FOR: Jarden Corporation CONTACT: Martin E. Franklin Chairman and Chief Executive Officer Jarden Corporation 914-967-9400 Investor Relations: Cara O'Brien/Melissa Myron Press: Evan Goetz/Jennifer McCullam FD Morgen-Walke FOR IMMEDIATE RELEASE 212-850-5600 - --------------------- JARDEN CORPORATION REPORTS RECORD SECOND QUARTER OPERATING RESULTS ~ DILUTED EARNINGS PER SHARE OF $0.68 ~ RYE, NY - JULY 28, 2003 - JARDEN CORPORATION (NYSE:JAH) today reported its financial results for the three and six months ended June 30, 2003. For the second quarter of 2003, net sales were $130.7 million compared to $104.8 million for the same quarter last year. Second quarter net income was $10.0 million, or $0.68 per diluted share, compared to net income of $8.1 million, or $0.56 per diluted share for the same quarter last year. Current year amounts include results of operations from the former Diamond Brands business, which was acquired in February 2003. For the six months ended June 30, 2003, net sales were $228.1 million, compared with $152.2 million for the same period in 2002. For the six months ended June 30, 2003, net income was $14.2 million, or $0.96 per diluted share, compared to net income of $10.4 million, or $0.74 per diluted share, for the same period last year, excluding a tax benefit resulting from the net release of a $4.9 million valuation allowance that had previously been established. On a reported basis, net income for the first six months of 2002 was $15.3 million, or $1.09 per diluted share. Current year amounts include results of operations from the former Diamond Brands business, which was acquired in February 2003, and the results of Tilia, which was acquired in April 2002. Martin E. Franklin, Chairman and Chief Executive Officer, commented, "Our employees have contributed to and our businesses have delivered another exceptional performance in the second quarter. Despite a difficult retail environment, Jarden produced record second quarter EBITDA and operating results, which translated into continued strong cash flows. The Diamond acquisition has been successfully integrated into our branded and plastic consumables -- more -- segments allowing us to actively look for other acquisition opportunities. The businesses continue to execute on their plan for 2003, while we start to look ahead to the implementation of our strategy for 2004 and beyond." The Company will be holding a conference call at 9:45 AM (EDT) today, July 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 Unaudited Three Months Ended Six Months Ended ------------------------------------- ----------------------------------- June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002 ----------------- ---------------- ---------------- --------------- Net sales $130,718 $104,793 $228,114 $ 152,177 Costs and expenses: Cost of sales 81,238 62,661 140,264 97,520 Selling, general and administrative expenses 28,846 24,416 56,306 32,808 ----------------- ---------------- ---------------- --------------- Operating earnings 20,634 17,716 31,544 21,849 Interest expense, net 4,267 3,753 8,219 4,985 ----------------- ---------------- ---------------- --------------- Income before taxes 16,367 13,963 23,325 16,864 Income tax provision 6,416 5,875 9,144 1,584 ----------------- ---------------- ---------------- --------------- Net income $ 9,951 $ 8,088 $ 14,181 $ 15,280 ================= ================ ================ =============== Basic earnings per share $ 0.70 $ 0.58 $ 1.00 $ 1.11 Diluted earnings per share $ 0.68 $ 0.56 $ 0.96 $ 1.09 Weighted average shares outstanding: Basic 14,226 14,011 14,242 13,723 Diluted 14,712 14,337 14,727 14,058 Other Data: Operating earnings $ 20,634 $ 17,716 $ 31,544 $ 21,849 Depreciation and amortization 3,844 2,636 7,230 4,789 ----------------- ---------------- ---------------- --------------- Earnings before interest, taxes, depreciation and amortization $ 24,478 $ 20,352 $ 38,774 $ 26,638 ================= ================ ================ =============== Income before taxes $ 13,963 $ 16,864 Income tax provision, excluding net release of tax valuation allowance 5,375 6,479 ---------------- --------------- Net income, excluding net release of tax valuation allowance $ 8,588 $ 10,385 ================ =============== Diluted earnings per share, excluding net release of tax valuation allowance $ 0.60 $ 0.74 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 ------------------- ------------------ June 30, December 31, 2003 2002 ------------------- ------------------ ASSETS Current assets Cash and cash equivalents $ 4,704 $ 56,779 Accounts receivable, net 56,136 40,470 Inventories, net 82,666 59,463 Other current assets 17,064 16,018 ------------------- ------------------ Total current assets 160,570 172,730 Non-current assets Property, plant and equipment, net 71,353 45,237 Intangibles, net 192,962 134,060 Other assets 15,861 14,738 ------------------- ------------------ Total assets $ 440,746 $ 366,765 =================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 20,673 $ 16,117 Accounts payable 26,119 18,466 Other current liabilities 42,296 36,590 ------------------- ------------------ Total current liabilities 89,088 71,173 ------------------- ------------------ Non-current liabilities Long-term debt 233,613 200,838 Other non-current liabilities 21,661 17,990 ------------------- ------------------ Total non-current liabilities 255,274 218,828 ------------------- ------------------ Stockholders' equity 96,384 76,764 ------------------- ------------------ Total liabilities and stockholders' equity $ 440,746 $ 366,765 =================== ================== -- more -- JARDEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Unaudited Six Months Ended --------------------------------------- June 30, 2003 June 30, 2002 ----------------- ----------------- Cash flows from operating activities Net income $ 14,181 $ 15,280 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 7,230 4,789 Other non-cash items 2,974 (109) Changes in working capital components (including tax refunds of $409 and $38,458 in 2003 and 2002, respectively) (9,192) 27,193 ----------------- ----------------- Net cash provided by operating activities 15,193 47,153 ----------------- ----------------- Cash flows from financing activities Proceeds from revolving credit borrowings 78,000 25,200 Payments on revolving credit borrowings (71,700) (34,600) Proceeds from bond issuance 31,950 147,654 Payments on long-term debt (3,027) (75,475) Payments on seller note (10,000) - Debt issue costs (1,423) (7,499) Proceeds from issuance of senior long-term debt 10,000 50,000 Other 3,520 3,544 ----------------- ----------------- Net cash provided by financing activities 37,320 108,824 ----------------- ----------------- Cash flows from investing activities Additions to property, plant and equipment (4,569) (3,070) Acquisition of businesses, net of cash acquired (100,019) (120,665) ----------------- ----------------- Net cash used in investing activities (104,588) (123,735) ----------------- ----------------- Net (decrease) increase in cash (52,075) 32,242 Cash and cash equivalents, beginning of period 56,779 6,376 ----------------- ----------------- Cash and cash equivalents, end of period $ 4,704 $ 38,618 ================= ================= ###