My Private Student Loans Are Creating Tension With Cosigner

Huffington Post Reader Question

Dear Steve,

I have a ton of student loan debt. I have around $70,000 in federal which is a ton, but manageable since I am on the income based payments and they have been great to work with. I have around $50,000 in private student loan debt that I cant afford.

My mom is a cosigner on them and it is causing a ton of tension between us. I graduated 3 years ago and have been unable to find work in my field, and have just had a couple of temp jobs since graduation. We have 3 kids and just cant keep up with what we are doing.

Is there any way to get the loans out of my mothers name or on an income based repayment schedule like the federal ones? I have asked the company (AES) but they have been awful to work with. Please help!! I just consolidated my federal loans with Sallie Mae, is there any way I can add my private loans in with the federal? I really need to know my options.

Heather

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Dear Heather,

Private student loans and federal student loans are as different as apples and lemons. While both are student loans they operate under entirely different options when it comes to dealing with not being able to afford the payments.

As of right now the general rule of private student loans is the lender does not have to offer any help or allowances at all. Unlike federal student loans, private lenders dont do a whole lot to help people in trouble.

While they might have some temporary programs to reduce or forgo the monthly payments these programs typically just increase the balances owed on the loans and make them that much more unaffordable in the long run.

Since these loans are with Sallie Mae it does not mean there is not some potential federal component that might get you into one of the true federal student loan forgiveness programs, as you are already aware of. I would suggest you click here for more info on how to identify if your loans might be eligible.

To get rid of the cosigner youd either need the current loan holders permission or refinance the loans. There is a consortium of credit unions out there that will refinance some loans but only for people who completed their degrees and only at some schools. The bigger issue here is youve already demonstrated you cant make the payments so realistically it would be unlikely youd qualify for a replacement loan.

Beware, there are many new student loan assistance scams springing up claiming they can magically make your loans vanish. Before you leap for such a sales pitch make sure you absolutely read this.

Steve

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Detroit files plan to restructure debt, leave bankruptcy

Detroits emergency manager filed a plan Friday to restructure the citys $18 billion debt by making cuts to pensions and creditors while offering a blueprint for emerging from the largest municipal bankruptcy in US history.

An early draft of state-appointed Emergency Manager Kevyn Orrs plan called for city pensioners to receive $4.3 billion in payments and bondholders about $1.1 billion during the next 40 years. That draft also detailed plans to help pensioners keep more of what they are owed by using state and private funds to protect against the sale of city-owned art at the Detroit Institute of Arts.

Training for the Credit Repair Professional As They Seek to Grow Their …

Training for the Credit Repair Professional As They Seek to Grow Their Knowledge of the Dispute Process and Other Important Issues Facing Their Growing Business
Scoreinc.coms webinar on Thursday, January 30th, 2014 held at 3 PM CST, is a one of a kind question and answer training for the credit repair professional as they seek to grow their knowledge of the dispute process and other important issues facing their growing business. The training is free.

Reasons Why There Is No Financial Improvement, As Explained By National …

Miami, FL (PRWEB) January 24, 2014

National Debt Relief, one of the leading debt settlement companies in the country, tries to help consumers understand why they are not feeling any financial improvement. In an article published on January 22, 2014, the company points out specific areas in their personal finances that may be costing them their financial breakthrough.

The article titled “Reasons Why You Do Not Feel Any Financial Improvement” discusses how the economy performed in 2013. With an unemployment rate of 7.3% (improvement from 8% in 2012) and the average hourly rate of $23.9 (increase from $23.5 in 2012), the overall assessment is great. This means more people have jobs and they are earning more compared to the previous years. But despite this, the article mentions that some consumers are not feeling this improvement in their own household finances.

To help identify the problem, National Debt Relief listed down the following areas that consumers should look into.

1. Budget plan. The article explains that no budget plan is a possible reason why the consumer is not feeling any improvement in their finances. Either that or they need to make changes in the budget.

2. Credit balance. Another reason that the article points out is an increasing debt amount. If the consumer continues to take in debt, this will keep their financial situation from making any significant progress. Any changes will even be for the worse.

3. Spending habits. If the consumer did not improve their habits, that is also a valid reason why they are not experiencing any improvement in their finances. The article advises consumers to start living below their means.

4. Savings account. Financial security is a good sign of financial improvement. If this is an area that the consumer has yet to take care of, the article implies that this may be stopping them from gaining progress in their financial status.

5. Investments. Lastly, the article explains that lack of investment will keep the progress of the financial improvement (if any) slow. The article encourages consumer to be proactive by investing their money.

The article advises consumers to stop making excuses. They should look into each of the area listed and see how it is hindering them from gaining some financial improvement. To read the whole article, click on this link: http://www.nationaldebtrelief.com/reasons-feel-financial-improvement/.

National Debt Relief have worked with thousands of consumers to help them get out of debt through debt settlement. Although this is their primary debt solution, their IAPDA certified debt experts can provide advice on all types of debt. Visit their website to browse through hundreds of articles about debt, debt relief and personal finance.

Saudi Arabia’s leader in Auto Finance adopts InfrasoftTech’s Lending Platform

Mumbai amp; Riyadh (PRWEB UK) 16 January 2014

InfrasoftTech, a specialist software products amp; services provider for global financial enterprises, today announced the successful go-live of their OMNIEnterpriseTM Lending Solution at Al Yusr Installment Company. Al Yusr is the leader and one of the fastest growing companies in Saudi Arabia in the space of auto finance, with a current portfolio size of more than SAR 4 billion with operations spread over the entire country.

“This was truly an exciting amp; challenging engagement and we look forward to extending amp; strengthening our IT partnership with Al Yusr group. They are a large and extremely reputed player in Saudi Arabia in auto finance. It is our privilege to help expand their business with OMNIEnterpriseTM Lending Solution. We are confident our solution would help Al Yusr to automate most business processes which will assist them to grow multi-fold, reduce the time from application till delivery and provide quick customer services. This would further strengthen competitive positioning of Al Yusr in their retail amp; corporate business and will also help to achieve other internal barometers of performance for Al Yusr”, said Hanuman Tripathi, Founder amp; Group Managing Director, InfrasoftTech.

OMNIEnterpriseTM Lending Solution is a complete enterprise wide solution catering to loan origination, management, collections, Insurance and CRM. The solution supports lease and instalment based asset financing for Retail and Corporate business, supports risk based pricing, dynamic workflows to support product wise business requirements and supports the best of champion and challenger strategies for collection. Additionally, the solution supports dual language ie English and Arabic, adheres to Saudi Arabian Monetary Agency rules and policies, provides online enquiry to SIMAH (Saudi Credit Bureau) fetching the complete bureau report along with the score. Importantly, the solution is customised to meet specific needs of Islamic Finance principles of Ijarah thumma al bai and Ijarah-wal-iqtina.

About Infrasoft Technologies Limited: http://www.infrasofttech.com

InfrasoftTech is a specialist software products, solutions and services provider with a focus on global banking and financial services industry. For over 18 years, InfrasoftTech has been bringing about transformational change in the business models and growth of the enterprises it serves. InfrasoftTech has broad market coverage in India, UK, Middle East, South East Asia, Africa and Canada

Did You Know: Kailash Auto Fin m-cap is greater than L&T Fin, City Union

Did You Know: Kailash Auto Fin m-cap is greater than LT Fin, City Union

Kailash Auto Finance has market cap greater than LT Fin, City Union, Bank of Maharashtra, Vijaya Bank, Kotak Bank and Dena Bank. This is the company with 0.1% promoter holding. It reported FY13 PAT at Rs 1.1 lakh only. Nearly 7500 shareholders own entire equity. MSCI has included Kailash Auto Finance in small cap focus list.

Bankruptcy court judge approves payments to Direct Air passengers

A bankruptcy court judge on Thursday approved payments totaling $250,000 to about 1,900 Direct Air customers who bought tickets for flights on the former Myrtle Beach-based air carrier before it was abruptly grounded in March 2012.

The payments amount to 26.5 percent of the money each customer claimed they were owed for the unused tickets. The payments will range from a low of $2.65 for one individual to a high of $2,297.64 for a high school group#x92;s canceled trip. Payments should be mailed to customers in the coming days.

#x93;Checks will be going out over the next week or so, certainly before the end of January,#x94; Joseph Baldiga, the trustee overseeing Direct Air#x92;s bankruptcy, told The Sun News.

Judge Melvin Hoffman approved the payments following a hearing Thursday afternoon in federal bankruptcy court in Worcester, Mass.

The money to make the payments will come from a Direct Air surety bond and another account the failed charter service had, Baldiga has said.

The payments will go to customers who bought tickets with cash or other means besides a credit card. Most of the people who bought Direct Air tickets have already received refunds through credit card chargebacks.

There were about 93,000 people who bought tickets for Direct Air flights that did not occur after the charter service was grounded and filed for Chapter 11 bankruptcy reorganization.

The case was quickly converted to a Chapter 7 liquidation, and officials determined that between $25 million and $30 million was missing from an escrow account Direct Air was required to keep to protect passenger payments in case a refund is needed. An investigation into what happened to that money is wrapping up, according to Baldiga.

#x93;I suspect that we will conclude the investigation within next 30 or so days and then determine the next course of action,#x94; he said. #x93;It is premature to project whether and to what extent there will be any subsequent distributions [to creditors].#x94;

Merrick Bank #x96; which processed $25 million worth of credit card chargebacks #x96; is suing Direct Air#x92;s founders, claiming they signed documents assuming personal liability for the charges. That lawsuit is pending.

Merrick Bank also is trying to collect the money Direct Air owes from a chargeback insurance policy it had through Chartis Specialty Insurance Co., an affiliate of insurance giant American International Group. Chartis is fighting Merrick#x92;s attempts in federal court in New York, saying its insurance policy only covers chargeback amounts that exceed the $29.5 million that should have been left in Direct Air#x92;s escrow accounts. That case is in mediation and a settlement conference is scheduled for later this month.

Direct Air, which was formed to help bring tourists to the Myrtle Beach area, announced in 2006 that it would start offering air charter services with its first flight on March 7, 2007. The charter service stopped flying five years later after running up $80 million in unpaid bills, according to bankruptcy documents.

Direct Air#x92;s failure prompted the US Department of Transportation, which oversees such carriers, to tweak its rules for charter operators, including not allowing the sale of vouchers for future travel not tied to specific flights because they are not protected under charter escrow requirements. Direct Air regularly sold vouchers through its #x93;Friends and Family#x94; promotion.

DOT also fined several of the carriers for Direct Air flights for their roles in the abrupt shutdown of flights that left thousands of travelers stranded or scrambling to line up alternate means of travel.

Equifax Reports Strongest Auto Origination Volume in Eight Years

ATLANTA, Jan. 22, 2014 (GLOBE NEWSWIRE) — The latest Equifax (NYSE:EFX) National Consumer Credit Trends Report indicates that the automobile lending sector continues to thrive. From January-October 2013, the total number of new auto loans originated was 20.2 million, totaling $405.2 billion and representing the highest origination total for that time in eight years.

Auto delinquencies have declined to levels last seen in mid-2006, and the strength in the performance of loans booked in the last few years is helping to make credit more widely available to those with higher-risk credit profiles, namely subprime borrowers, said Equifax Chief Economist Amy Crews Cutts. The choices consumers are making with the types of cars they are buying have changed in the aftermath of the Great Recession, with a heavy emphasis on value for the dollar. Demand for new cars is rising, but the mix is now shifted towards economically and environmentally friendly features.

Additional metrics for new credit include:

  • Year-over-year, the total balance of new loans January-October 2013 increased 14.7%, while the total number of new loans increased 11.6%;
  • Subprime auto lending now accounts for 31 percent of all auto loans originated today;
  • October 2013 auto loan amount totals also hit an eight year high for the month at $39 billion; and
  • The total balance of new credit for auto loans January-October 2013 represents 49% of all new non-mortgage consumer credit.

Its clear as we analyze the auto finance segment that auto lenders are doing a great job in accessing risk, managing their portfolios, and making credit available to customers who need transportation to get to work or simply want to enjoy some of the great new models that manufacturers are producing, said Lou Loquasto, Equifax Auto Finance Vertical Leader. The industrys ever-growing sophistication in using credit and non-credit data to aid decision-making is one of the key reasons for the health of this segment. The biggest challenge that Equifax is hearing in the market today is shrinking yields, as more lenders look to auto finance as a source of quality receivables.

Other highlights from the most recent Equifax data include:

  • Balances on outstanding auto loans ($859.6 billion) and the total number of existing loans (62.3 million) in December 2013 are the highest in more than five years;
  • By source, loans funded by banks, savings and loans and credit unions are at $417.2 billion, while the total number of loans is 30.9 million a five year high for both;
  • Similarly, the total outstanding balance for loans funded by auto finance companies is $442.5 billion, a five-year high, while the total number of existing loans is more than 32 million, a 59-month high;
  • Serious delinquencies on auto loans funded by finance companies in December 2013 represent 1.88% of outstanding balances, a year-over-year decrease of 13.5%;
  • In that same time, serious delinquencies on auto loans funded by banks or other depositories are 0.41% of outstanding balances, identical to December 2012.

About Equifax Inc.

Equifax (NYSE:EFX) is a global leader in consumer, commercial and workforce information solutions that provide businesses of all sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 600 million consumers and 81 million businesses worldwide. The companys significant investments in differentiated data, its expertise in advanced analytics to explore and develop new multi-source data solutions, and its leading-edge proprietary technology enable it to create and deliver unparalleled customized insights that enrich both the performance of businesses and the lives of consumers.

Headquartered in Atlanta, Equifax operates or has investments in 18 countries and is a member of Standard Poors (SP) 500 Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. In 2013, Equifax was named a Bloomberg BusinessWeek Top 50 company, was #3 in Fortunes Most Admired list in its category, and was named to InfoWeek 500 as well as the FinTech 100. For more information, please visit www.equifax.com.

For More Information:
Meredith Griffanti
(404) 885-8907

Credit Acceptance Corp.: A Low Risk Sub-Prime Auto Financing Company With …

Credit Acceptance Corporation (CACC) is an indirect auto finance company, which provides credit services and related products and services to consumers through car dealers. The company provides two dealers financing programs including the portfolio program and the purchase program. Under the Portfolio Program, it advances money to Dealer-Partners (referred to as a Dealer Loan) in exchange for the right to service the underlying Consumer Loans. Under the Purchase Program, Credit Acceptance buys the Consumer Loans from the Dealer-Partners (referred to as a Purchased Loan) and keeps all amounts collected from the consumer.

Summary

Spectrum Brands Holdings Reports Record Fiscal 2014 First Quarter Results

MIDDLETON, Wis.–(BUSINESS WIRE)–Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified
consumer products company with market-leading brands, today reported
record fiscal 2014 first quarter results for the period ended December
29, 2013, and reconfirmed its outlook for a fifth consecutive year of
record performance from the legacy business, coupled with continuing
growth from its Hardware and Home Improvement (HHI) business.

The Company’s record first quarter was highlighted by solid results from
its HHI and Home and Garden divisions; strong European results; margin
improvements; net income, GAAP earnings per share, adjusted diluted
earnings per share and adjusted EBITDA growth; and a record fiscal first
quarter level of savings from continuous improvement programs across all
divisions.

Spectrum Brands reiterated plans to reduce term debt by approximately
$250 million in fiscal 2014 and expectations for free cash flow to
increase to at least $350 million, a significant improvement from a
record $254 million in fiscal 2013 and $208 million in fiscal 2012.

Separately today, Spectrum Brands said its Board of Directors approved a
20 percent increase in the quarterly common stock dividend to $0.30 per
share from $0.25, reaffirming the Company’s consistent and ongoing
ability to generate strong free cash flow and its commitment to deliver
attractive returns to its shareholders.

Fiscal 2014 First Quarter Results Highlights:

  • Net sales of $1.10 billion in the first quarter of fiscal 2014,
    including the acquired HHI business, increased 26.5 percent versus
    $870.3 million a year ago; including HHI in the full prior year period
    on a pro forma basis, net sales increased 3.6 percent and 3.8 percent
    excluding the negative impact of foreign exchange.
  • Net income of $54.3 million and diluted income per share of $1.03
    in first quarter of fiscal 2014 improved from a net loss of $13.4
    million and diluted loss per share of $0.26 in the prior year quarter.
  • Adjusted diluted earnings per share, a non-GAAP measure, of $1.09
    in the first quarter of fiscal 2014 increased 39.7 percent compared to
    $0.78 last year, including HHI in the full prior year period on a pro
    forma basis.
  • Adjusted EBITDA, a non-GAAP measure, of $178.8 million in the first
    quarter of fiscal 2014 grew 36.8 percent versus $130.7 million in
    fiscal 2013; including HHI as if acquired at the beginning of fiscal
    2013, adjusted EBITDA increased 11.4 percent.
  • Adjusted EBITDA margin in the first quarter of fiscal 2014
    increased to 16.2 percent compared to 15.1 percent in the year-ago
    quarter, including HHI in the full prior year period on a pro forma
    basis.
  • Legacy Spectrum Brands adjusted EBITDA of $129.2 million in the
    first quarter of fiscal 2014 increased 1.7 percent versus the prior
    year, representing the 13th consecutive
    quarter of year-over-year adjusted EBITDA growth; legacy business
    fiscal 2014 first quarter adjusted EBITDA margin grew to 15.7 percent
    compared to 15.2 percent last year.
  • Fiscal 2014 net cash provided from operating activities after
    purchases of property, plant and equipment (free cash flow, a non-GAAP
    measure) expected to be at least $350 million compared to $254 million
    in fiscal 2013 and $208 million in fiscal 2012.
  • Company expects to use its strong free cash flow to reduce term
    debt by approximately $250 million and lower its balance sheet
    leverage in the second half of fiscal 2014, consistent with the
    seasonality of its cash flows.
  • Spectrum Brands issued $215 million and EUR225 million of term debt
    in the first quarter of fiscal 2014 to replace and reprice $513
    million of existing term debt, which will reduce cash interest costs
    and, through the Euro portion placed in Germany, better align cash
    inflows with cash outflows related to principal, interest and taxes.
  • In early January 2014 the Company’s Home and Garden division
    acquired The Liquid Fence Company, the US leader in the consumer
    animal repellents market in an immediately accretive transaction that
    provides a new and complementary position in a rapidly expanding
    segment of the $1.5 billion US retail lawn and garden controls
    market.

“Our record first quarter results give us a strong start on delivering a
fifth consecutive year of record financial performance from our legacy
business along with strong growth from our HHI division,” said Dave
Lumley, Chief Executive Officer of Spectrum Brands Holdings. “We
reported net income of $54 million and delivered adjusted EPS and
adjusted EBITDA growth in the quarter with excellent margin
improvements. Our HHI and Home and Garden divisions had especially solid
results and, geographically, Europe once again was a bright performer.

“We also achieved a record level of continuous improvement savings for a
fiscal first quarter,” Mr. Lumley said. “This reinforces our ongoing
focus to reduce our cost structure, more than offset higher product
costs and continue to invest in many new products, some of which are
launching now with more to follow in the months ahead.

“With our largely non-discretionary, non premium-priced replacement
products,” he said, “we will continue to pursue volume growth, new
retailers, retail distribution gains, new products, cross-selling
opportunities, geographic expansion, and select pricing actions while
maintaining strict spending controls and achieving investment paybacks
from our expanding global cost improvement initiatives.

“Given consumers’ growing preference for on-line shopping, we also are
increasing our investment and resources to partner with our retail
customers’ e-commerce platforms to help them increase their overall
sales,” he added.

“We believe value is winning in the marketplace with consumers worldwide
and that our Spectrum Value Model of ‘same or better performance/less
price’ is the optimum go-to-market strategy for our retail customers,”
Mr. Lumley said. “We are executing on our growth plans and are focused
on delivering another year of steady, measured financial improvement,
including a strong increase in free cash flow, in fiscal 2014. Our
commitment remains to create greater shareholder value, with a focus on
growing our adjusted EBITDA, reducing debt and deleveraging, and
maximizing sustainable free cash flow.”

Fiscal 2014 First Quarter Consolidated Financial Results

Spectrum Brands Holdings reported consolidated record net sales of $1.10
billion in the first quarter of fiscal 2014, an increase of 26.5 percent
compared to $870.3 million a year earlier. The improvement was the
result of the HHI acquisition completed on December 17, 2012. Including
HHI in the full prior year period on a pro forma basis, net sales of
$1.10 billion in the first quarter of fiscal 2014 increased 3.6 percent
compared to $1.06 billion last year, and 3.8 percent excluding the
negative impact of foreign exchange.

Excluding HHI, net sales for legacy Spectrum Brands of $822.2 million in
the first quarter of fiscal 2014 decreased 1.7 percent versus $836.3
million in fiscal 2013, or 1.5 percent excluding the negative impact of
foreign currency. The sales decline was primarily attributable to lower
revenues in the Global Pet Supplies division due primarily to timing and
retailer inventory reductions, as well as the one-time, incremental
sales impact, primarily flashlights, of approximately $10 million in the
prior year from Hurricane Sandy.

Gross profit and gross profit margin in the first quarter of fiscal 2014
of $381.2 million and 34.6 percent, respectively, compared to $288.2
million and 33.1 percent last year. Including HHI in the full prior year
period on a pro forma basis, gross profit margin of 34.6 percent in this
year’s first quarter increased from 34.2 percent a year ago. The gross
profit margin for legacy Spectrum Brands of 34.2 percent in the first
quarter of fiscal 2014 compared to 34.1 percent in fiscal 2013.

Spectrum Brands reported net income of $54.3 million, or $1.03 diluted
income per share, in the first quarter of fiscal 2014 on average shares
and common stock equivalents outstanding of 52.7 million. In fiscal
2013, the Company reported a net loss of $13.4 million, or $0.26 diluted
loss per share, on average shares and common stock equivalents
outstanding of 51.8 million. Adjusted for certain items in both fiscal
years, which are presented in Table 3 of this press release and which
management believes are not indicative of the Company’s ongoing
normalized operations, the Company generated adjusted diluted earnings
per share, a non-GAAP measure, of $1.09 in the first quarter of fiscal
2014, a 39.7 percent increase compared to $0.78 in the prior year,
including HHI in the full prior year period on a pro forma basis.

Adjusted EBITDA, a non-GAAP measure, of $178.8 million in the first
quarter of fiscal 2014 increased 11.4 percent compared to adjusted
EBITDA of $160.5 million in fiscal 2013, including HHI in the full prior
year period on a pro forma basis. Adjusted EBITDA margin as a percentage
of net sales increased to 16.2 percent compared to 15.1 percent in the
year-ago quarter. Legacy Spectrum Brands adjusted EBITDA of $129.2
million in the first quarter of fiscal 2014 increased 1.7 percent versus
the prior year, representing the 13th consecutive quarter of
year-over-year adjusted EBITDA growth, with the adjusted EBITDA margin
improving to 15.7 percent compared to 15.2 percent last year. Adjusted
EBITDA is a non-GAAP measurement of profitability which the Company
believes is a useful indicator of the operating health of the business
and its trends.

Fiscal 2014 First Quarter Segment Level Data

Global Batteries amp; Appliances

The Global Batteries amp; Appliances segment reported fiscal 2014 first
quarter net sales of $659.3 million versus $666.0 million in the
year-ago quarter. Higher personal care net sales were more than offset
by lower battery and small appliances net sales.

Global battery sales in the first quarter of fiscal 2014 were $264.5
million compared to $271.0 million in the first quarter of fiscal 2013.
The decline was due primarily to the one-time, incremental sales impact
of approximately $10 million in predominantly flashlight sales in the
North American business in last year’s first quarter from Hurricane
Sandy. The North American battery business did, however, report higher
overall alkaline battery revenues in the first quarter of fiscal 2014.
In Europe, VARTA® battery growth was driven by a combination of
new customer listings, distribution gains at certain existing customers,
and promotions. Latin American battery revenues were essentially
unchanged on a foreign currency neutral basis.

Net sales for the global personal care product category of $178.1
million in the first quarter of fiscal 2014 increased 1.8 percent versus
$175.0 million last year. Strong revenue growth in Europe and Latin
America across all categories more than offset lower net sales in North
America, which resulted primarily from category softness in men’s
shaving and grooming.

The small appliances product category reported net sales in the first
quarter of fiscal 2014 of $216.8 million versus $220.1 million in the
year-ago quarter. A strong increase in European net sales was more than
offset by a decline in North American net sales as a result of
competitor discounting at a major retailer and, to a lesser degree, the
timing of some holiday shipments between the fiscal fourth and fiscal
first quarters this year versus last year. Excluding a negative foreign
exchange impact of $2.2 million, net sales for the small appliances
product category declined 0.5 percent in the first quarter of fiscal
2014.

With segment net income, as adjusted, of $93.1 million, the Global
Batteries amp; Appliances segment reported adjusted EBITDA of $114.2
million in the first quarter of fiscal 2014, an increase of 3.1 percent
compared to adjusted EBITDA of $110.7 million in the year-earlier
quarter, when segment net income was $92.0 million.

Global Pet Supplies

The Global Pet Supplies segment reported net sales of $129.1 million in
the first quarter of fiscal 2014 compared to $139.8 million last year.
Lower net sales in both North American and European aquatics and
companion animal categories were predominantly driven by timing, a
shorter Christmas selling season and retailer inventory reductions.

Segment net income, as adjusted, was $12.5 million in the first quarter
of fiscal 2014 versus $10.1 million in the first quarter of fiscal 2013.
First quarter adjusted EBITDA decreased to $20.4 million compared to
$23.1 million in fiscal 2013 due to the lower sales and unfavorable
product mix, partially offset by strong cost reduction and expense
control initiatives.

Home and Garden

The Home and Garden segment reported record first quarter net sales of
$33.8 million, an increase of 10.8 percent compared to $30.5 million in
the first quarter of fiscal 2013. The increase was driven by higher net
sales in the lawn and garden controls product category as a result of
strong retail customer demand. The first quarter of the fiscal year is
generally a period of building inventory in advance of the Home and
Garden segment’s major selling season, which occurs in the spring and
summer months. First quarter net sales for the Home and Garden segment
are typically less than 10 percent of full-year revenues.

The segment reported a significantly smaller first quarter net loss, as
adjusted, of $1.2 million, a record low segment loss for a fiscal first
quarter, compared to a net loss of $4.5 million in the first quarter of
fiscal 2013. The segment delivered its first positive adjusted EBITDA
ever for a fiscal first quarter. Adjusted EBITDA of $1.7 million
increased from a loss of $1.4 million a year ago due to higher volumes,
improved product mix, cost improvement initiatives and operating expense
management.

Hardware amp; Home Improvement

The Hardware amp; Home Improvement (HHI) segment, which was acquired on
December 17, 2012, recorded net sales of $278.4 million in the first
quarter of fiscal 2014, an increase of 23.3 percent compared to $225.8
million on a pro forma basis as if HHI was combined with Spectrum Brands
for all of last year’s first quarter. The revenue growth was primarily
driven by double-digit improvements in the US residential security,
builders’ hardware and plumbing categories. The segment recorded net
income, as adjusted, of $35.7 million in the first quarter of fiscal
2014 compared to a net loss, as adjusted, of $3.5 million in the first
quarter of fiscal 2013. Adjusted EBITDA in the first quarter of fiscal
2014 increased 48.1 percent to $49.6 million versus $33.5 million last
year.

Liquidity and Debt

Spectrum Brands completed its fiscal 2014 first quarter on December 29,
2013 with a solid liquidity position, including a cash balance of
approximately $132 million and $167 million available on its ABL
facility. During the first quarter of fiscal 2014, Spectrum Brands
issued $215 million and EUR225 million of term debt to replace and reprice
$513 million of existing term debt. The new term debt will reduce cash
interest costs and, in addition, the Euro portion was placed in Germany
to better align the Company’s cash inflows with cash outflows related to
principal, interest and taxes.

As of the end of the first quarter of fiscal 2014, Spectrum Brands had
approximately $3,375 million of debt outstanding at par, consisting of
its ABL facility of $110 million, senior secured Term Loans totaling the
US dollar equivalent of $1,752 million, $520 million of 6.375% senior
unsecured notes, $570 million of 6.625% senior unsecured notes, $300
million of 6.75% senior unsecured notes and approximately $123 million
of capital leases and other obligations. In addition, the Company had
approximately $41 million of letters of credit outstanding.

Fiscal 2014 Outlook

Spectrum Brands expects fiscal 2014 net sales, as reported, to increase
approximately at the rate of GDP growth compared to fiscal 2013 net
sales, including HHI in the prior year on a pro forma basis. Fiscal 2014
free cash flow is expected to be at least $350 million and capital
expenditures are projected to be approximately $70 million to $75
million. In the second half of fiscal 2014, Spectrum Brands expects to
use its strong free cash flow to continue to reduce debt by
approximately $250 million and delever its balance sheet, consistent
with past practice, resulting in leverage (total debt to adjusted
EBITDA) of approximately 4.2 times or less at the end of fiscal 2014.

Conference Call/Webcast Scheduled for 4:30 PM Eastern Time Today

Spectrum Brands will host an earnings conference call and webcast at
4:30 pm Eastern Time today, January 29. To access the live conference
call, US participants may call 877-556-5260 and international
participants may call 973-532-4903. The conference ID number is
30529745. A live webcast and related presentation slides will be
available by visiting the Event Calendar page in the Investor Relations
section of Spectrum Brands’ website at www.spectrumbrands.com.

A replay of the live webcast also will be accessible through the Event
Calendar page in the Investor Relations section of the Company’s
website. A telephone replay of the conference call will be available
through Wednesday, February 12. To access this replay, participants may
call 855-859-2056 and use the same conference ID number.

About Spectrum Brands Holdings, Inc.

Spectrum Brands Holdings, a member of the Russell 2000 Index, is a
global and diversified consumer products company and a leading supplier
of consumer batteries, residential locksets, residential builders’
hardware, faucets, shaving and grooming products, personal care
products, small household appliances, specialty pet supplies, lawn and
garden and home pest control products, and personal insect repellents.
Helping to meet the needs of consumers worldwide, our Company offers a
broad portfolio of market-leading, well-known and widely trusted brands
including Rayovac®, Kwikset®, Weiser®, Baldwin®, National Hardware®,
Pfister(TM), Remington®, VARTA®, George Foreman®, Black amp; Decker®,
Toastmaster®, Farberware®, Tetra®, Marineland®, Nature’s Miracle®,
Dingo®, 8-in-1®, FURminator®, Littermaid®, Spectracide®, Cutter®,
Repel®, Hot Shot® and Black Flag®. Spectrum Brands products are sold by
the worlds top 25 retailers and are available in more than one million
stores in approximately 140 countries. Spectrum Brands Holdings
generated net sales of approximately $4.1 billion in fiscal 2013. For
more information, visit www.spectrumbrands.com.

Non-GAAP Measurements

Management believes that certain non-GAAP financial measures may be
useful in certain instances to provide additional meaningful comparisons
between current results and results in prior operating periods. Excluding
the impact of currency exchange rate fluctuations may provide additional
meaningful information about underlying business trends. In
addition, within this release, including the tables attached hereto,
reference is made to adjusted diluted earnings per share and adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA).
See attached Table 3, “Reconciliation of GAAP Diluted Income (Loss)
Per Share to Adjusted Diluted Earnings Per Share,” for a complete
reconciliation of diluted earnings (loss) per share on a GAAP basis to
adjusted diluted earnings (loss) per share, and see attached Table 4,
“Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA,” for a
reconciliation of GAAP Net Income (Loss) to adjusted EBITDA for the
three months ended December 29, 2013 versus the three months ended
December 30, 2012. See attached Table 6, “Reconciliation of
Forecasted Cash Flow from Operating Activities to Forecasted Free Cash
Flow,” for a reconciliation of Net Cash provided from Operating
Activities to Free Cash Flow for the twelve months ending September 30,
2014. Adjusted EBITDA is a metric used by management and
frequently used by the financial community which provides insight into
an organization’s operating trends and facilitates comparisons between
peer companies, since interest, taxes, depreciation and amortization can
differ greatly between organizations as a result of differing capital
structures and tax strategies. Adjusted EBITDA also can be a useful
measure of a company’s ability to service debt and is one of the
measures used for determining the Company’s debt covenant compliance.
Adjusted EBITDA excludes certain items that are unusual in nature or
not comparable from period to period. In addition, the Company’s
management uses adjusted diluted earnings per share as one means of
analyzing the Company’s current and future financial performance and
identifying trends in its financial condition and results of operations.
Management believes that adjusted diluted earnings per share is a
useful measure for providing further insight into our operating
performance because it eliminates the effects of certain items that are
not comparable from one period to the next. The Company’s
management believes that free cash flow is useful to both management and
investors in their analysis of the Company’s ability to service and
repay its debt and meet its working capital requirements. Free
cash flow should not be considered in isolation or as a substitute for
pretax income (loss), net income (loss), cash provided by (used in)
operating activities or other statement of operations or cash flow
statement data prepared in accordance with GAAP or as a measure of
profitability or liquidity. In addition, the calculation of free
cash flow does not reflect cash used to service debt and therefore, does
not reflect funds available for investment or discretionary uses. The
Company provides this information to investors to assist in comparisons
of past, present and future operating results and to assist in
highlighting the results of on-going operations. While the
Company’s management believes that non-GAAP measurements are useful
supplemental information, such adjusted results are not intended to
replace the Company’s GAAP financial results and should be read in
conjunction with those GAAP results.

Forward-Looking Statements

Certain matters discussed in this news release and other oral and
written statements by representatives of the Company regarding matters
such as the Company’s ability to meet its expectations for its fiscal
2014 (including its ability to increase its net sales and adjusted
EBITDA) may be forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We have tried,
whenever possible, to identify these statements by using words like
“future,” “anticipate”, “intend,” “plan,” “estimate,” “believe,”
“expect,” “project,” “forecast,” “could,” “would,” “should,” “will,”
“may,” and similar expressions of future intent or the negative of such
terms. These statements are subject to a number of risks and
uncertainties that could cause results to differ materially from those
anticipated as of the date of this release. Actual results may
differ materially as a result of (1) Spectrum Brands Holdings’ ability
to manage and otherwise comply with its covenants with respect to its
significant outstanding indebtedness, (2) our ability to finance,
complete the acquisition of, integrate, and to realize synergies from,
the combined businesses of Spectrum Brands and the Hardware amp; Home
Improvement Group of Stanley Black amp; Decker, and from our purchase of 56
percent of the equity of Shaser, Inc., and from other bolt-on
acquisitions, (3) risks related to changes and developments in external
competitive market factors, such as introduction of new product features
or technological developments, development of new competitors or
competitive brands or competitive promotional activity or spending, (4)
changes in consumer demand for the various types of products Spectrum
Brands Holdings offers, (5) unfavorable developments in the global
credit markets, (6) the impact of overall economic conditions on
consumer spending, (7) fluctuations in commodities prices, the costs or
availability of raw materials or terms and conditions available from
suppliers, (8) changes in the general economic conditions in countries
and regions where Spectrum Brands Holdings does business, such as stock
market prices, interest rates, currency exchange rates, inflation and
consumer spending, (9) Spectrum Brands Holdings’ ability to successfully
implement manufacturing, distribution and other cost efficiencies and to
continue to benefit from its cost-cutting initiatives, (10) Spectrum
Brands Holdings’ ability to identify, develop and retain key employees,
(11) unfavorable weather conditions and various other risks and
uncertainties, including those discussed herein and those set forth in
the securities filings of each of Spectrum Brands Holdings, Inc. and
Spectrum Brands, Inc., including each of their most recently filed
Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q.

Spectrum Brands Holdings also cautions the reader that its estimates
of trends, market share, retail consumption of its products and reasons
for changes in such consumption are based solely on limited data
available to Spectrum Brands Holdings and management’s reasonable
assumptions about market conditions, and consequently may be inaccurate,
or may not reflect significant segments of the retail market. Spectrum
Brands Holdings also cautions the reader that undue reliance should not
be placed on any forward-looking statements, which speak only as of the
date of this release. Spectrum Brands Holdings undertakes no duty
or responsibility to update any of these forward-looking statements to
reflect events or circumstances after the date of this report or to
reflect actual outcomes.