Rayovac 2012 Annual Report Download - page 142

Download and view the complete annual report

Please find page 142 of the 2012 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 154

  • 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

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
Decker engaged in the business and (ii) certain assets of Stanley Black & Decker used or held for use in
connection with the business. The acquisition, when completed, includes (i) the purchase of shares and assets of
certain subsidiaries of Stanley Black & Decker involved in the HHI Business and (ii) the purchase of certain
assets of TLM Taiwan, which is involved in the production of residential locksets.
The Acquisition Agreement contains certain termination rights for each of Stanley Black & Decker and the
Company that upon termination of the Acquisition Agreement under specified circumstances, requires the
Company to pay Stanley Black & Decker a termination fee of up to $78,000.
The Company will account for the acquisition in accordance with ASC 805 which requires, among other
things, that the assets acquired and liabilities assumed in a business combination be measured at their fair values
as of the closing date of the acquisition.
On November 16, 2012, the Company issued at par $520,000 aggregate principal amount of 6.375% Senior
Notes due 2020 (the “2020 Notes”) and $570,000 aggregate principal amount of 6.625% Senior Notes due 2022
(the “2022 Notes” and together with the 2020 Notes, the “Notes”). Spectrum Brands will assume and
unconditionally guarantee, together with certain of its subsidiaries, the obligations under the Notes and intends to
use the proceeds of the Notes to fund a portion of the Hardware Acquisition purchase price and related fees and
expenses.
Additionally, Spectrum Brands has obtained debt financing commitments for approximately $1,840,000,
inclusive of the Notes, to fund the Hardware Acquisition and refinance a portion of Spectrum Brands’
indebtedness outstanding as of September 30, 2012.
Shaser Acquisition
On November 8, 2012, the Company completed a $50,000 cash acquisition of an approximately 56%
interest in Shaser Biosciences, Inc. (“Shaser”), together with terms relating to a potential buyout of the remaining
minority interest in Shaser. The Company will account for the acquisition in accordance with ASC 805. The
Company is in the process of completing the preliminary purchase accounting.
(18) Quarterly Results (unaudited)
Fiscal 2012:
Quarter Ended
September 30, 2012 July 1, 2012 April 1, 2012 January 1, 2012
Net sales .................................. $832,576 $824,803 $746,285 $848,771
Gross profit ................................ 279,925 291,696 260,031 284,026
Net income (loss) ........................... 5,513 58,649 (28,660) 13,070
Basic net income (loss) per common share ....... $ 0.11 $ 1.14 $ (0.56) $ 0.25
Diluted net income (loss) per common share ...... $ 0.10 $ 1.13 $ (0.56) $ 0.25
Fiscal 2011:
Quarter Ended
September 30, 2011 July 3, 2011 April 3, 2011 January 2, 2011
Net sales .................................. $827,329 $804,635 $693,885 $861,067
Gross profit ................................ 280,495 293,694 255,439 299,239
Net (loss) income ........................... (33,831) 28,604 (50,186) (19,758)
Basic net (loss) income per common share ....... $ (0.65) $ 0.56 $ (0.99) $ (0.39)
Diluted net (loss) income per common share ...... $ (0.65) $ 0.56 $ (0.99) $ (0.39)
132