Exhibit 99.1
The following table sets forth, as of March 31, 2007, the estimated sources and uses of funds in connection with the acquisition of K2:
SOURCES AND USES OF FUNDS
($ in millions)
| Sources: |
|||
| Securitization Facility |
$ | 175 | |
| ABL Facility (1) |
245 | ||
| Term Loan B |
500 | ||
| JAH Equity |
239 | ||
| Total Sources |
$ | 1,159 |
| Uses: |
|||
| Equity Purchase Price ($ 15.50) |
$ | 795 | |
| Repayment of K2 Debt |
316 | ||
| Estimated Breakage Costs (2) |
15 | ||
| Change of Control Payments (3) |
16 | ||
| Fees & Expenses |
16 | ||
| Total Uses |
$ | 1,159 |
| (1) | Total facility size is $400 million. |
| (2) | Represents the estimated premium to be paid to retire K2’s $200 million of Senior Notes due 2014 bearing 7.375% interest. |
| (3) | Estimated severance payments for key corporate executives at K2. |
1
PRO FORMA CAPITALIZATION
($ in millions)
| As of March 31, 2007 | |||||||||||||||||
| Jarden | K2 | Uses Adj. |
Sources Adj. |
K2 Acq. Pro Forma |
Full Pro Forma (1) | ||||||||||||
| Cash and Cash Equivalents |
$ | 392 | $ | 24 | $ | 416 | $ | 116 | |||||||||
| Senior Credit Facilities |
|||||||||||||||||
| Revolver |
91 | (91 | ) | — | — | ||||||||||||
| Term Loan - B |
975 | 500 | 1,475 | 1,475 | |||||||||||||
| ABL Facility (2) |
245 | 245 | 245 | ||||||||||||||
| Total Bank Debt |
$ | 975 | $ | 91 | $ | 1,720 | $ | 1,720 | |||||||||
| Securitization Facility |
175 | 175 | 175 | ||||||||||||||
| Other |
111 | 111 | 111 | ||||||||||||||
| Total Senior Secured Debt |
$ | 1,086 | $ | 91 | $ | 2,006 | $ | 2,006 | |||||||||
| Senior Subordinated Notes |
660 | 200 | (200 | ) | 660 | 660 | |||||||||||
| Seller’s Note |
100 | ||||||||||||||||
| Foreign Debt |
25 | (25 | ) | — | — | ||||||||||||
| Convertible Debentures |
75 | 75 | 75 | ||||||||||||||
| Total Debt |
$ | 1,746 | $ | 391 | $ | 2,741 | $ | 2,841 | |||||||||
| Total Net Debt (3) |
$ | 1,375 | $ | 367 | $ | 2,346 | $ | 2,746 | |||||||||
| Shareholders’ Equity |
$ | 1,268 | $ | 545 | (545 | ) | 207 | $ | 1,476 | $ | 1,476 | ||||||
| Total Capitalization |
$ | 3,015 | $ | 937 | $ | 4,217 | $ | 4,317 | |||||||||
| (1) | Pro Forma for Pure Fishing acquisition. |
| (2) | Does not include outstanding letters of credit of approximately $30 million. |
| (3) | As per Jarden’s Credit Agreement, Net Debt is calculated using cash balance above $20 million. |
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COMBINED LTM INCOME STATEMENT
($ in millions)
| Last Twelve Months Ended, March 31, 2007 | ||||||||||||
| Jarden | K2 | Combined | ||||||||||
| Net Sales |
$ | 3,876 | $ | 1,419 | $ | 5,295 | ||||||
| Cost of Sales |
2,918 | 915 | 3,833 | |||||||||
| Gross Profit |
$ | 958 | $ | 504 | $ | 1,462 | ||||||
| SG&A |
$ | 614 | $ | 418 | $ | 1,032 | ||||||
| Reorganization Costs |
37 | 0 | 37 | |||||||||
| Operating Income |
$ | 307 | $ | 87 | $ | 394 | ||||||
| Margin (%) |
7.9 | % | 6.1 | % | 7.4 | % | ||||||
| Purchase Accounting Adjustment |
10 | — | 10 | |||||||||
| Reorganization & Integration-related Costs |
37 | — | 37 | |||||||||
| Impairment / Write-off of Assets |
0 | — | 0 | |||||||||
| Other Integration-related Costs |
4 | — | 4 | |||||||||
| Stock-Based Compensation |
24 | 3 | 27 | |||||||||
| Depreciation & Amortization |
69 | 37 | 105 | |||||||||
| Adjusted EBITDA (1) |
$ | 451 | $ | 126 | $ | 577 | ||||||
| Margin (%) |
11.6 | % | 8.9 | % | 10.9 | % | ||||||
| Capital Expenditures |
$ | 72 | $ | 33 | $ | 105 | ||||||
| As a % of Net Sales |
1.9 | % | 2.3 | % | 2.0 | % | ||||||
Source: Company filings.
| (1) | Represents Consolidated Segment Earnings. Excluding restructuring, non-operational and non-cash charges and credits. |
PRO FORMA LTM EBITDA DATA
($ in millions)
| LTM 3/31/07 Pro Forma EBITDA | |||
| Combined Jarden & K2 |
$ | 577 | |
| Other 2007 Acquisition |
38 | ||
| Run Rate Synergies |
30 | ||
| Total Pro Forma Adjusted EBITDA |
$ | 644 | |
3