EX-99.1 2 file002.txt PRESS RELEASE [JARDEN CORP. 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 RECORD SECOND QUARTER OPERATING RESULTS ~ DILUTED EARNINGS PER SHARE OF $0.57 ~ RYE, NY - JULY 26, 2004 - JARDEN CORPORATION (NYSE:JAH) today reported its financial results for the three and six months ended June 30, 2004. For the second quarter of 2004, net sales increased 52% to $199.0 million, compared to $130.8 million for the same quarter last year. Second quarter net income increased 61% to $16.0 million, or $0.57 per diluted share, compared to net income of $10.0 million, or $0.45 per diluted share for the same quarter last year. Current year amounts include the results of operations from the Lehigh business, which was acquired in September 2003. For the six months ended June 30, 2004, net sales increased 57% to $357.4 million, compared with $228.2 million for the same period in 2003. For the six months ended June 30, 2004, net income increased 66% to $23.6 million, or $0.83 per diluted share, compared to net income of $14.2 million, or $0.64 per diluted share. Current year amounts include the results of operations from the Lehigh business. Martin E. Franklin, Chairman and Chief Executive Officer, commented, "All of our business segments posted strong results in the second quarter, with our Branded Consumables and Plastic Consumables businesses recording organic sales growth, exclusive of intercompany sales, of approximately 10% and 20%, respectively. Our strategy of investing in our brands is working as evidenced by favorable consumer and retailer feedback on many of the programs and products we have introduced this year." -- more -- "Our solid results were achieved in spite of the year over year cost increases we have experienced in areas such as commodities, freight and fuel. We were able to absorb these cost increases by successfully leveraging our consolidated purchasing power and realizing operating synergies among our various business units, an initiative we began in earnest during the first quarter. Looking to the second half of the year, we anticipate that prices for certain commodities, such as steel, will decline but that in other areas, such as resin, the price increases will slow but the short term trend will continue upwards. We will look for opportunities to pass on some of these cost increases at retail." Mr. Franklin concluded, "Overall, we are delighted to be able to report another quarter of record operating results and look forward to carrying this momentum into the second half of the year." The Company will be holding a conference call at 9:45 AM (EDT) today, July 26, 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), Bee(R), Bernardin(R), Bicycle(R), Crawford(R), Diamond(R), FoodSaver(R), Forster(R), Hoyle(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, playing cards, 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 UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED ----------------------------------- ----------------------------------- JUNE 30, 2004 JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2003 --------------- --------------- --------------- --------------- (Note 1) (Note 1) Net sales $199,035 $130,769 $357,359 $228,215 Costs and expenses: Cost of sales 131,236 81,238 238,255 140,264 Selling, general and administrative expenses 35,757 28,897 69,287 56,407 -------- -------- -------- -------- Operating earnings 32,042 20,634 49,817 31,544 Interest expense, net 6,075 4,267 11,695 8,219 -------- -------- -------- -------- Income before taxes 25,967 16,367 38,122 23,325 Income tax provision 9,920 6,416 14,562 9,144 -------- -------- -------- -------- Net income $ 16,047 $ 9,951 $ 23,560 $ 14,181 ======== ======== ======== ======== Basic earnings per share $ 0.59 $ 0.47 $ 0.87 $ 0.66 Diluted earnings per share $ 0.57 $ 0.45 $ 0.83 $ 0.64 Weighted average shares outstanding: Basic 27,171 21,339 27,108 21,363 Diluted 28,292 22,068 28,242 22,091 Reconciliation of Non-GAAP measurement: Net Income $ 16,047 $ 9,951 $ 23,560 $ 14,181 Income tax provision 9,920 6,416 14,562 9,144 Interest expense, net 6,075 4,267 11,695 8,219 Depreciation and amortization 4,324 3,844 8,836 7,230 -------- -------- -------- -------- Earnings before interest, taxes, depreciation and amortization (EBITDA) (Note 2) $ 36,366 $ 24,478 $ 58,653 $ 38,774 ======== ======== ======== ========
See Notes to Earnings Release Attached. -- more -- JARDEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
UNAUDITED ----------------- ----------------- JUNE 30, DECEMBER 31, 2004 2003 ----------------- ----------------- (Note 3) ASSETS Current assets Cash and cash equivalents $ 4,493 $ 125,400 Accounts receivable, net 129,298 93,690 Inventories, net 157,825 105,573 Other current assets 24,871 22,456 ----------- ---------- Total current assets 316,487 347,119 ----------- ---------- Non-current assets Property, plant and equipment, net 100,281 79,119 Intangibles, net 568,372 315,826 Other assets 20,774 17,610 ----------- ---------- Total assets $ 1,005,914 $ 759,674 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 22,446 $ 17,512 Accounts payable 50,614 34,211 Deferred consideration for acquisitions 42,864 - Other current liabilities 59,558 53,357 ----------- ---------- Total current liabilities 175,482 105,080 ----------- ---------- Non-current liabilities Long-term debt 476,846 369,870 Other non-current liabilities 78,206 34,819 ----------- ---------- Total non-current liabilities 555,052 404,689 ----------- ---------- Stockholders' equity 275,380 249,905 ----------- ---------- Total liabilities and stockholders' equity $ 1,005,914 $ 759,674 =========== ==========
See Notes to Earnings Release Attached. -- more -- JARDEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
UNAUDITED SIX MONTHS ENDED ------------------------------ JUNE 30, JUNE 30, 2004 2003 ------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 23,560 $ 14,181 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 8,836 7,230 Other non-cash items 2,046 2,974 Changes in working capital components (34,349) (9,192) -------- -------- Net cash provided by operating activities 93 15,193 -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving credit borrowings 8,900 78,000 Payments on revolving credit borrowings (2,000) (71,700) Proceeds from bond issuance - 31,950 Proceeds from issuance of senior debt 116,000 10,000 Payments on long term debt (5,289) (3,027) Payments on seller notes (5,400) (10,000) Debt issue and amendment costs (2,010) (1,423) Other 1,715 3,520 -------- -------- Net cash provided by financing activities 111,916 37,320 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (3,517) (4,569) Acquisition of businesses, net of cash acquired (228,876) (100,019) Other, net (523) - -------- -------- Net cash (used in) investing activities (232,916) (104,588) -------- -------- NET DECREASE IN CASH (120,907) (52,075) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779 -------- -------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,493 $ 4,704 ======== ========
-- more -- JARDEN CORPORATION NET SALES AND OPERATING EARNINGS BY SEGMENT (in thousands)
UNAUDITED UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED ------------------------------- -------------------------------- JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2004 2003 2004 2003 ------------- -------------- -------------- ------------- Net sales: Branded consumables $122,719 $ 70,211 $197,617 $100,381 Consumer solutions 36,180 34,624 81,354 75,549 Plastic consumables 34,532 26,736 68,182 50,231 Other 19,911 9,253 38,716 17,872 Intercompany elimination (14,307) (10,055) (28,510) (15,818) -------- --------- -------- -------- Total net sales $199,035 $ 130,769 $357,359 $228,215 ======== ========= ======== ======== Operating earnings: Branded consumables $ 22,495 $ 11,868 $ 28,787 $ 13,127 Consumer solutions 3,507 4,520 9,904 11,464 Plastic consumables 3,095 2,646 5,901 5,084 Other 2,626 1,952 5,490 2,916 Intercompany elimination 319 (352) (265) (1,047) -------- --------- -------- -------- Total operating earnings $ 32,042 $ 20,634 $ 49,817 $ 31,544 ======== ======== ======== ========
NOTES TO EARNINGS RELEASE Note 1: Certain reclassifications have been made in the Company's financial statements of prior years to conform to the current year presentation. These reclassifications have no impact on previously reported net income. Note 2: 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. Note 3: Includes balance sheet accounts for the United States Playing Card business which was acquired effective June 28, 2004. ###