Rayovac 2015 Annual Report Download - page 72

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ended September 30, 2014 increased to $326.6 million from $303.7 million for the year ended September 30,
2013. The increase was driven by the factors discussed above.
Hardware & Home Improvement
2015 2014 2013
Net Sales .......................................................... $1,205.5 $1,166.0 $869.6
Segment Profit ..................................................... $ 185.2 $ 172.2 $ 88.7
Segment Profit as a % of net sales ...................................... 15.4% 14.8% 10.2%
Adjusted EBITDA .................................................. $ 225.5 $ 210.3 $182.1
Refer to Consolidated Results of Operations section for discussion on changes in net sales.
Segment profit increased $13.0 million from $172.2 million for the year ended September 30, 2014 to
$185.2 for the year ended September 30, 2015. Segment profit as a percentage of net sales of 15.4% for the year
ended September 30, 2015, was up from 14.8% for the year ended September 30, 2014. The increase in segment
profit was primarily driven by the increase in sales volumes discussed above along with cost improvements and
inclusion of Tell acquired during the year ended September 30, 2015. The cost improvements were responsible
for the increase in segment profit as a percentage of net sales. Adjusted EBITDA was $225.5 million for the year
ended September 30, 2015, increase of $15.2 million compared to $210.3 million for the year ended
September 30, 2014. The increase in Adjusted EBITDA was attributable to the factors discussed above.
Segment profit increased $83.5 million to $172.2 million for the year ended September 30, 2014 compared
to $88.7 million for the year ended September 30, 2013. Segment profit as a percentage of net sales was 14.8%
for the year ended September 30, 2014 and 10.2% for the year ended September 30, 2013. Results of the HHI
Business relate to operations subsequent to the acquisition of the HHI Business (on December 17, 2012) during
the fiscal year ended September 30, 2013. A portion of the HHI Business, consisting of the TLM Business, is
included in the results of the Hardware and Home Improvement segment subsequent to its acquisition on April 8,
2013. The increase was primarily driven by the inclusion of the HHI Business for an entire fiscal year for the
year ended September 30, 2014 compared to a partial year due to the acquisition of the segment during the year
ended September 30, 2013. Furthermore, the increase was driven by cost improvements, coupled with the non-
recurrence of a $31.5 million cost of goods sold charge during the year ended September 30, 2013 associated
with the sale of acquired inventory adjusted to fair value on the date of acquisition. Adjusted EBITDA was
$210.3 million for the year ended September 30, 2014 compared to $182.1 million for the year ended
September 30, 2013. The increase in Adjusted EBITDA was driven by the increased sales, cost improvements
and other factors discussed above.
Global Pet Supplies
2015 2014 2013
Net Sales ............................................................. $758.2 $600.5 $621.9
Segment Profit ........................................................ $ 83.9 $ 82.4 $ 91.1
Segment Profit as a % of net sales ......................................... 11.1% 13.7% 14.6%
Adjusted EBITDA ..................................................... $124.5 $113.2 $120.0
Refer to Consolidated Results of Operations section for discussion on changes in net sales.
Segment profit for the year ended September 30, 2015 was $83.9 million, an increase of $1.5 million from
$82.4 million for the year ended September 30, 2014. Segment profit as a percentage of net sales decreased from
13.7% for the year ended September 30, 2014 to 11.1% for the year ended September 30, 2015. The decrease in
segment profit as a percentage of net sales is attributable to increased product costs due to product mix compared
to the prior year. Partially offsetting the decrease in segment profit was sales from the Salix and European IAMS
and Eukanuba acquisitions. Adjusted EBITDA increased $11.3 million from $113.2 million to $124.5 million.
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