[JARDEN CORP. 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
- ---------------------
JARDEN CORPORATION REPORTS RECORD SECOND QUARTER OPERATING
RESULTS
~ DILUTED EARNINGS PER SHARE OF $0.57 ~
RYE, NY - JULY 26, 2004 - JARDEN CORPORATION (NYSE:JAH) today reported
its financial results for the three and six months ended June 30, 2004.
For the second quarter of 2004, net sales increased 52% to $199.0
million, compared to $130.8 million for the same quarter last year. Second
quarter net income increased 61% to $16.0 million, or $0.57 per diluted share,
compared to net income of $10.0 million, or $0.45 per diluted share for the same
quarter last year. Current year amounts include the results of operations from
the Lehigh business, which was acquired in September 2003.
For the six months ended June 30, 2004, net sales increased 57% to
$357.4 million, compared with $228.2 million for the same period in 2003. For
the six months ended June 30, 2004, net income increased 66% to $23.6 million,
or $0.83 per diluted share, compared to net income of $14.2 million, or $0.64
per diluted share. Current year amounts include the results of operations from
the Lehigh business.
Martin E. Franklin, Chairman and Chief Executive Officer, commented,
"All of our business segments posted strong results in the second quarter, with
our Branded Consumables and Plastic Consumables businesses recording organic
sales growth, exclusive of intercompany sales, of approximately 10% and 20%,
respectively. Our strategy of investing in our brands is working as evidenced by
favorable consumer and retailer feedback on many of the programs and products we
have introduced this year."
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"Our solid results were achieved in spite of the year over year cost
increases we have experienced in areas such as commodities, freight and fuel. We
were able to absorb these cost increases by successfully leveraging our
consolidated purchasing power and realizing operating synergies among our
various business units, an initiative we began in earnest during the first
quarter. Looking to the second half of the year, we anticipate that prices for
certain commodities, such as steel, will decline but that in other areas, such
as resin, the price increases will slow but the short term trend will continue
upwards. We will look for opportunities to pass on some of these cost increases
at retail."
Mr. Franklin concluded, "Overall, we are delighted to be able to report
another quarter of record operating results and look forward to carrying this
momentum into the second half of the year."
The Company will be holding a conference call at 9:45 AM (EDT) today,
July 26, 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),
Bee(R), Bernardin(R), Bicycle(R), Crawford(R), Diamond(R), FoodSaver(R),
Forster(R), Hoyle(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, playing cards, 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 UNAUDITED
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------- -----------------------------------
JUNE 30, 2004 JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2003
--------------- --------------- --------------- ---------------
(Note 1) (Note 1)
Net sales $199,035 $130,769 $357,359 $228,215
Costs and expenses:
Cost of sales 131,236 81,238 238,255 140,264
Selling, general and administrative expenses 35,757 28,897 69,287 56,407
-------- -------- -------- --------
Operating earnings 32,042 20,634 49,817 31,544
Interest expense, net 6,075 4,267 11,695 8,219
-------- -------- -------- --------
Income before taxes 25,967 16,367 38,122 23,325
Income tax provision 9,920 6,416 14,562 9,144
-------- -------- -------- --------
Net income $ 16,047 $ 9,951 $ 23,560 $ 14,181
======== ======== ======== ========
Basic earnings per share $ 0.59 $ 0.47 $ 0.87 $ 0.66
Diluted earnings per share $ 0.57 $ 0.45 $ 0.83 $ 0.64
Weighted average shares outstanding:
Basic 27,171 21,339 27,108 21,363
Diluted 28,292 22,068 28,242 22,091
Reconciliation of Non-GAAP measurement:
Net Income $ 16,047 $ 9,951 $ 23,560 $ 14,181
Income tax provision 9,920 6,416 14,562 9,144
Interest expense, net 6,075 4,267 11,695 8,219
Depreciation and amortization 4,324 3,844 8,836 7,230
-------- -------- -------- --------
Earnings before interest, taxes, depreciation and
amortization (EBITDA) (Note 2) $ 36,366 $ 24,478 $ 58,653 $ 38,774
======== ======== ======== ========
See Notes to Earnings Release Attached.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
UNAUDITED
----------------- -----------------
JUNE 30, DECEMBER 31,
2004 2003
----------------- -----------------
(Note 3)
ASSETS
Current assets
Cash and cash equivalents $ 4,493 $ 125,400
Accounts receivable, net 129,298 93,690
Inventories, net 157,825 105,573
Other current assets 24,871 22,456
----------- ----------
Total current assets 316,487 347,119
----------- ----------
Non-current assets
Property, plant and equipment, net 100,281 79,119
Intangibles, net 568,372 315,826
Other assets 20,774 17,610
----------- ----------
Total assets $ 1,005,914 $ 759,674
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion of long-term debt $ 22,446 $ 17,512
Accounts payable 50,614 34,211
Deferred consideration for acquisitions 42,864 -
Other current liabilities 59,558 53,357
----------- ----------
Total current liabilities 175,482 105,080
----------- ----------
Non-current liabilities
Long-term debt 476,846 369,870
Other non-current liabilities 78,206 34,819
----------- ----------
Total non-current liabilities 555,052 404,689
----------- ----------
Stockholders' equity 275,380 249,905
----------- ----------
Total liabilities and stockholders' equity $ 1,005,914 $ 759,674
=========== ==========
See Notes to Earnings Release Attached.
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JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
SIX MONTHS ENDED
------------------------------
JUNE 30, JUNE 30,
2004 2003
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 23,560 $ 14,181
Reconciliation of net income to net cash provided by
operating activities:
Depreciation and amortization 8,836 7,230
Other non-cash items 2,046 2,974
Changes in working capital components (34,349) (9,192)
-------- --------
Net cash provided by operating activities 93 15,193
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit borrowings 8,900 78,000
Payments on revolving credit borrowings (2,000) (71,700)
Proceeds from bond issuance - 31,950
Proceeds from issuance of senior debt 116,000 10,000
Payments on long term debt (5,289) (3,027)
Payments on seller notes (5,400) (10,000)
Debt issue and amendment costs (2,010) (1,423)
Other 1,715 3,520
-------- --------
Net cash provided by financing activities 111,916 37,320
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (3,517) (4,569)
Acquisition of businesses, net of cash acquired (228,876) (100,019)
Other, net (523) -
-------- --------
Net cash (used in) investing activities (232,916) (104,588)
-------- --------
NET DECREASE IN CASH (120,907) (52,075)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 125,400 56,779
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,493 $ 4,704
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JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT
(in thousands)
UNAUDITED UNAUDITED
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------------- --------------------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2004 2003 2004 2003
------------- -------------- -------------- -------------
Net sales:
Branded consumables $122,719 $ 70,211 $197,617 $100,381
Consumer solutions 36,180 34,624 81,354 75,549
Plastic consumables 34,532 26,736 68,182 50,231
Other 19,911 9,253 38,716 17,872
Intercompany elimination (14,307) (10,055) (28,510) (15,818)
-------- --------- -------- --------
Total net sales $199,035 $ 130,769 $357,359 $228,215
======== ========= ======== ========
Operating earnings:
Branded consumables $ 22,495 $ 11,868 $ 28,787 $ 13,127
Consumer solutions 3,507 4,520 9,904 11,464
Plastic consumables 3,095 2,646 5,901 5,084
Other 2,626 1,952 5,490 2,916
Intercompany elimination 319 (352) (265) (1,047)
-------- --------- -------- --------
Total operating earnings $ 32,042 $ 20,634 $ 49,817 $ 31,544
======== ======== ======== ========
NOTES TO EARNINGS RELEASE
Note 1: Certain reclassifications have been made in the Company's financial
statements of prior years to conform to the current year presentation. These
reclassifications have no impact on previously reported net income.
Note 2: 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.
Note 3: Includes balance sheet accounts for the United States Playing Card
business which was acquired effective June 28, 2004.
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