Rayovac 2014 Annual Report Download - page 67

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Global Pet Supply net sales to external customers are discussed in the “Product line net sales by segment”
discussion above.
Segment profit increased $5 million to $91 million in Fiscal 2013 compared to $86 million in Fiscal 2012.
Segment profitability as a percentage of net sales in Fiscal 2013 increased to 14.6%, compared to 14.0% in the
same period last year. The increase in segment profit and profitability as a percentage of net sales was driven by
cost improvements and operating expense reductions, which offset increased cost of goods sold and unfavorable
product mix in Fiscal 2013 versus Fiscal 2012.
Segment Adjusted EBITDA in Fiscal 2013 increased $7 million to $120 million from $113 million in Fiscal
2012. The increase in Adjusted EBITDA was driven by the factors discussed above for segment profit.
Segment assets at September 30, 2013 decreased slightly to $949 million from $956 million at
September 30, 2012. Goodwill and intangible assets, which are substantially the result of the revaluation impacts
of fresh-start reporting during Fiscal 2009 and acquisitions, decreased to $701 million at September 30, 2013
from $715 million at September 30, 2012 due to amortization of intangible assets, tempered by positive foreign
exchange impacts.
Home and Garden Business
Fiscal Year
2013 2012
Net sales to external customers ..................................................... $390 $387
Segment profit .................................................................. $ 78 $ 74
Segment profit as a % of net sales .................................................. 20.1% 19.0%
Segment Adjusted EBITDA ....................................................... $ 90 $ 87
Assets as of September 30 ......................................................... $501 $508
Home and Garden net sales to external customers are discussed in the “Product line net sales by segment”
discussion above.
Segment profitability in Fiscal 2013 increased $4 million to $78 million from $74 million in Fiscal 2012,
driven by the increase in lawn and garden control sales and strong expense management. Segment profitability as
a percentage of net sales in Fiscal 2013 improved to 20.1% from 19.0% in Fiscal 2012, as a result of strong
expense management.
Segment Adjusted EBITDA improved $3 million to $90 million in Fiscal 2013 compared to segment
Adjusted EBITDA of $87 million in Fiscal 2012, driven by the increase in net sales coupled with cost and
operating expense improvements.
Segment assets at September 30, 2013 decreased to $501 million from $508 million at September 30, 2012.
Goodwill and intangible assets, which are substantially a result of the revaluation impacts of fresh-start reporting
during Fiscal 2009 and acquisitions, decreased to $426 million at September 30, 2013, from $433 million at
September 30, 2012, driven by amortization of intangible assets.
Corporate Expense. Our corporate expense was $62 million in Fiscal 2013 compared to $52 million in
Fiscal 2012. This increase is primarily attributable to a $15 million increase in stock based compensation
expense, tempered by operating expense improvements. Corporate expense as a percentage of consolidated net
sales for Fiscal 2013 decreased slightly to 1.5% versus 1.6% for Fiscal 2012, driven by the operating expense
improvements discussed above and the addition of the HHI Business during Fiscal 2013.
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
55