Jarden Corporation second quarter net sales increased 28% to $962 million compared to $754 million for the same period in the previous year. Net income was $13.3 million, or 20 cents per diluted share, for the quarter ended June 30, 2006, compared to $5.7 million, or 12 cents per diluted share, in the second quarter of 2005. On a non-GAAP basis, net income as adjusted was $39.3 million, or $0.60 per diluted share, for the quarter ended June 30, 2006, compared to $36.5 million, or $0.58 per diluted share, in the second quarter of 2005.
For the six months ended June 30, 2006, net sales increased 37% to $1,754 million compared to $1,276 million for the same period in the prior year. Net income was $19 million, or $0.29 per diluted share for the six months ended June 30, 2006, compared to a net loss of $14.4 million or $(0.33) per diluted share for the six months ended June 30, 2005. On a non-GAAP basis, net income as adjusted was $55.1 million, or $0.84 per diluted share for the six months ended June 30, 2006, compared to $52.3 million, or $0.83 per diluted share for the six months ended June 30, 2005.
Martin E. Franklin, Chairman and Chief Executive Officer, commented, “Our solid first quarter momentum continued into the second quarter as demonstrated by the record financial results reported today. Our strategy of building a market leading, diversified consumer products company based on our people, products and brands continues to gain real traction. Our strong organic topline growth demonstrates the demand for our products by consumers. We attribute this growth to solid market share gains in a number of our product lines and our ability to secure revenue growth by way of pass through pricing in other product lines. Despite questions about the economy and consumers, we believe that the more time consumers spend at home the better it is for Jarden. Additionally, with integration challenges largely behind us, we are meeting our objective of proving that being a market leader with brands and scale can produce superior results.”
Mr. Franklin continued, “Our Outdoor Solutions segment exhibited strong sales in the first half and is well positioned to present its most meaningful new product portfolio in the company’s recent history in 2007. The healthy momentum in all of our segments, despite continued pressure on supply chain costs, continued through the second quarter. This momentum positions us well for the back half of the year and on track to achieve our long-term financial goals.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Three month periods ended
June 30, 2006 June 30, 2005
As As As
As Adjusted Reported Adjusted
Reported Adjustments (non-GAAP) (GAAP) Adjustments (non-GAAP)
(GAAP) (1)(3) (1)(3) (2) (1)(3) (1)(3)
Net sales $962.0 $-- $962.0 $754.4 $-- $754.4
Cost of sales 729.9 -- 729.9 557.9 -- 557.9
Gross profit 232.1 -- 232.1 196.5 -- 196.5
General and
administrative
expenses 147.1 (5.2) 141.9 118.6 -- 118.6
Reorganization
and
acquisition-
related
integration
costs, net 5.6 (5.6) -- 5.9 (5.9) --
Operating
earnings 79.4 10.8 90.2 72.0 5.9 77.9
Interest
expense, net 28.3 -- 28.3 19.1 -- 19.1
Income before
taxes 51.1 10.8 61.9 52.9 5.9 58.8
Income tax
provision 37.8 (15.2) 22.6 20.1 2.2 22.3
Net income $13.3 $26.0 $39.3 $32.8 $3.7 $36.5
Paid in-kind
dividends on
Series B and
C preferred
stock -- -- -- (2.8) 2.8 --
Charges from
beneficial
conversions of
Series C
preferred stock -- -- -- (22.4) 22.4 --
Income allocable
to common
stockholders 13.3 26.0 39.3 7.6 28.9 36.5
Less: income
allocable to
preferred
stockholders -- -- -- (1.9) 1.9 --
Income allocable
to common
stockholders $13.3 $26.0 $39.3 $5.7 $30.8 $36.5
Earnings per
share:
Basic $0.21 $0.61 $0.13
Diluted $0.20 $0.60 $0.12 $0.58
Weighted
average
shares
outstanding:
Basic 64.5 -- 64.5 44.0 --
Diluted 65.5 -- 65.5 45.8 17.5 63.3
JARDEN CORPORATION
NET SALES AND OPERATING INCOME BY SEGMENT (Unaudited)
(in millions)
Branded Consumer Process
Consumables Solutions Outdoor Solutions
(a) (b) Solutions (c)
Three months ended
June 30, 2006
Sales $206.5 $359.5 $331.9 $81.0
Adjusted segment
earnings (loss) $34.9 $30.6 $47.9 $9.7
Adjustments to reconcile
to reported operating
earnings (loss):
Reorganization costs
and acquisition-
related integration
costs, net (1.0) (4.6) 0.4 --
Other integration-
related costs -- (0.9) -- --
Stock-based compensation -- -- -- --
Depreciation and
amortization (2.9) (5.4) (4.2) (2.3)
Operating earnings
(loss) $31.0 $19.7 $44.1 $7.4
Total
Intercompany Operating Corporate/
Eliminations (d) Segments Unallocated Consolidated
Three months ended
June 30, 2006
Sales $(16.9) $962.0 $-- $962.0
Adjusted segment
earnings (loss) $-- $123.1 $(17.8) $105.3
Adjustments to reconcile
to reported operating
earnings (loss):
Reorganization costs
and acquisition-
related integration
costs, net -- (5.2) (0.4) (5.6)
Other integration-
related costs -- (0.9) -- (0.9)
Stock-based compensation -- -- (4.3) (4.3)
Depreciation and
amortization -- (14.8) (0.3) (15.1)
Operating earnings
(loss) -- $102.2 $(22.8) $79.4
Branded Consumer Process
Consumables Solutions Outdoor Solutions
(a) (b) Solutions (c)
Three months ended
June 30, 2005
Sales $193.8 $217.5 $298.6 $63.4
Adjusted segment
earnings (loss) $28.6 $14.6 $45.5 $9.0
Adjustments to reconcile
to reported operating
earnings (loss):
Reorganization costs
and acquisition-
related integration
costs, net (1.3) (3.6) (0.4) --
Depreciation and
amortization (2.4) (4.1) (4.4) (2.3)
Operating earnings
(loss) $24.9 $6.9 $40.7 $6.7
Total
Intercompany Operating Corporate/
Eliminations (d) Segments Unallocated Consolidated
Three months ended
June 30, 2005
Sales $(18.9) $754.4 $-- $754.4
Adjusted segment
earnings (loss) $-- $97.7 $(6.5) $91.2
Adjustments to reconcile
to reported operating
earnings (loss):
Reorganization costs
and acquisition-
related integration
costs, net -- (5.3) (0.6) (5.9)
Depreciation and
amortization -- (13.2) (0.1) (13.3)
Operating earnings (loss) -- $79.2 $(7.2) $72.0
