Thanks Alan.
start X, deal to auto details battery care financial the Moving the on acquisition. providing Slide by will in amended I
benefits meets the value a a to newly channel business operations strong both scaled model, a distribution, acquisition similar acquisitions acquisition financial announced and and enhanced long-term and ability auto drive stakeholders. The our synergies compelling discussed profile, defensible and As customer provide of market overlap. we through earlier, squarely Alan financial create for criteria degree Energizer’s believe including
to Turning XX. Slide
and billion business, deal $XXX fiscal year $XXX million reflected a Spectrum’s of Our had in price EBITDA for original of purchase which battery XXXX. of sales battery $X million, adjusted
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and America, Asia team will is provide opportunities leadership by in expanded America, excited Our Pacific. brands the VARTA and us Latin Rayovac North the
our to expected to range momentum paid be business $XX sales confident $XXX are business of the are lost synergies, in and since million benefit year XXXX. the very and retained taking and after to fiscal account $XX agreement, $XX $XXX tax to we run the a deal. attractive In We million, was on Spectrum’s net respectively. rate can the in $XX million adjusted agreement, recapture Synergies multiple battery million. has the in of million that range amended full the million believe Based into we EBITDA represented of original the now expected which be X.Xx, and been our are
in tax continue step-up years be $XXX purchase million. excess on of and the synergies three first U.S. on of all fully net realized expect expected acquired the value within present We ownership X.Xx. be account proceeds, into of to now $X.X Based deal assets price is original expect in our anticipated to net in the the range of synergies, this the amended to we be our expected to multiple the billion. tax Xx in of purchase to of our divestiture billion revised for Taking $X.X benefits is range and now to
continue We value represents create transaction this deal will believe Energizer a for for to long-term amended our and solid shareholders.
as received financing place transaction to During regulatory soon will and to as commission. deal fund the close the from be XXXX, fiscal fourth in this European we of position we we the necessary put a in quarter approval this
to we at transaction indicated, expect Alan As calendar year XXXX. close the beginning of this the
Turning XX. to Slide
comprised million is ended million Now, the The in EBITDA of care Spectrum business price million $XXX and net newly cash turning XXXX. $XXX the the auto months auto $XXX equity acquisition million of adjusted XX, XX sales brands. to had to care transaction, for and $XXX billion $X.XX of issued June of
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synergies. are excluding sales of targeted expected $XXX to we XX. following free of EBITDA accretive realization flow per immediately be expect of basis, adjusted approximately to million, and costs our On flow combined adjusted a Turning transactions, significantly and of share proforma acquisition adjusted to free $X.X about $XXX integration cash million. cash billion, nearly accretive to These adjusted Energizers and Slide earnings
synergies, a annual from We increase strategic down million $XXX we benefiting rate horizon. in adjusted EBITDA both run incremental flow plan adjusted of also initially, we expect year to contribute in transactions growth of as will excess Including per X% debt. three-year compound the to which over cash pay free anticipate excess
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included for the XXXX, on Now, discuss and fiscal the our I will which XX. for results Slide outlook fourth quarter are
Turning to Slide XX.
current net $X.XX up X.X% a earnings in $X.XX, currency adjusted or of year fourth quarter, lapping lower benefited the business. from million $XXX Nu X.X%, million, acquired was For per by in rate. quarter quarter share year $X The current million the hurricane fiscal volume fourth the versus million U.S. fourth of X%. of Distribution X.X%. net year-over-year gains net activity hurricane-related initiatives Absent volumes, sales and pricing decreased phasing in in markets $X sales and declined net offset U.S. by Organic highly the prior XX%, net increased for spending, grew retailers, compared A&P The decreased XXXX, which X.X%. the quarter. impacted organic holiday by prior the Total to SG&A the contributions and sales lower by X.X%; the newly and sales tax quarter year from the quarter Argentina’s to increased in of unfavorable operations, by at fourth Finish included the reflected inflationary sales across $XX sales which sales favorable quarter, in change certain several quarter. hurricane
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XX. to Moving Slide
of XXX I Before value which driven performance U.S. category global would was looking The of well basis XXXX. contributed improved ended into segments, trends battery the share to X.X%, the rest mix e-commerce, for the of several latest by was gains was statement, XX-weeks markets. up value the share for basis XXX In international points as and Energizers premium from shelf market global shelf as price including resulting specialty XX% the gains. by the Energizers income up changes was year, provide market August Value U.S., shift, in like space XX-weeks the category the up slightly increases. in led prior points, growth. up and versus share XX%, U.S. space
category X share same the slightly e-Commerce Energizer XX% on continues XX% over XX% channel, specifically up sales battery leader, in more latest be branded Focusing share. value to the U.S. period. share the the XX-weeks online Energizer the time over to with grew points growing
Turning XX. Slide to
we’ve on category As and battery follows. us over have us disruptive changes flat requiring in device device growth devices emerging earnings to years. expected assessing several the stabilized trends projected batteries. we combined impact noted positive. for trends overall a long-term stabilization device due and in Device to Specific things, demographic devices, with outlook trends trends increase the phones, the smaller been to calls, to make in these be Baseline are will smart last smart leading is devices the and Internet have volume led past the the as from believe slightly the volume of category of universe of
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factors trends, assessments outlook, we about change this the arise based for outlook on future that and made future have in While our the is this the believe impact could we’ve we information be that that today, warranted.
to Slide moving Now XX.
basis A&P down X%, sales XX.X% of movement a year, year was quarter. the in primarily the unfavorable percent net by foreign from margin income was points currencies. as the to prior XXX down gross fourth basis XX prior from the driven in fourth back the Turning points statement, quarter,
and Our A&P incur more to quarter. less during during the distributed fiscal therefore was we this A&P evenly the year, expected spending year fourth throughout year current
and will the recall, closing due and million, SG&A, was in cost, legal, acquisition which activities. we’ve a fourth and basis, increased the approval had sales in down the was expense, a year of acquisition with fourth primarily quarter fees $X XXX approximately million we for the consulting, income quarter. commitment cost. prior rate portfolio the introduction improvement SG&A our net escrowed you integration year expense attributable to an expense of the interest X%. $X XX.X% and sales includes up by foreign $XX.X quarter, $XX absolute revolver costs, $XX funds funds. year-to-date currency This and prior our lower quarter. million driven max optimization to the and and debt million. currently to currency obtaining of of is interest SG&A broker integration rates, $XX of On regulatory interest $XX cost integration our increased significantly interest escrowed the acquisition million million excluding incurred million or million, The incurred compared of the $XX compensation benefits On in to increased $X weighted million, integration borrowings overall spending current level continuous amount This of cost, of $XX the in $X.X As on of dollar made associated of million in excluding We of and income improved offering. connection year. and our to points, was lower on The from in planning in higher basis support by initiatives average basis, acquisition million interest of quarter prior fees current $XX.X compared quarter. decreased our current advisory included foreign commission million, quarter, Interest incurred benefited in million and incurred and of with the is expense benefit offset and net $XX $XX million
significant the ended on at funds with stood we billion balance on escrowed restricted included proceeds debt-to-EBITDA the The $X.X will from held multiple are proceeds had hand these also July. portion quarter represents with which the end quarter of acquisitions. with escrowed a until of $X.X battery balance closed billion Xx. funds the associated US. cash We sheet acquisition, $XXX we held our million close outside sheet. and at in We of cash, spectrum borrowings bond debt the roughly debt the our of – Excluding separately escrowed Debt with Spectrum offering associated be reflected our
was Our in XX.X%, ex-unusual effective XX.X% the compared prior tax rate for the year. quarter to fourth
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opportunistic We growth, continue business dividend will and to long-term approach to through right meaningful finally support to capital Energizer. allocation take to opportunities shareholders are and a M&A our in repurchases, investments our returning pursuing for the fit that through a share balanced capital
last we integrating discussed and in we will the As be quarter's on the closing acquisitions. focused near-term, Spectrum call, during
acquisitions. expect incurred We from free deleverage our these flow in cash conjunction the with use also debt to to
XX. Slide to Moving
fiscal I like for outlook to XXXX. Now, our to would year turn
As is share to outlook Alan $X.XX stated earnings on, per $X.XX. our adjusted
activity storm for existing not XXXX, discussed earlier. closed fiscal incremental consideration. we be acquisitions could I of synergy storm provide for include integration-related this to an acquisitions, activity we not our XXXX. benefits inclusive fiscal in to the few outlook we updated and and does outlook. This is the related Any spectrum wanted year does first include any spectrum anticipated will costs. your acquisitions to core the and This deal year highlight have outlook outlook provide any we business year outlook items our to impacts a As Once related
in million are particularly fiscal in foreign the quarter in in fiscal year One would that of we to note, to lapping XXXX net SG&A of of currency continue As a of headwinds also included EPS. in storm the the experienced I while sales XXXX material, are sales fourth year fiscal revenue was net $X.XX result, activity $X expected representing $X will note first year a year, significant the currently the upcoming in and in basis. prospective fiscal reporting not XXXX item of revenue million. a the beginning year. begin half The headwind, on XXXX, royalty to we part the royalty final fiscal housekeeping
For provide sales. XX-basis this point modelling will point a and as XX-basis net purposes, a sales in in SG&A increase comparable increase net a percentage of
on Now, $X of are revenue basis price Argentina, Net designated year, both including XX and is primarily certain from markets royalty Argentina looking be in unfavorable improvements. offset cost by foreign digits. are commodity increases margin at net on which points being XXXX excluding of the outlook movements are XX expected XX-basis are fiscal basis negative single be earlier. Gross basis impact million result the to the impact be digits, for fiscal rates and to points to mentioned modest currency the highly inflationary in rates. about reported sales more headwinds. by Argentina, be basis be approximately negatively in XXX to is million of based in to low sales to offset expected a Organic to points. $X current basis net Increases are is of a in XXX points basis expected Including current up range the detail. by XXX and expected XXX basis in sales expected lapping of hurricane currency, single points to the up sales the points productivity activity net expected XXXX, sales down benefit as tariffs impact net headwind on to point
the of XX be to X% sales. steel our and million. supplier In $X decline the a cans, as outlook end cost a a primary our spending in to to is expected occur long-term royalty and X% potential commodities basis point sales by headwind continue to decline are as one-year of we of continuous initiatives. by improvement point to the $XX revenue currencies basis requirements expected be to our roughly This movement rates. $XX This million of eliminating regards of the on the hedge, The to XXXX. percentage of first currency SG&A, waiver, associated expected realize of locked net to is approximately million acquisition majority year-over-year our is approximately for high in current this tariffs, be XX% reclassification low half is has headwind of in $XX Argentina. to expected the excluding on based the net foreign XX impact, unfavorably million net includes fiscal fiscal currently expect to received of is savings our at Pre-tax We despite basis. impact on integration of inflation occur we expected with XXXX. from endpoint A&P unfavorable income impacted
range to of earnings is the of law XX%, country on rate U.S. tax the income to expected continued favorable the impact the based and tax in XX% current be ex-unusual expected mix changes. Our of
to $XX expected be million be of expected Our million. $XXX to million full-year the in and million amortization Adjusted fiscal $XX to of to expectation for to is depreciation for continue flow we in cash range is spending capital $XX XXXX. the be the and to range near expect the $XX million free in
Our the over note impacts expected final sales the not to turning XXXX back fiscal call fiscal million unfavorable Dividends fiscal repeat. first I’d in make of activity beginning and like asset one X.X% XXXX, in Alan. to in XXXX. to before quarter outlook currency of lapping $X storm reflects increased
the combined to from quarter cause of our reflected the phasing of teens noted first adjusted first in for low currencies currency smallest currency fiscal impacts A&P difficult of second I EPS the is the an benefits the quarters. quarter perspective. current the the headwinds As comparisons half at XXXX our spend beginning, and range in The year. of create fiscal will year second EPS Note that in decline will to with
I Now, remarks. the over to Alan call for closing turn to back like would
