Rayovac 2010 Annual Report Download - page 3

My message is one of confi dence and opti-
mism about the future of Spectrum Brands
Holdings. Since becoming your new Chief
Executive Offi cer in April 2010, we have worked
diligently to develop a focused and realistic
vision and plan to build a stronger Spectrum
Brands. Our leadership team is tested and
brings the deep experience required to steer
our Company’s expansion.
Spectrum Brands completed a solid fi scal
2010, delivering net sales growth of 3.4
percent from continuing operations and a 10.5
percent increase in adjusted EBITDA, while
ending the year with a strong liquidity position.
We saw signifi cant market share gains in key
product categories, and all segments reported
increased adjusted EBITDA. Spectrum Brands
is now a $3.1 billion, global consumer
products company with a broad offering of
widely trusted, extendable and like brands for
like retailers that provide quality, performance
and value to consumers worldwide. We enjoy
a true global footprint with a solid presence on
six continents in more than 120 countries.
We enter fi scal 2011 with momentum and an
unwavering focus on our strategic, operational
and fi nancial goals, and with compelling oppor-
tunities for market share and EBITDA growth.
We have the capacity to generate strong and
continuous free cash fl ow built upon a diversifi ed
revenue stream, attractive margins, and the
top one, two or three global market position
with powerful and enduring brand names in
categories with limited signifi cant competitors.
A clear roadmap and multi-year strategy guide
our efforts to drive additional shareholder value
creation. Our vision is straightforward: To be
the leader in retailer metrics with superior value
consumer products for everyday use. We are on
track or ahead of schedule to meet the fi nancial
objectives we have developed, most importantly
to create an additional $1 billion of enterprise
value by the end of fi scal 2013 through
a combination of adjusted EBITDA growth and
aggressive debt reduction, which is already in
motion. As a start, two voluntary prepayments of
$50 million and $20 million in recent months have
reduced our $750 million senior secured Term
Loan to $680 million.
We believe fi scal 2011 should be another year of
growth and progress. We expect net sales from
continuing operations to increase 3 to 4 percent,
adjusted EBITDA to grow to $455-$465 million,
and free cash fl ow to reach $155-$165 million.
Importantly, we anticipate cumulative debt
reduction on our senior secured Term Loan in
fi scal 2011 of at least $200 million.
A signifi cant fi scal 2010 achievement was our
acquisition of the Russell Hobbs small appliances
business, with its widely respected brands and
leading market positions. Upon completion of
this acquisition, our Company became
Spectrum Brands Holdings from Spectrum
Brands, Inc. As part of the Russell Hobbs merger,
we completed a major debt refi nancing. This
signifi cantly improved our Company’s fi nancial
profi le by strengthening our capital structure,
reducing fi nancial risk, improving our leverage
David R. Lumley
Chief Executive O cer and President –
Global Batteries and Personal Care and Home and Garden
VISION
GOAL
Be  e Leader in Retailer Metrics with Superior Value Consumer Products for Everyday Use
Create an Additional $1 Billion of Enterprise Value in  ree Years  rough a Combination
of EBITDA Growth and Debt Reduction
TO OUR SHAREHOLDERS
With a pivotal and successful  scal 2010 behind us and an outlook for even better performance
in  scal 2011, Spectrum Brands Holdings is moving into a promising new era, building a strong
foundation for continuing growth and greater value creation.