UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 25, 2012
Jarden Corporation
(Exact name of registrant as specified in its charter)
Delaware | 001-13665 | 35-1828377 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
555 Theodore Fremd Avenue, Rye, New York | 10580 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (914) 967-9400
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
On April 25, 2012, we issued a press release announcing our financial results for the quarter ended March 31, 2012. A copy of our press release announcing our earnings results for the quarter ended March 31, 2012 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The earnings press release furnished herewith contains financial measures that are not in accordance with generally accepted accounting principles in the United States of America (GAAP). For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a companys 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 in accordance with GAAP in the statements of operations, 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, Jarden Corporation (the Company) has provided reconciliations within the earnings release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
To supplement our consolidated financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of adjusted gross margin, segment earnings, adjusted net income, adjusted diluted earnings per share and organic net sales growth. These non-GAAP measures are provided because management of the Company uses these financial measures in monitoring and evaluating the Companys 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 Companys 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 charges of goodwill, intangibles and other assets, certain reorganization and acquisition-related integration costs, transaction and integration costs, non-cash Venezuela hyperinflationary and devaluation charges, gains and losses as a result of currency fluctuations, gain on the sale of a domestic business, non-cash stock-based compensation costs, loss on early extinguishment of debt, and other items. These non-GAAP measures should be considered in addition to, not a substitute for, measures of financial performance prepared in accordance with GAAP.
Also attached to this Current Report on Form 8-K as Exhibit 99.2 is a reconciliation of certain non-GAAP financial measures anticipated to be discussed during our April 25, 2012 earnings conference call to the most directly comparable financial measure in accordance with GAAP. EBITDA is expected to be presented in the earnings conference call because the Companys credit facility and senior subordinated notes contain financial and other covenants which are based on or refer to the Companys 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. Adjusted EBITDA (Segment Earnings), excluding reorganization and acquisition-related integration costs, non-recurring items, the elimination of manufacturers profit in inventory, inventory write-offs, non-cash impairment charges of goodwill, intangibles and other assets, duplicative administrative costs, and loss on early extinguishment of debt, as applicable, is expected to be presented in the earnings conference call because it is a basis upon which the Companys management has assessed its financial performance in the years presented. Organic growth, net sales growth excluding the impacts of foreign exchange, significant acquisitions and exited business from year over year comparisons, is expected to be presented in the earnings conference call because the Company believes this measure provides investors with a more complete understanding of the underlying sales trends by providing net sales on a consistent basis and it is one of the measures management of the Company uses to analyze operating performance. Additionally, the Company uses non-GAAP financial measures because the Companys 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 charges of goodwill, intangibles and other assets, certain reorganization and acquisition-related integration costs, transaction and integration costs, non-cash Venezuela hyperinflationary and devaluation charges, gains and losses as a result of currency fluctuations, gain on the sale of a domestic business, non-cash stock-based compensation costs, loss on early extinguishment of debt, and other items.
The non-GAAP financial measures described above should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP that are presented in the earnings release.
The information in this Item 2.02 of this Form 8-K and Exhibits 99.1 and 99.2 attached hereto shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits. The following Exhibits are furnished herewith as part of this report:
Exhibit |
Description | |
99.1 | Press Release of Jarden Corporation, dated April 25, 2012, with respect to our financial results for the quarter ended March 31, 2012 (furnished only). | |
99.2 | Reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures (furnished only). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 25, 2012
JARDEN CORPORATION | ||||
By: | /s/ Richard T. Sansone | |||
Name: | Richard T. Sansone | |||
Title: | Executive Vice President, Finance |
EXHIBIT INDEX
Number |
Exhibit | |
99.1 | Press Release of Jarden Corporation, dated April 25, 2012, with respect to our financial results for the quarter ended March 31, 2012 (furnished only). | |
99.2 | Reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures (furnished only). |
Exhibit 99.1
![]() |
FOR: | Jarden Corporation | ||
CONTACT: | Trisha Mount | |||
Senior Vice President | ||||
914-967-9400 | ||||
Investor Relations: Allison Malkin | ||||
Press: Alecia Pulman | ||||
ICR, Inc. | ||||
203-682-8200 |
FOR IMMEDIATE RELEASE
JARDEN REPORTS RECORD FIRST QUARTER RESULTS
Organic Sales Growth of 2.9%
Gross Margin expansion of over 50 basis points
RYE, N.Y., April 25, 2012Jarden Corporation (NYSE:JAH) today reported its financial results for the quarter ended March 31, 2012.
For the quarter ended March 31, 2012:
| Organic net sales grew 2.9%; |
| Reported net sales increased approximately 1% to $1.50 billion compared to $1.48 billion for the same period in the previous year; |
| Gross margin increased 52 basis points to 28.1% compared to adjusted gross margin of 27.5%, for the same period in 2011; |
| Net income increased $0.20 per diluted share, or approximately 95%, to $35.1 million, or $0.41 per diluted share, compared to net income of $19.0 million, or $0.21 per diluted share, for the same period in 2011; and |
| Adjusted net income increased $0.07 per diluted share, or approximately 18%, to $40.0 million, or $0.47 per diluted share, compared to $35.4 million, or $0.40 per diluted share, for the same period in 2011. |
We had a strong start to the year in the first quarter, reporting our 10th consecutive quarter of organic sales growth and delivering an 18% increase in adjusted earnings per share, said Martin E. Franklin, Executive Chairman. We had organic sales growth across all of our business segments which was led by our Branded Consumables segment with over 6% organic growth for the quarter. We were also very pleased to advance the interests of our shareholders by completing the buyback of 12.1 million shares of stock during the quarter for approximately $435 million.
James E. Lillie, Chief Executive Officer commented, The organic sales and point-of-sale performance our businesses achieved during the first quarter, despite the warm winter weather, reinforces the benefit
- 1 -
of Jardens diversified portfolio of brands and products. We believe our businesses are well positioned to build on this positive momentum for the remainder of 2012 and we remain confident in our ability to meet our financial and strategic goals for the year.
Please see the schedule accompanying this release for a reconciliation of non-GAAP segment earnings, adjusted net income, adjusted basic and diluted earnings per share and organic net sales growth to the comparable GAAP measures.
The Company will be hosting a conference call at 4:45 p.m. (EDT) today, April 25, 2012, to further discuss its first quarter results. To listen to the call by telephone, please dial 888-599-4875 (domestic) or 913-312-0977 (international) and provide passcode: 7674031. The call will be simultaneously webcast at www.jarden.com. Supplemental information can be found in the For Investors section of the Companys website. A replay of the call and webcast will be available for three weeks shortly after completion of the live call. To access the replay, call 888-203-1112 (domestic) or 719-457-0820 (international) and provide passcode: 7674031 or visit www.jarden.com.
Jarden Corporation is a leading provider of a diverse range of consumer products with a portfolio of over 100 trusted, quality brands sold globally. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Aero®, Berkley®, Campingaz® and Coleman®, ExOfficio®, Fenwick®, Gulp!®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Völkl® 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®, Bernardin®, Bicycle®, Billy Boy®, Crawford®, Diamond®, Dicon®, Fiona®, First Alert®, First Essentials®, Hoyle®, Kerr®, Lehigh®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, Quickie®, Spontex® and Tigex®. Headquartered in Rye, N.Y., Jarden ranks #379 on the Fortune 500 and has over 23,000 employees worldwide. For in-depth information about Jarden, 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 Companys earnings per share and adjusted diluted earnings per share, expected or estimated revenue, segment earnings, cash flow from operations, and reorganization and other non-cash charges, the outlook for the Companys markets and the demand for its products, consistent profitable growth, free cash flow, future revenues and gross, operating and EBITDA margin improvement requirement and expansion, organic net sales growth, bank leverage ratio, the success of new product introductions, growth in costs and expenses, the impact of commodities, currencies and transportation costs and the Companys ability to manage its risk in these areas, repurchase of shares of common stock from time to time under the Companys stock repurchase program, our ability to raise new debt, and the impact of acquisitions, divestitures, restructurings, and other unusual items, including the Companys ability to integrate and obtain the anticipated results and synergies from its consummated acquisitions. These projections and statements are based on managements 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 Companys periodic and other reports filed with the Securities and Exchange Commission.
- 2 -
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Quarters ended | ||||||||||||||||||||||||
March 31, 2012 | March 31, 2011 | |||||||||||||||||||||||
As Reported (GAAP) |
Adjustments (1)(3) |
Adjusted (non-GAAP) (1)(3) |
As Reported (GAAP) |
Adjustments (1)(3) |
Adjusted (non-GAAP) (1)(3) |
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Net sales |
$ | 1,495.4 | $ | | $ | 1,495.4 | $ | 1,483.4 | $ | | $ | 1,483.4 | ||||||||||||
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Cost of sales |
1,075.8 | | 1,075.8 | 1,081.6 | (6.7 | ) | 1,074.9 | |||||||||||||||||
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Gross profit |
419.6 | | 419.6 | 401.8 | 6.7 | 408.5 | ||||||||||||||||||
Selling, general and administrative expenses |
318.0 | (4.6 | ) | 313.4 | 313.1 | (4.7 | ) | 308.4 | ||||||||||||||||
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Operating earnings |
101.6 | 4.6 | 106.2 | 88.7 | 11.4 | 100.1 | ||||||||||||||||||
Interest expense, net |
44.7 | | 44.7 | 45.1 | | 45.1 | ||||||||||||||||||
Loss on early extinguishment of debt |
| | | 12.8 | (12.8 | ) | | |||||||||||||||||
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Income before taxes |
56.9 | 4.6 | 61.5 | 30.8 | 24.2 | 55.0 | ||||||||||||||||||
Income tax provision (benefit) |
21.8 | (0.3 | ) | 21.5 | 11.8 | 7.8 | 19.6 | |||||||||||||||||
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Net income |
$ | 35.1 | $ | 4.9 | $ | 40.0 | $ | 19.0 | $ | 16.4 | $ | 35.4 | ||||||||||||
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Earnings per share: |
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Basic |
$ | 0.41 | $ | 0.47 | $ | 0.21 | $ | 0.40 | ||||||||||||||||
Diluted |
$ | 0.41 | $ | 0.47 | $ | 0.21 | $ | 0.40 | ||||||||||||||||
Weighted average shares outstanding: |
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Basic |
84.8 | 84.8 | 88.9 | 88.9 | ||||||||||||||||||||
Diluted |
85.5 | 85.5 | 89.5 | 89.5 |
See Notes to Earnings Release attached
- 3 -
JARDEN CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)
March 31, 2012 |
March 31, 2011 |
December 31, 2011 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ | 481.2 | $ | 405.6 | $ | 808.3 | ||||||
Accounts receivable, net |
1,169.0 | 1,136.6 | 1,080.5 | |||||||||
Inventories |
1,409.6 | 1,494.1 | 1,274.4 | |||||||||
Deferred taxes on income |
182.4 | 175.6 | 181.6 | |||||||||
Prepaid expenses and other current assets |
151.8 | 161.8 | 148.7 | |||||||||
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Total current assets |
3,394.0 | 3,373.7 | 3,493.5 | |||||||||
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Property, plant and equipment, net |
616.5 | 655.7 | 615.9 | |||||||||
Goodwill |
1,718.3 | 1,753.9 | 1,717.1 | |||||||||
Intangible assets, net |
1,155.0 | 1,183.1 | 1,156.5 | |||||||||
Other assets |
134.3 | 129.6 | 133.7 | |||||||||
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Total assets |
$ | 7,018.1 | $ | 7,096.0 | $ | 7,116.7 | ||||||
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Liabilities and stockholders equity |
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Current liabilities: |
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Short-term debt and current portion of long-term debt |
$ | 483.5 | $ | 162.2 | $ | 269.3 | ||||||
Accounts payable |
589.1 | 619.3 | 557.5 | |||||||||
Accrued salaries, wages and employee benefits |
158.7 | 147.2 | 181.1 | |||||||||
Taxes on income |
12.1 | 20.6 | 22.3 | |||||||||
Other current liabilities |
411.4 | 479.3 | 433.5 | |||||||||
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Total current liabilities |
1,654.8 | 1,428.6 | 1,463.7 | |||||||||
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Long-term debt |
2,960.0 | 3,032.7 | 2,890.1 | |||||||||
Deferred taxes on income |
509.5 | 460.9 | 507.8 | |||||||||
Other non-current liabilities |
333.0 | 327.6 | 343.1 | |||||||||
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Total liabilities |
5,457.3 | 5,249.8 | 5,204.7 | |||||||||
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Total stockholders equity |
1,560.8 | 1,846.2 | 1,912.0 | |||||||||
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Total liabilities and stockholders equity |
$ | 7,018.1 | $ | 7,096.0 | $ | 7,116.7 | ||||||
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See Notes to Earnings Release attached
- 4 -
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Quarters ended | ||||||||
March 31, 2012 |
March 31, 2011 |
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Cash flows from operating activities: |
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Net income |
$ | 35.1 | $ | 19.0 | ||||
Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization |
35.9 | 40.1 | ||||||
Debt extinguishment costs |
| 12.8 | ||||||
Other non-cash items |
21.5 | 11.4 | ||||||
Changes in assets and liabilities, net of effects from acquisitions: |
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Accounts receivable |
(90.6 | ) | (48.5 | ) | ||||
Inventory |
(121.5 | ) | (183.4 | ) | ||||
Accounts payable |
26.6 | 38.8 | ||||||
Other current assets and liabilities |
(54.4 | ) | (57.5 | ) | ||||
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Net cash used in operating activities |
(147.4 | ) | (167.3 | ) | ||||
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Cash flows from financing activities: |
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Net change in short-term debt |
88.9 | 6.1 | ||||||
Proceeds from issuance of senior debt |
300.2 | 1,025.0 | ||||||
Payments on long-term debt |
(113.1 | ) | (1,086.9 | ) | ||||
(Repurchase of)/Proceeds from common stock, net |
(435.3 | ) | (32.3 | ) | ||||
Debt issuance costs |
(3.2 | ) | (10.2 | ) | ||||
Dividends paid |
(7.5 | ) | (7.3 | ) | ||||
Other |
5.6 | | ||||||
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Net cash used in financing activities |
(164.4 | ) | (105.6 | ) | ||||
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Cash flows from investing activities: |
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Additions to property, plant and equipment |
(23.3 | ) | (27.0 | ) | ||||
Other |
| 1.0 | ||||||
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Net cash used in investing activities |
(23.3 | ) | (26.0 | ) | ||||
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Effect of exchange rate changes on cash and cash equivalents |
8.0 | 9.1 | ||||||
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Net decrease in cash and cash equivalents |
(327.1 | ) | (289.8 | ) | ||||
Cash and cash equivalents at beginning of period |
808.3 | 695.4 | ||||||
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Cash and cash equivalents at end of period |
$ | 481.2 | $ | 405.6 | ||||
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See Notes to Earnings Release attached
- 5 -
JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)
(in millions)
Outdoor Solutions |
Consumer Solutions |
Branded Consumables |
Process Solutions |
Intercompany Eliminations (a) |
Total Operating Segments |
Corporate/ Unallocated |
Consolidated | |||||||||||||||||||||||||
Quarter ended March 31, 2012 |
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Net sales |
$ | 670.1 | $ | 347.9 | $ | 402.6 | $ | 91.8 | $ | (17.0 | ) | $ | 1,495.4 | $ | | $ | 1,495.4 | |||||||||||||||
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Segment earnings (loss) |
$ | 71.6 | $ | 43.6 | $ | 52.1 | $ | 12.0 | $ | | $ | 179.3 | $ | (41.8 | ) | $ | 137.5 | |||||||||||||||
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Adjustments to reconcile to reported operating earnings (loss): |
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Depreciation and amortization |
(13.8 | ) | (7.1 | ) | (11.4 | ) | (3.0 | ) | | (35.3 | ) | (0.6 | ) | (35.9 | ) | |||||||||||||||||
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Operating earnings (loss) |
$ | 57.8 | $ | 36.5 | $ | 40.7 | $ | 9.0 | $ | | $ | 144.0 | $ | (42.4 | ) | $ | 101.6 | |||||||||||||||
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Outdoor Solutions |
Consumer Solutions |
Branded Consumables |
Process Solutions |
Intercompany Eliminations (a) |
Total Operating Segments |
Corporate/ Unallocated |
Consolidated | |||||||||||||||||||||||||
Quarter ended March 31, 2011 |
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Net sales |
$ | 677.5 | $ | 346.8 | $ | 386.0 | $ | 89.0 | $ | (15.9 | ) | $ | 1,483.4 | $ | | $ | 1,483.4 | |||||||||||||||
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Segment earnings (loss) |
$ | 64.7 | $ | 46.6 | $ | 47.4 | $ | 9.8 | $ | | $ | 168.5 | $ | (34.4 | ) | $ | 134.1 | |||||||||||||||
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Adjustments to reconcile to reported operating earnings (loss): |
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Fair value adjustment to inventory |
| | (5.3 | ) | | | (5.3 | ) | | (5.3 | ) | |||||||||||||||||||||
Depreciation and amortization |
(14.7 | ) | (7.2 | ) | (14.6 | ) | (3.0 | ) | | (39.5 | ) | (0.6 | ) | (40.1 | ) | |||||||||||||||||
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Operating earnings (loss) |
$ | 50.0 | $ | 39.4 | $ | 27.5 | $ | 6.8 | $ | | $ | 123.7 | $ | (35.0 | ) | $ | 88.7 | |||||||||||||||
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(a) | Intersegment sales are recorded at cost plus an agreed-upon intercompany profit on intersegment sales. |
- 6 -
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 quarters ended March 31, 2012 and 2011. For the quarter ended March 31, 2012, adjustments to net income included $4.6 million of amortization of acquired intangible assets and the tax provision adjustment of $0.3 million, which reflects the normalization of the adjusted results to the Companys estimated 35% effective tax rate.
For the quarter ended March 31, 2011, adjustments to net income consist of $6.7 million primarily associated with the manufacturers profit in inventory charged to cost of sales which is the purchase accounting fair value adjustment to inventory associated with the Quickie acquisition; $12.8 million of a non-cash write-off of deferred debt issue costs and $4.7 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the quarter ended March 31, 2011 is the tax provision adjustment of $7.8 million which reflects the normalization of the adjusted results to the Companys estimated 35.5% effective tax rate.
Note 2: Organic net sales growth is a non-GAAP measure of net sales growth excluding the impacts of foreign exchange, significant acquisitions, and exited business from year-over-year comparisons. The Company believes this measure provides investors with a more complete understanding of the underlying sales trends by providing net sales on a consistent basis. Organic net sales growth is also one of the measures used by management to analyze operating performance. The following table provides a reconciliation of organic net sales growth to the comparable GAAP measure of net sales growth for the quarter ended March 31, 2012:
Branded Consumables |
Jarden Corporation |
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Reconciliation of Non- GAAP measure |
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Net sales growth |
4.3 | % | 0.8 | % | ||||
Foreign exchange impacts |
1.9 | % | 1.0 | % | ||||
(Acquisitions)/exited business, net |
| % | 1.1 | % | ||||
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Organic net sales growth |
6.2 | % | 2.9 | % | ||||
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Note 3: This earnings release contains non-GAAP financial measures that may not be directly comparable to other similarly titled measures used by other companies. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a companys 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 Companys 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 Companys 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, intangibles and other assets, certain reorganization and acquisition-related integration costs, transaction and integration costs, non-cash Venezuela hyperinflationary and devaluation charges, gains and losses as a result of currency fluctuations, gain on the sale of the domestic business, non-cash stock-based compensation costs, loss on early extinguishment of debt and other items. These non-GAAP measures should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP.
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- 7 -
Exhibit 99.2
JARDEN CORPORATION
Reconciliation of GAAP to NON GAAP
For the quarters ended March 31, 2012 and 2011
Quarters ended | ||||||||
(in millions) |
March 31, 2012 |
March 31, 2011 |
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Reconciliation of Non-GAAP measure: |
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Net income |
$ | 35.1 | $ | 19.0 | ||||
Income tax provision |
21.8 | 11.8 | ||||||
Interest expense, net |
44.7 | 45.1 | ||||||
Loss on early extinguishment of debt |
| 12.8 | ||||||
Depreciation and amortization |
35.9 | 40.1 | ||||||
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Earnings before interest, taxes, depreciation and amortization (EBITDA) |
137.5 | 128.8 | ||||||
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Other adjustments: |
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Fair market value adjustment to inventory |
| 5.3 | ||||||
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AS ADJUSTED EBITDA (Segment Earnings) |
$ | 137.5 | $ | 134.1 | ||||
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Organic net sales growth is a non-GAAP measure of net sales growth excluding the impacts of foreign exchange, significant acquisitions and exited business from year-over-year comparisons. The Company believes this measure provides investors with a more complete understanding of the underlying sales trends by providing net sales on a consistent basis. Organic net sales growth is also one of the measures used by management to analyze operating performance. The following table provides a reconciliation of organic net sales growth to the comparable GAAP measure of net sales growth for the quarter ended March 31, 2012:
For the quarter ending March 31, 2012 | ||||||||||||||||||||||||
Outdoor Solutions |
Consumer Solutions |
Branded Consumables |
Process Solutions |
Elimination | Consolidated | |||||||||||||||||||
Reconciliation of Non-GAAP measure: |
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Net sales growth |
(1.1 | %) | 0.3 | % | 4.3 | % | 3.2 | % | 6.9 | % | 0.8 | % | ||||||||||||
Foreign exchange impacts |
0.7 | % | 0.5 | % | 1.9 | % | 0.2 | % | | % | 1.0 | % | ||||||||||||
(Acquisitions)/Exit of business |
2.0 | % | 0.8 | % | | % | | % | | % | 1.1 | % | ||||||||||||
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Organic net sales growth |
1.6 | % | 1.6 | % | 6.2 | % | 3.4 | % | 6.9 | % | 2.9 | % | ||||||||||||
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