Rayovac 2013 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2013 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

Segment assets as of September 30, 2012 increased to $956 million from $828 million at September 30,
2011. Goodwill and intangible assets, which are directly a result of the revaluation impacts of fresh-start
reporting and subsequent acquisitions, increased to $715 million at September 30, 2012 from $595 million at
September 30, 2011, driven by the goodwill and intangible assets added with the FURminator acquisition.
Home and Garden Business
2012 2011
(in millions)
Net sales to external customers ................................................... $387 $354
Segment profit ................................................................ $ 74 $ 65
Segment profit as a % of net sales ................................................ 19.1% 18.4%
Segment Adjusted EBITDA ..................................................... $ 87 $ 77
Assets as of September 30, ...................................................... $508 $476
Segment net sales to external customers increased $33 million, or 9%, during Fiscal 2012, to $387 million,
compared to $354 million in Fiscal 2011. Household insect control sales increased $30 million in Fiscal 2012
resulting from the Black Flag acquisition, which contributed $24 million in additional sales, coupled with retail
distribution gains. Lawn and garden controls sales increased $3 million in Fiscal 2012, compared to Fiscal 2011,
driven by increased distribution with existing customers.
Segment profitability in Fiscal 2012 improved $9 million, to $74 million, from $65 million in Fiscal 2011,
driven by increased sales in Fiscal 2012. Segment profitability as a percentage of sales increased to 19.1% in
Fiscal 2012, from 18.4% in Fiscal 2011. This increase in segment profitability was due to the increased sales for
the period, coupled with strong control over operating expenses which positively impacted segment profitability
as a percentage of sales.
Segment Adjusted EBITDA was $87 million in Fiscal 2012, an increase of $10 million, compared to
segment Adjusted EBITDA of $77 million in Fiscal 2011. The increase in segment Adjusted EBITDA is
attributable to the same factors that led to the increase in segment profit discussed above.
Segment assets as of September 30, 2012 increased to $508 million from $476 million at September 30,
2011. Goodwill and intangible assets, which are directly a result of the revaluation impacts of fresh-start
reporting and subsequent acquisitions, increased to $433 million at September 30, 2012 from $404 million at
September 30, 2011, driven by the Black Flag acquisition.
Corporate Expense. Our corporate expense in Fiscal 2012 decreased to $52 million from $54 million in
Fiscal 2011. This decrease is attributable to a $1 million decrease in stock based compensation expense during
Fiscal 2012 compared to Fiscal 2011 coupled with savings from expense management. Corporate expense as a
percentage of consolidated net sales for Fiscal 2012 was 1.6% compared to 1.7% during Fiscal 2011.
Acquisition and Integration Related Charges. Acquisition and integration related charges include, but are
not limited to, transaction costs such as banking, legal and accounting professional fees directly related to
acquisitions, termination and related costs for transitional and certain other employees, integration related
professional fees and other post business combination related expenses associated with our acquisitions. See
Note 2, “Significant Accounting Policies—Acquisition and Integration Related Charges” to our Consolidated
Financial Statements included in this Annual Report on Form 10-K for further detail regarding our Acquisition
and integration related charges.
Restructuring and Related Charges. See Note 14, “Restructuring and Related Charges” to our Consolidated
Financial Statements included in this Annual Report on Form 10-K for information regarding our restructuring
and related charges.
58