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 |
Reconciliation to reported net income: | | 2016 | | 2015 | | 2016 | | 2015 |
Reported net income - Consumer Products segment | | $ | 89.1 |
| | $ | 26.6 |
| | $ | 357.7 |
| | $ | 149.4 |
|
Interest expense | | 74.2 |
| | 65.4 |
| | 250.0 |
| | 271.9 |
|
Income tax expense (benefit) | | (6.9 | ) | | 39.1 |
| | 40.0 |
| | 43.9 |
|
Depreciation of properties | | 22.9 |
| | 23.5 |
| | 89.1 |
| | 82.2 |
|
Amortization of intangibles | | 23.4 |
| | 23.8 |
| | 93.9 |
| | 87.8 |
|
EBITDA - Consumer Products segment | | 202.7 |
| | 178.4 |
| | 830.7 |
| | 635.2 |
|
Stock-based compensation | | 17.0 |
| | 11.3 |
| | 64.4 |
| | 47.6 |
|
Acquisition and integration related charges | | 5.5 |
| | 14.6 |
| | 36.7 |
| | 58.8 |
|
Restructuring and related charges | | 7.0 |
| | 6.4 |
| | 15.2 |
| | 28.7 |
|
Write-Off from impairment of intangible assets | | 4.7 |
| | — |
| | 4.7 |
| | — |
|
Purchase accounting inventory adjustment | | — |
| | 14.0 |
| | — |
| | 21.7 |
|
Venezuela devaluation | | — |
| | 2.5 |
| | — |
| | 2.5 |
|
Other | | — |
| | 2.2 |
| | 1.1 |
| | 6.1 |
|
Adjusted EBITDA - Consumer Products segment | | $ | 236.9 |
| | $ | 229.4 |
| | $ | 952.8 |
| | $ | 800.6 |
|
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 Fiscal 2016, compared to net sales for the Fiscal 2015 Quarter and Fiscal 2015, respectively (unaudited):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three month ended September 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 September 30, 2015 | | $ Variance | | % Variance |
Hardware and home improvement products | | $ | 328.1 |
| | $ | 1.3 |
| | $ | 329.4 |
| | $ | — |
| | $ | 329.4 |
| | $ | 331.4 |
| | $ | (2.0 | ) | | (0.6 | )% |
Home and garden control products | | 94.3 |
| | 0.1 |
| | 94.4 |
| | — |
| | 94.4 |
| | 108.3 |
| | (13.9 | ) | | (12.8 | )% |
Global pet supplies | | 206.7 |
| | 2.5 |
| | 209.2 |
| | — |
| | 209.2 |
| | 219.4 |
| | (10.2 | ) | | (4.6 | )% |
Consumer batteries | | 222.7 |
| | 1.8 |
| | 224.5 |
| | — |
| | 224.5 |
| | 229.2 |
| | (4.7 | ) | | (2.1 | )% |
Global auto care | | 100.6 |
| | 0.4 |
| | 101.0 |
| | — |
| | 101.0 |
| | 96.1 |
| | 4.9 |
| | 5.1 | % |
Small appliances | | 176.7 |
| | 7.9 |
| | 184.6 |
| | — |
| | 184.6 |
| | 197.9 |
| | (13.3 | ) | | (6.7 | )% |
Personal care products | | 120.6 |
| | 3.0 |
| | 123.6 |
| | — |
| | 123.6 |
| | 125.8 |
| | (2.2 | ) | | (1.7 | )% |
Total | | $ | 1,249.7 |
| | $ | 17.0 |
| | $ | 1,266.7 |
| | $ | — |
| | $ | 1,266.7 |
| | $ | 1,308.1 |
| | $ | (41.4 | ) | | (3.2 | )% |
