Jarden Corporation had net sales increase 10% to $1.46 billion in the three months ended Sept. 30, 2008, compared to $1.32 billion for the same period in the previous year. For this same third quarter, net income was $63.8 million, or 83 cents per diluted share, compared to net income of $21.2 million, or 28 cents per diluted share, in the three months ended Sept. 30, 2007. On a non-GAAP basis, adjusted net income was $74.9 million, or 98 cents per diluted share, for the three months ended Sept. 30, 2008, compared to $60.1 million, or 80 cents per diluted share, for same three months last year.
For the nine months ended Sept. 30, 2008, net sales increased 26% to $4.0 billion compared to $3.2 billion for the same period in the previous year. For this same period, net income was $111.5 million, or $1.46 per diluted share, compared to net income of $39.3 million, or 54 cents per diluted share, in the nine months ended Sept. 30, 2007. On a non-GAAP basis for the nine months, adjusted net income was $146.2 million, or $1.91 per diluted share, compared to last year’s $121.7 million, or $1.68 per diluted share.
The Pure Fishing, Inc. and K2 Inc. businesses have been included in the results of operations from their dates of acquisition in April 2007 and August 2007, respectively.
“Our diversified business model delivered another record quarter, with organic sales growth and increased segment earnings in each of our three primary business segments, resulting in adjusted EPS up more than 22% from the prior year quarter,” said Martin E. Franklin, chairman and CEO of Jarden Corporation. “We attribute this success to the strength of Jarden’s leading brand portfolio and the relevance of our products to the consumer in these tough economic times, coupled with our disciplined, conservative management approach. We have often said that the more time consumers spend in and around the home the better it is for many of our businesses and we experienced this particularly in our Ball fresh preserving business, First Alert safety systems, Coleman outdoor equipment and in the FoodSaver appliance category in the third quarter.”
Franklin continued, “Our last acquisition was over a year ago and the earnings power of the business post any acquisition related adjustments can be clearly seen in the fact that the GAAP EPS in the third quarter of 2008 was greater than the as adjusted EPS in 2007. We have maintained our conservative balance sheet and reduced year-over-year inventories in the quarter, despite meaningful cost increases during the last 12 months. In these uncertain times we are particularly pleased that we have maintained our strong liquidity position as we head into our highest cash flow quarter of the year.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Three months ended
September 30, 2008 September 30, 2007
Adjusted Adjusted
As Adjust (non- As Adjust (non-
Reported -ments GAAP) Reported -ments GAAP)
(GAAP) (1)(2) (1)(2) (GAAP) (1)(2)(3) (1)(2)(3)
Net sales $1,455.6 $– $1,455.6 $1,322.2 $– $1,322.2
Cost of sales 1,039.8 — 1,039.8 994.4 (45.3) 949.1
Gross profit 415.8 — 415.8 327.8 373.1 373.1
Selling, general
and administrative
expenses 258.9 (4.0) 254.9 239.2 (3.0) 236.2
Reorganization
and
acquisition-
related
integration
costs, net 12.8 (12.8) — 11.0 (11.0) —
Operating
earnings 144.1 16.8 160.9 77.6 59.3 136.9
Interest
expense, net 44.0 — 44.0 43.0 — 43.0
Loss on early
extinguishment
of debt — — — — — —
Income before
taxes 100.1 16.8 116.9 34.6 59.3 93.9
Income tax
provision 36.3 5.7 42.0 13.4 20.4 33.8
Net income $63.8 $11.1 $74.9 $21.2 $38.9 $60.1
Earnings per
share:
Basic $0.85 $0.99 $0.29 $0.82
Diluted $0.83 $0.98 $0.28 $0.80
Weighted average
shares
outstanding:
Basic 75.4 75.4 73.3 73.3
Diluted 76.5 76.5 74.9 74.9
