Jarden Corp. reported sales at its Outdoor Solutions segment, which includes Coleman and K2 Sports, rose 4.7% in the fourth quarter to $517 million from $494 million. Earnings for the segment were down 14% to $49.4 million from $57.3 million a year ago.
Earnings are before heavy non-recurring charges in both periods.
After adjustments, operating earnings were $3.3 million in the latest quarter. Adjustments include reorganization and acquisition-related integration costs of 29.2 million; impairment of goodwill and other intangibles of $800,000 and depreciation and amortization of $16.9 million. In the year-ago period, the Outdoor Solutions segment lost $400,000 after adjustments.
Brands in the Outdoor Solutions group include Coleman, Berkley, Ex Officio, K2 Skis, K2 Snowboarding, Marmot, Penn, Rawlings, Shakespeare, Ugly Stick and Volkl.
Overall, Jarden Corp.’s sales increased 3% for the quarter ended Dec. 31, 2009, net sales to $1.39 billion compared to $1.35 billion for the same period in the previous year. Net income of $1.2 million, or 1 cent per diluted share, compared to a net loss of $170 million, or ($2.28) per share, for the same period in 2008. The results include a non-cash impairment charge against goodwill and intangible assets of $22.9 million for the quarter ended December 31, 2009, as compared to $283 million for the same period in 2008. On a non-GAAP basis, adjusted net income for the fourth quarter was $68.5 million, or $0.77 per diluted share, compared to $62.7 million, or $0.83 per diluted share, for the same period in 2008.
For the year ended December 31, 2009, net sales decreased 4% to $5.2 billion compared to $5.4 billion in 2008. The Company recorded net income for 2009 of $129 million, or $1.52 per diluted share, compared to a net loss of $58.9 million, or ($0.78) per share in 2008. The results include a non-cash impairment charge against goodwill and intangible assets of $22.9 million for the year ended December 31, 2009, as compared to $283 million for the year ended December 31, 2008. On a non-GAAP basis, adjusted net income for 2009 was $221 million, or $2.60 per diluted share, compared to $209 million, or $2.74 per diluted share in 2008. Cash flow from operations in 2009 was $641 million, compared to $250 million in 2008.
“Jarden’s diversified business model delivered outstanding cash flow and overall performance during 2009 and we finished the year with strong positive momentum coming into 2010,” commented Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation. “From the uncertainty that existed at the beginning of 2009, this is an incredibly satisfying result, reflective of not only the hard work of our employees and the strength of our brand portfolio, but also a validation of our strategy of continuing to invest in new products while maintaining a low cost operating platform.”
Franklin continued, “We have started 2010 on track to deliver healthy organic sales growth in each of our three consumer segments this year on the back of market share gains and our strong pipeline of new products. We are looking forward to pursuing the revenue synergy opportunities from the Mapa Spontex transaction, which we anticipate will close in early April.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Quarters ended
--------------
December 31, 2009 December 31, 2008
----------------- -----------------
Adjusted Adjusted
As Adjust- (non- As Adjust- (non-
Reported ments GAAP) Reported ments GAAP)
(GAAP) (1)(2) (1)(2) (GAAP) (1)(2) (1)(2)
-------- ------- --------- -------- ------- ---------
Net sales $1,392.7 $-- $1,392.7 $1,350.3 $-- $1,350.3
-------- --- -------- -------- --- --------
Cost of sales 1,012.2 -- 1,012.2 971.9 -- 971.9
------- --- ------- ----- --- -----
Gross profit 380.5 -- 380.5 378.4 -- 378.4
Selling, general
and administrative
expenses 257.1 (21.5) 235.6 238.5 (4.0) 234.5
Reorganization
and acquisition-
related integration
costs, net 29.8 (29.2) 0.6 25.2 (25.2) --
Impairment of
goodwill and other
intangible assets 22.9 (22.9) -- 283.2 (283.2) --
---- ----- --- ----- ------ ---
Operating earnings
(loss) 70.7 73.6 144.3 (168.5) 312.4 143.9
Interest expense,
net 37.3 -- 37.3 45.9 -- 45.9
---- --- ---- ---- --- ----
Income (loss)
before taxes 33.4 73.6 107.0 (214.4) 312.4 98.0
Income tax provision
(benefit) 32.2 6.3 38.5 (44.0) 79.3 35.3
---- --- ---- ----- ---- ----
Net income (loss) $1.2 $67.3 $68.5 $(170.4) $233.1 $62.7
==== ===== ===== ======= ====== =====
Earnings (loss)
per share:
Basic $0.01 $0.78 $(2.28) $0.84
Diluted $0.01 $0.77 $(2.28) $0.83
Weighted average
shares outstanding:
Basic 88.3 88.3 74.9 74.9
Diluted 89.3 89.3 74.9 75.8
