Rayovac 2013 Annual Report Download - page 59

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Global Pet Supplies
Fiscal Year
2013 2012
Net sales to external customers ................................................... $622 $615
Segment profit ................................................................ $ 91 $ 86
Segment profit as a % of net sales ................................................ 14.6% 14.0%
Segment Adjusted EBITDA ..................................................... $120 $113
Assets as of September 30 ....................................................... $949 $956
Segment net sales to external customers in Fiscal 2013 increased $7 million to $622 million compared to
$615 million in Fiscal 2012 led by increased companion animal sales of $16 million, driven by growth in the
Dingo and FURminator brands, expansion in Europe, new product launches and the full year impact of the
FURminator acquisition. The increase in companion animal sales was tempered by a $4 million decline in
aquatics sales, primarily due to decreased sales for aquatic nutrition and pond water care products in Europe due
to a delayed spring season. Foreign currency exchange negatively impacted pet supply sales in Fiscal 2013 by
$5 million.
Segment profit increased $5 million to $91 million in Fiscal 2013 compared to $86 million in Fiscal 2012.
Segment profitability as a percentage of sales in Fiscal 2013 increased to 14.6%, compared to 14.0% in the same
period last year. The increase in segment profit and profitability as a percentage of sales was driven by cost
improvements and operating expense reductions, which offset increased cost of goods sold and unfavorable
product mix in Fiscal 2013 versus Fiscal 2012.
Segment Adjusted EBITDA in Fiscal 2013 increased $7 million, to $120 million, from $113 million in
Fiscal 2012. The increase in Adjusted EBITDA was driven by the factors discussed above for segment profit.
Segment assets at September 30, 2013 decreased slightly to $949 million from $956 million at
September 30, 2012. Goodwill and intangible assets, which are substantially the result of the revaluation impacts
of fresh-start reporting during Fiscal 2009 and acquisitions, decreased to $701 million at September 30, 2013
from $715 million at September 30, 2012 due to amortization of intangible assets, tempered by positive foreign
exchange impacts.
Home and Garden Business
Fiscal Year
2013 2012
Net sales to external customers ................................................... $390 $387
Segment profit ................................................................ $ 78 $ 74
Segment profit as a % of net sales ................................................ 20.1% 19.0%
Segment Adjusted EBITDA ..................................................... $ 90 $ 87
Assets as of September 30 ....................................................... $501 $508
Segment net sales to external customers increased $3 million, or 1%, during Fiscal 2013, to $390 million,
compared to $387 million in Fiscal 2012, resulting from an increase in lawn and garden control sales driven by
warm fall weather during Fiscal 2013 which extended the selling season, combined with reduced returns and
more efficient trade spending. Household insect control sales were flat in Fiscal 2013 compared to Fiscal 2012.
Segment profitability in Fiscal 2013 increased $4 million, to $78 million, from $74 million in Fiscal 2012,
driven by the increase in lawn and garden control sales and strong expense management. Segment profitability as
a percentage of net sales in Fiscal 2013 improved to 20.1%, from 19.0% in Fiscal 2012, as a result of strong
expense management.
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