EX-99.1 2 file002.txt PRESS RELEASE [JARDEN CORPORATION LOGO] FOR: Jarden Corporation CONTACT: Martin E. Franklin Chairman and Chief Executive Officer 914-967-9400 Investor Relations: Cara O'Brien/Melissa Myron Press: Evan Goetz/Jennifer McCullam Financial Dynamics FOR IMMEDIATE RELEASE 212-850-5600 --------------------- JARDEN CORPORATION REPORTS FIRST QUARTER RESULTS ~ DILUTED EARNINGS PER SHARE OF $0.27 ~ RYE, NY - APRIL 29, 2004 - JARDEN CORPORATION (NYSE:JAH) today reported its financial results for the three months ended March 31, 2004. Net sales increased 62.5% to $158.3 million compared to $97.4 million for the same quarter last year. First quarter net income increased 77.5% to $7.5 million, or $0.27 per diluted share, compared to net income of $4.2 million or $0.19 per diluted share for the same quarter last year. Current year amounts include a full quarter's results from the Lehigh and Diamond Brands businesses, which were acquired in September 2003 and February 2003, respectively. Martin E. Franklin, Chairman and Chief Executive Officer, commented, "During the first quarter of 2004, we continued the strong operating performance achieved by each of our business units in 2003. This strength was across the board in what is historically the Company's slowest quarter. We continue to develop and leverage cross selling and channel expansion opportunities, as well as implement synergistic cost savings initiatives amongst our businesses. We are looking forward to introducing a record number of new consumer products during the remainder of this year, helping us build a strong basis for future organic growth. On the acquisition front, we are pleased to report that the US Playing Card acquisition is currently expected to close at the beginning of the third quarter and that we completed the "tuck-in" acquisition of arts and crafts paint brush distributor, Loew-Cornell, Inc., during the first quarter." -- more -- The Company will be holding a conference call at 11:00 AM (EDT) today, April 29, 2004, to further discuss its results and respond to questions. The call will be accessible via a webcast through the Company's website at www.jarden.com. Jarden Corporation is a leading provider of niche consumer products used in and around the home, under well-known brand names including Ball(R), Bernardin(R), Crawford(R), Diamond(R), FoodSaver(R), Forster(R), Kerr(R), Lehigh(R), Leslie-Locke(R), Loew-Cornell(R) and VillaWare(R). In North America, Jarden is the market leader in several targeted consumer categories, including home canning, home vacuum packaging, kitchen matches, plastic cutlery, rope, cord and twine and toothpicks. Jarden also manufactures zinc strip and a wide array of plastic products for third party consumer product and medical companies, as well as its own businesses. Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements regarding the outlook for Jarden's markets and the demand for its products. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company's periodic and other reports filed with the Securities and Exchange Commission. -- more -- JARDEN CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)
UNAUDITED THREE MONTHS ENDED -------------------------------- MARCH 31, MARCH 31, 2004 2003 ------------- -------------- Net sales $ 158,260 $ 97,396 Costs and expenses: Cost of sales 107,019 59,026 Selling, general and administrative expenses 33,466 27,459 ------------- -------------- Operating earnings 17,775 10,911 Interest expense, net 5,620 3,952 ------------- -------------- Income before taxes 12,155 6,959 Income tax provision 4,643 2,728 ------------- -------------- Net income $ 7,512 $ 4,231 ============= ============== Basic earnings per share $ 0.28 $ 0.20 Diluted earnings per share $ 0.27 $ 0.19 Weighted average shares outstanding: Basic 27,045 21,388 Diluted 28,192 22,216 Reconciliation of Non-GAAP measurement: Net income $ 7,512 $ 4,231 Income tax provision 4,643 2,728 Interest expense, net 5,620 3,952 Depreciation and amortization 4,513 3,385 ------------- -------------- Earnings before interest, taxes, depreciation and amortization (EBITDA) (Note 1) $22,288 $ 14,296 ============= ==============
See Notes to Earnings Release attached. -- more -- JARDEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
UNAUDITED ----------------- ----------------- MARCH 31, DECEMBER 31, 2004 2003 ----------------- ----------------- ASSETS Current assets Cash and cash equivalents $ 82,351 $ 125,400 Accounts receivable, net 88,579 93,690 Inventories, net 133,189 105,573 Other current assets 24,219 22,456 ----------------- ----------------- Total current assets 328,338 347,119 ----------------- ----------------- Non-current assets Property, plant and equipment, net 72,769 79,119 Intangibles, net 356,592 315,826 Other assets 18,429 17,610 ----------------- ----------------- Total assets $ 776,128 $ 759,674 ================= ================= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 18,249 $ 17,512 Accounts payable 43,867 34,211 Other current liabilities 51,145 53,357 ----------------- ----------------- Total current liabilities 113,261 105,080 ----------------- ----------------- Non-current liabilities Long-term debt 370,615 369,870 Other non-current liabilities 32,888 34,819 ----------------- ----------------- Total non-current liabilities 403,503 404,689 ----------------- ----------------- Stockholders' equity 259,364 249,905 ----------------- ----------------- Total liabilities and stockholders' equity $ 776,128 $ 759,674 ================= =================
-- more -- JARDEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
UNAUDITED THREE MONTHS ENDED -------------------------------- MARCH 31, MARCH 31, 2004 2003 --------------- --------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 7,512 $ 4,231 Reconciliation of net income to net cash (used in) provided by operating activities: Depreciation and amortization 4,513 3,385 Other non-cash items (513) 1,311 Changes in working capital components (12,107) (2,492) --------------- --------------- Net cash (used in) provided by operating activities (595) 6,435 --------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving credit borrowings - 48,000 Payments on revolving credit borrowings - (19,500) Proceeds from issuance of long-term debt - 10,000 Payments on seller notes - (10,000) Payments on long-term debt (2,645) (1,514) Other 1,261 2,858 --------------- --------------- Net cash (used in) provided by financing activities (1,384) 29,844 --------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (1,288) (1,828) Acquisition of businesses, net of cash acquired (39,315) (85,257) Other, net (467) 4 --------------- --------------- Net cash (used in) investing activities (41,070) (87,081) --------------- --------------- NET DECREASE IN CASH (43,049) (50,802) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779 --------------- --------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 82,351 $ 5,977 =============== ===============
-- more -- JARDEN CORPORATION NET SALES AND OPERATING EARNINGS BY SEGMENT (in thousands)
UNAUDITED THREE MONTHS ENDED --------------------------------- MARCH 31, MARCH 31, 2004 2003 -------------- -------------- Net sales: Branded consumables $ 74,898 $ 30,169 Consumer solutions 45,110 40,876 Plastic consumables 33,650 23,496 Other 18,805 8,618 Intercompany elimination (14,203) (5,763) -------------- -------------- Total net sales $ 158,260 $ 97,396 ============== ============== Operating earnings: Branded consumables $ 6,293 $ 1,259 Consumer solutions 6,397 6,944 Plastic consumables 2,806 2,438 Other 2,864 964 Intercompany elimination (584) (694) -------------- -------------- Total operating earnings $ 17,775 $ 10,911 ============== ==============
NOTES TO EARNINGS RELEASE Note 1: This earnings release contains a non-GAAP financial measure. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a Company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statement of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. EBITDA, a non-GAAP financial measure, is presented in this press release because the Company's credit facility and senior subordinated notes contain financial and other covenants which are based on or refer to the Company's EBITDA. Additionally, EBITDA is a basis upon which our management assesses financial performance and we believe it is frequently used by securities analysts, investors and other interested parties in measuring the operating performance and creditworthiness of companies with comparable market capitalization to the Company, many of which present EBITDA when reporting their results. Furthermore, EBITDA is one of the factors used to determine the total amount of bonuses available to be awarded to executive officers and other employees. EBITDA is widely used by the Company to evaluate potential acquisition candidates. While EBITDA is frequently used as a measure of operations and the ability to meet debt service requirements, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Because of these limitations, EBITDA should not be considered a primary measure of the Company's performance and should be reviewed in conjunction with, and not as a substitute for, financial measurements prepared in accordance with GAAP that are presented in this earnings release. ###