Rayovac Announces Second Quarter Fiscal 2003 Results

April 27, 2003 by Jeff Shepard

Rayovac Corp. had fiscal 2003 second quarter sales of $202.3 million, compared to $121.2 million for the same period last year. The majority of the sales increase was attributable to the VARTA acquisition. Operating income was $8.8 million, compared to $12.9 million for the same period last year. Fiscal 2003 benefited from the VARTA acquisition offset by $5.2 million of restructuring charges.

"During this quarter, we undertook a number of key initiatives aimed at building our global business and positioning the Company for future growth," said Dave Jones, Rayovac chairman and CEO. "In North America, these initiatives included the unveiling of a comprehensive new alkaline battery pricing strategy which has received positive retailer reaction, and the near completion of our state-of-the-art $20 million leased packaging and distribution center in Dixon, Illinois. Additionally, integration activities related to the VARTA acquisition continue to progress on schedule," Jones added.

Sales for the six months ended March 30, 2003 were $462.5 million, compared to $283.0 million for the prior year. Operating income was $19.3 million, an improvement of $2.9 million over last year. Fiscal 2003 year-to- date results include $20.5 million in special charges. In Fiscal 2002, operating income included a $16.1 million bad debt provision related to the Kmart bankruptcy.

Diluted earnings per share for the six-month period were a loss of one cent compared to 18 cents last year. Pro forma diluted earnings per share for the Fiscal 2003 six months were 47 cents compared to pro forma diluted earnings per share of 49 cents for the same period last year. See attached Table 3, Reconciliation of GAAP to Pro Forma Financial Data, for a reconciliation of operating income and net income, on a GAAP basis, to pro forma operating income and net income for the six-month period and the comparable period last year.