Spectrum Brands Holdings, Inc. (NYSE:SPB) Q2 2019 Earnings Conference Call - Final Transcript
May 08, 2019 • 09:00 am ET
Good morning, my name is Zatania and I will be your conference operator today. At this time, I would like to welcome everyone to the Spectrum Brands Fiscal 2019 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' prepared remarks, there will be a question-and-answer period.
(Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, Wednesday, May 8.
Thank you. I would now like to introduce Mr. David Prichard with Spectrum Brands. Mr. Pritchard, you may begin your conference.
Thank you, operator and welcome to Spectrum Brands Holdings fiscal 2019 second quarter earnings conference call and webcast. I'm David Prichard, Vice President of Investor Relations for Spectrum Brands and your moderator for today's call.
Now to help you follow along with our comments, we have placed a slide presentation on the event calendar and presentations pages, in the Investor Relations section of our website at spectrumbrands.com. This document will remain there following our call. So if we go to the presentation and we start with Slide 2, you'll see that our call will be led by David Maura, our Chairman and Chief Executive Officer; and Doug Martin, Chief Financial Officer. David and Doug will deliver opening remarks and then conduct the Q&A session.
If we turn to Slides 3 and 4, we will note that our comments today include forward-looking statements, including our outlook for fiscal 2019 and beyond. These statements are based upon management's current expectations, projections and assumptions and are by nature uncertain. Actual results may differ materially. Due to that risk, Spectrum Brands encourages you to review the risk factors and cautionary statements outlined in our press release dated May 8, 2019 and our most recent SEC filings and Spectrum Brands Holdings' most recent 10-Qs and 10-K. We assume no obligation to update any forward-looking statement.
Also please note we will discuss certain non-GAAP financial measures in this call. Reconciliations on a GAAP basis for these measures are included in today's press release and 8-K filing, which are both available on our website in the Investor Relations section.
I will now turn the call over to our Chairman and CEO, David Maura.
David M. Maura
Thank you Dave, and thanks everybody for joining us on the call today. In many ways, this was a very good quarter for our company. In January, we generated just under $3 billion of cash proceeds from the sale of assets. We rapidly allocated a portion of these proceeds and paid down $2.4 billion of debt, while returning $250 million to our shareholders through share repurchases. And we will distribute approximately $86 million this year to shareholders in the form of dividends.
As a result of these actions, our gross leverage, which peaked at nearly 6 times in December of 2018, just a short while ago, has been reduced at the end of the second quarter to a net leverage of approximately 3.9 times. We expect to finish the current