Jarden Reports First Quarter Results Record First Quarter Net Sales of $1.58 Billion Net Sales Growth of 5.7% with Organic Net Sales Growth of 4% Adjusted Gross Margin Expansion of 30 basis points PR Newswire RYE, N.Y., April 24, 2013 RYE, N.Y., April 24, 2013 /PRNewswire/ --Jarden Corporation (NYSE:JAH) today reported its financial results for the quarter ended March 31, 2013. For the quarter ended March 31, 2013: oOrganic net sales grew 4.0%; oReported net sales were $1.58 billion, compared to $1.50 billion for the same period in 2012; oReported gross margin was 28.1% for both 2013 and 2012; oNet income declined to a loss of $4.4 million, compared to net income of $35.1 million for the same period in 2012; oEarnings per share was a loss of $0.04 per share, compared to earnings of $0.27 per diluted share for the same period in 2012; oAdjusted gross margin increased approximately 30 basis points to 28.4%, compared to gross margin of 28.1% for the same period in 2012; oAdjusted net income was $33.1 million, compared to $40 million for the same period in 2012; and oAdjusted diluted earnings per share was $0.30 per diluted share, compared to $0.31 per diluted share for the same period in 2012. "Jarden's strong momentum from 2012 continued in the first quarter, with our 4% organic growth rate positioning us well to achieve our financial goals for 2013," said Martin E.Franklin, Executive Chairman. "The foundation for our positive sales growth remains our commitment tobrand and product development spending, which in turn leads to innovative new products. Jarden is unique in the composition and diversification of our brand and product portfolio, which we believe provide us with superior opportunities for consistent, profitable growth. The capital market activity we undertook in the first quarter, including the3-for-2 stock split which became effective on March 18th, reflects our planning for and confidence in our long term business prospects." James E. Lillie, Chief Executive Officer, commented, "It is gratifying that our strategies and disciplined execution continue to yield results consistent with our long term financial goals.Having spent much of the first quarter visiting our domestic and international businesses, I remain confident that our management teams are fully aligned with ourcorporatefocus on growth, innovation, margin and working capital improvements, while investing in processes, people and products to help ensure our long-term success. Commodity cost increases continue to be relatively benign compared to the last several years, andwe believe we can deliver an overall organic top-line sales increase of 3-5% for calendar 2013, while also driving year-over-year operating margin expansion." All earnings per share and shares outstanding amounts have been adjusted to reflect the effect of the 3-for-2 split of the Company's outstanding shares of common stock that occurred during the first quarter of 2013. 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 4:45 p.m. (EDT) today, April 24, 2013, to further discuss its first quarter results. To listen to the call by telephone, please dial 888-505-4375 (domestic) or 719-785-1753 (international) and provide passcode: 4458862. 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: 4458862 or visit www.jarden.com. Jarden Corporation is a leading provider of a diverse range of consumer products with a portfolio of approximately 120 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 March 31, 2013 March 31, 2012 Adjusted As As Adjusted (non-GAAP) Reported Adjustments Reported Adjustments (non-GAAP) (1)(2)(4) (GAAP) (1)(4) (GAAP) (1)(4) (1)(2)(4) (2) (2) Net sales $ 1,580.7 $ -- $ 1,580.7 $ 1,495.4 $ -- $ 1,495.4 Cost of sales 1,137.2 (5.0) 1,132.2 1,075.8 -- 1,075.8 Gross profit 443.5 5.0 448.5 419.6 -- 419.6 Selling, general and 386.6 (34.1) 352.5 318.0 (4.6) 313.4 administrative expenses Operating 56.9 39.1 96.0 101.6 4.6 106.2 earnings Interest 49.6 (3.0) 46.6 44.7 -- 44.7 expense, net Loss on early extinguishment 17.1 (17.1) -- -- -- -- of debt Income (loss) (9.8) 59.2 49.4 56.9 4.6 61.5 before taxes Income tax (benefit) (5.4) 21.7 16.3 21.8 (0.3) 21.5 provision Net (loss) $ (4.4) $ 37.5 $ 33.1 $ 35.1 $ 4.9 $ 40.0 income Earnings (loss) per share: Basic $ (0.04) $ 0.30 $ 0.27 $ 0.31 Diluted $ (0.04) $ 0.30 $ 0.27 $ 0.31 Weighted average shares outstanding: Basic 111.1 111.1 127.3 127.3 Diluted 111.1 111.9 128.2 128.2 See Notes to Earnings Release attached JARDEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) March 31, March 31, December 31, 2013 2012 2012 Assets Current assets: Cash and cash equivalents $ 580.0 $ 481.2 $ 1,034.1 Accounts receivable, net 1,236.8 1,169.0 1,137.7 Inventories 1,442.4 1,409.6 1,310.3 Deferred taxes on income 166.6 182.4 174.5 Prepaid expenses and other current 191.1 151.8 153.8 assets Total current assets 3,616.9 3,394.0 3,810.4 Property, plant and equipment, net 664.2 616.5 678.6 Goodwill 1,821.9 1,718.3 1,824.0 Intangible assets, net 1,245.6 1,155.0 1,256.7 Other assets 136.1 134.3 140.9 Total assets $ 7,484.7 $ 7,018.1 $ 7,710.6 Liabilities and stockholders' equity Current liabilities: Short-term debt and current portion of $ 520.2 $ 483.5 $ 504.7 long-term debt Accounts payable 632.7 589.1 615.4 Accrued salaries, wages and employee 154.8 158.7 187.6 benefits Other current liabilities 394.7 423.5 421.0 Total current liabilities 1,702.4 1,654.8 1,728.7 Long-term debt 3,346.2 2,960.0 3,293.4 Deferred taxes on income 566.4 509.5 566.8 Other non-current liabilities 352.2 333.0 362.1 Total liabilities 5,967.2 5,457.3 5,951.0 Total stockholders' equity 1,517.5 1,560.8 1,759.6 Total liabilities and stockholders' $ 7,484.7 $ 7,018.1 $ 7,710.6 equity See Notes to Earnings Release attached JARDEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) Quarters ended March March 31, 31, 2013 2012 Cash flows from operating activities: Net income (loss) $ (4.4) $ 35.1 Adjustments to reconcile net (loss) income to net cash used in operating activities: Depreciation and amortization 37.7 35.9 Stock-based compensation 37.2 19.1 Venezuela devaluation-related charges 27.4 -- Other non-cash items 5.4 2.4 Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable (109.9) (90.6) Inventory (140.6) (121.5) Accounts payable 22.2 26.6 Other current assets and liabilities (81.2) (54.4) Net cash used in operating activities (206.2) (147.4) Cash flows from financing activities: Net change in short-term debt 4.2 88.9 Proceeds from issuance of long-term debt 253.0 300.2 Payments on long-term debt (188.5) (113.1) (Repurchase of)/ proceeds from common stock, net (264.8) (435.3) Debt issue costs (5.1) (3.2) Other 2.2 (1.9) Net cash used in financing activities (199.0) (164.4) Cash flows from investing activities: Additions to property, plant and equipment (24.7) (23.3) Other (1.9) -- Net cash used in investing activities (26.6) (23.3) Effect of exchange rate changes on cash and cash equivalents (22.3) 8.0 Net decrease in cash and cash equivalents (454.1) (327.1) Cash and cash equivalents at beginning of period 1,034.1 808.3 Cash and cash equivalents at end of period $ 580.0 $ 481.2 See Notes to Earnings Release attached JARDEN CORPORATION NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited) (in millions) Outdoor Consumer Branded Process Intercompany Total Corporate/ Solutions Solutions Consumables Solutions Eliminations Operating (a) Segments Unallocated Consolidated Quarter ended March 31, 2013 Net sales $ 694.9 $ 363.3 $ 443.7 $ 97.6 $ (18.8) $ 1,580.7 $ -- $ 1,580.7 Segment earnings $ 71.2 $ 45.1 $ 56.1 $ 14.9 $ -- $ 187.3 $ (58.7) $ 128.6 (loss) Adjustments to reconcile to reported operating earnings(loss): Fair market value adjustment to (1.5) -- (3.5) -- -- (5.0) -- (5.0) inventory Venezuela devaluation-related -- -- -- -- -- -- (29.0) (29.0) charges Depreciation and (13.5) (7.6) (12.8) (2.8) -- (36.7) (1.0) (37.7) amortization Operating earnings $ 56.2 $ 37.5 $ 39.8 $ 12.1 $ -- $ 145.6 $ (88.7) $ 56.9 (loss) Outdoor Consumer Branded Process Intercompany Total Corporate/ Solutions Solutions Consumables Solutions Eliminations Operating (a) Segments Unallocated Consolidated Quarter endedMarch 31, 2012 Net sales $ 670.1 $ 347.9 $ 402.6 $ 91.8 $ (17.0) $ 1,495.4 $ -- $ 1,495.4 Segment earnings $ 71.6 $ 43.6 $ 52.1 $ 12.0 $ -- $ 179.3 $ (41.8) $ 137.5 (loss) Adjustments to reconcile to reported operating earnings(loss): Depreciation and (13.8) (7.1) (11.4) (3.0) -- (35.3) (0.6) (35.9) amortization Operating earnings $ 57.8 $ 36.5 $ 40.7 $ 9.0 $ -- $ 144.0 $ (42.4) $ 101.6 (loss) (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, 2013 and 2012. For the quarter ended March 31, 2013, adjustments to net income included $5.0 million 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 December 2012 acquisitions; $29.0 million of Venezuela devaluation-related charges primarily attributable to the devaluation of the Venezuelan Bolivar in February 2013; $5.1 million of amortization of acquired intangible assets; $3.0 million of non-cash original issue discount amortization on the convertible notes; and $17.1 million related to the loss on early extinguishment of debt. Also, included in the adjustments to net income for the quarter ended March 31, 2013 is the tax provision adjustment of $21.7 million, which reflects the normalization of the adjusted results to the Company's 2013 estimated 33% effective tax rate. 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 a benefit of $0.3 million, which reflects the normalization of the adjusted results to the Company's 2012 estimated 35% effective tax rate. Note 2: All earnings per share and shares outstanding amounts have been adjusted to reflect the effect of the 3-for-2 split of the Company's outstanding shares of common stock that occurred during the first quarter of 2013. Note 3: Organic net sales growth is a non-GAAP measure of net sales growth excluding the impacts of foreign exchange, certain 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, 2013: Quarter ended March 31, 2013 Reconciliation of Non- GAAP measure Net sales growth 5.7% Foreign exchange impacts 1.1% (Acquisitions)/exited business, net (2.8%) Organic net sales growth 4.0% Note 4: 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 operations, 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 monitoring 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 charges of goodwill, intangibles and other assets, certain net reorganization costs and acquisition-related and other charges, transaction and integration costs, Venezuela hyperinflationary and devaluation-related charges, gains and losses as a result of currency fluctuations, gain on the sale of a domestic business, non-cash stock-based compensation costs, loss on early extinguishment of debt, non-cash original issue discount amortization and other items. Adjusted gross margin is calculated by dividing adjusted gross profit by net sales. Segment earnings (as adjusted EBITDA) margin is calculated by dividing segment earnings (as adjusted EBITDA) by net sales. Adjusted net interest expense is calculated by deducting original issue discount amortization from net interest expense. Adjusted income tax provision is calculated by adding the income tax provision adjustment, which reflects the normalization of the adjusted results to the Company's estimated effective tax rate, to the income tax provision. 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 Website: http://www.jarden.com Contact: Rachel Wilson, 914-967-9400; Investor Relations: Allison Malkin, Press: Alecia Pulman, ICR, Inc., 203-682-8200
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Jarden Reports First Quarter Results
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