Spectrum has zero net debt with $1.6 billion debt, $1.9 billion cash

By Devika Patel

Knoxville, Tenn., Nov. 17 – Spectrum Brands Holdings, Inc. ended the last fiscal year and quarter with a zero net debt balance after a challenging quarter.

“We started fiscal 2023 with a challenging macroeconomic environment, with consumer demand declining from the heights of the pandemic and our retail customers inventory strategies driving significant demand volatility,” executive chairman and chief executive officer David M. Maura said on the company’s fourth quarter and year ended Sept. 30 earnings conference call on Friday.

“Our leverage ratio was very high, with declining EBITDA and high working capital commitments at the same time.

“In the face of these challenges, our company has not just successfully navigated these obstacles, we’re now also beginning to turn a corner.

“We have now become a net debt-free company, as we ended the year with $1.9 billion of cash and short-term investments against a total debt position of $1.6 billion.

“We are now operating from a position of strength with a strong balance sheet, healthier margins and a much better inventory profile,” Maura said.

The company refinanced its revolver in October and extended its maturity.

“We once again ended the quarter in a net positive cash position,” executive vice president and chief financial officer Jeremy W. Smeltser said on the call.

“In October, we refinanced our revolver, reducing the total facility to $500 million, to reflect the smaller size of our company after the HHI sale, and we extended the maturity to 2028,” Smeltser said.

Cash and cash equivalents were $753.9 million as of Sept. 30, 2023, compared to $243.7 million as of Sept. 30, 2022.

Long-term debt, net of current portion, was $1,546,900,000 as of Sept. 30, 2023, compared to $3,144,500,000 as of Sept. 30, 2022.

Current portion of long-term debt was $8.6 million as of Sept. 30, 2023, compared to $12.3 million as of Sept. 30, 2022.

Spectrum is a Middleton, Wis.-based consumer products company.

© 2015 Prospect News.
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