Jarden Corporation's first quarter ended March 31, 2006, net sales increased 52% to $792 million compared to $521 million for the same period in the previous year. Net income was $5.7 million, or 9 cents per diluted share, for the quarter ended March 31, 2006, compared to a net loss of $22.0 million, or (51) cents per common share, in the first quarter of 2005.
On a non-GAAP basis, as adjusted net income was $15.8 million, or $0.24 per diluted share, for the quarter ended March 31, 2006, compared to $15.8 million, or $0.25 per diluted share, in the first quarter of 2005. Please see the schedule accompanying this release for the reconciliation of GAAP to non-GAAP net income and diluted earnings per share. Current year amounts include the results of operations from the American Household and Holmes Group businesses, which were acquired in January 2005 and July 2005, respectively.
Martin E. Franklin, Chairman and Chief Executive Officer, commented, “I am delighted that all of our businesses have started 2006 on such a positive note and that the steps we took in the fourth quarter to integrate our recent acquisitions delivered tangible benefits. Specifically, our strong organic sales growth helped to fuel improved profitability and deliver better than anticipated as adjusted net income and earnings per share, by partially offsetting the first quarter dilutive impact of the Holmes transaction, foreign exchange movements, and raw material cost increases.”
Mr. Franklin continued, “The integration process within our Consumer Solutions business is proceeding well and we were able to realize synergies from this restructuring faster than originally budgeted. Our new product development pipeline is starting to drive margin expansion and the growth in our businesses more than offset any inventory reduction initiatives at some of our customers. We look forward to the rest of 2006 with renewed optimism. The macro environment remains volatile, particularly on the raw material and energy cost side, but we believe that overall sales and margins are tracking to put us in a position to meet our financial goals in 2006, as well as our overall three year financial targets.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except earnings per share)
Three month period ended
March 31, 2006
As Adjusted
As Reported Adjustments (Non-GAAP)
(GAAP) (1)(3) (1)(3)
Net sales $791,661 $- $791,661
Cost of sales 605,991 (295) 605,696
General and administrative
expenses 141,794 (6,343) 135,451
Reorganization and
acquisition-related
integration costs 9,359
(9,359) -
Operating earnings 34,517 15,997 50,514
Interest expense, net 25,577 - 25,577
Loss on early extinguishment
of debt - - -
Income before taxes 8,940 15,997 24,937
Income tax provision 3,266 5,836 9,102
Net income $5,674 $10,161 $15,835
Paid in-kind dividends on
Series B and C preferred stock - - -
Charges from beneficial
conversions of Series B and C
preferred stock - - -
Income (loss) available to
common stockholders $5,674 $10,161 $15,835
Earnings (loss) per share:
Basic $0.09 $0.24
Diluted $0.09 $0.24
Weighted average shares
outstanding:
Basic 65,635 65,635
Diluted 66,496 66,496
JARDEN CORPORATION
NET SALES AND OPERATING INCOME BY SEGMENT (Unaudited)
(in millions)
Three month period ended
March 31, March 31,
2006 2005
Net sales:
Branded consumables (a) $154.8 $135.4
Consumer solutions (b) 351.5 167.1
Outdoor solutions 228.1 182.9
Process solutions (c) 75.1 51.7
Intercompany eliminations (d) (17.8) (15.8)
Total net sales $791.7 $521.3
Operating earnings:
Branded consumables (e) $9.2 $12.9
Consumer solutions (e) 11.6 -
Outdoor solutions (e) 12.8 6.9
Process solutions 6.6 3.2
Unallocated (f) (5.7) (1.9)
Total operating income $34.5 $21.1
