[JARDEN CORPORATION LOGO]
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/Alecia Pulman
Financial Dynamics
FOR IMMEDIATE RELEASE 212-850-5600
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JARDEN CORPORATION REPORTS 2004 YEAR END AND FOURTH QUARTER RESULTS
RYE, NY - FEBRUARY 17, 2005 - JARDEN CORPORATION (NYSE:JAH) today reported
its financial results for the year ended December 31, 2004 and the fourth
quarter of 2004, which included record sales and operating earnings for the
year.
For the year ended December 31, 2004, net sales increased 42.7% to $838.6
million, compared with $587.7 million in 2003. Including the non-cash restricted
stock charges and related tax benefits described below, net income for 2004 was
$42.4 million, or $1.49 per diluted share and net income for 2003 was $31.8
million, or $1.35 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.
For the fourth quarter of 2004, net sales increased 23.6% to $236.7 million
compared to $191.5 million for the same quarter last year. Net loss was $3.4
million or $0.12 per diluted share for the fourth quarter of 2004, which
includes the pre-tax effect of a non-cash restricted stock charge of $32.4
million and the related tax benefit. This compares to net income of $2.3 million
or $0.09 per diluted share in the fourth quarter of 2003, which includes the
pre-tax effect of a non-cash restricted stock charge of $21.8 million and the
related tax benefit. Current year amounts include the results of operations from
the United States Playing Cards business which was acquired in June 2004.
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Martin E. Franklin, Chairman and Chief Executive Officer, commented, "2004
was another exceptional year for Jarden both financially and strategically, as
we continue to move towards our goal of building a world class consumer products
company. Sales in the fourth quarter were strong, led by demand for our
Bicycle(R) and Bee(R) playing cards and related products and our FoodSaver(R)
home vacuum packaging machines. Operationally the businesses positioned
themselves for continued growth in 2005, while also leveraging our resources to
mitigate the impact of raw material price increases. Cash flow for the quarter
was strong, resulting in annual cash flow from operations in excess of $70
million."
Mr. Franklin concluded, "With the closing of the American Household
transaction in January 2005, we are excited by the tremendous opportunities the
addition of such brands as Coleman(R), First Alert(R), Mr. Coffee(R), Oster(R)
and Sunbeam(R) will bring to Jarden. Morale in the company is high as both
management and employees recognize the cross-selling and cost saving
opportunities that exist in our expanded group. We are focused on executing our
strategic plan and are optimistic about our prospects for 2005 and beyond."
The Company will be holding a conference call at 9:45 A.M. (Eastern Time)
today, February 17, 2005, 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 March 3, 2005.
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),
Bicycle(R), Campingaz(R), Coleman(R), Crawford(R), Diamond(R), First Alert(R),
FoodSaver(R), Forster(R), Health o meter(R), Hoyle(R), Kerr(R), Lehigh(R),
Leslie-Locke(R), Loew-Cornell(R), Mr. Coffee(R), Oster(R), Sunbeam(R) and
VillaWare(R). Jarden operates through four business segments: Branded
Consumables, Consumer Solutions, Outdoor Solutions and Other. Headquartered in
Rye, N.Y., Jarden has over 9,000 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 outlook for Jarden's markets and the
demand for its products, future cash flows from operations, Jarden's future
revenues and margin requirements, growth in costs and expenses and the impact of
acquisitions, divestitures, restructurings and other unusual items, including
our ability to integrate and obtain the anticipated results and synergies from
our acquisition of AHI. 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 OPERATIONS
(in thousands, except per share data)
THREE MONTHS ENDED YEAR ENDED
------------------------------------- -----------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
---------------- ---------------- --------------- ---------------
Net sales $ 236,670 $ 191,480 $ 838,609 $ 587,657
Costs and expenses:
Cost of sales 158,884 123,463 563,210 374,614
Selling, general and administrative expenses 42,510 36,355 146,901 119,760
Non-cash restricted stock charges 32,415 21,833 32,415 21,833
---------------- ---------------- --------------- ---------------
Operating earnings 2,861 9,829 96,083 71,450
Interest expense, net 8,353 5,883 27,608 19,184
---------------- ---------------- --------------- ---------------
(Loss) income before taxes (5,492) 3,946 68,475 52,266
Income tax benefit (provision) 2,087 (1,597) (26,041) (20,488)
---------------- ---------------- --------------- ---------------
Net (loss) income $ (3,405) $ 2,349 $ 42,434 $ 31,778
================ ================ =============== ===============
Basic (loss) earnings per share $ (0.12) $ 0.09 $ 1.55 $ 1.40
Diluted (loss) earnings per share $ (0.12) $ 0.09 $ 1.49 $ 1.35
Weighted average shares outstanding:
Basic 27,962 26,505 27,353 22,663
Diluted 29,062 27,514 28,455 23,531
Note: Certain prior year amounts in the financial statements have been
reclassified to conform to the 2004 presentation. These reclassifications have
no impact on previously reported net income.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
------------------ -----------------
DECEMBER 31, DECEMBER 31,
2004 2003
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ASSETS
Current assets
Cash and cash equivalents $ 20,665 $ 125,400
Accounts receivable, net 127,468 92,777
Inventories, net 154,180 105,573
Other current assets 32,749 23,369
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Total current assets 335,062 347,119
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Non-current assets
Property, plant and equipment, net 85,429 79,119
Intangibles, net 602,383 315,826
Other assets 19,507 17,610
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Total assets $ 1,042,381 $ 759,674
================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 16,951 $ 17,512
Accounts payable 48,910 34,211
Deferred consideration for acquisitions 28,995 2,833
Other current liabilities 58,835 50,524
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Total current liabilities 153,691 105,080
------------------ -----------------
Non-current liabilities
Long-term debt 470,500 369,870
Other non-current liabilities 84,239 34,819
------------------ -----------------
Total non-current liabilities 554,739 404,689
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Stockholders' equity 333,951 249,905
------------------ -----------------
Total liabilities and stockholders' equity $ 1,042,381 $ 759,674
================== =================
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
YEAR ENDED
----------------------------------
DECEMBER 31, DECEMBER 31,
2004 2003
----------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 42,434 $ 31,778
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization 19,175 15,045
Other non-cash items 43,295 31,134
Changes in working capital components (34,489) (4,136)
----------------- ----------------
Net cash provided by operating activities 70,415 73,821
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit borrowings 72,250 78,000
Payments on revolving credit borrowings (72,254) (78,000)
Proceeds from bond issuance - 31,950
Proceeds from issuance of senior debt 116,000 160,000
Payments on long term debt (13,684) (7,941)
Payments on seller notes (5,400) (10,000)
Proceeds from issuance of common stock, net of underwriting
fees and related expenses 3,406 114,469
Debt issue and amendment costs (2,252) (5,913)
Other - 2,231
----------------- ----------------
Net cash provided by financing activities 98,066 284,796
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (10,761) (12,822)
Acquisition of businesses, net of cash acquired (258,008) (277,259)
Prepaid transaction costs (3,976) (23)
Other, net (471) 108
----------------- ----------------
Net cash (used in) investing activities (273,216) (289,996)
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NET (DECREASE) INCREASE IN CASH (104,735) 68,621
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779
----------------- ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 20,665 $ 125,400
================= ================
Note: Certain prior year amounts in the financial statements have been
reclassified to conform to the 2004 presentation.
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JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT
(in thousands)
THREE MONTHS ENDED YEAR ENDED
---------------------------------- ----------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER DECEMBER 31,
2004 2003 31, 2004 2003
--------------- --------------- -------------- ----------------
Net sales:
Branded consumables $ 123,137 $ 75,895 $ 473,073 $ 257,869
Consumer solutions 82,679 85,211 222,185 216,123
Plastic consumables 28,505 28,688 128,115 109,056
Other 13,288 13,089 67,486 42,802
Intercompany elimination (10,939) (11,403) (52,250) (38,193)
--------------- --------------- -------------- ---------------
Total net sales $ 236,670 $ 191,480 $ 838,609 $ 587,657
=============== =============== ============== ===============
Operating earnings:
Branded consumables $ 16,311 $ 7,131 $ 75,685 $ 36,521
Consumer solutions 17,702 19,867 37,021 42,550
Plastic consumables (609) 2,877 6,689 9,551
Other 1,472 1,416 9,017 5,531
Intercompany 400 371 86 (870)
Unallocated corporate expense (1) (32,415) (21,833) (32,415) (21,833)
--------------- --------------- -------------- ---------------
Total operating earnings $ 2,861 $ 9,829 $ 96,083 $ 71,450
=============== =============== ============== ===============
(1) Unallocated corporate expense is comprised of the non-cash restricted stock
charges.
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