Rayovac 2010 Annual Report Download - page 5
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A key priority of your Board of Directors and
senior management team is to ensure a high
level of accountability to our shareholders.
This is accomplished through management
incentive compensation programs based on
performance and aligned with investors’
priorities. A balance of long-term and short-
term compensation programs for our top
leadership team provides appropriate rewards
for performance against specifi c metrics,
predominantly adjusted EBITDA and free cash
fl ow targets. Our
major priority is
aggressive, continu-
ing debt reduction to
materially strengthen
our balance sheet.
Macroeconomic
trends most likely
will remain challeng-
ing worldwide. We
are not depending
on any meaningful
economic recovery
or improvement in
consumer spending
in our outlook
for higher sales and
cash fl ow in fi scal 2011.
One of our hallmark strengths, however, is
that many Spectrum Brands products are
non-discretionary, replacement products
needed by consumers in their everyday lives.
Given this, we believe by providing superior
margins to our customers and offering
consumers the same performance at a better
price or better performance at the same price
is the winning strategy. As the global value
proposition leader in our space, we will
continue to move forward to invest in our
business, reduce our cost structure, launch
new products, grow EBITDA and provide
strong free cash fl ow generation. We believe
our businesses should allow us to pay down
debt by at least $200 million and grow adjusted
EBITDA to $455-$465 million in fi scal 2011.
This should allow us to reduce our leverage to
3 times or less by the end of fi scal 2012.
In closing, I want to thank our Board of Directors
for their guidance, commitment and energy in
building a prosperous Spectrum Brands. We also
are grateful to our more than 6,000 talented and
dedicated employees around the world for their
productivity and zeal.
Our Company’s
exciting and promising
journey carries on.
We will stay the course,
always looking to
accelerate the pace
when and where we
can. Spectrum Brands
has the vision, the
mission, the strategy,
the fi nancial and
human resources,
the business models,
and the market and
product opportunities
needed to drive a
prosperous and rewarding future and even
greater value for our stakeholder family.
Thank you for your continued support.
Sincerely,
David R. Lumley
Chief Executive Offi cer and President –
Global Batteries and Personal Care
and Home and Garden
January 25, 2011
“ . . . our businesses should
allow us to pay down debt
by at least $200 million and
grow adjusted EBITDA to
$455-$465 million
in scal 2011.”