Exhibit 99.1
The following table sets forth, as of March 31, 2007, the estimated sources and uses of funds in connection with the acquisition of K2:
SOURCESAND USESOF FUNDS
($ in millions)
Sources: | |||
Securitization Facility | $ | 175 | |
ABL Facility(1) | 245 | ||
Term Loan B | 500 | ||
JAH Equity | 239 | ||
Total Sources | $ | 1,159 |
Uses: | |||
Equity Purchase Price ($ 15.50) | $ | 795 | |
Repayment of K2 Debt | 316 | ||
Estimated Breakage Costs(2) | 15 | ||
Change of Control Payments(3) | 16 | ||
Fees & Expenses | 16 | ||
Total Uses | $ | 1,159 |
(1) | Total facility size is $400 million. |
(2) | Represents the estimated premium to be paid to retire K2’s $200 million of Senior Notes due 2014 bearing 7.375% interest. |
(3) | Estimated severance payments for key corporate executives at K2. |
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PRO FORMA CAPITALIZATION
($ in millions)
As of March 31, 2007 | |||||||||||||||||
Jarden | K2 | Uses Adj. | Sources Adj. | K2 Acq. Pro Forma | Full Pro Forma (1) | ||||||||||||
Cash and Cash Equivalents | $ | 392 | $ | 24 | $ | 416 | $ | 116 | |||||||||
Senior Credit Facilities | |||||||||||||||||
Revolver | 91 | (91 | ) | — | — | ||||||||||||
Term Loan - B | 975 | 500 | 1,475 | 1,475 | |||||||||||||
ABL Facility (2) | 245 | 245 | 245 | ||||||||||||||
Total Bank Debt | $ | 975 | $ | 91 | $ | 1,720 | $ | 1,720 | |||||||||
Securitization Facility | 175 | 175 | 175 | ||||||||||||||
Other | 111 | 111 | 111 | ||||||||||||||
Total Senior Secured Debt | $ | 1,086 | $ | 91 | $ | 2,006 | $ | 2,006 | |||||||||
Senior Subordinated Notes | 660 | 200 | (200 | ) | 660 | 660 | |||||||||||
Seller’s Note | 100 | ||||||||||||||||
Foreign Debt | 25 | (25 | ) | — | — | ||||||||||||
Convertible Debentures | 75 | 75 | 75 | ||||||||||||||
Total Debt | $ | 1,746 | $ | 391 | $ | 2,741 | $ | 2,841 | |||||||||
Total Net Debt(3) | $ | 1,375 | $ | 367 | $ | 2,346 | $ | 2,746 | |||||||||
Shareholders’ Equity | $ | 1,268 | $ | 545 | (545 | ) | 207 | $ | 1,476 | $ | 1,476 | ||||||
Total Capitalization | $ | 3,015 | $ | 937 | $ | 4,217 | $ | 4,317 | |||||||||
(1) | Pro Forma for Pure Fishing acquisition. |
(2) | Does not include outstanding letters of credit of approximately $30 million. |
(3) | As per Jarden’s Credit Agreement, Net Debt is calculated using cash balance above $20 million. |
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COMBINED LTM INCOME STATEMENT
($ in millions)
Last Twelve Months Ended, March 31, 2007 | ||||||||||||
Jarden | K2 | Combined | ||||||||||
Net Sales | $ | 3,876 | $ | 1,419 | $ | 5,295 | ||||||
Cost of Sales | 2,918 | 915 | 3,833 | |||||||||
Gross Profit | $ | 958 | $ | 504 | $ | 1,462 | ||||||
SG&A | $ | 614 | $ | 418 | $ | 1,032 | ||||||
Reorganization Costs | 37 | 0 | 37 | |||||||||
Operating Income | $ | 307 | $ | 87 | $ | 394 | ||||||
Margin (%) | 7.9 | % | 6.1 | % | 7.4 | % | ||||||
Purchase Accounting Adjustment | 10 | — | 10 | |||||||||
Reorganization & Integration-related Costs | 37 | — | 37 | |||||||||
Impairment / Write-off of Assets | 0 | — | 0 | |||||||||
Other Integration-related Costs | 4 | — | 4 | |||||||||
Stock-Based Compensation | 24 | 3 | 27 | |||||||||
Depreciation & Amortization | 69 | 37 | 105 | |||||||||
Adjusted EBITDA (1) | $ | 451 | $ | 126 | $ | 577 | ||||||
Margin (%) | 11.6 | % | 8.9 | % | 10.9 | % | ||||||
Capital Expenditures | $ | 72 | $ | 33 | $ | 105 | ||||||
As a % of Net Sales | 1.9 | % | 2.3 | % | 2.0 | % |
Source: Company filings.
(1) | Represents Consolidated Segment Earnings. Excluding restructuring, non-operational and non-cash charges and credits. |
PRO FORMA LTM EBITDA DATA
($ in millions)
LTM 3/31/07 Pro Forma EBITDA | |||
Combined Jarden & K2 | $ | 577 | |
Other 2007 Acquisition | 38 | ||
Run Rate Synergies | 30 | ||
Total Pro Forma Adjusted EBITDA | $ | 644 |
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