Jarden Corp. reported earnings at its Outdoor Solutions segment grew 12.8 percent in the second quarter or more than six times faster than sales, which were up 1.9 percent from a year earlier.
The segment generated net sales of $754.9 million, up $13.9 million, or 1.9 percent from the second quarter of 2013. Segment earnings reached $100.2 million, up $11.4 million, or 12.8 percent, from a year earlier. After backing out $13.9 million in depreciation and amortization costs, operating earnings increased $4.2 million, or 5.6 percent, to $79.1 million.
Jarden Corp, which also makes everything from small kitchen appliances to playing cards and canning jars under two other segments, reported total net sales grew 12.3 percent to $1.98 billion in the second quarter ended June 30, inclusive of 3.1 percent growth in organic net sales.
The reported gross margin increased 130 basis points to 30.5 percent compared with the second quarter a year ago. Net income decreased to $52.1 million, down 31.8 percent from $76.4 million for the same period in 2013. Earnings per share declined 40.8 percent to $0.42 per diluted share, compared to $0.71 per diluted share for the same period in 2013.
On an adjusted basis, which excludes costs related to acquisitions, currency exchange rates, early extinguishment of debt and other events, gross margin was 30.8 percent compared to 29.2 percent for the same period in 2013.
Adjusted net income was $113.4 million, compared to $95.7 million for the same period in 2013; and adjusted diluted earnings per share was $0.91 per diluted share, compared to $0.88 per diluted share for the same period in 2013.
“We are progressing on the year with another quarter of solid performance” said Martin E. Franklin, Executive Chairman. “We posted positive organic growth in all segments and continued expansion in gross margins, giving us good momentum as we enter the important back half of the year. The broad based organic growth experienced this quarter was primarily driven by the success of our initiatives, product innovation, geographic expansion, and category extension. We additionally advanced our capital management objectives by flattening and extending out our debt repayment schedule through a recently completed issuance of a EUR 300 million private offering of 3 ¾ percent senior notes due 2021.”
CEO James E. Lillie said the performance is in line with the comany's goal of 3 percent-5 percent average annual organic revenue growth.
“Jarden's diversification continued to serve us well and the seasonally appropriate spring weather aided the continued sell-through of many of our products,” Lillie said.
All earnings per share and shares outstanding amounts in the chart below have been adjusted to reflect the effect of the 3-for-2 split of the company's outstanding shares of common stock that occurred during the first quarter of 2013.
JARDEN CORPORATION NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited) (in millions)