FOR: Jarden Corporation
APPROVED BY: Martin E. Franklin
Chairman and
Chief Executive Officer
914-967-9400
CONTACT: Investor Relations:
Cara O'Brien/Melissa Myron
Press: Evan Goetz/Jennifer McCullam
FOR IMMEDIATE RELEASE 212-850-5600
- ---------------------
JARDEN CORPORATION REPORTS FIRST QUARTER RESULTS
~ DILUTED EARNINGS PER SHARE OF $0.29 ~
RYE, NY - APRIL 28, 2003 - JARDEN CORPORATION (NYSE:JAH) today reported
its financial results for the three months ended March 31, 2003.
For the first quarter, net sales were $97.4 million compared to $47.4
million for the same quarter last year. First quarter net income was $4.2
million, or $0.29 per diluted share, compared to net income of $1.8 million or
$0.13 per diluted share for the same quarter last year, excluding a one-time tax
reversal of $5.4 million. On a reported basis, first quarter 2002 net income was
$7.2 million, or $0.53 per diluted share. Current year amounts include results
of operations from the former Diamond Brands business from February 1, 2003 and
the results of Tilia, which was acquired in April 2002.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"In a difficult economic environment our businesses performed admirably in the
first quarter. Led by continuing growth of the home vacuum packaging market and
our leadership position therein, as well as the recent acquisition of the
Diamond Brands business, the Company more than doubled sales from the same
period last year. Earnings before interest, taxes, depreciation and amortization
for the quarter ended March 31, 2003 increased 127% to $14.3 million from $6.3
million the previous year. Excluding the effects of the one-time tax benefit in
2002, diluted earnings per share grew by approximately 125% comparing the first
quarter of 2002 against the first quarter of 2003."
Mr. Franklin continued, "The first quarter is traditionally the
Company's slowest quarter, so we are delighted to get the year off to a strong
start. We anticipate the retail environment will continue to be difficult for
the foreseeable future, however, we will not lessen our commitment to meet the
needs of our customers and the end consumer. Our strong balance sheet and the
Company's better than anticipated cash flow from operations during the first
quarter provides us a solid platform to execute our growth strategy."
--more--
The Company will be holding a conference call at 9:45 AM (EDT) today,
April 28, 2003, 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),
Bernardin(R), Diamond(R), FoodSaver(R), Forster(R) and Kerr(R). In North
America, Jarden is the market leader in several categories, including home
canning, home vacuum packaging, kitchen matches, branded retail plastic cutlery
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.
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
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Unaudited
Three Months Ended
-------------------------------
March 31, March 31,
2003 2002
------------- -------------
Net sales $97,396 $47,384
Costs and expenses:
Cost of sales 59,026 34,859
Selling, general and administrative expenses 27,459 8,391
------------- -------------
Operating earnings 10,911 4,134
Interest expense, net 3,952 1,232
------------- -------------
Income before taxes 6,959 2,902
Income tax (provision) benefit (2,728) 4,291
------------- -------------
Net income $ 4,231 $ 7,193
============= =============
Basic earnings per share $ 0.30 $ 0.54
Diluted earnings per share $ 0.29 $ 0.53
Weighted average shares outstanding:
Basic 14,259 13,432
Diluted 14,811 13,678
Other Data:
Operating earnings $10,911 $ 4,134
Depreciation and amortization 3,385 2,152
------------- -------------
Earnings before interest, taxes, depreciation and amortization $14,296 $ 6,286
============= =============
Income before taxes $ 2,902
Income tax provision, excluding one-time tax reversal (1,104)
-------------
Net income, excluding one-time tax reversal $ 1,798
=============
Diluted earnings per share, excluding one-time tax reversal $ 0.13
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.
Note: Certain prior year amounts in the financial statements have been
reclassified to conform to the 2003 presentation. These reclassifications have
no impact on previously reported net income.
--more--
JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
--------- ------------
March 31, December 31,
2003 2002
--------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 5,977 $ 56,779
Accounts receivable, net 45,522 41,509
Inventories, net 76,552 59,463
Other current assets 18,484 14,979
-------- --------
Total current assets 146,535 172,730
Non-current assets
Property, plant and equipment, net 67,943 45,237
Intangibles, net 188,686 134,060
Other assets 11,492 14,738
-------- --------
Total assets $414,656 $366,765
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 36,822 $ 16,117
Accounts payable 20,658 18,466
Accrued salaries, wages and employee benefits 11,262 13,559
Other current liabilities 34,841 23,031
-------- --------
Total current liabilities 103,583 71,173
-------- --------
Non-current liabilities
Long-term debt 206,331 200,838
Other non-current liabilities 21,202 17,990
-------- --------
Total non-current liabilities 227,533 218,828
-------- --------
Stockholders' equity 83,540 76,764
-------- --------
Total liabilities and stockholders' equity $414,656 $366,765
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--more--
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Unaudited
Three Months Ended
-----------------------
March 31, March 31,
2003 2002
--------- ---------
Cash flows from operating activities
Net income $ 4,231 $ 7,193
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization 3,385 2,152
Other non-cash items 1,311
(6,397)
Changes in working capital components (including tax refunds of
$340 and $37,859 in 2003 and 2002, respectively) (2,492) 22,576
-------- --------
Net cash provided by operating activities 6,435 25,524
-------- --------
Cash flows from financing activities
Proceeds from revolving credit borrowings 48,000 24,200
Payments on revolving credit borrowings (19,500) (33,600)
Proceeds from issuance of senior long-term debt 10,000 --
Payments on seller notes (10,000) --
Payments on long-term debt (1,514) (18,109)
Other 2,858 986
-------- --------
Net cash provided by (used in) financing activities 29,844 (26,523)
-------- --------
Cash flows from investing activities
Additions to property, plant and equipment (1,828) (768)
Acquisition of business, net of cash acquired (85,257) --
Other, net 4 5
-------- --------
Net cash used in investing activities (87,081) (763)
-------- --------
Net decrease in cash (50,802) (1,762)
Cash and cash equivalents, beginning of period 56,779 6,376
-------- --------
Cash and cash equivalents, end of period $ 5,977 $ 4,614
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