Jarden Corporation reported its financial results for the three and six months ended June 30, 2005. All per share and share amounts reflect the impact of the three-for-two stock split distributed on July 11, 2005 to shareholders of record as of June 20, 2005.
Second quarter net sales increased 279% to $754 million compared to $199 million for the same period last year. Net income for the second quarter of 2005 increased by 104% to $32.8 million from $16.0 million for the same period last year. Income allocable to common stockholders for the second quarter of 2005 was $5.7 million or 12 cents per diluted share, compared to 38 cents per diluted share in the prior year period. On a non-GAAP basis, adjusted net income was $36.5 million or 58 cents per diluted share for the three months ended June 30, 2005. Please see the schedule accompanying this release for the reconciliation of GAAP to non-GAAP net income and diluted earnings per common share. Current year amounts include the results of operations from the American Household and the United States Playing Cards businesses, which were acquired in January 2005 and June 2004, respectively.
Martin E. Franklin, chairman and chief executive officer, commented, “The second quarter was a pivotal quarter for Jarden as it showed for the first time the results of our integration efforts following the American Household transaction, highlighted by expanding gross margins, positive cash flow and balance sheet improvements. A tremendous amount of work went into making this the strongest quarter ever reported by the company and our operating management teams did a remarkable job of staying focused to deliver organic sales growth, as well as a strong bottom line.”
For the six months ended June 30, 2005, net sales increased 257% to $1,276 million compared to $357 million for the same period last year. Net income for the six months ended June 30, 2005 increased 39.4% to $32.8 million from $23.6 million for the same period last year. Loss attributable to common stockholders was $14.4 million or 33 cents per share for the six months ended June 30, 2005, compared to income of 56 cents per diluted share in the prior year period. On a non-GAAP basis, adjusted net income was $52.2 million or 83 cents per share for the six months ended June 30, 2005.
Mr. Franklin added, “Our strong performance in the first half of the year has positioned Jarden for a successful second half, where we will continue to focus on introducing new products, expanding our margins and generating record levels of cash flow from operations. In addition to the momentum we built during the second quarter, we will have the benefit of the Holmes Group acquisition from July 18, 2005, including not only its earnings and cash flow, but also the synergistic opportunities it brings to our Consumer Solutions segment this year and beyond.”
Jarden Corporation
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended June 30,
2005 2004
As As As
reported Adjusted Reported
(GAAP) Adjustments non-GAAP (GAAP)
(5) (1)(4) (1)(4)(5) (2)(3)(5)
Net sales $ 754,329 $ - $ 754,329 $ 199,035
Costs and expenses:
Cost of sales 557,831 - 557,831 131,236
Gross profit 196,498 - 196,498 67,799
Selling, general and
administrative expenses 118,630 - 118,630 35,757
Reorganization and
acquisition-related
integration costs 5,878 (5,878) - -
Operating earnings 71,990 (5,878) 77,868 32,042
Interest expense, net 19,075 - 19,075 6,075
Loss on early extinguishment
of debt - - - -
Income before taxes 52,915 5,878 58,793 25,967
Income tax provision 20,108 2,234 22,342 9,920
Net income 32,807 $ 3,644 $ 36,451 16,047
Paid in-kind dividends on
Series B & C preferred stock (2,825) -
Charge from beneficial
conversion on Series C
preferred stock (22,411) -
Income available to common
stockholders 7,571 $ 16,047
Less: income allocable to
preferred stockholders (1,869)
Income allocable to common
stockholders $ 5,702
Basic earnings per share $ 0.13 $ 0.39
Diluted earnings per share $ 0.12 $ 0.38
Jarden Corporation
Net Sales and Operating Earnings by Segment (Unaudited)
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
Net sales:
Branded consumables (a) $ 165,456 $ 122,719 $ 277,165 $ 197,617
Consumer solutions (b) 243,612 36,180 434,452 81,354
Outdoor solutions (c) 298,627 - 481,542 -
Other 63,389 54,442 115,092 106,898
Intercompany
eliminations (e) (16,755) (14,306) (32,576) (28,510)
Total net sales $ 754,329 $ 199,035 $ 1,275,675 $ 357,359
Operating earnings:
Branded
consumables (a)(d) $ 26,715 $ 22,495 $ 37,404 $ 28,787
Consumer
solutions (b)(d) 4,275 3,507 7,137 9,904
Outdoor solutions (c)(d) 40,099 - 47,436 -
Other 6,697 5,721 9,891 11,391
Intercompany
eliminations (e) 82 319 (6) (265)
Reorganization and
acquisition-related
integration costs (5,878) - (8,806) -
Total operating
earnings $ 71,990 $ 32,042 $ 93,056 $ 49,817
