[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
- ---------------------
JARDEN CORPORATION REPORTS SECOND QUARTER RESULTS
RYE, NY - July 28, 2005 - Jarden Corporation (NYSE:JAH) today reported its
financial results for the three and six months ended June 30, 2005. All per
share and share amounts in this announcement reflect the impact of the
three-for-two stock split distributed on July 11, 2005 to shareholders of record
as of June 20, 2005.
Second quarter net sales increased 279% to $754 million compared to
$199 million for the same period last year. Net income for the second quarter of
2005 increased by 104% to $32.8 million from $16.0 million for the same period
last year. Income allocable to common stockholders for the second quarter of
2005 was $5.7 million or $0.12 per diluted share, compared to $0.38 per diluted
share in the prior year period. On a non-GAAP basis, adjusted net income was
$36.5 million or $0.58 per diluted share for the three months ended June 30,
2005. Please see the schedule accompanying this release for the reconciliation
of GAAP to non-GAAP net income and diluted earnings per common share. Current
year amounts include the results of operations from the American Household and
the United States Playing Cards businesses, which were acquired in January 2005
and June 2004, respectively.
Martin E. Franklin, Chairman and Chief Executive Officer, commented, "The
second quarter was a pivotal quarter for Jarden as it showed for the first time
the results of our integration efforts following the American Household
transaction, highlighted by expanding gross margins, positive cash flow and
balance sheet improvements. A tremendous amount of work went into making this
the strongest quarter ever reported by the
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company and our operating management teams did a remarkable job of staying
focused to deliver organic sales growth, as well as a strong bottom line."
For the six months ended June 30, 2005, net sales increased 257% to $1,276
million compared to $357 million for the same period last year. Net income for
the six months ended June 30, 2005 increased 39.4% to $32.8 million from $23.6
million for the same period last year. Loss attributable to common stockholders
was $14.4 million or $0.33 per share for the six months ended June 30, 2005,
compared to income of $0.56 per diluted share in the prior year period. On a
non-GAAP basis, adjusted net income was $52.2 million or $0.83 per share for the
six months ended June 30, 2005.
Mr. Franklin added, "Our strong performance in the first half of the year
has positioned Jarden for a successful second half, where we will continue to
focus on introducing new products, expanding our margins and generating record
levels of cash flow from operations. In addition to the momentum we built during
the second quarter, we will have the benefit of the Holmes Group acquisition
from July 18, 2005, including not only its earnings and cash flow, but also the
synergistic opportunities it brings to our Consumer Solutions segment this year
and beyond."
The Company will be holding a conference call at 10:30 AM (EDT) today,
July 28, 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 August 11, 2005.
Jarden Corporation is a leading provider of niche consumer products used
in and around the home. Jarden operates in three primary business segments
through a number of well recognized brands, including; Branded Consumables:
Ball(r), Bee(r), Bicycle(r), Crawford(r), Diamond(r), Forster(r), Hoyle(r),
Kerr(r), Lehigh(r), Leslie-Locke(r) and Loew-Cornell(r); Consumer Solutions:
Bionaire(r), Crock-Pot(r), First Alert(r), FoodSaver(r), Harmony(r), Health o
meter(r), Holmes(r), Mr. Coffee(r), Oster(r), Patton(r), Rival(r),
Seal-a-Meal(r), Sunbeam(r), VillaWare(r) and White Mountain(tm); and Outdoor
Solutions: Campingaz(r) and Coleman(r). Headquartered in Rye, N.Y., Jarden has
over 16,000 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, future revenues and
margin requirement and expansion, 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
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
<TABLE>
-----------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30,
-----------------------------------------------------------------------
2005 2004
--------------------------------------------------- ----------------
AS REPORTED AS ADJUSTED AS REPORTED
(GAAP) ADJUSTMENTS NON-GAAP (GAAP)
(5) (1)(4) (1)(4)(5) (2)(3)(5)
--------------- --------------- ---------------- ----------------
Net sales........................................ $ 754,329 $ - $ 754,329 $ 199,035
Costs and expenses:
Cost of sales................................. 557,831 - 557,831 131,236
--------------- --------------- ---------------- ----------------
Gross profit.................................. 196,498 - 196,498 67,799
Selling, general and administrative expenses.. 118,630 - 118,630 35,757
Reorganization and acquisition-related
integration costs........................... 5,878 (5,878) - -
--------------- --------------- ---------------- ----------------
Operating earnings............................... 71,990 (5,878) 77,868 32,042
Interest expense, net............................ 19,075 - 19,075 6,075
Loss on early extinguishment of debt............. - - - -
--------------- --------------- ---------------- ----------------
Income before taxes.............................. 52,915 5,878 58,793 25,967
Income tax provision............................. 20,108 2,234 22,342 9,920
--------------- --------------- ---------------- ----------------
Net income....................................... 32,807 $ 3,644 $ 36,451 16,047
=============== ================
Paid in-kind dividends on Series B & C preferred
stock............................................ (2,825) -
Charge from beneficial conversion on Series C
preferred stock............................... (22,411) -
--------------- ----------------
Income available to common stockholders.......... 7,571 $ 16,047
================
Less: income allocable to preferred stockholders. (1,869)
---------------
Income allocable to common stockholders.......... $ 5,702
===============
Basic earnings per share......................... $ 0.13 $ 0.39
Diluted earnings per share....................... $ 0.12 $ 0.38
Weighted average shares outstanding:
Basic......................................... 43,997 40,757
Diluted....................................... 45,767 42,438
Net income (from above).......................... $ 32,807 $ 3,644 $ 36,451 $ 16,047
--------------- --------------- ---------------- ----------------
Diluted weighted average shares outstanding...... 45,767 45,767 42,438
Add back: Conversion of Series B preferred stock
and accrued dividends thereon into common
stock ........................................ - 14,421 14,421 -
Add back: Conversion of Series C preferred stock
and accrued dividends thereon into common
stock as if converted at the beginning of the
period........................................ - 1,120 1,120 -
Add back: Estimated dilutive effect of
restricted shares issued during the period as
if issued at the beginning of the period ..... - 2,006 2,006 -
--------------- --------------- ---------------- ----------------
Adjusted diluted weighted average shares
outstanding................................... 45,767 17,547 63,314 42,438
--------------- --------------- ---------------- ----------------
Diluted earnings per share (as adjusted)......... $ 0.12 $ 0.58 $ 0.38
</TABLE>
See Notes to Earnings Release attached
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JARDEN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
<TABLE>
-----------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30,
-----------------------------------------------------------------------
2005 2004
--------------------------------------------------- ----------------
AS REPORTED AS ADJUSTED AS REPORTED
(GAAP) ADJUSTMENTS NON-GAAP (GAAP)
(5) (1)(4) (1)(4)(5) (2)(3)(5)
--------------- --------------- ---------------- ----------------
Net sales........................................ $ 1,275,675 $ - $ 1,275,675 $ 357,359
Costs and expenses:
Cost of sales................................. 958,232 (16,390) 941,842 238,255
--------------- --------------- ---------------- ----------------
Gross profit.................................. 317,443 16,390 333,833 119,104
Selling, general and administrative expenses.. 215,581 215,581 69,287
Reorganization and acquisition-related
integration costs........................... 8,806 (8,806) - -
--------------- --------------- ---------------- ----------------
Operating earnings............................... 93,056 25,196 118,252 49,817
Interest expense, net............................ 34,050 - 34,050 11,695
Loss on early extinguishment of debt............. 6,046 (6,046) - -
--------------- --------------- ---------------- ----------------
Income before taxes.............................. 52,960 31,242 84,202 38,122
Income tax provision............................. 20,125 11,872 31,997 14,562
--------------- --------------- ---------------- ----------------
Net income....................................... 32,835 $ 19,370 $ 52,205 23,560
=============== ================
Paid in-kind dividends on Series B & C preferred
stock............................................ (8,319) -
Charge from beneficial conversion on Series B
and Series C preferred stock.................. (38,952) -
--------------- ----------------
(Loss) income attributable to common stockholders $ (14,436) $ 23,560
=============== ================
Basic (loss) earnings per share.................. $ (0.33) $ 0.58
Diluted (loss) earnings per share................ (0.33) $ 0.56
Weighted average shares outstanding:
Basic......................................... 43,600 40,662
Diluted....................................... 43,600 42,363
Net income (from above)....................... $ 32,835 $ 19,370 $ 52,205 $ 23,560
--------------- --------------- ---------------- ----------------
Basic weighted average shares outstanding..... 43,600 43,600 40,662
Additional shares assuming conversion of stock
options and inclusion of unvested restricted
stock......................................... - 1,764 1,764 1,701
Add back: Conversion of Series B preferred stock
and accrued dividends thereon into common
stock ........................................ - 14,421 14,421 -
Add back: Conversion of Series C preferred stock
and accrued dividends thereon into common
stock as if converted at the beginning of the
period........................................ - 1,290 1,290 -
Add back: Estimated dilutive effect of
restricted shares issued during the period as
if issued at the beginning of the period...... - 2,091 2,091 -
--------------- --------------- ---------------- ----------------
Adjusted diluted weighted average shares 43,600 19,566 63,166 42,363
outstanding......................................
--------------- --------------- ---------------- ----------------
Diluted (loss) earnings per share (as adjusted).. $ (0.33) $ 0.83 $ 0.56
</TABLE>
See Notes to Earnings Release attached
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
<TABLE>
------------------------------------------
AS OF
------------------------------------------
JUNE 30, DECEMBER 31,
2005 2004
-------------------- --------------------
ASSETS
Current assets:
Cash and cash equivalents.................................................... $ 103,785 $ 20,665
Accounts receivable, net..................................................... 439,971 127,468
Inventories.................................................................. 554,897 154,180
Other current assets......................................................... 81,796 32,749
Assets held for sale......................................................... 9,365 -
-------------------- --------------------
Total current assets...................................................... 1,189,814 335,062
-------------------- --------------------
Non-current assets:
Property, plant and equipment, net........................................... 254,463 85,429
Intangibles, net............................................................. 1,235,480 602,383
Other assets................................................................. 52,141 19,507
-------------------- --------------------
Total assets................................................................... $ 2,731,898 $ 1,042,381
==================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt........................ $ 42,320 $ 16,951
Accounts payable............................................................. 210,596 48,910
Deferred consideration for acquisitions...................................... 26,995 28,995
Other current liabilities.................................................... 244,910 58,835
-------------------- --------------------
Total current liabilities................................................. 524,821 153,691
-------------------- --------------------
Non-current liabilities:
Long-term debt............................................................... 1,120,580 470,500
Deferred consideration for acquisitions...................................... 40,000 10,250
Other non-current liabilities................................................ 330,142 73,989
-------------------- --------------------
Total non-current liabilities............................................. 1,490,722 554,739
-------------------- --------------------
Commitments and contingencies
Stockholders' equity:
Series B preferred stock..................................................... 307,635 -
Other stockholders' equity................................................... 408,720 333,951
-------------------- --------------------
Total stockholders' equity................................................ 716,355 333,951
-------------------- --------------------
Total liabilities and stockholders' equity..................................... $ 2,731,898 $ 1,042,381
==================== ====================
</TABLE>
See Notes to Earnings Release attached
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<TABLE>
------------------ ----------------------------------
THREE MONTHS
ENDED SIX MONTHS ENDED
------------------ ----------------------------------
JUNE 30, JUNE 30, JUNE 30,
2005 2005 2004
------------------ ---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income..................................................... $ 32,807 $ 32,835 $ 23,560
Reconciliation of net income to net cash used in operating
activities:
Depreciation and amortization................................ 13,266 25,384 8,348
Other non-cash items......................................... 16,345 21,355 2,534
Changes in working capital components, net of effects from acquisitions:
Accounts receivable.......................................... (46,172) (90,843) (10,215)
Inventory.................................................... (12,181) (38,448) (29,013)
Accounts payable............................................. 5,107 31,949 9,617
Other current assets and liabilities......................... 12,032 (44,609) (4,738)
----------------- --------------- ---------------
Net cash provided by (used in) operating activities......... 21,204 (62,377) 93
------------------ ---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit borrowings...................... 21,800 63,748 8,900
Payments on revolving credit borrowings........................ (40,700) (51,300) (2,000)
Proceeds from issuance of long-term debt....................... 100,000 950,000 116,000
Payments on long-term debt..................................... (2,375) (307,387) (5,289)
Proceeds from issuance of stock, net of transaction fees....... - 350,379 -
Payments on seller's notes..................................... - - (5,400)
Debt issuance costs............................................ (132) (17,588) (2,010)
Other.......................................................... (10,717) 1,597 1,715
------------------ ---------------- ----------------
Net cash provided by financing activities................... 67,876 989,449 111,916
------------------ ---------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment..................... (13,765) (24,709) (3,517)
Acquisition of businesses, net of cash acquired................ (12,498) (818,103) (228,876)
Other.......................................................... (788) (1,140) (523)
------------------ ---------------- ----------------
Net cash used in investing activities....................... (27,051) (843,952) (232,916)
------------------ ---------------- ----------------
Net increase (decrease) in cash and cash equivalents............... 62,029 83,120 (120,907)
Cash and cash equivalents at beginning of period................... 41,756 20,665 125,400
------------------ ---------------- ----------------
Cash and cash equivalents at end of period......................... $ 103,785 $ 103,785 $ 4,493
================== ================ ================
</TABLE>
See Notes to Earnings Release attached
-6-
JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)
(in thousands)
<TABLE>
------------------------------ ------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------------ ------------------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2005 2004 2005 2004
------------ ------------- ------------- ------------
Net sales:
Branded consumables (a)........................... $ 165,456 $ 122,719 $ 277,165 $ 197,617
Consumer solutions (b)............................ 243,612 36,180 434,452 81,354
Outdoor solutions (c)............................. 298,627 - 481,542 -
Other............................................. 63,389 54,442 115,092 106,898
Intercompany eliminations (e)..................... (16,755) (14,306) (32,576) (28,510)
------------ ------------- ------------- ------------
Total net sales................................. $ 754,329 $ 199,035 $ 1,275,675 $ 357,359
============ ============= ============= ============
Operating earnings:
Branded consumables (a)(d)........................ $ 26,715 $ 22,495 $ 37,404 $ 28,787
Consumer solutions (b)(d)......................... 4,275 3,507 7,137 9,904
Outdoor solutions (c)(d).......................... 40,099 - 47,436 -
Other............................................. 6,697 5,721 9,891 11,391
Intercompany eliminations (e)..................... 82 319 (6) (265)
Reorganization and acquisition-related integration
costs......................................... (5,878) - (8,806) -
------------ ------------- ------------- ------------
Total operating earnings........................ $ 71,990 $ 32,042 $ 93,056 $ 49,817
============ ============= ============= ============
</TABLE>
(a) The USPC business is included in the branded consumables segment effective
June 28, 2004.
(b) The Jarden Consumer Solutions business (acquired with the AHI Acquisition)
is included in the consumer solutions segment effective January 24, 2005. (c)
The outdoor solutions segment was created upon the purchase of the Coleman
business with the AHI Acquisition, effective January 24, 2005.
(d) For the six months ended June 30, 2005, the operating earnings of branded
consumables, consumer solutions and outdoor solutions reflects $0.2 million,
$6.4 million and $9.8 million, respectively, of purchase accounting adjustments
for manufacturer's profit in inventory that had the effect of reducing the
operating earnings as presented for each of these segments.
(e) Intersegment sales are recorded at cost plus an agreed upon profit.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
<TABLE>
---------------------------------------------------------------
AS OF
---------------------------------------------------------------
JUNE 30, 2005 MARCH 31, 2005 DECEMBER 31, 2004
(ACTUAL) (ACTUAL) (PRO FORMA(A))
----------------- ------------------ -------------------
ASSETS
Current assets:
Cash and cash equivalents........................... $ 103.8 $ 41.8 $ 117.5
Accounts receivable, net............................ 440.0 394.0 406.5
Inventories......................................... 554.9 544.0 487.1
Other current assets................................ 91.1 110.8 100.8
----------------- ------------------ -------------------
Total current assets.............................. 1,189.8 1,090.6 1,111.9
Non-current assets:
Property, plant and equipment, net.................. 254.5 259.7 265.1
Intangibles, net.................................... 1,235.5 1,231.6 1,186.1
Other assets........................................ 52.1 60.8 42.8
----------------- ------------------ -------------------
Total assets............................................ $ 2,731.9 $ 2,642.7 $ 2,605.9
================= ================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term
debt.............................................. $ 42.3 $ 71.5 $ 21.8
Accounts payable.................................... 210.6 205.7 203.8
Deferred consideration for acquisitions............. 27.0 29.0 -
Other current liabilities........................... 245.0 233.8 309.8
----------------- ------------------ -------------------
Total current liabilities......................... 524.9 540.0 535.4
Non-current liabilities:
Long-term debt...................................... 1,120.5 1,021.8 1,026.5
Deferred consideration for acquisitions............. 40.0 49.7 -
Other non-current liabilities....................... 330.1 340.2 367.5
----------------- ------------------ -------------------
Total non-current liabilities..................... 1,490.6 1,411.7 1,394.0
Commitments and contingencies
Series C preferred stock................................ - 181.0 199.3
Stockholders' equity.................................... 716.4 510.0 477.2
----------------- ------------------ -------------------
Total liabilities and stockholders' equity.............. $ 2,731.9 $ 2,642.7 $ 2,605.9
================= ================== ===================
</TABLE>
(a) The pro forma condensed consolidated balance sheet is based on our 2004
audited consolidated financial statements in the Company's Annual Report on Form
10-K and gives effect to the January 2005 acquisition of American Household,
Inc. and its subsidiaries and the related financings. For more information
please see our Form 8-K/A filed in conjunction with the acquisition.
-8-
Notes to Earnings Release
Note 1: Adjustments relate to items that are excluded from the "as reported"
results to arrive at the "as adjusted" results for the three and six months
ended June 30, 2005. For the three months ended June 30, 2005, adjustments to
net income consist of $5.9 million of reorganization and acquisition-related
integration costs. For the six months ended June 30, 2005, adjustments to net
income consist of purchase accounting adjustments for $16.4 million of
manufacturer's profit in inventory, $8.8 million of reorganization and
acquisition-related integration costs and $6.0 million of loss on early
extinguishment of debt.
For the quarter ended June 30, 2005, adjustments to the diluted weighted average
shares outstanding consist of 2,006,000 dilutive effect of 2,175,000 restricted
shares issued on June 23, 2005 (after stockholder approval of an amendment to
the stock compensation plan) as if they had been issued as of the beginning of
the quarter. For the six month period ended June 30, 2005, adjustments to the
diluted weighted average shares outstanding consist of 2,091,000 dilutive effect
of 2,175,000 restricted shares issued on June 23, 2005 (after stockholder
approval of an amendment to the stock compensation plan) as if they had been
issued as of the beginning of the year. Adjustments to diluted shares
outstanding for the three and six month period ended June 30, 2005 reflect the
inclusion of Series B and Series C preferred stock common stock equivalents on
an if-converted basis to the extent such amounts are not already included in
calculating the actual weighted average shares outstanding.
Note 2: There were no items excluded from the "as reported" results for the
three and six month periods ended June, 30, 2004.
Note 3: Certain reclassifications have been made in the Company's financial
statements of the prior year to conform to the current year presentation. These
reclassifications have no impact on previously reported net income.
Note 4: 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
operations, 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. 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.
Net income and diluted earnings per share, excluding the items discussed in Note
1 above, are non-GAAP financial measures and have been presented herein because
management of the Company uses these financial measures in monitoring and
evaluating the Company's ongoing financial results and trends. Management
believes that these non-GAAP operating performance measures are useful for
investors because they enhance investors' ability to analyze trends in the
Company's business and compare the Company's financial and operating performance
to the performance of the Company's peers. Additionally, the Company's credit
agreement has provided for manufacturer's profit in inventory adjustments
required for purchase accounting, reorganization and acquisition-related
integration costs and loss on early extinguishment of debt to be excluded in
calculations used for determining whether the Company is in compliance with
certain credit agreement covenants.
Note 5: On June 9, 2005, the Company's Board of Directors declared a
three-for-two stock split in the form of a stock dividend of one additional
share of common stock for every two shares of Common Stock on July 11, 2005 to
shareholders of record as of the close of business on June 20, 2005. This stock
split resulted in the issuance of approximately 15.1 million additional shares
of common stock. All share totals and per share amounts reflect the effect of
this stock split at June 30, 2005.
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