Spectrum Brands Reports Second Quarter 2008 Financial Results

  
    
  
  
    
      Spectrum Brands, Inc. (NYSE: SPC) (the Company) announced today second 
      quarter net sales of $647.1 million and a net loss of $2.19 per share 
      for the quarter ended March 30, 2008. Excluding certain items which 
      management believes are not indicative of the Company’s 
      on-going normalized operations, the Company generated an adjusted net 
      loss per share of $0.14 on a fully diluted basis, a non-GAAP number. 
      These items, net of tax, include:
    
    
      
        A catch up in depreciation and amortization related to the 
        re-classification of the Home & Garden segment into continuing 
        operations of $10.7 million or $0.21 per share;
      
      
        A non-cash impairment charge of $8.3 million or $0.16 per share, for 
        the write-off of certain trade names used in the Home & Garden 
        business;
      
      
        restructuring and related charges of $3.5 million, or $0.07 per share, 
        associated with company-wide cost reduction initiatives;
      
      
        net tax adjustments of $83.0 million, or $1.63 per share, to reflect 
        an increase in the valuation allowance against net deferred tax 
        assets; and
      
      
        other items netting to a benefit of $0.9 million or $.02 per share.
      
    
    
      During the second quarter of fiscal 2007, the Company reported a net 
      loss per fully diluted share of $4.77. Excluding a goodwill impairment 
      charge of $3.84 per share, refinancing charges of $0.43 per share, 
      restructuring and related charges of $0.25 per share, $0.05 per share of 
      transaction costs incurred in connection with the proposed sale of the 
      Company’s Home and Garden business, an add 
      back of $0.04 per share for depreciation and amortization that would 
      have been recorded if the Home & Garden business had been in continuing 
      operations, and other non-cash adjustments netting an add back of $0.06 
      per share, the second quarter 2007 adjusted loss per fully diluted share 
      was $0.30.
    
    
      Led by strong double digit growth in the Company’s 
      personal care and companion pet supply product lines and favorable 
      foreign exchange, Spectrum Brands' net sales of $647.1 million 
      represented a two percent increase from the prior year, after excluding 
      the Canadian division of the Home and Garden business, which the Company 
      sold in November 2007. Favorable foreign currency contributed $27 
      million, or 4 percent to net sales. Partially offsetting the positive 
      trends were lower sales in consumer batteries and men’s 
      electric shaving and grooming in North America. Additionally, the Home & 
      Garden division saw a later than normal start to its peak selling season 
      this year, delaying some expected revenues into the third quarter.
    
    
      The Company continued to see benefits from its 2007 global realignment 
      initiatives. Adjusted EBITDA, a non-GAAP measurement which the Company 
      believes is a useful indicator of the operating health of the business 
      and its trajectory, was $66.2 million as compared with $54.0 million in 
      the second quarter of the prior year, a 23 percent improvement. For the 
      latest twelve months, adjusted EBITDA is $296.3 million and has 
      increased 26 percent compared to one year ago.
    
    
      "This marks the fourth consecutive quarter of double digit growth in 
      adjusted EBITDA. This level of performance reflects the very strong 
      focus and commitment our team has to drive profitable growth in this 
      business,” said Kent Hussey, Chief Executive 
      Officer. “I’m 
      pleased with the progress we’re making. 
      Despite a sluggish U.S. economy, continuing tight inventory controls at 
      retailers and rising input costs, our teams have worked hard to make the 
      necessary changes to improve the efficiency and profitability of this 
      business.”
    
    
      Gross profit and gross margin for the quarter were $234.6 million and 
      36.3 percent, respectively, versus $223.8 million and 35.3 percent for 
      the same period last year. Within cost of sales, the Company incurred 
      restructuring and related charges of approximately $200 thousand this 
      quarter related to headcount reductions taken as part of its 2007 global 
      realignment and $6.7 million in the second quarter of 2007. Also, within 
      cost of sales this quarter was $4.7 million in depreciation related to 
      the Home & Garden segment that was not present last year.
    
    
      The current quarter’s operating expenses were 
      $222.9 million as compared with $420.3 million in operating expenses in 
      the same quarter last year. Included in this year’s 
      operating expenses were $15.8 million of additional depreciation and 
      amortization, $13.2 million for a non-cash intangibles impairment 
      related to trade names in the Home & Garden segment and $5.2 million in 
      restructuring and related charges. In the second quarter of fiscal 2007, 
      operating expenses included a non-cash charge of $214 million for a 
      goodwill impairment and $11.2 million in restructuring and related 
      charges.
    
    
      Spectrum generated second quarter operating income and operating margin 
      of $11.7 million and 1.8 percent, respectively, versus an operating loss 
      of $196.5 million in the same period last year. The primary variance 
      related to the non-cash impairment charges referenced above.
    
    
      Reporting Change
    
    
      In view of current economic conditions and existing uncertainties in 
      financial markets, the Company's Board of Directors has determined that 
      it is unlikely at this time that the Company could complete a sale of 
      its lawn and garden and household insect control business (the "Home and 
      Garden Business") at a price and upon terms and conditions that the 
      Company would regard as acceptable. As a result, the Company has 
      determined not to pursue a sale of the Home and Garden Business at this 
      time. In addition, in accordance with applicable accounting principles 
      and in view of the difficulty in predicting the timing or probability of 
      a sale, the Home and Garden Business will be reclassified and accounted 
      for as an asset held and used in the Company's continuing operations and 
      accounted for as part of the Company's continuing operations beginning 
      in the second quarter of fiscal 2008. The Company remains committed to 
      exploring possible strategic options, including divesting certain 
      assets, in order to sharpen the Company's focus on strategic growth 
      businesses, reduce outstanding indebtedness and maximize long-term 
      shareholder value.
    
    
      As a result of the reclassification of our Home and Garden Business as 
      continuing operations, in accordance with GAAP, we have revised our 
      financial results for all prior periods in which we classified our Home 
      and Garden Business as discontinued operations to present the Home and 
      Garden Business as continuing operations. Our revised presentation 
      excludes from continuing operations the results of our Canadian division 
      of our Home and Garden business, which we sold in November 2007 and 
      remains classified as discontinued operations for such periods. See 
      attached Tables 4, 5 and 6 that reflect selected financial data for 
      fiscal 2007 by quarter and the 1st and 2nd 
      quarters of fiscal 2008 as described above (the “Home 
      and Garden Reconciliation Spreadsheets”).
    
    
      Second Quarter Segment Results
    
    
      The Global Batteries and Personal Care segment reported net sales of 
      $307.6 million compared with $297.2 million reported last year, an 
      increase of 3.5 percent, primarily as a result of favorable foreign 
      exchange of $22 million. Global battery sales were down 1.4 percent 
      compared with the prior year. The primary driver of this decline was 
      lower North American battery sales, which declined 15.9 percent as 
      compared with the prior year, due to the sluggish US economy, lower 
      category consumption and inventory reductions among certain key 
      retailers. European battery sales increased 3.3 percent from the prior 
      year benefiting from favorable foreign exchange, offset by slower sales 
      in Western Europe due to the Company’s 
      planned exit from unprofitable or marginally profitable private label 
      businesses. Latin American battery sales generated year over year growth 
      of 7.3 percent. Global sales of Remington branded products increased 
      18.1 percent during the quarter with positive sales growth in each major 
      geographic region and double digit increases in hair care products. 
      Increased distribution and market share gains in Europe and Latin 
      America generated double digit sales growth in those areas. North 
      America experienced single digit growth as a result of lower sales in 
      batteries and men’s electric shaving and 
      grooming products.
    
    
      Segment profitability for Global Batteries & Personal Care was $24.7 
      million for the quarter, up 11.8 percent over last year’s 
      $22.1 million. The profit improvement was primarily due to the cost 
      savings generated from 2007’s global 
      realignment initiatives as well as a 40 basis point improvement in gross 
      margin related to cost savings generated from more efficient operation 
      of the Company’s manufacturing facilities.
    
    
      Global Pet Supplies net sales were $148.4 million, a 4.1 percent 
      increase compared with the prior year. Companion animal product net 
      sales grew 10.3 percent, while global aquatics net sales increased 1.5 
      percent from the prior year. North American aquatic sales declined 8 
      percent, continuing the trend experienced over the past year. Sales in 
      Europe and the Pacific Rim were up 19.5 percent and 18.7 percent, 
      respectively, as a result of new product rollouts, new marketing 
      programs and favorable currency.
    
    
      Segment profitability for Global Pet Supplies for the quarter was $15.3 
      million compared to $16.4 million last year, down 6.7 percent due to 
      increased input costs and foreign exchange effects. The Company has 
      implemented price increases, which should benefit results in the second 
      half of fiscal 2008.
    
    
      Spectrum’s Home & Garden segment’s 
      net sales from continuing operations were $191.1 million, a 1.9 percent 
      decline for the quarter. The Company experienced stringent inventory 
      controls by certain retailers and a potential projected shift of some 
      revenues to the third quarter due to a late breaking lawn and garden 
      season. Weather conditions improved in April, leading to a double digit 
      point of sale improvement over last year, improving the outlook for Home 
      & Garden for the balance of fiscal 2008.
    
    
      Due to the cumulative depreciation and amortization catch-up of $17.1 
      million plus normal depreciation and amortization of $3.4 million 
      recorded this quarter which were not included in last year’s 
      results, the Home & Garden segment generated a loss of $500 thousand as 
      compared with profits of $14.8 million last year.
    
    
      Corporate expenses were $9.2 million for the quarter as compared with 
      $17.9 million last year. 2007 corporate expenses included a 
      non-recurring $4 million charge related to the write-off in the second 
      quarter of 2007 of professional fees incurred in connection with the 
      attempt to sell the Home & Garden business. The remainder of the 
      variance is due to lower executive compensation expense and other 
      corporate overhead expense reductions.
    
    
      Interest expense was $58.3 million compared to $85.2 million in the same 
      period last year. 2007 interest expense included a prepayment premium of 
      $11.6 million associated with the refinancing of the Company’s 
      senior credit facility and the write-off of debt issuance costs of $24.6 
      million, accounting for the variance from this quarter’s 
      interest expense.
    
    
      Tax expense recorded during the quarter was $66.3 million versus a tax 
      benefit of $45.9 million in the same period last year. Included in this 
      is a $51.9 million expense related to increasing the Company’s 
      valuation allowance against the net deferred tax asset of its Home & 
      Garden segment necessitated as a result of the reclassification of the 
      segment from discontinued operations to continuing operations. In 
      addition, similar to the first quarter of 2008, the Company recorded an 
      expense in the quarter to increase its valuation allowance against its 
      U.S. federal net deferred tax asset of its remaining business segments 
      to reserve for the possibility that the deferred tax assets will not be 
      realized. As a result, fiscal 2008 operating losses in the U.S. no 
      longer create U.S. tax benefits. This accounting treatment is not 
      expected to have any impact on the Company’s 
      ability to utilize net operating losses if and when the Company 
      recognizes future taxable income within the U.S. The result of not 
      recording a tax benefit in the U.S. combined with recording a tax 
      provision on taxable income generated by foreign subsidiaries results in 
      an effective tax rate significantly higher than that experienced in 
      prior years. This increased tax rate has no cash impact on the Company.
    
    
      Webcast Information
    
    
      Spectrum Brands will hold a conference call at 8:30 a.m. EDT on May 6 to 
      further discuss its second quarter results. The call will be accessible 
      via webcast through the Company’s website, www.spectrumbrands.com, 
      and will be archived online until May 20.
    
    
      Non-GAAP Measurements
    
    
      Within this release, including the tables attached hereto, reference is 
      made to adjusted diluted earnings per share and adjusted earnings before 
      interest, taxes, depreciation and amortization (EBITDA). See attached 
      Table 3, “Reconciliation of Diluted Earnings 
      Per Share to Adjusted Diluted Earnings Per Share,” 
      for a complete reconciliation of diluted earnings per share on a GAAP 
      basis to adjusted diluted earnings per share, and Table 6, “GAAP 
      Net Loss to Adjusted EBITDA,” for a 
      reconciliation of net income to adjusted EBITDA for the second quarter 
      of fiscal 2008 and the second quarter of fiscal 2007 and for the last 
      twelve months as of the end of the second quarter of fiscal 2008 and the 
      second quarter of fiscal 2007. Adjusted EBITDA is a metric used by 
      management and frequently used by the financial community which provides 
      insight into an organization’s operating 
      trends and facilitates comparisons between peer companies, since 
      interest, taxes, depreciation and amortization can differ greatly 
      between organizations as a result of differing capital structures and 
      tax strategies. Adjusted EBITDA can also be a useful measure of a company’s 
      ability to service debt and is one of the measures used for determining 
      the Company’s debt covenant compliance. 
      Adjusted EBITDA excludes certain items that are unusual in nature or not 
      comparable from period to period. In addition, Spectrum Brands’ 
      management uses adjusted diluted earnings per share as one means of 
      analyzing the Company’s current and future 
      financial performance and identifying trends in its financial condition 
      and results of operations. Spectrum Brands provides this information to 
      investors to assist in comparisons of past, present and future operating 
      results and to assist in highlighting the results of on-going 
      operations. While Spectrum Brands management believes that adjusted 
      diluted earnings per share and adjusted EBITDA are useful supplemental 
      information, such adjusted results are not intended to replace the 
      Company’s GAAP financial results and should 
      be read in conjunction with those GAAP results.
    
    
      About Spectrum Brands, Inc.
    
    
      Spectrum Brands is a global consumer products company and a leading 
      supplier of consumer batteries, lawn and garden care products, specialty 
      pet supplies, shaving and grooming products, household insect control 
      products, personal care products and portable lighting. Helping to meet 
      the needs of consumers worldwide, included in its portfolio of widely 
      trusted brands are Rayovac®, Remington®, 
      Tetra®, Marineland®, 
      Nature’s Miracle®, 
      Dingo®, 8-In-1®, 
      Spectracide®, Schultz®, 
      Cutter®, Repel®, 
      and HotShot®. Spectrum Brands' products are 
      sold by the world's top 25 retailers and are available in more than one 
      million stores in more than 120 countries around the world. 
      Headquartered in Atlanta, Georgia, Spectrum Brands generated fiscal year 
      2007 net sales of $2.6 billion. The Company's stock trades on the New 
      York Stock Exchange under the symbol SPC.
    
    
      Certain matters discussed in this news release, with the exception of 
      historical matters, may be forward-looking statements within the meaning 
      of the Private Securities Litigation Reform Act of 1995. These 
      statements are subject to a number of risks and uncertainties that could 
      cause results to differ materially from those anticipated as of the date 
      of this release. Actual results may differ materially as a result 
      of (1) changes and developments in external competitive market factors, 
      such as introduction of new product features or technological 
      developments, development of new competitors or competitive brands or 
      competitive promotional activity or spending, (2) changes in consumer 
      demand for the various types of products Spectrum Brands offers, (3) 
      unfavorable developments in the global credit markets, (4) the impact of 
      overall economic conditions on consumer spending, (5) fluctuations in 
      commodities prices, the costs or availability of raw materials or terms 
      and conditions available from suppliers, (6) changes in the general 
      economic conditions in countries and regions where Spectrum Brands does 
      business, such as stock market prices, interest rates, currency exchange 
      rates, inflation and consumer spending, (7) the Company’s 
      ability to successfully implement manufacturing, distribution and other 
      cost efficiencies and to continue to benefit from its cost-cutting 
      initiatives, (8) unfavorable weather conditions and various other risks 
      and uncertainties, including those discussed herein and those set forth 
      in Spectrum Brands’ securities filings, 
      including the most recently filed Annual Report on Form 10-K or 
      Quarterly Report on Form 10-Q. Spectrum Brands also cautions the 
      reader that its estimates of trends, market share, retail consumption of 
      its products and reasons for changes in such consumption are based 
      solely on limited data available to Spectrum Brands and management’s 
      reasonable assumptions about market conditions, and consequently may be 
      inaccurate, or may not reflect significant segments of the retail market.
    
    
      The Company also cautions the reader that undue reliance should not 
      be placed on any forward-looking statements, which speak only as of the 
      date of this release. Spectrum Brands undertakes no duty or 
      responsibility to update any of these forward-looking statements to 
      reflect events or circumstances after the date of this report or to 
      reflect actual outcomes. 
    
    
    
    
      
        
           
        
      
      
        
           
        
      
      
        
          Table 1SPECTRUM BRANDS, INC.Condensed 
          Consolidated Statements of OperationsFor the three and six 
          months ended March 30, 2008 and April 1, 2007(Unaudited)(In 
          millions, except per share amounts)
        
      
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          THREE MONTHS
        
        
        
        
          SIX MONTHS
        
      
      
        
        
        
        
        
          F2008
        
        
        
        
          F2007
        
        
        
        
          
            INC(DEC)
          
        
        
        
        
          F2008
        
        
        
        
          F2007
        
        
        
        
          
            INC(DEC)
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          %
        
        
        
        
        
        
        
        
        
        
        
        
          %
        
      
      
        
          Net sales
        
        
        
        
          $
        
        
          647.1
        
        
        
        
        
        
          $
        
        
          634.5
        
        
        
        
        
        
          2.0
        
        
          %
        
        
        
        
          $
        
        
          1,251.8
        
        
        
        
        
        
          $
        
        
          1,245.6
        
        
        
        
        
        
          0.5
        
        
          %
        
      
      
        
          Cost of goods sold
        
        
        
        
        
        
          412.3
        
        
        
        
        
        
        
        
          404.0
        
        
        
        
        
        
        
        
        
        
        
        
          799.2
        
        
        
        
        
        
        
        
          790.9
        
        
        
        
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
           
        
        
          0.2
        
        
           
        
        
        
        
           
        
        
          6.7
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          0.3
        
        
           
        
        
        
        
           
        
        
          12.6
        
        
           
        
        
        
        
        
      
      
        
          Gross profit
        
        
        
        
        
        
          234.6
        
        
        
        
        
        
        
        
          223.8
        
        
        
        
        
        
          4.8
        
        
          %
        
        
        
        
        
        
          452.3
        
        
        
        
        
        
        
        
          442.1
        
        
        
        
        
        
          2.3
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selling
        
        
        
        
        
        
          139.1
        
        
        
        
        
        
        
        
          139.5
        
        
        
        
        
        
        
        
        
        
        
        
          275.4
        
        
        
        
        
        
        
        
          288.4
        
        
        
        
        
        
        
      
      
        
          General and administrative
        
        
        
        
        
        
          59.2
        
        
        
        
        
        
        
        
          48.4
        
        
        
        
        
        
        
        
        
        
        
        
          98.5
        
        
        
        
        
        
        
        
          87.7
        
        
        
        
        
        
        
      
      
        
          Research and development
        
        
        
        
        
        
          6.2
        
        
        
        
        
        
        
        
          7.2
        
        
        
        
        
        
        
        
        
        
        
        
          12.0
        
        
        
        
        
        
        
        
          14.6
        
        
        
        
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
        
        
          5.2
        
        
        
        
        
        
        
        
          11.2
        
        
        
        
        
        
        
        
        
        
        
        
          10.1
        
        
        
        
        
        
        
        
          14.8
        
        
        
        
        
        
        
      
      
        
          Goodwill and intangibles impairment
        
        
        
        
           
        
        
          13.2
        
        
           
        
        
        
        
           
        
        
          214.0
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          13.2
        
        
           
        
        
        
        
           
        
        
          214.0
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
        
        
          222.9
        
        
        
        
        
        
        
        
          420.3
        
        
        
        
        
        
        
        
        
        
        
        
          409.2
        
        
        
        
        
        
        
        
          619.5
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating income (loss)
        
        
        
        
        
        
          11.7
        
        
        
        
        
        
        
        
          (196.5
        
        
          )
        
        
        
        
        
        
        
        
        
        
          43.1
        
        
        
        
        
        
        
        
          (177.4
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense
        
        
        
        
        
        
          58.3
        
        
        
        
        
        
        
        
          85.2
        
        
        
        
        
        
        
        
        
        
        
        
          115.4
        
        
        
        
        
        
        
        
          132.1
        
        
        
        
        
        
        
      
      
        
          Other (income) expense, net
        
        
        
        
           
        
        
          (1.1
        
        
          )
        
        
        
        
           
        
        
          2.3
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          (1.2
        
        
          )
        
        
        
        
           
        
        
          3.3
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations before income taxes
        
        
        
        
        
        
          (45.5
        
        
          )
        
        
        
        
        
        
          (284.0
        
        
          )
        
        
        
        
        
        
        
        
        
        
          (71.1
        
        
          )
        
        
        
        
        
        
          (312.8
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
           
        
        
          66.3
        
        
           
        
        
        
        
           
        
        
          (45.9
        
        
          )
        
        
        
        
        
        
        
        
           
        
        
          82.8
        
        
           
        
        
        
        
           
        
        
          (57.1
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations
        
        
        
        
        
        
          (111.8
        
        
          )
        
        
        
        
        
        
          (238.1
        
        
          )
        
        
        
        
        
        
        
        
        
        
          (153.9
        
        
          )
        
        
        
        
        
        
          (255.7
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income (loss) from discontinued operations, net of tax (a)
        
        
        
        
           
        
        
          0.1
        
        
           
        
        
        
        
           
        
        
          0.6
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          (1.2
        
        
          )
        
        
        
        
           
        
        
          (0.6
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss
        
        
        
        
          $
        
        
          (111.7
        
        
          )
        
        
        
        
          $
        
        
          (237.5
        
        
          )
        
        
        
        
        
        
        
        
          $
        
        
          (155.1
        
        
          )
        
        
        
        
          $
        
        
          (256.3
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average shares outstanding (b)
        
        
        
        
        
        
          50.9
        
        
        
        
        
        
        
        
          49.8
        
        
        
        
        
        
        
        
        
        
        
        
          50.9
        
        
        
        
        
        
        
        
          49.8
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss income from continuing operations
        
        
        
        
          $
        
        
          (2.20
        
        
          )
        
        
        
        
          $
        
        
          (4.78
        
        
          )
        
        
        
        
        
        
        
        
          $
        
        
          (3.02
        
        
          )
        
        
        
        
          $
        
        
          (5.13
        
        
          )
        
        
        
        
        
      
      
        
          Income (loss) from discontinued operations
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          0.01
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          (0.03
        
        
          )
        
        
        
        
           
        
        
          (0.01
        
        
          )
        
        
        
        
        
      
      
        
          Basic loss per share
        
        
        
        
          $
        
        
          (2.19
        
        
          )
        
        
        
        
          $
        
        
          (4.77
        
        
          )
        
        
        
        
        
        
        
        
          $
        
        
          (3.05
        
        
          )
        
        
        
        
          $
        
        
          (5.14
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average shares and common stock equivalents outstanding (b) (c)
        
        
        
        
        
        
          50.9
        
        
        
        
        
        
        
        
          49.8
        
        
        
        
        
        
        
        
        
        
        
        
          50.9
        
        
        
        
        
        
        
        
          49.8
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss income from continuing operations
        
        
        
        
          $
        
        
          (2.20
        
        
          )
        
        
        
        
          $
        
        
          (4.78
        
        
          )
        
        
        
        
        
        
        
        
          $
        
        
          (3.02
        
        
          )
        
        
        
        
          $
        
        
          (5.13
        
        
          )
        
        
        
        
        
      
      
        
          Income (loss) from discontinued operations
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          0.01
        
        
           
        
        
        
        
        
        
        
        
           
        
        
          (0.03
        
        
          )
        
        
        
        
           
        
        
          (0.01
        
        
          )
        
        
        
        
        
      
      
        
          Diluted loss per share
        
        
        
        
          $
        
        
          (2.19
        
        
          )
        
        
        
        
          $
        
        
          (4.77
        
        
          )
        
        
        
        
        
        
        
        
          $
        
        
          (3.05
        
        
          )
        
        
        
        
          $
        
        
          (5.14
        
        
          )
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (a) Reflects the income (loss) from discontinued operations, net of 
          tax, of the Canadian Home and Garden business, discontinued 
          effective October 1, 2006. Included in the loss from discontinued 
          operations for the six months ended March 30, 2008 is a loss on 
          disposal of $1.1 million, net of tax benefit. The Company's Canadian 
          Home and Garden business has been excluded from continuing 
          operations for all periods presented.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (b) Per share figures calculated prior to rounding.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (c) For the three and six months ended March 30, 2008 and April 1, 
          2007, we have not assumed the exercise of common stock equivalents 
          as the impact would be antidilutive.
        
      
    
    
    
    
      
        
           
        
      
      
        
           
        
      
      
        
          Table 2SPECTRUM BRANDS, INC.Supplemental 
          Financial DataFor the three and six months ended March 30, 
          2008 and April 1, 2007(Unaudited)($ in millions)
        
      
      
        
           
        
      
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          
            Supplemental Financial Data
          
        
        
        
        
          F2008
        
        
        
        
          F2007
        
        
        
        
        
        
        
        
        
      
      
        
          Cash
        
        
        
        
          $
        
        
          81.5
        
        
        
        
        
        
          $
        
        
          118.2
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Trade receivables, net
        
        
        
        
          $
        
        
          365.0
        
        
        
        
        
        
          $
        
        
          400.6
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Days Sales Outstanding (a)
        
        
        
        
        
        
          45
        
        
        
        
        
        
        
        
          51
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Inventory, net
        
        
        
        
          $
        
        
          468.2
        
        
        
        
        
        
          $
        
        
          476.5
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Inventory Turnover (b)
        
        
        
        
        
        
          2.8
        
        
        
        
        
        
        
        
          3.4
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Debt
        
        
        
        
          $
        
        
          2,643.4
        
        
        
        
        
        
          $
        
        
          2,659.8
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          THREE MONTHS
        
        
        
        
          SIX MONTHS
        
      
      
        
          
            Supplemental Cash Flow Data
          
        
        
        
        
          F2008
        
        
        
        
          F2007
        
        
        
        
          F2008
        
        
        
        
          F2007
        
      
      
        
          
            Depreciation and amortization, excluding amortization of debt 
            issuance costs
          
        
        
        
        
          $
        
        
          35.5
        
        
        
        
        
        
          $
        
        
          18.8
        
        
        
        
        
        
          $
        
        
          51.7
        
        
        
        
        
        
          $
        
        
          36.6
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Capital expenditures
        
        
        
        
          $
        
        
          5.5
        
        
        
        
        
        
          $
        
        
          5.1
        
        
        
        
        
        
          $
        
        
          10.6
        
        
        
        
        
        
          $
        
        
          12.8
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          THREE MONTHS
        
        
        
        
          SIX MONTHS
        
      
      
        
          
            Supplemental Segment Sales & 
            Profitability
          
        
        
        
        
          F2008
        
        
        
        
          F2007
        
        
        
        
          F2008
        
        
        
        
          F2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Net Sales
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Global Batteries & Personal Care
        
        
        
        
          $
        
        
          307.6
        
        
        
        
        
        
          $
        
        
          297.2
        
        
        
        
        
        
          $
        
        
          725.6
        
        
        
        
        
        
          $
        
        
          724.1
        
        
        
      
      
        
          Home and Garden
        
        
        
        
        
        
          191.1
        
        
        
        
        
        
        
        
          194.8
        
        
        
        
        
        
        
        
          235.3
        
        
        
        
        
        
        
        
          241.3
        
        
        
      
      
        
          Global Pet Supplies
        
        
        
        
           
        
        
          148.4
        
        
           
        
        
        
        
           
        
        
          142.5
        
        
           
        
        
        
        
           
        
        
          290.9
        
        
           
        
        
        
        
           
        
        
          280.2
        
        
           
        
      
      
        
          Total net sales
        
        
        
        
          $
        
        
          647.1
        
        
           
        
        
        
        
          $
        
        
          634.5
        
        
           
        
        
        
        
          $
        
        
          1,251.8
        
        
           
        
        
        
        
          $
        
        
          1,245.6
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Segment Profit
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Global Batteries & Personal Care
        
        
        
        
          $
        
        
          24.7
        
        
        
        
        
        
          $
        
        
          22.1
        
        
        
        
        
        
          $
        
        
          71.7
        
        
        
        
        
        
          $
        
        
          62.0
        
        
        
      
      
        
          Home and Garden
        
        
        
        
        
        
          (0.5
        
        
          )
        
        
        
        
        
        
          14.8
        
        
        
        
        
        
        
        
          (19.6
        
        
          )
        
        
        
        
        
        
          (1.5
        
        
          )
        
      
      
        
          Global Pet Supplies
        
        
        
        
           
        
        
          15.3
        
        
           
        
        
        
        
           
        
        
          16.4
        
        
           
        
        
        
        
           
        
        
          32.1
        
        
           
        
        
        
        
           
        
        
          34.7
        
        
           
        
      
      
        
          Total segment profit
        
        
        
        
        
        
          39.5
        
        
        
        
        
        
        
        
          53.3
        
        
        
        
        
        
        
        
          84.2
        
        
        
        
        
        
        
        
          95.2
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Corporate
        
        
        
        
        
        
          9.2
        
        
        
        
        
        
        
        
          17.9
        
        
        
        
        
        
        
        
          17.5
        
        
        
        
        
        
        
        
          31.2
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
        
        
          5.4
        
        
        
        
        
        
        
        
          17.9
        
        
        
        
        
        
        
        
          10.4
        
        
        
        
        
        
        
        
          27.4
        
        
        
      
      
        
          Goodwill and intangibles impairment
        
        
        
        
        
        
          13.2
        
        
        
        
        
        
        
        
          214.0
        
        
        
        
        
        
        
        
          13.2
        
        
        
        
        
        
        
        
          214.0
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
          58.3
        
        
        
        
        
        
        
        
          85.2
        
        
        
        
        
        
        
        
          115.4
        
        
        
        
        
        
        
        
          132.1
        
        
        
      
      
        
          Other (income) expense, net
        
        
        
        
           
        
        
          (1.1
        
        
          )
        
        
        
        
           
        
        
          2.3
        
        
           
        
        
        
        
           
        
        
          (1.2
        
        
          )
        
        
        
        
           
        
        
          3.3
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations before income taxes
        
        
        
        
          $
        
        
          (45.5
        
        
          )
        
        
        
        
          $
        
        
          (284.0
        
        
          )
        
        
        
        
          $
        
        
          (71.1
        
        
          )
        
        
        
        
          $
        
        
          (312.8
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (a) Reflects actual days sales outstanding at end of period.
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (b) Reflects cost of sales (excluding restructuring and related 
          charges) during the last twelve months divided by inventory as of 
          the end of the period.
        
      
    
    
    
    
      
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Table 3SPECTRUM BRANDS, INC.Reconciliation 
          of GAAP to Adjusted Diluted Earnings Per ShareFor the 
          three and six months ended March 30, 2008 and April 1, 2007(Unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          THREE MONTHS
        
        
        
        
        
        
          SIX MONTHS
        
        
        
      
      
        
        
        
        
        
          F2008
        
        
        
        
        
        
          F2007
        
        
        
        
        
        
          F2008
        
        
        
        
        
        
          F2007
        
        
        
      
      
        
          Diluted loss per share, as reported
        
        
        
        
          $
        
        
          (2.19
        
        
          )
        
        
        
        
        
        
          $
        
        
          (4.77
        
        
          )
        
        
        
        
        
        
          $
        
        
          (3.05
        
        
          )
        
        
        
        
        
        
          $
        
        
          (5.14
        
        
          )
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjustments, net of tax:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
        
        
          0.07
        
        
        
        
          (a)
        
        
        
        
        
        
          0.25
        
        
        
        
          (b)
        
        
        
        
        
        
          0.13
        
        
        
        
          (c)
        
        
        
        
        
        
          0.37
        
        
        
        
          (d)
        
      
      
        
          Goodwill and Intangibles Impairment
        
        
        
        
        
        
          0.16
        
        
        
        
          (e)
        
        
        
        
        
        
          3.84
        
        
        
        
          (f)
        
        
        
        
        
        
          0.16
        
        
        
        
          (e)
        
        
        
        
        
        
          3.84
        
        
        
        
          (f)
        
      
      
        
          Depreciation and Amortization - U.S Home and Garden
        
        
        
        
        
        
          0.21
        
        
        
        
          (g)
        
        
        
        
        
        
          (0.04
        
        
          )
        
        
          (g)
        
        
        
        
        
        
          0.17
        
        
        
        
          (g)
        
        
        
        
        
        
          (0.09
        
        
          )
        
        
          (g)
        
      
      
        
          Transaction Costs
        
        
        
        
        
        
          0.02
        
        
        
        
          (h)
        
        
        
        
        
        
          0.05
        
        
        
        
          (h)
        
        
        
        
        
        
          0.02
        
        
        
        
          (h)
        
        
        
        
        
        
          0.05
        
        
        
        
          (h)
        
      
      
        
          Re-financing costs
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
        
        
          0.43
        
        
        
        
          (i)
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
        
        
          0.43
        
        
        
        
          (i)
        
      
      
        
          Discontinued operations
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
        
        
          (0.01
        
        
          )
        
        
          (j)
        
        
        
        
        
        
          0.03
        
        
        
        
          (j)
        
        
        
        
        
        
          0.01
        
        
        
        
          (j)
        
      
      
        
          Income taxes
        
        
        
        
        
        
          1.63
        
        
        
        
          (k)
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
        
        
          2.13
        
        
        
        
          (k)
        
        
        
        
        
        
          -
        
        
        
        
        
      
      
        
          Other adjustments
        
        
        
        
           
        
        
          (0.04
        
        
          )
        
        
          (l)
        
        
        
        
           
        
        
          (0.05
        
        
          )
        
        
          (l)
        
        
        
        
           
        
        
          (0.11
        
        
          )
        
        
          (l)
        
        
        
        
           
        
        
          (0.09
        
        
          )
        
        
          (l)
        
      
      
        
        
        
        
        
        
        
          2.05
        
        
        
        
        
        
        
        
        
        
          4.47
        
        
        
        
        
        
        
        
        
        
          2.53
        
        
        
        
        
        
        
        
        
        
          4.52
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Diluted loss per share, as adjusted
        
        
        
        
          $
        
        
          (0.14
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.30
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.52
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.62
        
        
          )
        
        
        
      
    
    
      Note: Per share figures calculated prior to rounding.
    
    
      (a) For the three months ended March 30, 2008, reflects $3.5 million, 
      net of tax, of restructuring and related charges as follows: $1.0 
      million for the integration of United and Tetra and $2.5 million for the 
      Global restructuring announced January 10, 2007.
    
    
      (b) For the three months ended April 1, 2007, reflects $12.5 million, 
      net of tax, of restructuring and related charges as follows: (i) $8.6 
      million for the integration of United and Tetra; (ii) $2.6 million for a 
      series of actions in Europe and Latin America to reduce operating costs 
      and rationalize operating structure; (iii) $1.3 million for the Global 
      restructuring announced January 10, 2007.
    
    
      (c) For the six months ended March 30, 2008, reflects $6.8 million, net 
      of tax, of restructuring and related charges as follows: $2.0 million 
      for the integration of United and Tetra and $4.8 million for the Global 
      restructuring announced January 10, 2007.
    
    
      (d) For the six months ended April 1, 2007, reflects $18.6 million, net 
      of tax, of restructuring and related charges as follows: (i) $12.5 
      million for the integration of United and Tetra; (ii) $4.8 million for a 
      series of actions in Europe and Latin America to reduce operating costs 
      and rationalize operating structure; (iii) $1.3 million for the Global 
      restructuring announced January 10, 2007.
    
    
      (e) For the three and six months ended March 30, 2008, reflects an 
      impairment charge of $8.3 million, net of tax, for the write-off of 
      trade names of our Home & Garden business as a result of an impairment 
      evaluation in accordance with SFAS 142, "Goodwill and Other Intangible 
      Assets."
    
    
      (f) For the three and six months ended April 1, 2007, reflects an 
      impairment charge of $191.2 million, net of tax, for the write-off of 
      goodwill of our North America batteries and personal care business 
      (which is included in our Global Batteries and Personal care business 
      segment) as a result of an impairment evaluation in accordance with SFAS 
      142, "Goodwill and Other Intangible Assets."
    
    
      (g) Effective December 31, 2007, the Company discontinued the active 
      marketing of the Home and Garden business for sale and, accordingly, 
      reclassified the Home and Garden business, which had been designated as 
      a discontinued operation since October 1, 2006, as an asset held and 
      used in continuing operations. Going forward the Company will account 
      for the Home and Garden business as continuing operations. Inasmuch as 
      depreciation and amortization expense is not recorded for assets 
      designated as discontinued operations, this adjustment reflects the 
      impact of depreciation and amortization expense as if the Home and 
      Garden business was designated as a continuing operation for all periods 
      presented.
    
    
      (h) For the three and six months ended March 30, 2008 general and 
      administrative expenses included $1.0 million, net of tax, of 
      transaction costs incurred in connection with the proposed sale of the 
      Company's U.S. Home & Garden business. For the three and six months 
      ended April 1, 2007 general and administrative expenses include $2.3 
      million, net of tax, representing professional fees incurred in 
      connection with the proposed sale of the Company's Home & Garden 
      business.
    
    
      (i) For the three and six months ended April 1, 2007 reflects $21.1 
      million, net of tax, of charges associated with a refinancing of the 
      Company's debt as follows: (i) $14.3 million write-off of deferred 
      financing fees associated with the then existing Senior term debt and 
      the $350 8½% Senior subordinated notes; (ii) 
      $6.8 million pre-payment penalty associated with the then existing 
      Senior term debt.
    
    
      (j) For the three months ended April 1, 2007, reflects income from 
      discontinued operations, net of tax of $0.6 million of the Company's 
      Canadian Home & Garden business, discontinued effective October 1, 2006. 
      For the six months ended March 30, 2008 reflects the loss on 
      discontinued operations, net of tax of $1.2 million of the Company's 
      Canadian Home & Garden business sold on November 1, 2007. Such loss 
      includes a loss on disposal of $1.1 million, net of tax benefit. For the 
      six months ended April 1, 2007 reflects loss on discontinued operations, 
      net of tax of $0.7 million of the Company's Canadian Home & Garden 
      business, discontinued effective October 1, 2006.
    
    
      (k) For the three and six months ended March 30, 2008, reflects $83.0 
      million and $108.3 million, respectively, adjustment to income tax 
      expense to exclude the impact of the valuation allowance against 
      deferred taxes and other tax related items in order to reflect a 
      normalized ongoing effective tax rate.
    
    
      (l) For the three and six months ended March 30, 2008, general and 
      administrative expenses include a net of tax benefit of $1.9 million and 
      $5.6 million, respectively, related to expiring taxes and related 
      penalties, associated with the Company's provision for presumed credits 
      applied to the Brazilian excise tax on manufactured products, which 
      expired in the current period. For the three and six months ended March 
      30, 2008, interest expense includes a net of tax benefit of $0.8 million 
      and $2.8 million, respectively, related to interest charges associated 
      with the Company's provision for presumed credits applied to the 
      Brazilian excise tax on manufactured products. For the three and six 
      months ended April 1, 2007, general and administrative expenses include 
      a net of tax benefit of $.8 million and $2.4 million, respectively, 
      related to expiring taxes and related penalties, associated with the 
      Company's provision for presumed credits applied to the Brazilian excise 
      tax on manufactured products, which expired in the current period. For 
      the three and six months ended April 1, 2007, interest expense includes 
      a net of tax benefit of $0.3 million and $.9 million, respectively, 
      related to interest charges associated with the Company's provision for 
      presumed credits applied to the Brazilian excise tax on manufactured 
      products.
    
    
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Table 4SPECTRUM BRANDS, INC.Condensed 
          Consolidated Statements of Operations (Quarterly)(Unaudited)($ 
          millions)
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          F2007
        
        
        
        
          F2008
        
      
      
        
        
        
        
        
          Q1
        
        
        
        
          Q2
        
        
        
        
          Q3
        
        
        
        
          Q4
        
        
        
        
          F2007
        
        
        
        
          Q1
        
        
        
        
          Q2
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net sales
        
        
        
        
          $
        
        
          611.1
        
        
        
        
        
        
          $
        
        
          634.5
        
        
        
        
        
        
          $
        
        
          660.0
        
        
        
        
        
        
          $
        
        
          659.1
        
        
        
        
        
        
          $
        
        
          2,564.7
        
        
        
        
        
        
          $
        
        
          604.7
        
        
        
        
        
        
          $
        
        
          647.1
        
        
        
      
      
        
          Cost of goods sold
        
        
        
        
        
        
          386.9
        
        
        
        
        
        
        
        
          404.0
        
        
        
        
        
        
        
        
          402.0
        
        
        
        
        
        
        
        
          406.8
        
        
        
        
        
        
        
        
          1,599.6
        
        
        
        
        
        
        
        
          386.9
        
        
        
        
        
        
        
        
          412.3
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
           
        
        
          5.9
        
        
           
        
        
        
        
           
        
        
          6.7
        
        
           
        
        
        
        
           
        
        
          4.1
        
        
           
        
        
        
        
           
        
        
          14.6
        
        
           
        
        
        
        
           
        
        
          31.3
        
        
           
        
        
        
        
           
        
        
          0.1
        
        
           
        
        
        
        
           
        
        
          0.2
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
        
        
          218.3
        
        
        
        
        
        
        
        
          223.8
        
        
        
        
        
        
        
        
          253.9
        
        
        
        
        
        
        
        
          237.8
        
        
        
        
        
        
        
        
          933.8
        
        
        
        
        
        
        
        
          217.7
        
        
        
        
        
        
        
        
          234.6
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selling
        
        
        
        
        
        
          148.9
        
        
        
        
        
        
        
        
          139.5
        
        
        
        
        
        
        
        
          140.3
        
        
        
        
        
        
        
        
          131.0
        
        
        
        
        
        
        
        
          559.7
        
        
        
        
        
        
        
        
          136.3
        
        
        
        
        
        
        
        
          139.1
        
        
        
      
      
        
          
            General and administrative
          
          
             
          
        
        
        
        
        
        
          39.3
        
        
        
        
        
        
        
        
          48.4
        
        
        
        
        
        
        
        
          34.7
        
        
        
        
        
        
        
        
          41.2
        
        
        
        
        
        
        
        
          163.5
        
        
        
        
        
        
        
        
          39.3
        
        
        
        
        
        
        
        
          59.2
        
        
        
      
      
        
          Research and development
        
        
        
        
        
        
          7.4
        
        
        
        
        
        
        
        
          7.2
        
        
        
        
        
        
        
        
          6.5
        
        
        
        
        
        
        
        
          5.9
        
        
        
        
        
        
        
        
          27.0
        
        
        
        
        
        
        
        
          5.8
        
        
        
        
        
        
        
        
          6.2
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
        
        
          3.6
        
        
        
        
        
        
        
        
          11.2
        
        
        
        
        
        
        
        
          26.8
        
        
        
        
        
        
        
        
          25.1
        
        
        
        
        
        
        
        
          66.7
        
        
        
        
        
        
        
        
          4.9
        
        
        
        
        
        
        
        
          5.2
        
        
        
      
      
        
          Goodwill and intangibles impairment
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          214.0
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          148.4
        
        
           
        
        
        
        
           
        
        
          362.4
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          13.2
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
        
        
          199.2
        
        
        
        
        
        
        
        
          420.3
        
        
        
        
        
        
        
        
          208.3
        
        
        
        
        
        
        
        
          351.5
        
        
        
        
        
        
        
        
          1,179.2
        
        
        
        
        
        
        
        
          186.3
        
        
        
        
        
        
        
        
          222.9
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating income (loss)
        
        
        
        
        
        
          19.1
        
        
        
        
        
        
        
        
          (196.5
        
        
          )
        
        
        
        
        
        
          45.6
        
        
        
        
        
        
        
        
          (113.7
        
        
          )
        
        
        
        
        
        
          (245.4
        
        
          )
        
        
        
        
        
        
          31.4
        
        
        
        
        
        
        
        
          11.7
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense
        
        
        
        
        
        
          46.9
        
        
        
        
        
        
        
        
          85.2
        
        
        
        
        
        
        
        
          59.4
        
        
        
        
        
        
        
        
          64.3
        
        
        
        
        
        
        
        
          255.8
        
        
        
        
        
        
        
        
          57.1
        
        
        
        
        
        
        
        
          58.3
        
        
        
      
      
        
          Other (income) expense, net
        
        
        
        
           
        
        
          1.0
        
        
           
        
        
        
        
           
        
        
          2.3
        
        
           
        
        
        
        
           
        
        
          1.2
        
        
           
        
        
        
        
           
        
        
          (4.8
        
        
          )
        
        
        
        
           
        
        
          (0.3
        
        
          )
        
        
        
        
           
        
        
          (0.1
        
        
          )
        
        
        
        
           
        
        
          (1.1
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations before income taxes
        
        
        
        
        
        
          (28.8
        
        
          )
        
        
        
        
        
        
          (284.0
        
        
          )
        
        
        
        
        
        
          (15.0
        
        
          )
        
        
        
        
        
        
          (173.2
        
        
          )
        
        
        
        
        
        
          (500.9
        
        
          )
        
        
        
        
        
        
          (25.6
        
        
          )
        
        
        
        
        
        
          (45.5
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
           
        
        
          (11.2
        
        
          )
        
        
        
        
           
        
        
          (45.9
        
        
          )
        
        
        
        
           
        
        
          (6.9
        
        
          )
        
        
        
        
           
        
        
          119.7
        
        
           
        
        
        
        
           
        
        
          55.7
        
        
           
        
        
        
        
           
        
        
          16.5
        
        
           
        
        
        
        
           
        
        
          66.3
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations
        
        
        
        
        
        
          (17.6
        
        
          )
        
        
        
        
        
        
          (238.1
        
        
          )
        
        
        
        
        
        
          (8.2
        
        
          )
        
        
        
        
        
        
          (292.9
        
        
          )
        
        
        
        
        
        
          (556.7
        
        
          )
        
        
        
        
        
        
          (42.1
        
        
          )
        
        
        
        
        
        
          (111.8
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income (loss) from discontinued operations, net of tax (a)
        
        
        
        
           
        
        
          (1.2
        
        
          )
        
        
        
        
           
        
        
          0.6
        
        
           
        
        
        
        
           
        
        
          0.7
        
        
           
        
        
        
        
           
        
        
          (40.1
        
        
          )
        
        
        
        
           
        
        
          (40.0
        
        
          )
        
        
        
        
           
        
        
          (1.3
        
        
          )
        
        
        
        
           
        
        
          0.1
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss
        
        
        
        
          $
        
        
          (18.8
        
        
          )
        
        
        
        
          $
        
        
          (237.5
        
        
          )
        
        
        
        
          $
        
        
          (7.4
        
        
          )
        
        
        
        
          $
        
        
          (333.0
        
        
          )
        
        
        
        
          $
        
        
          (596.7
        
        
          )
        
        
        
        
          $
        
        
          (43.4
        
        
          )
        
        
        
        
          $
        
        
          (111.7
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Note: Amounts calculated prior to rounding
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (a) Reflects the income (loss) from discontinued operations, net of 
          tax, of the Canadian Home and Garden business, discontinued 
          effective October 1, 2006. Included in the loss from discontinued 
          operations for the three months ended December 30, 2007 is
        
      
    
    
    
    
      
        
           
        
      
      
        
           
        
      
      
        
          Table 5SPECTRUM BRANDS, INC.Supplemental 
          Financial Data (Quarterly)(Unaudited)($ in millions)
        
      
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          F2007
        
        
        
        
          F2008
        
      
      
        
          
            Supplemental Segment Sales & 
            Profitability
          
        
        
        
        
          Q1
        
        
        
        
          Q2
        
        
        
        
          Q3
        
        
        
        
          Q4
        
        
        
        
          F2007
        
        
        
        
          Q1
        
        
        
        
          Q2
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Net Sales
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Global Batteries & Personal Care
        
        
        
        
          $
        
        
          426.9
        
        
        
        
        
        
          $
        
        
          297.2
        
        
        
        
        
        
          $
        
        
          307.0
        
        
        
        
        
        
          $
        
        
          400.4
        
        
        
        
        
        
          $
        
        
          1,431.5
        
        
        
        
        
        
          $
        
        
          418.0
        
        
        
        
        
        
          $
        
        
          307.6
        
        
        
      
      
        
          Home and Garden Business
        
        
        
        
        
        
          46.5
        
        
        
        
        
        
        
        
          194.8
        
        
        
        
        
        
        
        
          218.0
        
        
        
        
        
        
        
        
          110.9
        
        
        
        
        
        
        
        
          570.2
        
        
        
        
        
        
        
        
          44.2
        
        
        
        
        
        
        
        
          191.1
        
        
        
      
      
        
          Global Pet Supplies
        
        
        
        
           
        
        
          137.7
        
        
           
        
        
        
        
           
        
        
          142.5
        
        
           
        
        
        
        
           
        
        
          135.0
        
        
           
        
        
        
        
           
        
        
          147.8
        
        
           
        
        
        
        
           
        
        
          563.0
        
        
           
        
        
        
        
           
        
        
          142.5
        
        
           
        
        
        
        
           
        
        
          148.4
        
        
           
        
      
      
        
          Total net sales
        
        
        
        
          $
        
        
          611.1
        
        
           
        
        
        
        
          $
        
        
          634.5
        
        
           
        
        
        
        
          $
        
        
          660.0
        
        
           
        
        
        
        
          $
        
        
          659.1
        
        
           
        
        
        
        
          $
        
        
          2,564.7
        
        
           
        
        
        
        
          $
        
        
          604.7
        
        
           
        
        
        
        
          $
        
        
          647.1
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Segment Profit
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Global Batteries & Personal Care
        
        
        
        
          $
        
        
          39.9
        
        
        
        
        
        
          $
        
        
          22.1
        
        
        
        
        
        
          $
        
        
          27.4
        
        
        
        
        
        
          $
        
        
          54.5
        
        
        
        
        
        
          $
        
        
          143.9
        
        
        
        
        
        
          $
        
        
          47.0
        
        
        
        
        
        
          $
        
        
          24.7
        
        
        
      
      
        
          Home and Garden Business
        
        
        
        
        
        
          (16.3
        
        
          )
        
        
        
        
        
        
          14.8
        
        
        
        
        
        
        
        
          42.3
        
        
        
        
        
        
        
        
          6.2
        
        
        
        
        
        
        
        
          47.0
        
        
        
        
        
        
        
        
          (19.1
        
        
          )
        
        
        
        
        
        
          (0.5
        
        
          )
        
      
      
        
          Global Pet Supplies
        
        
        
        
           
        
        
          18.3
        
        
           
        
        
        
        
           
        
        
          16.4
        
        
           
        
        
        
        
           
        
        
          14.4
        
        
           
        
        
        
        
           
        
        
          21.9
        
        
           
        
        
        
        
           
        
        
          71.0
        
        
           
        
        
        
        
           
        
        
          16.8
        
        
           
        
        
        
        
           
        
        
          15.3
        
        
           
        
      
      
        
          Total segment profit
        
        
        
        
        
        
          41.9
        
        
        
        
        
        
        
        
          53.3
        
        
        
        
        
        
        
        
          84.1
        
        
        
        
        
        
        
        
          82.6
        
        
        
        
        
        
        
        
          261.9
        
        
        
        
        
        
        
        
          44.7
        
        
        
        
        
        
        
        
          39.5
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Corporate
        
        
        
        
        
        
          13.3
        
        
        
        
        
        
        
        
          17.9
        
        
        
        
        
        
        
        
          7.6
        
        
        
        
        
        
        
        
          8.2
        
        
        
        
        
        
        
        
          47.0
        
        
        
        
        
        
        
        
          8.3
        
        
        
        
        
        
        
        
          9.2
        
        
        
      
      
        
          Restructuring and related charges
        
        
        
        
        
        
          9.5
        
        
        
        
        
        
        
        
          17.9
        
        
        
        
        
        
        
        
          30.9
        
        
        
        
        
        
        
        
          39.7
        
        
        
        
        
        
        
        
          98.0
        
        
        
        
        
        
        
        
          5.0
        
        
        
        
        
        
        
        
          5.4
        
        
        
      
      
        
          Goodwill and intangibles impairment
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          214.0
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          148.4
        
        
        
        
        
        
        
        
          362.4
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          13.2
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
          46.9
        
        
        
        
        
        
        
        
          85.2
        
        
        
        
        
        
        
        
          59.4
        
        
        
        
        
        
        
        
          64.3
        
        
        
        
        
        
        
        
          255.8
        
        
        
        
        
        
        
        
          57.1
        
        
        
        
        
        
        
        
          58.3
        
        
        
      
      
        
          Other (income) expense, net
        
        
        
        
           
        
        
          1.0
        
        
           
        
        
        
        
           
        
        
          2.3
        
        
           
        
        
        
        
           
        
        
          1.2
        
        
           
        
        
        
        
           
        
        
          (4.8
        
        
          )
        
        
        
        
           
        
        
          (0.3
        
        
          )
        
        
        
        
           
        
        
          (0.1
        
        
          )
        
        
        
        
           
        
        
          (1.1
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations before income taxes
        
        
        
        
          $
        
        
          (28.8
        
        
          )
        
        
        
        
          $
        
        
          (284.0
        
        
          )
        
        
        
        
          $
        
        
          (15.1
        
        
          )
        
        
        
        
          $
        
        
          (173.3
        
        
          )
        
        
        
        
          $
        
        
          (501.0
        
        
          )
        
        
        
        
          $
        
        
          (25.6
        
        
          )
        
        
        
        
          $
        
        
          (45.5
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Note: Amounts calculated prior to rounding
        
      
    
    
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Table 6SPECTRUM BRANDS, INC.GAAP Net 
          Loss to Adjusted EBITDA(Unaudited)($ millions)
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          F2006
        
        
        
        
          
            F2007
          
        
        
        
        
           
        
        
        
        
          F2008
        
      
      
        
        
        
        
        
          Q3
        
        
        
        
          Q4
        
        
        
        
          Q1
        
        
        
        
          Q2
        
        
        
        
          Q3
        
        
        
        
          Q4
        
        
        
        
          F2007
        
        
        
        
          Q1
        
        
        
        
          Q2
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income (loss) from continuing operations, net of tax
        
        
        
        
          $
        
        
          1.3
        
        
        
        
        
        
          $
        
        
          (439.2
        
        
          )
        
        
        
        
          $
        
        
          (17.6
        
        
          )
        
        
        
        
          $
        
        
          (238.1
        
        
          )
        
        
        
        
          $
        
        
          (8.2
        
        
          )
        
        
        
        
          $
        
        
          (292.9
        
        
          )
        
        
        
        
          $
        
        
          (556.7
        
        
          )
        
        
        
        
          $
        
        
          (42.1
        
        
          )
        
        
        
        
          $
        
        
          (111.8
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense (benefit) - continuing operations
        
        
        
        
        
        
          0.9
        
        
        
        
        
        
        
        
          (32.9
        
        
          )
        
        
        
        
        
        
          (11.2
        
        
          )
        
        
        
        
        
        
          (45.9
        
        
          )
        
        
        
        
        
        
          (6.9
        
        
          )
        
        
        
        
        
        
          119.7
        
        
        
        
        
        
        
        
          55.7
        
        
        
        
        
        
        
        
          16.5
        
        
        
        
        
        
        
        
          66.3
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
          45.3
        
        
        
        
        
        
        
        
          47.0
        
        
        
        
        
        
        
        
          46.9
        
        
        
        
        
        
        
        
          85.2
        
        
        
        
        
        
        
        
          59.4
        
        
        
        
        
        
        
        
          64.3
        
        
        
        
        
        
        
        
          255.8
        
        
        
        
        
        
        
        
          57.1
        
        
        
        
        
        
        
        
          58.3
        
        
        
      
      
        
          Goodwill and intangibles impairment
        
        
        
        
        
        
        
        
        
        
          433.0
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          214.0
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          148.4
        
        
        
        
        
        
        
        
          362.4
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          13.2
        
        
        
      
      
        
          Restructuring and Related charges
        
        
        
        
        
        
          14.2
        
        
        
        
        
        
        
        
          28.8
        
        
        
        
        
        
        
        
          9.5
        
        
        
        
        
        
        
        
          17.9
        
        
        
        
        
        
        
        
          30.9
        
        
        
        
        
        
        
        
          39.7
        
        
        
        
        
        
        
        
          98.0
        
        
        
        
        
        
        
        
          5.0
        
        
        
        
        
        
        
        
          5.4
        
        
        
      
      
        
          Depreciation and Amortization
        
        
        
        
        
        
          22.5
        
        
        
        
        
        
        
        
          21.1
        
        
        
        
        
        
        
        
          17.6
        
        
        
        
        
        
        
        
          18.8
        
        
        
        
        
        
        
        
          24.3
        
        
        
        
        
        
        
        
          16.7
        
        
        
        
        
        
        
        
          77.4
        
        
        
        
        
        
        
        
          16.2
        
        
        
        
        
        
        
        
          35.5
        
        
        
      
      
        
          Restricted Stock Amortization/Restructuring (a)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          0.1
        
        
        
        
        
        
        
        
        
        
        
        
          (9.8
        
        
          )
        
        
        
        
        
        
          (0.2
        
        
          )
        
        
        
        
        
        
          (9.9
        
        
          )
        
        
        
        
        
        
        
        
        
        
          (0.2
        
        
          )
        
      
      
        
          Brazilian IPI Credit
        
        
        
        
        
        
          (1.7
        
        
          )
        
        
        
        
        
        
          (1.7
        
        
          )
        
        
        
        
        
        
          (2.3
        
        
          )
        
        
        
        
        
        
          (1.9
        
        
          )
        
        
        
        
        
        
          (2.1
        
        
          )
        
        
        
        
        
        
          (2.4
        
        
          )
        
        
        
        
        
        
          (8.7
        
        
          )
        
        
        
        
        
        
          (3.6
        
        
          )
        
        
        
        
        
        
          (1.9
        
        
          )
        
      
      
        
          Transaction costs - Home & Garden Business
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          3.9
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          3.9
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          1.5
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjusted EBITDA
        
        
        
        
          $
        
        
          82.5
        
        
           
        
        
        
        
          $
        
        
          56.1
        
        
           
        
        
        
        
          $
        
        
          43.0
        
        
           
        
        
        
        
          $
        
        
          54.0
        
        
           
        
        
        
        
          $
        
        
          87.7
        
        
           
        
        
        
        
          $
        
        
          93.3
        
        
           
        
        
        
        
          $
        
        
          278.0
        
        
           
        
        
        
        
          $
        
        
          49.1
        
        
           
        
        
        
        
          $
        
        
          66.2
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          Note: Amounts calculated prior to rounding
        
      
      
        
           
        
      
      
        
          
            (a) adjustment reflects restricted stock amortization which is 
            associated with and included in restructuring and related charges. 
            As such amounts are also included in Table 2 to the Company's 
            earning release for the respective quarter, "Supplemental Cash 
            Flow Data - Depreciation and amortization excluding amortization 
            of debt issuance costs," the adjustment negates the impact of 
            reflecting this expense twice.
          
        
      
      
        
           
        
      
      
        
          (b) the reconciliation of last twelve months (LTM) adjusted EBITDA 
          as of the end of the 2nd quarter of Fiscal 2007 to the LTM adjusted 
          EBITDA as of the end of 2nd quarter of Fiscal 2008 is as follows:
        
      
    
    
      
        
          Adjusted EBITDA 3rd Quarter of Fiscal 2006
        
        
           
        
        
          $
        
        
          82.5
        
        
           
        
        
        
      
      
        
          Adjusted EBITDA 4th Quarter of Fiscal 2006
        
        
        
        
        
        
          56.1
        
        
        
        
        
      
      
        
          Adjusted EBITDA 1st Quarter of Fiscal 2007
        
        
        
        
        
        
          43.0
        
        
        
        
        
      
      
        
          Adjusted EBITDA 2nd Quarter of Fiscal 2007
        
        
        
        
           
        
        
          54.0
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LTM Adjusted EBITDA as of the end of the 2nd quarter of Fiscal 2007
        
        
        
        
        
        
        
        
          $
        
        
          235.5
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjusted EBITDA 3rd Quarter of Fiscal 2007
        
        
        
        
          $
        
        
          87.7
        
        
        
        
        
      
      
        
          Adjusted EBITDA 4th Quarter of Fiscal 2007
        
        
        
        
        
        
          93.3
        
        
        
        
        
      
      
        
          Adjusted EBITDA 1st Quarter of Fiscal 2008
        
        
        
        
        
        
          49.1
        
        
        
        
        
      
      
        
          Adjusted EBITDA 2nd Quarter of Fiscal 2008
        
        
        
        
           
        
        
          66.2
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LTM Adjusted EBITDA as of the end of the 2nd quarter of Fiscal 2008
        
        
        
        
        
        
        
        
          $
        
        
          296.3
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Increase in Adjusted EBITDA from the end of the 2nd quarter of 
            Fiscal 2007 to the end of the 2nd quarter of Fiscal 2008
          
        
        
        
        
        
        
        
        
          $
        
        
          60.8