Rayovac 2014 Annual Report Download - page 70

Liquidity and Capital Resources
Operating Activities. Cash provided by operating activities totaled $433 million during Fiscal 2014
compared to $257 million during Fiscal 2013. The $176 million increase in cash provided by operating activities
was primarily due to:
• Cash generated from higher adjusted EBITDA of $79 million, excluding pre-acquisition earnings of the
HHI Business;
• A $66 million generation of cash from working capital and other items driven by lower accounts
receivable and inventory, partially offset by lower accounts payable and other working capital items;
• Lower cash payments for interest of $46 million;
• Lower cash acquisition, integration and restructuring related costs of $14 million
Offset by,
• Higher cash payments for income taxes of $31 million.
We expect to fund our cash requirements, including capital expenditures, interest and principal payments
due in Fiscal 2015, through a combination of cash on hand, cash flow from operations and funds available for
borrowings under our ABL Revolving Credit Facility. Going forward, our ability to satisfy financial and other
covenants in our senior credit agreements and senior unsecured indentures and to make scheduled payments or
prepayments on our debt and other financial obligations will depend on our financial and operating performance.
There can be no assurances that our business will generate sufficient cash flows from operations or that future
borrowings under our ABL Revolving Credit Facility will be available in an amount sufficient to satisfy our debt
maturities or to fund our other liquidity needs.
At September 30, 2014, there are no significant foreign cash balances available for repatriation. For Fiscal
2015, we expect to generate between $75 million and $125 million of foreign cash that may be repatriated for
general corporate purposes.
See Item 1A. Risk Factors, for further discussion of the risks associated with our ability to service all of our
existing indebtedness, our ability to maintain compliance with financial and other covenants related to our
indebtedness and the impact of the current economic crisis.
Investing Activities. Net cash used by investing activities was $94 million for Fiscal 2014 compared to $1,483
million for Fiscal 2013. The $1,389 million decrease in cash used by investing activities in Fiscal 2014 was
primarily driven by a decrease in cash used for acquisitions of $1,372 million, which related to the $1,351 million
purchase, net of cash acquired, of the HHI Business, and the $49 million purchase, net of cash acquired, of Shaser in
Fiscal 2013, compared to a $28 million purchase, net of cash acquired, of Liquid Fence in Fiscal 2014.
We expect to make investments in capital projects similar to historical levels, as well as incremental
investments in high return cost reduction projects slightly above historical levels.
Financing Activities
Debt Financing
At September 30, 2014 we had the following debt instruments outstanding: (i) a senior secured term loan
pursuant to a senior credit agreement (the “Senior Credit Agreement”) which consists of $648 million principal
due September 4, 2017 (“Tranche A”), $510 million principal due September 4, 2019 (“Tranche C”), $34 million
Canadian dollar denominated principal due December 17, 2019 (“CAD Term Loan”) and $283 million Euro
denominated principal due September 4, 2019 (“Euro Term Loan”) (together, the “Term Loan”); (ii) $300
million 6.75% unsecured notes (the “6.75% Notes”); (iii) $520 million 6.375% unsecured notes (the “6.375%
Notes”); (iv) $570 million 6.625% unsecured notes (the “6.625% Notes”); and (v) a $400 million asset based
lending revolving credit facility (the “ABL Facility”).
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