Rayovac 2005 Annual Report Download - page 119

Approximately 200 Nu-Gro employees will join
Agrium. Nu-Gro’s consumer lawn and garden business
and associated employees will continue to be part
of the Company’s North American business segment.
Spectrum Brands and Agrium have signed strategic
multi-year reciprocal supply agreements as part of
the transaction.
In the fi rst quarter of fi scal 2006, the Company
reached agreement with its creditors to amend its
leverage and interest charge covenants associated
with the Senior Credit Facilities for subsequent peri-
ods. In connection with this amendment, interest
costs on the Company’s existing U.S. Dollar and
Canadian Dollar term loans increased by 25 basis
points. Based on amounts currently outstanding
under the existing U.S. Dollar and Canadian Dollar
term loans, and using foreign exchange rates in
effect as of September 30, 2005, the Company
estimates additional annual interest payments
of approximately $2,000 will be incurred as a result
of this change.
(18) Quarterly Results (unaudited)
Quarter Ended
September 30, July 3, April 3, January 2,
2005(A) 2005 2005 2005
Net sales $603,722 $730,445 $534,511 $490,769
Gross profit 219,360 276,635 189,503 198,357
Net (loss) income (2,877) 23,711 (1,931) $ 27,929
Basic net income (loss) per common share(B) $ (0.06) $ 0.48 $ (0.04) $ 0.82
Diluted net income (loss) per common share(B) $ (0.06) $ 0.46 $ (0.04) $ 0.79
Quarter Ended
September 30, June 27, March 28, December 28,
2004 2004 2004 2004
Net sales $376,889 $308,264 $278,023 $454,010
Gross profit 155,494 134,709 122,840 193,030
Net income 18,165 12,814 2,602 22,199
Basic net income per common share(B) $ 0.53 $ 0.38 $ 0.08 $ 0.69
Diluted net income per common share(B) $ 0.52 $ 0.36 $ 0.08 $ 0.67
(A) Net sales, gross margin and net income in the fourth quarter of 2005 excluded the benefi t of approximately $4,867, $1,867 and $1,042, respectively, related to net sales which were not
recorded pursuant to contractual revenue recognition terms. The Company believes that this adjustment, if applied retroactively, would not have had a material effect on the quarterly results
for previous periods as reported.
(B) Due to rounding and the method required by SFAS 128, “Earnings Per Share,” to calculate per share data, the quarterly per share data does not total the full year per share data shown
on the Consolidated Statements of Operations.
(19) Consolidating Financial Statements
In connection with the acquisitions of Remington, United and Tetra, the Company completed debt offerings of
Senior Subordinated Notes. Payment obligations of the Senior Subordinated Notes are fully and unconditionally
guaranteed on a joint and several basis by all of the Company’s domestic subsidiaries.
The following consolidating fi nancial data illustrates the components of the consolidated fi nancial state-
ments. Investments in subsidiaries are accounted for using the equity method for purposes of illustrating the
consolidating presentation. Earnings of subsidiaries are therefore refl ected in the Company’s and Guarantor
Subsidiaries’ investment accounts and earnings. The elimination entries presented herein eliminate investments
in subsidiaries and intercompany balances and transactions. Separate consolidated fi nancial statements of the
Guarantor Subsidiaries are not presented because management has determined that such fi nancial statements
would not be material to investors.
On March 29, 2004, Remington Products Company, L.L.C. (previously a guarantor subsidiary) merged with
Spectrum Brands, Inc. (the parent company). As a result of the merger, the results of operations, cash fl ows, and
balance sheet of Remington Products Company, L.L.C. are included with Spectrum Brands, Inc. for fi scal 2004.
2005 Form 10-K Annual Report
Spectrum Brands, Inc.
2005 ANNUAL REPORT 99