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
Financial Dynamics
FOR IMMEDIATE RELEASE 212-850-5600
- ---------------------
JARDEN REPORTS RECORD THIRD QUARTER SALES AND EARNINGS
~ DILUTED EARNINGS PER SHARE OF $1.03 ~
RYE, NY - OCTOBER 27, 2003 - JARDEN CORPORATION (NYSE:JAH) today
reported its financial results for the three and nine months ended September 30,
2003.
For the third quarter of 2003, net sales were $167.9 million compared
to $110.0 million for the same period last year. Third quarter net income was
$15.2 million, or $1.03 per diluted share, compared to net income of $11.7
million, or $0.80 per diluted share for the same quarter last year. Current year
amounts include the contribution from Lehigh Consumer Products Corporation and
the operations of the former Diamond Brands business, which were acquired in
September 2003 and February 2003, respectively.
For the nine months ended September 30, 2003, net sales were $396.0
million, compared with $262.2 million for the same period in 2002. Year to date
through September 30, 2003, net income totaled $29.4 million, or $2.00 per
diluted share, compared to net income of $22.1 million, or $1.55 per diluted
share, for the same period last year, which excludes 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 nine months of
2002 was $27.0 million, or $1.89 per diluted share. Current year amounts include
the results of Lehigh, results of operations from the former Diamond Brands
business and the results of Tilia, which were acquired in September 2003,
February 2003 and April 2002, respectively.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"The third quarter was an eventful and productive one for Jarden. First and
foremost our operating businesses continued to perform extremely well, resulting
in record sales and earnings for the Company. In addition, the acquisition of
Lehigh furthered our strategy to drive incremental growth through accretive
acquisitions of category-leading businesses that provide niche consumer products
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used in and around the home. Lehigh provides a strong new distribution channel
in the DIY market. The successful debt and equity offerings we completed during
the third quarter emphasized the fact that there is significant capital
available to Jarden to continue to implement our growth strategy. While we have
been delighted with the success our businesses have enjoyed in 2003, we believe
there are still significant untapped opportunities available to us as we start
to look forward to 2004."
The Company will be holding a conference call at 9:45 AM (Eastern)
today, October 27, 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), Crawford(R), Diamond(R), FoodSaver(R), Forster(R), Kerr(R),
Lehigh(R) and Leslie-Locke(R). In North America, Jarden is the market leader in
several consumer categories, including home canning, home vacuum packaging,
kitchen matches, branded retail plastic cutlery, toothpicks and rope, cord and
twine. 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.
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JARDEN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Unaudited Unaudited
Three Months Ended Nine Months Ended
------------------------------------- -----------------------------------
September 30, September 30, September 30, September 30,
2003 2002 2003 2002
----------------- ---------------- ---------------- ---------------
Net sales $ 167,874 $ 110,015 $ 395,988 $ 262,192
Costs and expenses:
Cost of sales 101,990 61,714 242,254 159,234
Selling, general and administrative expenses 35,808 24,676 92,113 57,484
----------------- ---------------- ---------------- ---------------
Operating earnings 30,076 23,625 61,621 45,474
Interest expense, net 5,083 3,817 13,302 8,803
----------------- ---------------- ---------------- ---------------
Income before taxes 24,993 19,808 48,319 36,671
Income tax provision 9,747 8,076 18,891 9,660
----------------- ---------------- ---------------- ---------------
Net income $ 15,246 $ 11,732 $ 29,428 $ 27,011
================= ================ ================ ===============
Basic earnings per share $1.07 $ 0.83 $2.07 $ 1.95
Diluted earnings per share $1.03 $ 0.80 $2.00 $ 1.89
Weighted average shares outstanding:
Basic 14,253 14,131 14,246 13,855
Diluted 14,738 14,695 14,746 14,271
Other Data:
Operating earnings $ 30,076 $ 23,625 $ 61,621 $ 45,474
Depreciation and amortization 4,261 2,461 11,491 7,250
----------------- ---------------- ---------------- ---------------
Earnings before interest, taxes, depreciation
and amortization (EBITDA) $ 34,337 $ 26,086 $ 73,112 $ 52,724
================= ================ ================ ===============
Income before taxes $ 36,671
Income tax provision, excluding net release of
tax valuation allowance 14,555
---------------
Net income, excluding net release of tax valuation
allowance $ 22,116
===============
Diluted earnings per share, excluding net release of
tax valuation allowance $ 1.55
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.
Note: EBITDA is used in this press release because it is a basis upon which our
management assesses financial performance. While EBITDA is frequently used as a
measure of operations and the ability to meet debt service requirements, it is
not necessarily comparable to other similarly titled captions of other companies
due to potential inconsistencies in the method of calculation. A reconciliation
of the calculation of EBITDA is presented above.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited
------------------- ------------------
September 30, December 31,
2003 2002
------------------- ------------------
ASSETS
Current assets
Cash and cash equivalents $ 128,615 $ 56,779
Accounts receivable, net 95,144 40,470
Inventories, net 94,207 59,463
Other current assets 18,008 16,018
------------------- ------------------
Total current assets 335,974 172,730
------------------- ------------------
Non-current assets
Property, plant and equipment, net 79,550 45,237
Intangibles, net 307,641 134,060
Other assets 17,849 14,738
------------------- ------------------
Total assets $ 741,014 $ 366,765
=================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 16,692 $ 16,117
Accounts payable 33,195 18,466
Other current liabilities 61,924 36,590
------------------- ------------------
Total current liabilities 111,811 71,173
------------------- ------------------
Non-current liabilities
Long-term debt 376,291 200,838
Other non-current liabilities 28,122 17,990
------------------- ------------------
Total non-current liabilities 404,413 218,828
------------------- ------------------
Stockholders' equity 224,790 76,764
------------------- ------------------
Total liabilities and stockholders' equity $ 741,014 $ 366,765
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Unaudited
Nine Months Ended
---------------------------------------
September 30, September 30,
2003 2002
----------------- -----------------
Cash flows from operating activities
Net income $ 29,428 $ 27,011
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization 11,491 7,250
Other non-cash items 7,032 9,666
Changes in working capital components (including tax refunds
of $422 and $38,458 in 2003 and 2002, respectively) (423) 24,349
----------------- -----------------
Net cash provided by operating activities 47,528 68,276
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Cash flows from financing activities
Proceeds from revolving credit borrowings 78,000 25,200
Payments on revolving credit borrowings (78,000) (34,600)
Proceeds from bond issuance 31,950 147,654
Proceeds from issuance of senior long-term debt 160,000 50,000
Payments on long-term debt (5,296) (76,725)
Payments on seller note (10,000) -
Proceeds from issuance of common stock, net of underwriting
fees and related expenses 113,933 3,776
Debt issue costs (5,772) (7,374)
Other 2,231 4,399
----------------- -----------------
Net cash provided by financing activities 287,046 112,330
----------------- -----------------
Cash flows from investing activities
Additions to property, plant and equipment (9,460) (4,972)
Acquisition of businesses, net of cash acquired (253,278) (121,085)
----------------- -----------------
Net cash used in investing activities (262,738) (126,057)
----------------- -----------------
Net increase in cash 71,836 54,549
Cash and cash equivalents, beginning of period 56,779 6,376
----------------- -----------------
Cash and cash equivalents, end of period $ 128,615 $ 60,925
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