[JARDEN CORPORATION LOGO]
FOR: Jarden Corporation
CONTACT: Martin E. Franklin
Chairman and
Chief Executive Officer
914-967-9400
Investor Relations:
Cara O'Brien/Melissa Myron
Press: Evan Goetz/Jennifer McCullam
Financial Dynamics
FOR IMMEDIATE RELEASE 212-850-5600
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JARDEN CORPORATION REPORTS FIRST QUARTER RESULTS
~ DILUTED EARNINGS PER SHARE OF $0.27 ~
RYE, NY - APRIL 29, 2004 - JARDEN CORPORATION (NYSE:JAH) today reported
its financial results for the three months ended March 31, 2004.
Net sales increased 62.5% to $158.3 million compared to $97.4 million
for the same quarter last year. First quarter net income increased 77.5% to $7.5
million, or $0.27 per diluted share, compared to net income of $4.2 million or
$0.19 per diluted share for the same quarter last year. Current year amounts
include a full quarter's results from the Lehigh and Diamond Brands businesses,
which were acquired in September 2003 and February 2003, respectively.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"During the first quarter of 2004, we continued the strong operating performance
achieved by each of our business units in 2003. This strength was across the
board in what is historically the Company's slowest quarter. We continue to
develop and leverage cross selling and channel expansion opportunities, as well
as implement synergistic cost savings initiatives amongst our businesses. We are
looking forward to introducing a record number of new consumer products during
the remainder of this year, helping us build a strong basis for future organic
growth. On the acquisition front, we are pleased to report that the US Playing
Card acquisition is currently expected to close at the beginning of the third
quarter and that we completed the "tuck-in" acquisition of arts and crafts paint
brush distributor, Loew-Cornell, Inc., during the first quarter."
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The Company will be holding a conference call at 11:00 AM (EDT) today,
April 29, 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),
Lehigh(R), Leslie-Locke(R), Loew-Cornell(R) and VillaWare(R). In North America,
Jarden is the market leader in several targeted consumer categories, including
home canning, home vacuum packaging, kitchen matches, plastic cutlery, rope,
cord and twine 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 is 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
THREE MONTHS ENDED
--------------------------------
MARCH 31, MARCH 31,
2004 2003
------------- --------------
Net sales $ 158,260 $ 97,396
Costs and expenses:
Cost of sales 107,019 59,026
Selling, general and administrative expenses 33,466 27,459
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Operating earnings 17,775 10,911
Interest expense, net 5,620 3,952
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Income before taxes 12,155 6,959
Income tax provision 4,643 2,728
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Net income $ 7,512 $ 4,231
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Basic earnings per share $ 0.28 $ 0.20
Diluted earnings per share $ 0.27 $ 0.19
Weighted average shares outstanding:
Basic 27,045 21,388
Diluted 28,192 22,216
Reconciliation of Non-GAAP measurement:
Net income $ 7,512 $ 4,231
Income tax provision 4,643 2,728
Interest expense, net 5,620 3,952
Depreciation and amortization 4,513 3,385
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Earnings before interest, taxes, depreciation and amortization
(EBITDA) (Note 1) $22,288 $ 14,296
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See Notes to Earnings Release attached.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
UNAUDITED
----------------- -----------------
MARCH 31, DECEMBER 31,
2004 2003
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ASSETS
Current assets
Cash and cash equivalents $ 82,351 $ 125,400
Accounts receivable, net 88,579 93,690
Inventories, net 133,189 105,573
Other current assets 24,219 22,456
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Total current assets 328,338 347,119
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Non-current assets
Property, plant and equipment, net 72,769 79,119
Intangibles, net 356,592 315,826
Other assets 18,429 17,610
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Total assets $ 776,128 $ 759,674
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 18,249 $ 17,512
Accounts payable 43,867 34,211
Other current liabilities 51,145 53,357
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Total current liabilities 113,261 105,080
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Non-current liabilities
Long-term debt 370,615 369,870
Other non-current liabilities 32,888 34,819
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Total non-current liabilities 403,503 404,689
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Stockholders' equity 259,364 249,905
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Total liabilities and stockholders' equity $ 776,128 $ 759,674
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
THREE MONTHS ENDED
--------------------------------
MARCH 31, MARCH 31,
2004 2003
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 7,512 $ 4,231
Reconciliation of net income to net cash (used in) provided by
operating activities:
Depreciation and amortization 4,513 3,385
Other non-cash items (513) 1,311
Changes in working capital components (12,107) (2,492)
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Net cash (used in) provided by operating activities (595) 6,435
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit borrowings - 48,000
Payments on revolving credit borrowings - (19,500)
Proceeds from issuance of long-term debt - 10,000
Payments on seller notes - (10,000)
Payments on long-term debt (2,645) (1,514)
Other 1,261 2,858
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Net cash (used in) provided by financing activities (1,384) 29,844
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (1,288) (1,828)
Acquisition of businesses, net of cash acquired (39,315) (85,257)
Other, net (467) 4
--------------- ---------------
Net cash (used in) investing activities (41,070) (87,081)
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NET DECREASE IN CASH (43,049) (50,802)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 82,351 $ 5,977
=============== ===============
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JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT
(in thousands)
UNAUDITED
THREE MONTHS ENDED
---------------------------------
MARCH 31, MARCH 31,
2004 2003
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Net sales:
Branded consumables $ 74,898 $ 30,169
Consumer solutions 45,110 40,876
Plastic consumables 33,650 23,496
Other 18,805 8,618
Intercompany elimination (14,203) (5,763)
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Total net sales $ 158,260 $ 97,396
============== ==============
Operating earnings:
Branded consumables $ 6,293 $ 1,259
Consumer solutions 6,397 6,944
Plastic consumables 2,806 2,438
Other 2,864 964
Intercompany elimination (584) (694)
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Total operating earnings $ 17,775 $ 10,911
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NOTES TO EARNINGS RELEASE
Note 1: This earnings release contains a non-GAAP financial measure. 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 measure to
the most directly comparable GAAP financial measure.
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.
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