EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO    FOR:      Jarden Corporation
   CONTACT:      Martin E. Franklin
        Chairman and
        Chief Executive Officer
        914-967-9400
        Investor Relations: Erica Pettit
        Press: Evan Goetz/ Melissa Kahaly
        FD
        212-850-5600

FOR IMMEDIATE RELEASE

JARDEN REPORTS SECOND QUARTER 2009 RESULTS

Record Second Quarter Operating Cash Flow of $230 million

RYE, N.Y., July 22, 2009 — Jarden Corporation (NYSE: JAH) today reported its financial results for the three and six months ended June 30, 2009.

For the three months ended June 30, 2009, net sales decreased 6.6% to $1.3 billion compared to $1.4 billion for the same period in the previous year. Approximately $48 million of the $90 million decrease in net sales was due to foreign exchange fluctuations between the periods. For the three months ended June 30, 2009, the Company recorded net income of $44.9 million, or $0.53 per diluted share, compared to net income of $43.0 million, or $0.56 per diluted share, in the three months ended June 30, 2008. On a non-GAAP basis, adjusted net income was $51.4 million, or $0.60 per diluted share, for the three months ended June 30, 2009, compared to $54.8 million, or $0.72 per diluted share, for the three months ended June 30, 2008.

For the six months ended June 30, 2009, net sales decreased 6.5% to $2.4 billion compared to $2.6 billion for the same period in the previous year. Approximately $102 million of the $169 million decrease in net sales was due to foreign exchange fluctuations between the periods. For the six months ended June 30, 2009, the Company recorded net income of $53.8 million, or $0.67 per diluted share, compared to net income of $47.7 million, or $0.62 per diluted share, in the six months ended June 30, 2008. On a non-GAAP basis, adjusted net income was $69.8 million, or $0.87 per diluted share, for the six months ended June 30, 2009, compared to $71.3 million, or $0.93 per diluted share, for the six months ended June 30, 2008.

Please see the schedule accompanying this release for a reconciliation of non-GAAP segment earnings, adjusted net income and adjusted diluted earnings per share to the comparable GAAP measures.

 

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Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation commented, “Our exceptional cash flow during the quarter was reflective of a number of management initiatives during this tough macro economic time. Our focus on working capital management led to improvements in inventory, receivables and payables during the quarter. Despite the expected decline in revenue and earnings resulting from the recessionary environment, our proactive, disciplined approach to controlling costs during a period of lower sales resulted in improved gross and As Adjusted EBITDA margins during the quarter, with a positive impact on cash flow. This strong performance would not have been possible without the continued dedication and hard work of our most important asset, our employees.”

Mr. Franklin continued, “Jarden’s success is built around owning leading brands spread across diverse, niche markets with three similar characteristics: market leadership positions; strong cash flow; and good management. We have been able to demonstrate the benefit of this strategy, coupled with Jarden’s DNA operating culture, in this recessionary environment. Our belief is that our businesses will continue to outperform their categories in good as well as difficult market conditions.”

The Company will be holding a conference call at 4:45 p.m. EDT, July 22, 2009, 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 and will be archived online until August 21, 2009.

Jarden Corporation is a leading provider of niche consumer products. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Berkley®, Campingaz® and Coleman®, Fenwick®, Gulp!®, JT®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Volkl®, and Zoot®; Consumer Solutions: Bionaire®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare® and White Mountain®; and Branded Consumables: Ball®, Bee®, Bicycle®, Crawford®, Diamond®, Dicon®, First Alert®, Forster®, Hoyle®, Kerr®, Lehigh®, Leslie-Locke®, Loew Cornell® and Pine Mountain®. Headquartered in Rye, N.Y., Jarden has over 20,000 employees worldwide. For more information, please visit www.jarden.com.

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 Company’s adjusted earnings per share, repurchase of shares of common stock from time to time under the Company’s stock repurchase program, the outlook for Jarden’s markets and the demand for its products, estimated sales, segment earnings, earnings per share, cash flows from operations, future revenues and margin requirement and expansion, organic growth, the success of new product introductions, growth in costs and expenses and the impact of acquisitions, divestitures, restructurings, and other unusual items, including Jarden’s ability to integrate and obtain the anticipated results and synergies from its acquisitions. 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.

 

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JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in millions, except earnings per share)

 

     Three months ended
     June 30, 2009    June 30, 2008
     As
Reported
(GAAP)
   Adjustments
(1)(2)
    Adjusted
(non-GAAP)

(1)(2)
   As
Reported
(GAAP)
   Adjustments
(1)(2)
    Adjusted
(non-GAAP)
(1)(2)

Net sales

   $ 1,269.7    $ —        $ 1,269.7    $ 1,360.0    $ —        $ 1,360.0
                                           

Cost of sales

     913.3      —          913.3      979.2      —          979.2
                                           

Gross profit

     356.4      —          356.4      380.8      —          380.8

Selling, general and administrative expenses

     240.7      (3.8     236.9      256.5      (4.0     252.5

Reorganization and acquisition-related integration costs, net

     6.0      (5.6     0.4      11.1      (11.1     —  
                                           

Operating earnings

     109.7      9.4        119.1      113.2      15.1        128.3

Interest expense, net

     38.8      —          38.8      42.6      —          42.6
                                           

Income before taxes

     70.9      9.4        80.3      70.6      15.1        85.7

Income tax provision

     26.0      2.9        28.9      27.6      3.3        30.9
                                           

Net income

   $ 44.9    $ 6.5      $ 51.4    $ 43.0    $ 11.8      $ 54.8
                                           

Earnings per share:

               

Basic

   $ 0.53      $ 0.61    $ 0.57      $ 0.73

Diluted

   $ 0.53      $ 0.60    $ 0.56      $ 0.72

Weighted average shares outstanding:

               

Basic

     84.4        84.4      75.3        75.3

Diluted

     85.2        85.2      76.4        76.4

See Notes to Earnings Release attached

 

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JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in millions, except earnings per share)

 

     Six months ended
     June 30, 2009    June 30, 2008
     As
Reported
(GAAP)
   Adjustments
(1)(2)
    Adjusted
(non-GAAP)

(1)(2)
   As
Reported
(GAAP)
   Adjustments
(1)(2)
    Adjusted
(non-GAAP)
(1)(2)

Net sales

   $ 2,408.6    $ —        $ 2,408.6    $ 2,577.4    $ —        $ 2,577.4
                                           

Cost of sales

     1,759.9      —          1,759.9      1,868.8      —          1,868.8
                                           

Gross profit

     648.7      —          648.7      708.6      —          708.6

Selling, general and administrative expenses

     469.1      (7.7     461.4      516.3      (8.0     508.3

Reorganization and acquisition-related integration costs, net

     18.2      (15.0     3.2      21.8      (21.8     —  
                                           

Operating earnings

     161.4      22.7        184.1      170.5      29.8        200.3

Interest expense, net

     75.0      —          75.0      88.8      —          88.8
                                           

Income before taxes

     86.4      22.7        109.1      81.7      29.8        111.5

Income tax provision

     32.6      6.7        39.3      34.0      6.2        40.2
                                           

Net income

   $ 53.8    $ 16.0      $ 69.8    $ 47.7    $ 23.6      $ 71.3
                                           

Earnings per share:

               

Basic

   $ 0.67      $ 0.87    $ 0.63      $ 0.95

Diluted

   $ 0.67      $ 0.87    $ 0.62      $ 0.93

Weighted average shares outstanding:

               

Basic

     79.9        79.9      75.2        75.2

Diluted

     80.6        80.6      76.3        76.3

See Notes to Earnings Release attached

 

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JARDEN CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

 

     June 30,
2009
   December 31,
2008

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 626.2    $ 392.8

Accounts receivable, net

     810.1      894.1

Inventories

     1,118.5      1,180.4

Deferred taxes on income

     155.1      147.3

Prepaid expenses and other current assets

     137.3      114.5
             

Total current assets

     2,847.2      2,729.1
             

Property, plant and equipment, net

     500.8      506.9

Goodwill

     1,500.9      1,476.1

Intangible assets, net

     943.1      936.6

Other assets

     82.0      78.3
             

Total assets

   $ 5,874.0    $ 5,727.0
             

Liabilities and stockholders’ equity

     

Current liabilities:

     

Short-term debt and current portion of long-term debt

   $ 287.7    $ 431.4

Accounts payable

     415.7      422.1

Accrued salaries, wages and employee benefits

     148.1      142.0

Taxes on income

     22.6      22.7

Other current liabilities

     326.4      336.2
             

Total current liabilities

     1,200.5      1,354.4
             

Long-term debt

     2,445.4      2,436.9

Deferred taxes on income

     232.4      232.8

Other non-current liabilities

     331.9      318.7
             

Total liabilities

     4,210.2      4,342.8
             

Total stockholders’ equity

     1,663.8      1,384.2
             

Total liabilities and stockholders’ equity

   $ 5,874.0    $ 5,727.0
             

See Notes to Earnings Release attached

 

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JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

 

     Three months ended     Six months ended  
     June 30,
2009
    June 30,
2008
    June 30,
2009
    June 30,
2008
 

Cash flows from operating activities:

        

Net income

   $ 44.9      $ 43.0      $ 53.8      $ 47.7   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     31.3        29.8        61.7        58.9   

Other non-cash items

     17.4        24.3        19.3        25.7   

Changes in assets and liabilities, net of effects from acquisitions:

        

Accounts receivable

     83.0        31.2        87.1        98.2   

Inventory

     23.3        (37.7     74.6        (123.0

Accounts payable

     37.3        14.8        (12.7     21.5   

Other current assets and liabilities

     (7.6     (7.1     (52.8     (62.2
                                

Net cash provided by operating activities

     229.6        98.3        231.0        66.8   
                                

Cash flows from financing activities:

        

Net change in short-term debt

     (37.4     (38.3     (133.1     48.7   

Proceeds from issuance of senior debt

     292.2        25.0        292.2        25.0   

Payments on long-term debt

     (290.0     (4.4     (294.3     (16.2

Proceeds from issuance of stock, net of transaction fees

     202.7        0.1        202.7        1.9   

Repurchase of common stock and shares tendered

     —          (0.4     (0.5     (10.9

Debt issuance costs

     (9.8     (2.1     (9.8     (2.2

Other, net

     —          —          —          (2.5
                                

Net cash provided by (used in) financing activities

     157.7        (20.1     57.2        43.8   
                                

Cash flows from investing activities:

        

Additions to property, plant and equipment

     (23.3     (23.2     (44.4     (45.3

Acquisition of businesses, net of cash acquired

     (8.3     (26.6     (12.0     (29.1

Other

     (4.3     (0.6     (4.3     (7.4
                                

Net cash used in investing activities

     (35.9     (50.4     (60.7     (81.8
                                

Effect of exchange rate changes on cash and cash equivalents

     7.8        (0.2     5.9        5.7   
                                

Net increase in cash and cash equivalents

     359.2        27.6        233.4        34.5   

Cash and cash equivalents at beginning of period

     267.0        227.4        392.8        220.5   
                                

Cash and cash equivalents at end of period

   $ 626.2      $ 255.0      $ 626.2      $ 255.0   
                                

See Notes to Earnings Release attached

 

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JARDEN CORPORATION

NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)

(in millions)

 

     Outdoor
Solutions
    Consumer
Solutions (b)
    Branded
Consumables
    Process
Solutions
    Intercompany
Eliminations (a)
    Total
Operating
Segments
    Corporate/
Unallocated
    Consolidated  

Three months ended June 30, 2009

                

Net sales

   $ 637.8      $ 372.2      $ 203.1      $ 69.6      $ (13.0   $ 1,269.7      $ —        $ 1,269.7   
                                                                

Segment earnings (loss)

   $ 90.5      $ 48.5      $ 29.2      $ 8.8      $ —        $ 177.0      $ (30.4   $ 146.6   
                                                                

Adjustments to reconcile to reported operating earnings(loss):

                

Reorganization and acquisition-related integration costs, net

     (5.6     —          —          —          —          (5.6     —          (5.6

Depreciation and amortization

     (16.6     (6.5     (5.1     (2.9     —          (31.1     (0.2     (31.3
                                                                

Operating earnings (loss)

   $ 68.3      $ 42.0      $ 24.1      $ 5.9      $ —        $ 140.3      $ (30.6   $ 109.7   
                                                                
     Outdoor
Solutions
    Consumer
Solutions
    Branded
Consumables
    Process
Solutions
    Intercompany
Eliminations (a)
    Total
Operating
Segments
    Corporate/
Unallocated
    Consolidated  

Three months ended June 30, 2008

                

Net sales

   $ 708.6      $ 380.3      $ 196.7      $ 91.9      $ (17.5   $ 1,360.0      $ —        $ 1,360.0   
                                                                

Segment earnings (loss)

   $ 97.5      $ 41.1      $ 26.4      $ 11.4      $ —        $ 176.4      $ (22.3   $ 154.1   
                                                                

Adjustments to reconcile to reported operating earnings(loss):

                

Reorganization and acquisition-related integration costs, net

     (7.0     —          (2.3     (0.6     —          (9.9     (1.2     (11.1

Depreciation and amortization

     (15.7     (6.4     (4.2     (3.1     —          (29.4     (0.4     (29.8
                                                                

Operating earnings (loss)

   $ 74.8      $ 34.7      $ 19.9      $ 7.7      $ —        $ 137.1      $ (23.9   $ 113.2   
                                                                

 

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JARDEN CORPORATION

NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)

(in millions)

 

     Outdoor
Solutions
    Consumer
Solutions (b)
    Branded
Consumables
    Process
Solutions
    Intercompany
Eliminations (a)
    Total
Operating
Segments
    Corporate/
Unallocated
    Consolidated  

Six months ended June 30, 2009

                

Net sales

   $ 1,229.1      $ 708.1      $ 362.3      $ 136.1      $ (27.0   $ 2,408.6      $ —        $ 2,408.6   
                                                                

Segment earnings (loss)

   $ 142.4      $ 87.3      $ 44.1      $ 15.6      $ —        $ 289.4      $ (51.3   $ 238.1   
                                                                

Adjustments to reconcile to reported operating earnings (loss):

                

Reorganization and acquisition-related integration costs, net

     (15.0     —          —          —          —          (15.0     —          (15.0

Depreciation and amortization

     (32.5     (13.3     (9.8     (5.7     —          (61.3     (0.4     (61.7
                                                                

Operating earnings (loss)

   $ 94.9      $ 74.0      $ 34.3      $ 9.9      $ —        $ 213.1      $ (51.7   $ 161.4   
                                                                
     Outdoor
Solutions
    Consumer
Solutions
    Branded
Consumables
    Process
Solutions
    Intercompany
Eliminations (a)
    Total
Operating
Segments
    Corporate/
Unallocated
    Consolidated  

Six months ended June 30, 2008

                

Net sales

   $ 1,366.9      $ 699.6      $ 365.8      $ 180.8      $ (35.7   $ 2,577.4      $ —        $ 2,577.4   
                                                                

Segment earnings (loss)

   $ 156.7      $ 78.2      $ 40.2      $ 20.5      $ —        $ 295.6      $ (44.4   $ 251.2   
                                                                

Adjustments to reconcile to reported operating earnings (loss):

                

Reorganization and acquisition-related integration costs, net

     (14.0     —          (3.5     (2.1     —          (19.6     (2.2     (21.8

Depreciation and amortization

     (30.9     (12.9     (8.4     (6.1     —          (58.3     (0.6     (58.9
                                                                

Operating earnings (loss)

   $ 111.8      $ 65.3      $ 28.3      $ 12.3      $ —        $ 217.7      $ (47.2   $ 170.5   
                                                                

 

(a) Intersegment sales are recorded at cost plus an agreed-upon intercompany profit on intersegment sales.
(b) For the three and six months ended June 30, 2009, segment earnings for the Consumer Solutions segment includes $0.4 and $3.2 million of restructuring costs, respectively.

 

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Jarden Corporation

Notes to Earnings Release

Note 1: Adjustments relate to items that are excluded from the “As reported” results to arrive at the “Adjusted” results for the three and six months ended June 30, 2009 and 2008. For the three months ended June 30, 2009, adjustments to net income consist of $5.6 million of reorganization and acquisition-related integration costs in the Outdoor Solutions segment and $3.8 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the three months ended June 30, 2009 is the tax provision adjustment of $2.9 million which reflects the normalization of the adjusted results to the Company’s estimated 36% effective tax rate.

For the three months ended June 30, 2008, adjustments to net income consist of $11.1 million of reorganization and acquisition-related integration costs and $4.0 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the three months ended June 30, 2008 is the tax provision adjustment of $3.3 million which reflects the normalization of the adjusted results to the Company’s estimated 36% effective tax rate.

For the six months ended June 30, 2009, adjustments to net income consist of $15.0 million of reorganization and acquisition-related integration costs in the Outdoor Solutions segment and $7.7 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the six months ended June 30, 2009 is the tax provision adjustment of $6.7 million which reflects the normalization of the adjusted results to the Company’s estimated 36% effective tax rate.

For the six months ended June 30, 2008, adjustments to net income consist of $21.8 million of reorganization and acquisition-related integration costs and $8.0 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the six months ended June 30, 2008 is the tax provision adjustment of $6.2 million which reflects the normalization of the adjusted results to the Company’s estimated 36% effective tax rate.

Note 2: This earnings release contains non-GAAP financial measures. 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 statements 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. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP measures are provided because management of the Company uses these financial measures in maintaining and evaluating the Company’s ongoing financial results and trends. Management uses this non-GAAP information as an indicator of business performance, and evaluates overall management with respect to such indicators. Additionally, the Company uses non-GAAP financial measures because the Company’s credit agreement provides for certain adjustments in calculations used for determining whether the Company is in compliance with certain credit agreement covenants, including, but not limited to, adjustments relating to non-cash purchase accounting adjustments, non-cash impairment charge of goodwill and other intangibles, certain reorganization and acquisition-related integration costs, non-cash stock-based compensation costs and loss on early extinguishment of debt. These non-GAAP measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with GAAP.

# # #

 

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