Jarden Corporation’s Outdoor Solutions segment, which owns one of the largest portolios of outdoor and team sporting goods brands in the world, grew earnings 9.4 percent in the fourth quarter despite essentially flat earnings.


Outdoor Solutions segment revenues reached $617.9 million in the fourth quarter ended Dec. 31, 2012, up just 0.5 percent from the fourth quarter of 2011. Segment earnings, however, rose 9.4 percent to  $61.7 million, whlie operating earnings increased 5.3 percent to $41.2 million.


Jarden, which operates two other consumer products segments, said companywide organic net sales reached $1.82 billion in the quarter, up 3.5 percent from $1.74 billion for the same period in 2011. Gross margin increased 130 basis points to 27.9 percent, compared to gross margin of 26.6 percent for the same period in 2011.

 
Diluted earnings per share increased 167 percent to 64 cents per diluted share, compared to 24 cents per diluted share for the same period in 2011. Net income increased approximately 131 percent to $48.7 million, compared to $21.1 million for the same period in 2011.

 
Adjusted gross margin increased approximately 50 basis points to 28.1 percent, compared to adjusted gross margin of 27.6 percent for the same period in 2011. Adjusted diluted earnings per share increased approximately 33 percent to  $1.28 per diluted share, compared to $0.96 per diluted share for the same period in 2011. Adjusted net income increased approximately 15 percent to $96.7 million, compared to $84.4 million for the same period in 2011.


 

“During 2012, Jarden once again delivered record revenues, segment earnings and adjusted earnings per share and finished the year with a record level of cash,” said Martin E. Franklin, Executive Chairman.  “We are also proud to have been among the top five performing stocks compared to the S&P 500 Consumer Staples Index for 2012 on a one-, five- and ten-year basis.   Looking forward, we believe there are many exciting opportunities for Jarden to continue to deliver long-term growth and expand profitability based on the strength of our diversified portfolio of leading brands, new product introductions and the hard work and dedication of our employees.”

CEO James E. Lillie said organic growth across all business segments for the fourth quarter once again validated the strength of the company’s diversified business model. 


“Among the highlights of Jarden’s performance in 2012 was our adjusted gross margin expansion of 70 basis points,” said Lillie. “We believe that this expansion illustrates that our operating model is yielding the intended results and we will continue to invest in our businesses to help drive returns for our shareholders.  We are excited about the outlook for 2013 and beyond, as the investments we have made over the last several years lay the foundation for long-term future success.”

 

Jarden operates in three primary business segments, including Outdoor Solutions, which owns the Abu Garcia , Aero , Berkley , Campingaz  and Coleman , ExOfficio , Fenwick , Gulp! , Invicta , K2 , Marker , Marmot , Mitchell , Penn , Rawlings , Shakespeare , Stearns , Stren , Trilene , Volkl  and Zoot brands. Its Consumer Solutions unit owns the Bionaire , Breville , Crock-Pot , FoodSaver , Health o meter , Holmes , Mr. Coffee , Oster , Patton , Rival , Seal-a-Meal , Sunbeam , VillaWare  and White Mountain brands. It’s Branded Consumables segment owns Ball , Bee , Bernardin , Bicycle , Billy Boy , Crawford , Diamond , Dicon , Fiona , First Alert , First Essentials , Hoyle , Kerr , Lehigh , Lifoam , Lillo , Loew Cornell , Mapa , NUK , Pine Mountain , Quickie , Spontex  and Tigex.

 







































































































































































































































































JARDEN CORPORATION


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


(in millions, except earnings per share)

Quarters ended

December 31, 2012

December 31, 2011

As


Reported


(GAAP)

Adjustments


(1)(3)

Adjusted


(non-GAAP)


(1)(3)

As


Reported


(GAAP)

Adjustments


(1)(3)

Adjusted


(non-GAAP)


(1)(3)












Net sales

$

1,819.2

$

—

$

1,819.2

$

1,738.0

$

—

$

1,738.0












Cost of sales

1,311.8

(3.6)

1,308.2

1,276.3

(18.2)

1,258.1


Gross profit

507.4

3.6

511.0

461.7

18.2

479.9


Selling, general and administrative expenses

359.5

(43.7)

315.8

307.5

(3.4)

304.1


Reorganization costs

17.8

(17.8)

—

17.2

(17.2)

—


Impairment of goodwill and other intangible assets

—

—

—

52.5

(52.5)

—


Operating earnings

130.1

65.1

195.2

84.5

91.3

175.8


Interest expense, net

49.5

(3.0)

46.5

44.9

—

44.9


Income before taxes

80.6

68.1

148.7

39.6

91.3

130.9


Income tax provision

31.9

20.1

52.0

18.5

28.0

46.5


Net income

$

48.7

$

48.0

$

96.7

$

21.1

$

63.3

$

84.4












Earnings per share:












Basic

$

0.65


$

1.29

$

0.24


$

0.97


Diluted

$

0.64


$

1.28

$



















































































































































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Years ended

December 31, 2012

December 31, 2011

As


Reported


(GAAP)

Adjustments


(1)(3)

Adjusted


(non-GAAP)


(1)(3)

As


Reported


(GAAP)

Adjustments


(1)(3)

Adjusted


(non-GAAP)


(1)(3)












Net sales

$

6,696.1

$

—

$

6,696.1

$

6,679.9

$

—

$

6,679.9












Cost of sales

4,771.7

(14.8)

4,756.9

4,821.9

(29.1)

4,792.8


Gross profit

1,924.4

14.8

1,939.2

1,858.0

29.1

1,887.1


Selling, general and administrative expenses

1,320.5

(68.9)

1,251.6

1,259.2

(22.9)

1,236.3


Reorganization costs, net

27.1

(27.1)

—

23.4

(23.4)

—


Impairment of goodwill and other intangible assets

—

—

—

52.5

(52.5)

—


Operating earnings

576.8

110.8