HRG GROUP, INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND ORGANIC NET SALES RECONCILIATIONS
(In millions)
Adjusted EBITDA — Consumer Products
The table below shows the adjustments made to the reported net income of the Consumer Products segment to calculate its Adjusted EBITDA (unaudited):
|
| | | | | | | | | | | | | | | | |
| | Fiscal Quarter | | Fiscal Nine Months |
Reconciliation to reported net income: | | 2016 | | 2015 | | 2016 | | 2015 |
Reported net income - Consumer Products segment | | $ | 102.2 |
| | $ | 44.9 |
| | $ | 268.6 |
| | $ | 122.8 |
|
Add back: | | | | | | | | |
Interest expense | | 59.9 |
| | 112.9 |
| | 175.8 |
| | 206.5 |
|
Income tax expense (benefit) | | 42.5 |
| | (23.8 | ) | | 46.9 |
| | 4.8 |
|
Depreciation of properties | | 21.8 |
| | 21.6 |
| | 66.2 |
| | 58.7 |
|
Amortization of intangibles | | 23.5 |
| | 22.3 |
| | 70.5 |
| | 64.0 |
|
EBITDA - Consumer Products segment | | 249.9 |
| | 177.9 |
| | 628.0 |
| | 456.8 |
|
Stock-based compensation | | 15.8 |
| | 16.9 |
| | 47.4 |
| | 36.3 |
|
Restructuring and related charges | | 5.4 |
| | 10.5 |
| | 8.2 |
| | 22.3 |
|
Acquisition and integration related charges | | 8.0 |
| | 24.2 |
| | 31.2 |
| | 44.2 |
|
Purchase accounting inventory adjustment | | — |
| | 4.7 |
| | — |
| | 7.7 |
|
Other | | 0.1 |
| | 2.1 |
| | 1.1 |
| | 3.9 |
|
Adjusted EBITDA - Consumer Products segment | | $ | 279.2 |
| | $ | 236.3 |
| | $ | 715.9 |
| | $ | 571.2 |
|
Organic Net Sales — Consumer Products
The tables below represent a reconciliation of reported net sales to organic net sales, by product line for the Fiscal 2016 Quarter and compared to net sales for the Fiscal 2015 Quarter, respectively (unaudited):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended June 30, 2016 | | Net Sales | | Effect of changes in Currency | | Net Sales Excluding Effect of Changes in Currency | | Effect of Acquisitions | | Organic Net Sales | | Net Sales June 30, 2015 | | $ Variance | | % Variance |
Hardware and home improvement products | | $ | 328.6 |
| | $ | 3.3 |
| | $ | 331.9 |
| | $ | — |
| | $ | 331.9 |
| | $ | 313.5 |
| | $ | 18.4 |
| | 5.9 | % |
Home and garden control products | | 212.0 |
| | — |
| | 212.0 |
| | — |
| | 212.0 |
| | 202.3 |
| | 9.7 |
| | 4.8 | % |
Global pet supplies | | 207.1 |
| | (0.7 | ) | | 206.4 |
| | — |
| | 206.4 |
| | 208.4 |
| | (2.0 | ) | | (1.0 | )% |
Consumer batteries | | 187.2 |
| | 3.9 |
| | 191.1 |
| | — |
| | 191.1 |
| | 178.3 |
| | 12.8 |
| | 7.2 | % |
Global auto care | | 159.8 |
| | 0.4 |
| | 160.2 |
| | (84.1 | ) | | 76.1 |
| | 64.4 |
| | 11.7 |
| | 18.2 | % |
Small appliances | | 151.1 |
| | 5.8 |
| | 156.9 |
| | — |
| | 156.9 |
| | 161.3 |
| | (4.4 | ) | | (2.7 | )% |
Personal care products | | 115.8 |
| | 3.1 |
| | 118.9 |
| | — |
| | 118.9 |
| | 119.3 |
| | (0.4 | ) | | (0.3 | )% |
Total | | $ | 1,361.6 |
| | $ | 15.8 |
| | $ | 1,377.4 |
| | $ | (84.1 | ) | | $ | 1,293.3 |
| | $ | 1,247.5 |
| | $ | 45.8 |
| | 3.7 | % |
