Jarden Reports Record Full Year Results Full Year Operating Cash Flow of $480 million

Full Year Gross Margin Expansion of over 70 bps

RYE, N.Y., Feb. 14, 2013 /PRNewswire/ -- Jarden Corporation (NYSE: JAH) today reported its financial results for the fourth quarter and year ended December 31, 2012.

For the quarter ended December 31, 2012:

  • Organic net sales increased 3.5%;
  • Reported net sales were $1.82 billion, compared to $1.74 billion for the same period in 2011;
  • Gross margin increased 130 basis points to 27.9%, compared to gross margin of 26.6% for the same period in 2011;
  • Diluted earnings per share increased 167% to $0.64 per diluted share, compared to $0.24 per diluted share for the same period in 2011;
  • Net income increased approximately 131% to $48.7 million, compared to $21.1 million for the same period in 2011;
  • Adjusted gross margin increased approximately 50 basis points to 28.1%, compared to adjusted gross margin of 27.6% for the same period in 2011;
  • Adjusted diluted earnings per share increased approximately 33% to  $1.28 per diluted share, compared to $0.96 per diluted share for the same period in 2011; and
  • Adjusted net income increased approximately 15% to $96.7 million, compared to $84.4 million for the same period in 2011.

For the year ended December 31, 2012:

  • Organic net sales grew 2.0%;
  • Reported net sales were $6.70 billion, compared to $6.68 billion for the same period in 2011;
  • Gross margin increased 90 basis points to 28.7%, compared to gross margin of 27.8% for the same period in 2011;
  • Diluted earnings per share increased approximately 34% to $3.10 per diluted share, compared to $2.31 per diluted share for the same period in 2011;
  • Net income increased approximately 19% to $243.9 million, compared to $204.7 million for the same period in 2011;
  • Adjusted gross margin increased 70 basis points to 29.0%, compared to adjusted gross margin of 28.3% for the same period in 2011;
  • Adjusted diluted earnings per share increased approximately 22% to $4.17 per diluted share, compared to $3.43 per diluted share for the same period in 2011; and
  • Adjusted net income increased approximately 8% to $328.7 million, compared to $303.6 million for the same period in 2011.

"During 2012, Jarden once again delivered record revenues, segment earnings and adjusted earnings per share and finished the year with a record level of cash," said Martin E. Franklin, Executive Chairman.  "We are also proud to have been among the top five performing stocks compared to the S&P 500 Consumer Staples Index for 2012 on a one-, five- and ten-year basis.   Looking forward, we believe there are many exciting opportunities for Jarden to continue to deliver long-term growth and expand profitability based on the strength of our diversified portfolio of leading brands, new product introductions and the hard work and dedication of our employees."

James E. Lillie, Chief Executive Officer commented, "Organic growth across all of our business segments for the fourth quarter has once again validated the strength of our diversified business model.  Among the highlights of Jarden's performance in 2012 was our adjusted gross margin expansion of 70 basis points.  We believe that this expansion illustrates that our operating model is yielding the intended results and we will continue to invest in our businesses to help drive returns for our shareholders.  We are excited about the outlook for 2013 and beyond, as the investments we have made over the last several years lay the foundation for long-term future success."

Please see the schedule accompanying this release for a reconciliation of non-GAAP organic net sales growth, adjusted gross margins, segment earnings, adjusted net income and adjusted basic and diluted earnings per share to the comparable GAAP measures.

The Company will be hosting a conference call at 8:45 a.m. (EST) today, February 14, 2013, to further discuss its fourth quarter and full year results. To listen to the call by telephone, please dial 888-240-9373 (domestic) or 913-312-0639 (international) and provide passcode: 3674220. The call will be simultaneously webcast at www.jarden.com.  Supplemental information can be found in the For Investors section of the Company's website.  A replay of the call and webcast will be available for three weeks shortly after completion of the live call. To access the replay, call 888-203-1112 (domestic) or 719-457-0820 (international) and provide passcode: 3674220 or visit www.jarden.com.

Jarden Corporation is a leading provider of a diverse range of consumer products with a portfolio of over 100 trusted, quality brands sold globally. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Aero®, Berkley®, Campingaz® and Coleman®, ExOfficio®, Fenwick®, Gulp!®, Invicta®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Volkl® and Zoot®; Consumer Solutions: Bionaire®, Breville®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare® and White Mountain®; and Branded Consumables: Ball®, Bee®, Bernardin®, Bicycle®, Billy Boy®, Crawford®, Diamond®, Dicon®, Fiona®, First Alert®, First Essentials®, Hoyle®, Kerr®, Lehigh®, Lifoam®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, Quickie®, Spontex® and Tigex®. Headquartered in Rye, N.Y., Jarden ranks #371 on the Fortune 500 and has over 25,000 employees worldwide. For in-depth information about Jarden, please visit www.jarden.com.

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 Company's earnings per share and adjusted diluted earnings per share, expected or estimated revenue, segment earnings, net interest expense, income tax provision, cash flow from operations, and reorganization and other non-cash charges, the outlook for the Company's markets and the demand for its products,  consistent profitable growth, free cash flow, future revenues and gross, operating and EBITDA margin improvement requirement and expansion, organic net sales growth, bank leverage ratio, the success of new product introductions, growth in costs and expenses, the impact of commodities, currencies and transportation costs and the Company's  ability to manage its risk in these areas, repurchase of shares of common stock from time to time under the Company's stock repurchase program, our ability to raise new debt, and the impact of acquisitions, divestitures, restructurings, and other unusual items, including the Company's ability to integrate and obtain the anticipated results and synergies from its consummated acquisitions. 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.


JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except earnings per share)

 


Quarters ended


December 31, 2012


December 31, 2011



As

Reported

(GAAP)


Adjustments

(1)(3)


Adjusted

(non-GAAP)

(1)(3)


As

Reported

(GAAP)


Adjustments

(1)(3)


Adjusted

(non-GAAP)

(1)(3)














Net sales

$

1,819.2

$

--

$

1,819.2

$

1,738.0

$

--

$

1,738.0














Cost of sales


1,311.8


(3.6)


1,308.2


1,276.3


(18.2)


1,258.1

Gross profit


507.4


3.6


511.0


461.7


18.2


479.9

Selling, general and administrative expenses


359.5


(43.7)


315.8


307.5


(3.4)


304.1

Reorganization costs


17.8


(17.8)


--


17.2


(17.2)


--

Impairment of goodwill and other intangible assets


--


--


--


52.5


(52.5)


--

Operating earnings


130.1


65.1


195.2


84.5


91.3


175.8

Interest expense, net


49.5


(3.0)


46.5


44.9


--


44.9

Income before taxes


80.6


68.1


148.7


39.6


91.3


130.9

Income tax provision


31.9


20.1


52.0


18.5


28.0


46.5

Net income

$

48.7

$

48.0

$

96.7

$

21.1

$

63.3

$

84.4














Earnings per share:













Basic

$

0.65



$

1.29

$

0.24



$

0.97

Diluted

$

0.64



$

1.28

$

0.24



$

0.96

Weighted average shares outstanding:













Basic


75.1




75.1


87.1




87.1

Diluted


75.7




75.7


87.7




87.7














See Notes to Earnings Release attached

JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except earnings per share)

 


Years ended


December 31, 2012


December 31, 2011



As

Reported

(GAAP)


Adjustments

(1)(3)


Adjusted

(non-GAAP)

(1)(3)


As

Reported

(GAAP)


Adjustments

(1)(3)


Adjusted

(non-GAAP)

(1)(3)














Net sales

$

6,696.1

$

--

$

6,696.1

$

6,679.9

$

--

$

6,679.9














Cost of sales


4,771.7


(14.8)


4,756.9


4,821.9


(29.1)


4,792.8

Gross profit


1,924.4


14.8


1,939.2


1,858.0


29.1


1,887.1

Selling, general and administrative expenses


1,320.5


(68.9)


1,251.6


1,259.2


(22.9)


1,236.3

Reorganization costs, net


27.1


(27.1)


--


23.4


(23.4)


--

Impairment of goodwill and other intangible assets


--


--


--


52.5


(52.5)


--

Operating earnings


576.8


110.8


687.6


522.9


127.9


650.8

Interest expense, net


185.3


(3.3)


182.0


179.7


--


179.7

Loss on early extinguishment of debt


--


--


--


12.8


(12.8)


--

Income before taxes


391.5


114.1


505.6


330.4


140.7


471.1

Income tax provision


147.6


29.3


176.9


125.7


41.8


167.5

Net income

$

243.9

$

84.8

$

328.7

$

204.7

$

98.9

$

303.6














Earnings per share:













Basic

$

3.12



$

4.20

$

2.33



$

3.45

Diluted

$

3.10



$

4.17

$

2.31



$

3.43

Weighted average shares outstanding:













Basic


78.3




78.3


88.1




88.1

Diluted


78.8




78.8


88.6




88.6














See Notes to Earnings Release attached

 

JARDEN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

 



December 31,

2012


December 31,

2011

Assets





Current assets:





Cash and cash equivalents

$

1,034.1

$

808.3

Accounts receivable, net


1,137.7


1,080.5

Inventories


1,310.3


1,274.4

Deferred taxes on income


174.5


181.6

Prepaid expenses and other current assets


153.8


148.7

Total current assets


3,810.4


3,493.5






Property, plant and equipment, net


678.6


615.9

Goodwill


1,824.0


1,717.1

Intangible assets, net


1,256.7


1,156.5

Other assets


140.9


133.7

Total assets

$

7,710.6

$

7,116.7






Liabilities and stockholders' equity





Current liabilities:





Short-term debt and current portion of long-term debt

$

504.7

$

269.3

Accounts payable


615.4


557.5

Accrued salaries, wages and employee benefits


187.6


181.1

Taxes on income


--


22.3

Other current liabilities


421.0


433.5

Total current liabilities


1,728.7


1,463.7






Long-term debt


3,293.4


2,890.1

Deferred taxes on income


566.8


507.8

Other non-current liabilities


362.1


343.1






Total liabilities


5,951.0


5,204.7






Total stockholders' equity


1,759.6


1,912.0






Total liabilities and stockholders' equity

$

7,710.6

$

7,116.7


See Notes to Earnings Release attached

 

JARDEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

 



Quarters ended



Years ended




December 31, 2012



December 31, 2011



December 31, 2012



December 31, 2011


Cash flows from operating activities:













Net income

$

48.7


$

21.1


$

243.9


$

204.7


Adjustments to reconcile net income to net cash provided by

   operating activities:













Depreciation and amortization


42.9



42.0



152.8



163.7


      Loss on early extinguishment of debt


--



--



--



12.8


      Impairment of goodwill and other assets


--



52.5



--



52.5


      Excess tax benefits from stock-based compensation


(0.3)



--



(43.0)



--


      Other non-cash items


70.4



(19.2)



96.9



65.5


Changes in assets and liabilities, net of effects from acquisitions:













Accounts receivable


73.3



104.3



(23.6)



(25.2)


Inventory


265.0



281.6



30.0



(7.0)


Accounts payable


(46.6)



(78.7)



34.5



(12.4)


Other current assets and liabilities


(54.5)



(1.0)



(11.2)



(27.5)


Net cash provided by operating activities


398.9



402.6



480.3



427.1















Cash flows from financing activities:













Net change in short-term debt


(8.9)



(1.7)



74.7



1.0


Proceeds from issuance of long-term debt


1.9



--



802.5



1,025.0


Payments on long-term debt


(19.5)



(7.8)



(172.7)



(1,110.6)


(Repurchase of) proceeds from common stock, net


(21.3)



3.3



(557.9)



(80.8)


Debt issuance costs


--



--



(17.4)



(12.3)


Dividends paid


--



(7.5)



(7.5)



(30.1)


   Excess tax benefits from stock-based compensation


0.3



--



43.0



--


Other


--



4.0



--



11.1


Net cash provided by (used in) financing activities


(47.5)



(9.7)



164.7



(196.7)















Cash flows from investing activities:                                                   













Additions to property, plant and equipment


(77.6)



(47.5)



(154.5)



(126.9)


Acquisitions of businesses, net of cash acquired


(131.1)



(1.0)



(286.3)



(14.4)


Other


3.5



23.4



13.3



28.2


Net cash used in investing activities


(205.2)



(25.1)



(427.5)



(113.1)


Effect of exchange rate changes on cash and cash equivalents


1.2



(5.8)



8.3



(4.4)


Net increase in cash and cash equivalents


147.4



362.0



225.8



112.9


Cash and cash equivalents at beginning of period


886.7



446.3



808.3



695.4


Cash and cash equivalents at end of period

$

1,034.1


$

808.3


$

1,034.1


$

808.3



See Notes to Earnings Release attached