FOR: Jarden Corporation
APPROVED BY: Martin E. Franklin
Chairman and
Chief Executive Officer
914-967-9400
CONTACT: Investor Relations:
Suzanne Rosenberg/Melissa Myron/Athan Dounis
Press: Evan Goetz/Jennifer McCullam
212-850-5600
JARDEN CORPORATION REPORTS THIRD QUARTER RESULTS
~ COMPANY ACHIEVES RECORD Q3 EPS OF $0.80 PER SHARE ~
RYE, NY - OCTOBER 28, 2002 - JARDEN CORPORATION (NYSE:JAH) today
reported record financial results for the third quarter and nine months ended
September 30, 2002.
For the third quarter, net sales were $110.4 million compared to $90.5
million for the same quarter last year. Current year results include the results
of Tilia International, Inc. (Tilia) from April 1, 2002. Prior year results
include the Company's Triangle and Trienda thermoformed plastics operations
(TPD), which were divested in the fourth quarter of 2001. Third quarter net
income was $11.7 million, or $0.80 per fully diluted share, versus a net loss of
$83.0 million, or $6.52 per fully diluted share, for the same quarter last year.
Third quarter 2001 results include a loss on the sale of TPD of $119.7 million
and special charges and reorganization expenses of $3.9 million.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"Jarden reported record earnings for the quarter, despite the impact of
unfavorable weather conditions on our home canning business and a difficult
macro-economic environment. Our strong quarterly results were largely fueled by
continued margin expansion resulting from the mix of sales within Jarden's
consumer products group and control of the SG&A expenses, along with a solid
performance by our materials based businesses. Particular credit goes to the
Company's operating management teams for their outstanding performance this
quarter, servicing our customers and controlling costs under difficult market
conditions."
For the first nine months of the year, net sales were $263.1 million,
compared with $250.1 million in last year's comparable period. Net income was
$27.0 million, or $1.89 per fully diluted share, versus a net loss of $78.2
million, or $6.15 per fully diluted share, last year. Net income for the first
nine months of 2002 reflects a tax benefit resulting from the net release of a
$4.9 million valuation allowance that had previously been established. Including
the first quarter results of Tilia and excluding the effect of the release of
the valuation allowance, net income for the first nine months of 2002 was $23.5
million, or $1.65 per fully diluted share.
--more--
All references to per share amounts reflect a two-for-one stock split
that was effected during the second quarter of 2002.
Mr. Franklin continued, "With favorable growth prospects and a strong
financial position, we are confident that Jarden can continue to achieve solid
results. The Company now has been through two successful quarters following the
Tilia acquisition and we look forward to building on this positive momentum.
Specifically, we are implementing a number of initiatives to drive internal
growth including international expansion of our FoodSaver(R) brand, line
extensions of existing products, and capitalizing on additional cross-selling
opportunities within our consumer products group. We also continue to actively
look for acquisition opportunities that fit within our growth strategy and, to
this end, we have strengthened our balance sheet and now have $61 million in
cash and equivalents on hand. Overall, we are pleased with our recent
performance and remain committed to managing the business for long-term
shareholder value."
The Company will be holding a conference call at 9:45AM (EDT) today,
October 28, 2002, 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 home food preservation. Jarden's consumer products group is the U.S.
market leader in home vacuum packaging systems and accessories, under the
FoodSaver(R) brand and home canning and related products, primarily under the
Ball(R), Kerr(R) and Bernardin(R) brands. Jarden's materials based group is the
country's largest producer of zinc strip and manufactures plastics parts for
other equipment manufacturers.
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. 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 are included in the Company's periodic and other
reports filed with the Securities and Exchange Commission.
--more--
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Unaudited Unaudited
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2002 2001 2002 2001
----------------------------------------------------------------------------
Net sales $110,398 $90,477 $ 263,075 $ 250,102
Costs and expenses:
Cost of sales 61,886 68,299 159,790 188,312
Selling, general and administrative expenses 24,887 14,352 57,811 40,626
Goodwill amortization - 1,626 - 4,876
Special charges (credits) and reorganization
expenses - 3,901 - 233
Loss on divestiture of assets - 119,725 - 119,725
------------- ------------ ----------- -----------
Earnings (loss) before interest, taxes and minority
interest 23,625 (117,426) 45,474 (103,670)
Interest expense, net 3,817 2,180 8,803 8,351
------------- ------------ ----------- -----------
Income (loss) before taxes and minority interest 19,808 (119,606) 36,671 (112,021)
Income tax provision (benefit) 8,076 (36,496) 9,660 (33,606)
Minority interest in consolidated subsidiary - (78) - (256)
------------- ------------ ----------- -----------
Net income (loss) $11,732 $(83,032) $ 27,011 $(78,159)
============= ============ =========== ===========
Basic earnings (loss) per share $ 0.83 $ (6.52) $ 1.95 $ (6.15)
Diluted earnings (loss) per share $ 0.80 $ (6.52) $ 1.89 $ (6.15)
Weighted average shares outstanding:
Basic 14,131 12,736 13,855 12,708
Diluted 14,695 12,736 14,271 12,708
Other Data:
Depreciation and amortization $ 2,461 $ 5,432 $ 7,250 $ 16,268
Capital expenditures $ 1,909 $ 1,792 $ 4,972 $ 8,343
Earnings before interest, taxes, special charges
(credits) and reorganization expenses, loss on
divestiture of assets and depreciation and
amortization $26,086 $ 11,632 $52,724 $ 32,556
All earnings per share amounts have been adjusted to give effect to a 2-for-1
split of the Company's outstanding shares of common stock that was effected
during the second quarter of 2002.
--more--
JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
---------------- ----------------
September 30, December 31,
2002 2001
---------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $60,925 $ 6,376
Accounts receivable, net 41,149 13,628
Income taxes receivable 1,448 16,252
Inventories, net 49,852 26,994
Deferred taxes on income 6,383 4,832
Other current assets 7,281 3,134
------------- ------------
Total current assets 167,038 71,216
Noncurrent assets
Property, plant and equipment, net 43,766 43,543
Intangibles, net 121,168 15,487
Deferred taxes on income 2,165 25,417
Other assets 13,873 5,282
------------- ------------
Total assets $ 348,010 $ 160,945
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $15,360 $ 28,500
Accounts payable 17,488 14,197
Accrued salaries, wages and employee benefits 12,244 9,252
Other current liabilities 21,842 11,232
------------- ------------
Total current liabilities 66,934 63,181
------------- ------------
Noncurrent liabilities
Long-term debt 201,930 56,375
Other noncurrent liabilities 9,357 6,260
------------- ------------
Total noncurrent liabilities 211,287 62,635
------------- ------------
Stockholders' equity 69,789 35,129
------------- ------------
Total liabilities and stockholders' equity $ 348,010 $ 160,945
============= ============
Note: Certain prior year amounts in the financial statements have been
reclassified to conform to the 2002 presentation.
--more--
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Unaudited
Nine Months Ended
---------------------------------------
September 30, September 30,
2002 2001
----------------- -----------------
Cash flows from operating activities
Net income (loss) $27,011 $ (78,159)
Reconciliation of net income to net cash provided by
operating activities:
Depreciation 6,857 11,203
Amortization 393 5,065
Loss on divestiture of assets - 119,725
Special charges (credits) and reorganization expenses - (3,750)
Deferred employee benefits (1,731) 216
Deferred income taxes 9,349 -
Non-cash compensation expense 587 -
Non-cash interest expense 1,482 333
Other, net (21) (524)
Changes in working capital components (including tax refunds of
$38,458 in 2002) 24,349 (11,338)
------------- ------------
Net cash provided by operating activities 68,276 42,771
------------- ------------
Cash flows from financing activities
Proceeds from revolving credit borrowings 25,200 29,150
Payments on revolving credit borrowings (34,600) (45,150)
Proceeds from bond issuance 147,654 -
Payments on long-term debt (76,725) (19,027)
Debt issue and amendment costs (7,374) (637)
Proceeds from issuance of senior long-term debt 50,000 -
Other 8,175 518
------------- ------------
Net cash provided by (used in) financing activities 112,330 (35,146)
------------- ------------
Cash flows from investing activities
Additions to property, plant and equipment (4,972) (8,343)
Acquisition of Tilia, net of cash acquired (121,085) -
Proceeds from the surrender of insurance contracts - 6,706
Insurance proceeds from property casualty - 1,535
Loans to former officers - (4,059)
Other, net - 61
------------- ------------
Net cash used in investing activities (126,057) (4,100)
------------- ------------
Net increase in cash 54,549 3,525
Cash and cash equivalents, beginning of period 6,376 3,303
------------- ------------
Cash and cash equivalents, end of period $60,925 $ 6,828
============= ============
Note: Certain prior year amounts in the financial statements have been
reclassified to conform to the 2002 presentation.