Rayovac 2014 Annual Report Download - page 54

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•Experienced Management Team. Our management team has substantial consumer products experience.
On average, each senior management team member has more than 20 years of experience at Spectrum,
VARTA, Remington, Russell Hobbs or other branded consumer product companies such as Newell
Rubbermaid and Schering-Plough.
Seasonal Product Sales
On a consolidated basis our financial results are approximately equally weighted between quarters, however,
sales of certain product categories tend to be seasonal. Sales in the consumer battery, electric shaving and
grooming and electric personal care product categories, particularly in North America, tend to be concentrated in
the December holiday season (Spectrum’s first fiscal quarter). Demand for hardware and home improvement
products increases during the spring and summer construction period (Spectrum’s third and fourth fiscal
quarters). Demand for pet supplies products remains fairly constant throughout the year. Demand for home and
garden control products sold though the Home and Garden Business typically peaks during the first six months of
the calendar year (Spectrum’s second and third fiscal quarters). Small Appliances peaks from July through
December primarily due to the increased demand by customers in the late summer for “back-to-school” sales and
in the fall for the holiday season.
The seasonality of our sales during the last three fiscal years is as follows:
Percentage of Annual Sales
Fiscal Year Ended
September 30,
Fiscal Quarter Ended 2014 2013 2012
December ........................................................ 25% 21% 26%
March ........................................................... 23% 24% 23%
June ............................................................ 25% 27% 25%
September ........................................................ 27% 28% 26%
Fiscal Year Ended September 30, 2014 Compared to Fiscal Year Ended September 30, 2013
Highlights of Consolidated Operating Results
Net Sales. Net sales for Fiscal 2014 increased $343 million to $4,429 million from $4,086 million in Fiscal
2013, an 8% increase. The following table details the principal components of the change in net sales from Fiscal
2013 to Fiscal 2014 (in millions):
Net Sales
Fiscal 2013 Net Sales ................................................ $4,086
Increase in hardware and home improvement products .................. 296
Increase in home and garden products ............................... 42
Increase in consumer batteries ..................................... 28
Increase in electric personal care products ............................ 10
Increase in electric shaving and grooming products .................... 2
Decrease in small appliances ...................................... (4)
Decrease in pet supplies .......................................... (23)
Foreign currency impact, net ...................................... (8)
Fiscal 2014 Net Sales ................................................ $4,429
42