Jarden Reports Record First Quarter Results

RYE, N.Y., April 25, 2012 /PRNewswire/ -- Jarden Corporation (NYSE:JAH) today reported its financial results for the quarter ended March 31, 2012.

For the quarter ended March 31, 2012:

• Organic net sales grew 2.9%;
• Reported net sales increased approximately 1% to $1.50 billion compared to $1.48 billion for the same period in the previous year;
• Gross margin increased 52 basis points to 28.1% compared to adjusted gross margin of 27.5%, for the same period in 2011;
• Net income increased $0.20 per diluted share, or approximately 95%, to  $35.1 million, or $0.41 per diluted share, compared to net income of $19.0 million, or $0.21 per diluted share, for the same period in 2011; and
• Adjusted net income increased $0.07 per diluted share, or approximately 18%, to $40.0 million, or $0.47 per diluted share, compared to $35.4 million, or $0.40 per diluted share, for the same period in 2011.

"We had a strong start to the year in the first quarter, reporting our 10th consecutive quarter of organic sales growth and delivering an 18% increase in adjusted earnings per share," said Martin E. Franklin, Executive Chairman.  "We had organic sales growth across all of our business segments which was led by our Branded Consumables segment with over 6% organic growth for the quarter.  We were also very pleased to advance the interests of our shareholders by completing the buyback of 12.1 million shares of stock during the quarter for approximately $435 million."

James E. Lillie, Chief Executive Officer commented, "The organic sales and point-of-sale performance our businesses achieved during the first quarter, despite the warm winter weather, reinforces the benefit of Jarden's diversified portfolio of brands and products.  We believe our businesses are well positioned to build on this positive momentum for the remainder of 2012 and we remain confident in our ability to meet our financial and strategic goals for the year."

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

The Company will be hosting a conference call at 4:45 p.m. (EDT) today, April 25, 2012, to further discuss its first quarter results. To listen to the call by telephone, please dial 888-599-4875 (domestic) or 913-312-0977 (international) and provide passcode: 7674031. 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: 7674031 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!®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Volkl® and Zoot®; Consumer Solutions: Bionaire®, 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®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, Quickie®, Spontex® and Tigex®. Headquartered in Rye, N.Y., Jarden ranks #379 on the Fortune 500 and has over 23,000 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, 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 INCOME (Unaudited)
(in millions, except earnings per share)

See Notes to Earnings Release attached

JARDEN CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)

See Notes to Earnings Release attached

JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)

See Notes to Earnings Release attached

JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)
(in millions)

(a)      Intersegment sales are recorded at cost plus an agreed-upon intercompany profit on intersegment sales.

Jarden Corporation

Notes to Earnings Release

Note 1: Adjustments relate to items that are excluded from the "As Reported" results to arrive at the "Adjusted" results for the quarters ended March 31, 2012 and 2011.  For the quarter ended March 31, 2012, adjustments to net income included $4.6 million of amortization of acquired intangible assets and the tax provision adjustment of $0.3 million, which reflects the normalization of the adjusted results to the Company's estimated 35% effective tax rate.

For the quarter ended March 31, 2011, adjustments to net income consist of $6.7 million primarily associated with the manufacturer's profit in inventory charged to cost of sales which is the purchase accounting fair value adjustment to inventory associated with the Quickie acquisition; $12.8 million of a non-cash write-off of deferred debt issue costs and $4.7 million of amortization of acquired intangible assets.   Also, included in the adjustments to net income for the quarter ended March 31, 2011 is the tax provision adjustment of $7.8 million which reflects the normalization of the adjusted results to the Company's estimated 35.5% effective tax rate.

Note 2:  Organic net sales growth is a non-GAAP measure of net sales growth excluding the impacts of foreign exchange, significant acquisitions, and exited business from year-over-year comparisons.  The Company believes this measure provides investors with a more complete understanding of the underlying sales trends by providing net sales on a consistent basis.  Organic net sales growth is also one of the measures used by management to analyze operating performance.  The following table provides a reconciliation of organic net sales growth to the comparable GAAP measure of net sales growth for the quarter ended March 31, 2012:

Note 3: This earnings release contains non-GAAP financial measures that may not be directly comparable to other similarly titled measures used by other companies. 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 statements 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. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP measures are provided because management of the Company uses these financial measures in maintaining and evaluating the Company's ongoing financial results and trends.  Management uses this non-GAAP information as an indicator of business performance, and evaluates overall management with respect to such indicators.  Additionally, the Company uses non-GAAP financial measures because the Company's credit agreement provides for certain adjustments in calculations used for determining whether the Company is in compliance with certain credit agreement covenants, including, but not limited to, adjustments relating to non-cash purchase accounting adjustments, non-cash impairment charge of goodwill, intangibles and other assets, certain reorganization and acquisition-related integration costs, transaction and integration costs, non-cash Venezuela hyperinflationary and devaluation charges, gains and losses as a result of currency fluctuations, gain on the sale of the domestic business, non-cash stock-based compensation costs, loss on early extinguishment of debt and other items.  These non-GAAP measures should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP.

SOURCE Jarden Corporation