[JARDEN CORPORATION LOGO OMITTED]
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 FOURTH QUARTER AND 2003 YEAR END RESULTS
RYE, NY - FEBRUARY 12, 2004 - JARDEN CORPORATION (NYSE:JAH) today
reported its financial results for the fourth quarter and year ended December
31, 2003.
For the fourth quarter of 2003, net sales increased 82% to $191.4
million compared to $104.9 million for the same quarter last year. Fourth
quarter net income increased 59% to $15.6 million, or $0.57 per diluted share,
excluding a non-cash restricted stock charge and related tax benefit, compared
to net income in the same quarter last year of $9.8 million, or $0.44 per
diluted share, which excludes a tax charge of $0.5 million relating to a
valuation allowance that was recorded. On a reported basis, net income for the
fourth quarter of 2003 was $2.3 million, or $0.09 per diluted share and net
income for the fourth quarter of 2002 was $9.3 million, or $0.42 per diluted
share. 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. All per
share amounts reflect the 3-for-2 stock split that became effective during
November 2003.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"Our businesses continued their momentum during the fourth quarter to post
across the board strong results, particularly in the consumer solutions and
branded consumables segments. In its seasonally strongest quarter, consumer
solutions performed well throughout the holiday season and posted a 25% increase
in revenue over the same period last year. Approximately 10% of this increase
was driven by organic growth in FoodSaver(R) sales with the balance being from
VillaWare(R)
--more--
branded sales. Branded consumables sales were driven by a number of our new
sales and marketing initiatives, including the launch of White River Farms(R)
branded cookie mixes-in-a-jar on a popular televised shopping channel and a
number of new product initiatives with new and existing customers. These strong
sales translated into record fourth quarter operating profits and EPS, excluding
the net effect of the non-cash restricted stock charge."
For the year ended December 31, 2003, net sales increased 60% to $587.4
million, compared with $367.1 million in 2002. Net income in 2003 increased 41%
to $45.1 million, or $1.91 per diluted share, excluding a non-cash restricted
stock charge and related tax benefit, compared to net income in 2002 of $31.9
million, or $1.48 per diluted share, which excludes a tax benefit resulting from
the net release of a $4.4 million valuation allowance that had previously been
established. On a reported basis, net income for 2003 was $31.8 million, or
$1.35 per diluted share and net income for 2002 was $36.3 million, or $1.68 per
diluted share. Current year amounts include the results of Lehigh, the 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.
Mr. Franklin continued, "2003 was another great year for the Jarden
portfolio of businesses, as evidenced by our 60% sales growth and strong bottom
line results. We are proud of a number of behind-the-scenes initatives we were
able to complete, including acquisition integration, systems upgrades and new
product and marketing programs, which were an integral part of our success in
2003. In addition, our growth was fueled not only by acquisitions, but also
organically, most notably at our consumer solutions business where we grew the
top line over 10% on a comparable basis to 2002. The consumable bags and
accessories component of the FoodSaver(R) business continued to increase,
highlighting the recurring use of the FoodSaver(R) home vacuum packaging
machines once installed in consumers' homes."
Mr. Franklin concluded, "We have entered 2004 with all our segments in
a position to grow organically while maintaining our historical EBITDA margin
expectations. With over $125 million of cash on the balance sheet at the end of
the year, we continue to actively pursue acquisition opportunities that would
further add to EPS growth in 2004."
The Company will be holding a conference call at 9:45 AM (Eastern)
today, February 12, 2004, 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),
--more--
Lehigh(R), Leslie-Locke(R) and VillaWare(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 is 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)
Three Months Ended Year Ended
------------------------------- -------------------------------
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
-------------- -------------- -------------- --------------
Net sales $191,393 $104,912 $587,381 $367,104
Costs and expenses:
Cost of sales 120,125 57,395 362,379 216,629
Selling, general and administrative expenses 39,606 27,882 131,719 85,366
Non-cash restricted stock charge 21,833 - 21,833 -
-------- -------- -------- --------
Operating earnings 9,829 19,635 71,450 65,109
Interest expense, net 5,883 3,808 19,184 12,611
-------- -------- -------- --------
Income before taxes 3,946 15,827 52,266 52,498
Income tax provision 1,597 6,529 20,488 16,189
-------- -------- -------- --------
Net income $ 2,349 $ 9,298 $ 31,778 $ 36,309
======== ======== ======== ========
Basic earnings per share $ 0.09 $ 0.44 $ 1.40 $ 1.74
Diluted earnings per share $ 0.09 $ 0.42 $ 1.35 $ 1.68
Weighted average shares outstanding:
Basic 26,505 21,283 22,663 20,910
Diluted 27,514 22,123 23,531 21,588
Reconciliations of Non-GAAP Measurements:
- -----------------------------------------
Net income $ 2,349 $ 9,298 $ 31,778 $ 36,309
Income tax provision 1,597 6,529 20,488 16,189
Interest expense 5,883 3,808 19,184 12,611
Depreciation and amortization 3,554 2,751 15,045 10,001
-------- -------- -------- --------
Earnings before interest, taxes, depreciation and
amortization (EBITDA) 13,383 22,386 86,495 75,110
Add back: non-cash restricted stock charge 21,833 - 21,833 -
-------- -------- -------- --------
Adjusted EBITDA (EBITDA, excluding non-cash
restricted stock charge) $ 35,216 $ 22,386 $108,328 $ 75,110
======== ======== ======== ========
Operating earnings $ 9,829 $ 19,635 $ 71,450 $ 65,109
Add back: non-cash restricted stock charge 21,833 - 21,833 -
-------- -------- -------- --------
Operating earnings, excluding non-cash restricted
stock charge 31,662 19,635 93,283 65,109
Interest expense, net 5,883 3,808 19,184 12,611
-------- -------- -------- --------
Income before taxes, excluding non-cash restricted
stock charge 25,779 15,827 74,099 52,498
Income tax provision, excluding tax benefit of
non-cash restricted stock charge and net release
of tax valuation allowance 10,154 6,029 29,047 20,584
-------- -------- -------- --------
Net income, excluding non-cash restricted stock
charge and related tax benefit and net release
of tax valuation allowance $ 15,625 $ 9,798 $ 45,052 $ 31,914
======== ======== ======== ========
Diluted earnings per share, excluding non-cash
restricted stock charge and related tax benefit
and net release of tax valuation allowance $ 0.57 $ 0.44 $ 1.91 $ 1.48
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JARDEN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
Notes:
- ------
Note 1: 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 2: All earnings per share and share amounts have been adjusted to give
effect to a 3-for-2 split of the Company's outstanding shares of common stock
that was effected during the fourth quarter of 2003.
Note 3: This earnings release contains non-GAAP financial measures. For purposes
of Regulation G, a non-GAAP financial measure is a numerical measure of a
Company's historical or future financial performance, financial position or cash
flows that excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the most directly comparable measure
calculated and presented in accordance with GAAP in the statements of income,
balance sheets, or statement of cash flows of the Company; or includes amounts,
or is subject to adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated and presented.
In this regard, GAAP refers to generally accepted accounting principles in the
United States. Pursuant to the requirements of Regulation G, the Company has
provided a reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.
EBITDA, a non-GAAP financial measure, is presented in this press release because
the Company's credit facility and senior subordinated notes contain financial
and other covenants which are based on or refer to the Company's EBITDA.
Additionally, EBITDA is a basis upon which our management assesses financial
performance and we believe it is frequently used by securities analysts,
investors and other interested parties in measuring the operating performance
and creditworthiness of companies with comparable market capitalization to the
Company, many of which present EBITDA when reporting their results. Furthermore,
EBITDA is one of the factors used to determine the total amount of bonuses
available to be awarded to executive officers and other employees. EBITDA is
widely used by the Company to evaluate potential acquisition candidates. 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. Because of these limitations, EBITDA should not be
considered a primary measure of the Company's performance and should be reviewed
in conjunction with, and not as a substitute for, financial measurements
prepared in accordance with GAAP that are presented in this earnings release.
Note 4: Adjusted EBITDA and diluted earnings per share, excluding non-cash
restricted stock charge and net release of tax valuation allowance, are both
non-GAAP financial measures and they are presented in this press release because
they are a basis upon which our management has assessed its financial
performance in the years presented. Additionally, the Company's credit agreement
has provided for the non-cash restricted stock charge to be excluded in
calculations used for determining whether the Company is in compliance with
certain credit agreement covenants. These calculations are measures of the
Company's performance that are not required by, or presented in accordance with,
GAAP. As such they should not be considered as an alternative to net income or
diluted earnings per share in accordance with GAAP.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $125,400 $ 56,779
Accounts receivable, net 92,777 40,470
Inventories, net 105,573 59,463
Other current assets 23,369 16,018
-------- --------
Total current assets 347,119 172,730
-------- --------
Non-current assets
Property, plant and equipment, net 79,119 45,237
Intangibles, net 315,826 134,060
Other assets 17,610 14,738
-------- --------
Total assets $759,674 $366,765
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 17,512 $ 16,117
Accounts payable 34,211 18,466
Other current liabilities 53,357 36,590
-------- --------
Total current liabilities 105,080 71,173
-------- --------
Non-current liabilities
Long-term debt 369,870 200,838
Other non-current liabilities 34,819 17,990
-------- --------
Total non-current liabilities 404,689 218,828
-------- --------
Stockholders' equity 249,905 76,764
-------- --------
Total liabilities and stockholders' equity $759,674 $366,765
======== ========
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
----------------------------------
December 31, December 31,
2003 2002
-------------- --------------
Cash flows from operating activities
Net income $ 31,778 $ 36,309
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization 15,045 10,001
Other non-cash items 31,134 13,539
Changes in working capital components (including tax refunds of
$444 and $38,578 in 2003 and 2002, respectively) (4,159) 9,702
--------- ---------
Net cash provided by operating activities 73,798 69,551
--------- ---------
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 (7,941) (77,975)
Payments on seller note (10,000) -
Proceeds from issuance of common stock, net of underwriting
fees and related expenses 112,258 -
Debt issue costs (5,913) (7,467)
Other 4,442 8,734
--------- ---------
Net cash provided by financing activities 284,796 111,546
--------- ---------
Cash flows from investing activities
Additions to property, plant and equipment (12,822) (9,277)
Acquisition of businesses, net of cash acquired (277,259) (121,065)
Other 108 (352)
--------- ---------
Net cash used in investing activities (289,973) (130,694)
--------- ---------
Net increase in cash 68,621 50,403
Cash and cash equivalents, beginning of period 56,779 6,376
--------- ---------
Cash and cash equivalents, end of period $ 125,400 $ 56,779
========= =========
--more--
JARDEN CORPORATION
NET SALES AND OPERATING PROFIT BY SEGMENT
(in thousands)
Three Months Ended Year Ended
--------------------------------- ---------------------------------
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
-------------- -------------- -------------- --------------
Net sales:
Branded consumables $ 75,895 $ 12,542 $ 257,869 $ 111,240
Consumer solutions 85,124 67,872 215,847 145,316
Plastic consumables 28,688 16,460 109,056 70,578
Other 13,089 8,316 42,802 41,034
Intercompany (11,403) (278) (38,193) (1,064)
--------- --------- --------- ---------
Total net sales $ 191,393 $ 104,912 $ 587,381 $ 367,104
========= ========= ========= =========
Operating profit (loss):
Branded consumables $ 7,131 $ (915) $ 36,521 $ 17,984
Consumer solutions 19,867 17,711 42,550 31,672
Plastic consumables 2,877 2,444 9,551 9,088
Other 1,416 401 5,531 6,366
Intercompany 371 (6) (870) (1)
Unallocated corporate expense (1) (21,833) -- (21,833) --
--------- --------- --------- ---------
Total operating earnings $ 9,829 $ 19,635 $ 71,450 $ 65,109
========= ========= ========= =========
(1) Unallocated corporate expense is comprised of the non-cash restricted stock
charge.
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