EX-99.2 3 d867083dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

LOGO

 

 

  

JARDEN CORPORATION

Reconciliation of Non-GAAP Financial Measures

For the quarters and years ended December 31, 2014 and 2013

in millions

  
  
  
  

Segment earnings:

 

     For the quarters ended      For the years ended  
     December 31,
2014
     December 31,
2013
     December 31,
2014
     December 31,
2013
 

Net income

   $ 78.1       $ 37.0       $ 242.5       $ 203.9   

Income tax provision

     25.3         53.4         130.3         147.7   

Interest expense, net

     50.7         52.1         210.3         195.4   

Loss on early extinguishment of debt

     2.3         —           56.7         25.9   

Depreciation and amortization

     50.3         50.1         191.1         165.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings before interest, taxes, depreciation and amortization (EBITDA)

     206.7         192.6         830.9         738.8   

Other adjustments:

           

Fair market value adjustment to inventory

     9.8         78.9         23.4         89.8   

Restructuring costs, net

     4.6         17.6         7.7         22.0   

Acquisition-related and other costs, net (a)

     6.6         10.8         42.0         17.6   

Foreign exchange-related charges (b)

     157.7         —           174.6         29.0   

Stock compensation adjustment

     —           38.8         —           38.8   

Impairment of intangible assets

     25.4         —           25.4         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment earnings (As Adjusted EBITDA)

   $ 410.8       $ 338.7       $ 1,104.0       $ 936.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Includes a gain of $38.7 million related to the sale of an Asian manufacturing operation.
(b) Foreign exchange-related losses on Venezuela balance sheet remeasurement charge and cash conversion costs in 2014. Venezuela devaluation-related charges in 2013


Segment earnings margins:

 

     For the quarters ended     For the years ended  
     December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
    December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
 

Net sales

   $ 2,438.0      $ 2,215.6        $ 8,287.1      $ 7,355.9     

Segment earnings

     410.8        338.7        72.1        1,104.0        936.0        168.0   

Segment earnings margin

     16.8     15.3     1.5     13.3     12.7     0.6

Organic net sales:

Organic net sales growth is a non-GAAP measure of net sales growth excluding the impacts of foreign exchange, certain acquisitions and exited businesses 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 tables provide reconciliation of organic net sales growth to the comparable GAAP measure of net sales growth for the quarter and year ended December 31, 2014:

 

     For the quarter ended December 31, 2014  
     Branded
Consumables
    Consumer
Solutions
    Outdoor
Solutions
    Process
Solutions
    Eliminations     Consolidated  

Net sales growth

     11.6     16.2     0.5     12.6     9.0     10.0

Foreign exchange impacts

     2.6     2.6     4.1     0.1     —          3.0

(Acquisitions)/exited businesses and other, net

     (0.8 )%      (3.9 )%      —          —          —          (1.6 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Organic net sales growth

     13.4     14.9     4.6     12.7     9.0     11.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Excluding impact of Cadence

     —          (5.0 )%      —          —          —          (1.6 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Organic net sales growth, excluding impact of Cadence

     13.4     9.9     4.6     12.7     9.0     9.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the year ended December 31, 2014  
     Branded
Consumables
    Consumer
Solutions
    Outdoor
Solutions
    Process
Solutions
    Eliminations     Consolidated  

Net sales growth

     32.1     8.4     0.5     5.9     7.8     12.7

Foreign exchange impacts

     1.3     1.8     1.4     (0.3 )%      —          1.4

(Acquisitions)/exited businesses and other, net

     (24.5 )%      (2.3 )%      —          —          —          (8.3 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Organic net sales growth

     8.9     7.9     1.9     5.6     7.8     5.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Excluding impact of Cadence

     —          (3.3 )%      —          —          —          (0.9 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Organic net sales growth, excluding impact of Cadence

     8.9     4.6     1.9     5.6     7.8     4.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Adjusted gross margins:

 

     For the quarters ended     For the years ended  
     December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
    December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
 

Gross margins as reported

     34.6     28.6     6.0     31.8     28.7     3.1

Fair market value adjustment to inventory

     0.4     3.5     (3.1 )%      0.3     1.2     (0.9 )% 

Acquisition-related and other costs, net

     (0.5 )%      0.8     (1.3 )%      0.1     0.3     (0.2 )% 

Accelerated depreciation

     —          0.1     (0.1 )%      —          0.1     (0.1 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross margins

     34.5     33.0     1.5     32.2     30.3     1.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted selling, general administrative costs as a percent of sales:

 

     For the quarters ended     For the years ended  
     December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
    December 31,
2014
    December 31,
2013
    Increase/
(Decrease)
 

Reported selling, general and administrative cost as a percent of sales

     26.9     21.4     5.5     23.7     20.7     3.0

Acquisition-related and other costs, net

     (0.8 )%      0.3     (1.1 )%      (0.4 )%      —          (0.4 )% 

Foreign-exchange related charges

     (6.4 )%      —          (6.4 )%      (2.1 )%      (0.4 )%      (1.7 )% 

Stock compensation adjustment

     —          (1.7 )%      1.7     —          (0.5 )%      0.5

Amortization of acquired intangibles

     (0.3 )%      (0.3 )%      —          (0.4 )%      (0.4 )%      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted selling, general and administrative cost as a percent of sales

     19.4     19.7     (0.3 )%      20.8     19.4     1.4