annual Report Download - page 9

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฀฀฀฀฀฀Our฀record฀results฀underscore฀the฀strength฀of฀our฀brands฀฀
฀฀and฀the฀support฀of฀retailers฀and฀consumers฀worldwide.
T O ฀ O U R ฀ S H A R E H O L D E R S ฀
(Continued)฀
Focus
T h e ฀ P o w e r ฀ B e h i n d ฀ O u r ฀ B r a n d s . ฀ G r o w t h . ฀ D i s c i p l i n e . ฀ F o c u s . ฀ S t r a t e g y . ฀ I n n o v a t i o n . ฀ E x p e r i e n c e .
producing฀ improved,฀ higher฀ margin฀ products฀ and฀ expanding฀ capacity฀ and฀ production฀ levels.฀
We฀expect฀to฀complete฀the฀integration฀of฀both฀companies฀by฀fiscal฀year-end฀2005.
During฀ the฀ year,฀ we฀ also฀ relocated฀ our฀ corporate฀ headquarters฀ from฀ Madison,฀ Wisconsin฀ to฀
Atlanta,฀Georgia.฀This฀move฀provided฀our฀leadership฀team฀with฀convenient฀new฀access฀to฀the฀
major฀global฀markets฀in฀which฀we฀compete.฀It฀ also฀ provided฀us฀with฀the฀ opportunity฀ to฀
strengthen฀ our฀ management฀ capabilities฀ by฀ attracting฀ corporate฀ professionals฀ with฀ multi-
national฀experience฀to฀support฀Rayovac’s฀future฀growth.
Benefiting฀from฀Healthier฀Battery฀Markets฀in฀North฀America
During฀the฀year,฀we฀benefited฀from฀improved฀market฀dynamics฀in฀the฀North฀American฀alkaline฀
battery฀business.฀After฀several฀years฀of฀challenging฀competitive฀conditions,฀we฀saw฀renewed฀
pricing฀stability,฀a฀reduction฀in฀promotional฀activity,฀and฀a฀resumption฀of฀marketplace฀momentum,฀
which฀helped฀to฀fuel฀a฀12฀percent฀increase฀in฀net฀sales฀for฀Rayovac’s฀North฀American฀battery฀
business.฀These฀encouraging฀developments฀support฀our฀conviction฀that฀the฀consumer฀battery฀
industry฀ in฀ North฀ America฀ has฀ regained฀ its฀ stability฀ and฀ health,฀ and฀ is฀ poised฀ for฀ solid฀ long-
term฀growth.
Delivering฀Record฀Financial฀Performance
In฀a฀fitting฀conclusion฀to฀an฀exciting฀fiscal฀2004,฀we฀are฀pleased฀to฀report฀substantial฀increases฀
in฀ net฀ sales;฀ net฀ income;฀ earnings฀ before฀ interest,฀ taxes,฀ depreciation฀ and฀ amortization฀
(EBITDA);฀ and฀ diluted฀ earnings฀ per฀ share฀ (EPS),฀ as฀ well฀ as฀ improvements฀ in฀ all฀ of฀ our฀ debt฀
metrics.฀ These฀record฀results฀stand฀as฀compelling฀ testimony฀ to฀the฀ strength฀ of฀ our฀ growing฀
family฀of฀brands฀and฀to฀the฀enthusiastic฀support฀of฀retailers฀and฀consumers฀around฀the฀world.
Specifically,฀as฀a฀result฀of฀the฀Remington฀acquisition,฀our฀outstanding฀operating฀performance฀
and฀solid฀sales฀growth฀in฀our฀major฀product฀categories:
฀ ฀ ฀ ฀•฀ Net฀sales฀climbed฀to฀$1.4฀billion,฀compared฀with฀$922.1฀million฀in฀fiscal฀2003.
฀ ฀ ฀ ฀•฀ Net฀income฀grew฀to฀$55.8฀million฀from฀$15.5฀million฀last฀year.
฀ ฀ ฀ ฀•฀ Pro฀forma฀EBITDA฀increased฀to฀$202.1฀million฀from฀$133.8฀million฀in฀fiscal฀2003.
฀ ฀ ฀ ฀•฀ Diluted฀earnings฀per฀share฀were฀$1.61,฀compared฀with฀$0.48฀in฀the฀prior฀year.
฀ ฀ ฀ ฀•฀ Pro฀forma฀diluted฀earnings฀per฀share฀increased฀to฀$1.83,฀compared฀with฀$1.27฀in฀2003.
฀ ฀ ฀ ฀•฀ Total฀debt฀declined฀to฀$829.9฀million฀from฀$943.3฀million฀at฀the฀end฀of฀fiscal฀2003.
Note:฀See฀Table฀on฀page฀13฀for฀reconciliation฀to฀U.S.฀GAAP฀financial฀results.