Rayovac 2015 Annual Report Download - page 73

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The increase in Adjusted EBITDA is attributable to the factors discussed above and the inclusion of the Salix and
European IAMS and Eukanuba acquisitions during the year ended September 30, 2015.
Segment profit decreased $8.7 million to $82.4 million for the year ended September 30, 2014 compared to
$91.1 million for the year ended September 30, 2013. Segment profit as a percentage of net sales for the year
ended September 30, 2014 decreased to 13.7%, compared to 14.6% for the year ended September 30, 2013. The
decrease in segment profit and segment profitability as a percentage of sales was primarily driven by unfavorable
product mix during the year ended September 30, 2014 as compared to year ended September 30, 2013, which
was partially offset by cost improvements in manufacturing and sourcing. Also contributing to the decrease in
segment profit was the decrease in sales previously discussed. Adjusted EBITDA for the year ended
September 30, 2014 decreased $6.8 million to $113.2 million from $120.0 million for the year ended
September 30, 2013. The decrease was driven by the unfavorable product mix discussed above.
Home and Garden Business
2015 2014 2013
Net Sales ............................................................. $474.0 $431.9 $390.5
Segment Profit ........................................................ $111.2 $ 89.3 $ 78.5
Segment Profit as a % of net sales ......................................... 23.5% 20.7% 20.1%
Adjusted EBITDA ..................................................... $124.5 $101.8 $ 90.1
Refer to Consolidated Results of Operations section for discussion on changes in net sales.
Segment profit for the year ended September 30, 2015 increased $21.9 million to $111.2 million compared
to $89.3 million for the year ended September 30, 2014. Segment profit as a percentage of net sales also
increased to 23.5% for the year ended September 30, 2015 compared to 20.7% for the year ended September 30,
2014. Increases in segment profit and segment profit as a percentage of net sales were driven by cost
improvements compared to the prior year. Also contributing to the increase in segment profit was the increase in
sales previously discussed. Adjusted EBITDA was $124.5 million for the year ended September 30, 2015,
increase of $22.7 million from $101.8 million for the year ended September 30, 2014. The increase in Adjusted
EBITDA is attributable to the increased sales and cost improvements discussed above.
Segment profit for the year ended September 30, 2014 increased $10.8 million to $89.3 million from
$78.5 million for the year ended September 30, 2013. Segment profit as a percentage of net sales for the year
ended September 30, 2014 increased to 20.7% from 20.1%. Increases in segment profit and segment profit as a
percentage of net sales were driven by the acquisition of Liquid Fence during the year ended September 30,
2014. Also contributing to the increase in segment profit was the increase in sales previously discussed. Adjusted
EBITDA increased $11.7 million to $101.8 million for the year ended September 30, 2014 compared to segment
Adjusted EBITDA of $90.1 million for the year ended September 30, 2013. The increases are driven by the
increase in net sales coupled with cost and operating expense improvements.
Global Auto Care
2015
Net Sales ........................................................... $160.5
Segment Profit ...................................................... $ 21.8
Segment Profit as a % of net sales ....................................... 13.6%
Adjusted EBITDA ................................................... $ 47.3
Results of the AAG business, reported as a separate business segment, Global Auto Care, relate to
operations subsequent to the acquisition date of May 21, 2015.
59