Spectrum Brands Holdings, Inc. (NYSE:SPB) Q3 2019 Earnings Conference Call - Final Transcript

Aug 07, 2019 • 10:00 am ET


Spectrum Brands Holdings, Inc. (NYSE:SPB) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Michelle, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Spectrum Brands Fiscal 2019 Third Quarter Earnings Conference Call.

[Operator Instructions]

I would now like to introduce Mr. David Prichard with Spectrum Brands. Mr. Prichard, you may begin your conference.

David A. Prichard

Thank you, operator, and welcome to Spectrum Brands Holdings Fiscal 2019 Third Quarter Earnings Conference Call and Webcast. I'm David Prichard, Vice President of Investor Relations for Spectrum Brands and your moderator for our call today. Now to help you follow our comments, we have placed a slide presentation on the event calendar page in the IR section of our website at spectrumbrands.com. This document will remain there following our call. So if we look at the presentation and we start with slide two, you'll see that the call will again be led by David Maura, our Chairman and Chief Executive Officer; and Doug Martin, our Chief Financial Officer.

David and Doug will deliver opening remarks, and then we will conduct the Q&A session. If we turn to slides three and four, you'll note that our comments today include forward-looking statements, including our outlook for fiscal 2019 and beyond. Now 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 August 7, 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 that 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.

So with that, I will now turn the call over to our Chairman and CEO, David Maura.

David M. Maura

Thank you, Dave, and just want to thank everyone for joining us this morning. As our fiscal 2019 draws to a close, I'm very proud of our associates here at Spectrum Brands as we are on pace to deliver the financial commitments we set about a year ago, and all of this despite headwind from tariffs, unfavorable weather in Home & Garden, distribution input cost increases across our business lines.

Spectrum employees have risen to the challenge, and they're delivering on our goal of a year of stabilizing our businesses, solidifying our platform and positioning our company to resume growth in 2020. We have also materially improved our capital structure from a peak leverage ratio of 5.8x in December of '18, to an estimated net leverage of 3.5x or better as we exit this year -- fiscal year. We expect to be in a very strong financial position with over $500 million of cash and full availability under our $800 million revolver. Additionally, during the fiscal year