[GRAPHIC OMITTED][GRAPHIC OMITTED]
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 THIRD QUARTER SALES AND EARNINGS
~ Diluted Earnings Per Share of $0.79 ~
RYE, NY - October 29, 2004 - Jarden Corporation (NYSE:JAH) today reported
its financial results for the three and nine months ended September 30, 2004.
For the third quarter of 2004, net sales increased 46% to $244.6 million,
compared to $168.0 million for the same quarter last year. Third quarter net
income increased 46% to $22.3 million, or $0.79 per diluted share, compared to
net income of $15.2 million, or $0.69 per diluted share for the same quarter
last year. Current year amounts include the results of operations from the
Lehigh and the United States Playing Cards businesses, which were acquired in
September 2003 and June 2004, respectively.
For the nine months ended September 30, 2004, net sales increased 52% to
$601.9 million, compared with $396.2 million for the same period in 2003. For
the nine months ended September 30, 2004, net income increased 56% to $45.8
million, or $1.62 per diluted share, compared to net income of $29.4 million, or
$1.33 per diluted share. Current year amounts include the results of operations
from the Lehigh and the United States Playing Cards businesses, which were
acquired in September 2003 and June 2004, respectively.
Martin E. Franklin, Chairman and Chief Executive Officer, commented, "We
are delighted to report another record quarter of sales, operating profits and
earnings per share. Our branded consumables business continued to report strong
top line organic growth, driven by our new product launches, while the other
business segments reported a solid quarterly performance. Margins were impacted
by rising raw material costs, but overall the businesses worked hard to minimize
the
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impact of these increases on the bottom line. Cash flow in the quarter was
strong and we anticipate seeing continuing strong cash flow from operations
during the fourth quarter."
Mr. Franklin continued, "The American Household transaction remains on
course to close in the first quarter of 2005 and we are expending considerable
time and energy on planning for the successful integration of the Coleman and
Sunbeam businesses into Jarden. There is real excitement in both companies about
the opportunities the transaction should bring to them in 2005 and beyond."
The Company will be holding a conference call at 10:00 AM (EDT) today,
October 29, 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.
In September 2004, Jarden signed a definitive agreement to acquire American
Household, Inc.; this transaction is expected to close in early 2005. American
Household designs, manufactures and markets globally a diverse portfolio of
durable consumer products. Through its subsidiaries, The Coleman Company, Inc.
and Sunbeam Products, Inc., American Household produces products under
well-known brand names including BRK(R), Campingaz(R), Coleman(R), First
Alert(R), Health o meter(R), Mr. Coffee(R), Oster(R) and Sunbeam(R).
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 product, future cash flows from operations, the expected closing
of the American Household, Inc. acquisition and the effect of such transaction
on Jarden in the future. 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
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Unaudited Unaudited
Three Months Ended Nine Months Ended
------------------------------------- -----------------------------------
September 30, September 30, September September
2004 2003 30, 2004 30, 2003
---------------- ---------------- --------------- ---------------
(Note 1) (Note 1)
Net sales $ 244,580 $ 167,962 $ 601,939 $ 396,177
Costs and expenses:
Cost of sales 159,507 104,799 404,326 251,151
Selling, general and administrative expenses 41,669 33,087 104,391 83,405
---------------- ---------------- --------------- ---------------
Operating earnings 43,404 30,076 93,222 61,621
Interest expense, net 7,560 5,083 19,255 13,302
---------------- ---------------- --------------- ---------------
Income before taxes 35,844 24,993 73,967 48,319
Income tax provision 13,565 9,747 28,128 18,891
---------------- ---------------- --------------- ---------------
Net income $ 22,279 $ 15,246 $ 45,839 $ 29,428
================ ================ =============== ===============
Basic earnings per share $ 0.82 $ 0.71 $ 1.69 $ 1.38
Diluted earnings per share $ 0.79 $ 0.69 $ 1.62 $ 1.33
Weighted average shares outstanding:
Basic 27,227 21,379 27,148 21,369
Diluted 28,269 22,107 28,251 22,119
Reconciliation of Non-GAAP measurement:
Net income $ 22,279 $ 15,246 $ 45,839 $ 29,428
Income tax provision 13,565 9,747 28,128 18,891
Interest expense, net 7,560 5,083 19,255 13,302
Depreciation and amortization 5,920 4,261 14,756 11,491
---------------- ---------------- --------------- ---------------
Earnings before interest, taxes, depreciation and
amortization (EBITDA) (Note 2) $ 49,324 $ 34,337 $ 107,978 $ 73,112
================ ================ =============== ===============
See Notes to Earnings Release Attached.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
------------------ -----------------
September 30, December 31,
2004 2003
------------------ -----------------
Assets
Current assets
Cash and cash equivalents $ 18,506 $ 125,400
Accounts receivable, net 134,665 92,777
Inventories, net 156,242 105,573
Other current assets 28,644 23,369
------------------ -----------------
Total current assets 338,077 347,119
------------------ -----------------
Non-current assets
Property, plant and equipment, net 98,618 79,119
Intangibles, net 574,904 315,826
Other assets 20,242 17,610
------------------ -----------------
Total assets $ 1,031,841 $ 759,674
================== =================
Liabilities and stockholders' equity
Current liabilities
Short-term debt and current portion of long-term debt $ 16,321 $ 17,512
Accounts payable 39,795 34,211
Deferred consideration for acquisitions 43,049 -
Other current liabilities 75,106 53,357
------------------ -----------------
Total current liabilities 174,271 105,080
------------------ -----------------
Non-current liabilities
Long-term debt 476,552 369,870
Other non-current liabilities 78,750 34,819
------------------ -----------------
Total non-current liabilities 555,302 404,689
------------------ -----------------
Stockholders' equity 302,268 249,905
------------------ -----------------
Total liabilities and stockholders' equity $ 1,031,841 $ 759,674
================== =================
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Unaudited
Nine Months Ended
----------------------------------
September 30, September 30,
2004 2003
----------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 45,839 $ 29,428
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization 14,756 11,491
Other non-cash items 8,483 7,032
Changes in working capital components (41,041) (423)
----------------- ----------------
Net cash provided by operating activities 28,037 47,528
----------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit borrowings 18,200 78,000
Payments on revolving credit borrowings (18,200) (78,000)
Proceeds from bond issuance - 31,950
Proceeds from issuance of senior debt 116,000 160,000
Payments on long term debt (9,177) (5,296)
Payments on seller notes (5,400) (10,000)
Proceeds from issuance of common stock, net of underwriting
fees and related expenses 2,487 113,933
Debt issue and amendment costs (2,213) (5,772)
Other - 2,231
----------------- ----------------
Net cash provided by financing activities 101,697 287,046
----------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (7,265) (9,460)
Acquisition of businesses, net of cash acquired (228,876) (253,278)
Other, net (487) -
----------------- ----------------
Net cash (used in) investing activities (236,628) (262,738)
----------------- ----------------
NET (DECREASE) INCREASE IN CASH (106,894) 71,836
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779
----------------- ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 18,506 $ 128,615
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Jarden Corporation
Net Sales and Operating Earnings by Segment
(in thousands)
Unaudited Unaudited
Three Months Ended Nine Months Ended
---------------------------------- ----------------------------------
September September September September 30,
30, 2004 30, 2003 30, 2004 2003
--------------- --------------- -------------- ----------------
Net sales:
Branded consumables $ 152,317 $ 81,593 $ 349,935 $ 181,974
Consumer solutions 58,152 55,364 139,506 130,913
Plastic consumables 31,429 30,136 99,611 80,368
Other 15,483 11,841 54,198 29,713
Intercompany elimination (12,801) (10,972) (41,311) (26,791)
--------------- --------------- -------------- ---------------
Total net sales $ 244,580 $ 167,962 $ 601,939 $ 396,177
=============== =============== ============== ===============
Operating earnings:
Branded consumables $ 30,619 $ 16,263 $ 59,374 $ 29,390
Consumer solutions 9,510 11,219 19,319 22,683
Plastic consumables 1,334 1,590 7,298 6,674
Other 1,991 1,199 7,545 4,115
Intercompany elimination (50) (195) (314) (1,241)
--------------- --------------- -------------- ---------------
Total operating earnings $ 43,404 $ 30,076 $ 93,222 $ 61,621
=============== =============== ============== ===============
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.
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