Rayovac 2015 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2015 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.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

We delivered strong growth in fiscal 2015 and overcame major
challenges, including significant currency headwinds, a prolonged
West Coast port slowdown, and go-to-market challenges in two North
American businesses which we are turning around. In addition, we
completed the integrations of Tell Manufacturing into our HHI division,
Salix Animal Health into our Americas Pet business, and the IAMS and
Eukanuba pet food business into our European Pet operations. We are
quickly and smoothly doing the same with our Global Auto Care division.
Overall, reported net sales grew 5.9 percent while reported adjusted
EBITDA increased $76 million with a margin expansion of 70 basis points
to 17.1 percent, our eighth consecutive year of margin improvement.
Organic adjusted EBITDA, which excludes negative currency and
acquisition impacts, increased more than 10 percent and significantly
faster than our organic sales rate. Adjusted free cash flow grew to
a record $454 million, or approximately $8 per share, up from $359
million and $254 million in the past two years.
Over the last five years, Spectrum Brands has grown from a $2 billion
to a $5 billion enterprise, delivering steady profit growth, margin
improvement and free cash flow increases. With our greater scale and
established global infrastructure, we are ready to move our Company
to the next performance level, a top tier company first in the minds
of our customers, consumers, shareholders and employees. For
our shareholders, we aim to more than double the size of Spectrum
Brands in coming years, move from a mid-cap to a
large-cap stock and increase market capitalization
to more than $10 billion.
Fiscal 2015 was a year of operating progress and strategic evolution. Spectrum Brands reported a sixth consecutive year of
record performance, completed four accretive acquisitions including the transformational Global Auto Care (GAC), transitioned to
new executive leadership, and introduced a Spectrum First strategic initiative to advance our Company to the next level.
Spectrum Brands Senior Executive Leadership Team (left to right): Andreas Rouvé, Chief Executive Officer; Steve Fraundorfer, Senior Vice President and General Manager, Global
Batteries & Appliances; Nathan Fagre, Senior Vice President, General Counsel and Secretary; Randy Lewis, Senior Vice President and General Manager, Pet, Home & Garden;
Stacey Neu, Senior Vice President, Human Resources; Phil Szuba, Senior Vice President and General Manager, Hardware & Home Improvement; Doug Martin, Executive Vice
President and Chief Financial Officer; and Guy Andrysick, Senior Vice President and General Manager, Global Auto Care.
TO OUR
SHAREHOLDERS