Jarden Outdoor Swings Into the Black on Modest Q4 Sales Gains

Jarden Outdoor Solutions, which owns Coleman, Marmot, Rawlings and two dozen other outdoor and athletic brands,  moved solidly into the black on nearly flat sales in the fourth quarter.

Parent company Jarden Corp. reported the segment generated operating earnings of $11.6 million in the quarter ended Dec. 31, compared with an operating loss of $1.9 million a year earlier. Segment sales reached $621.1 million during the quarter, up just $3 million, or 0.5 percent. 

For the full year, Outdoor Solutions sales reached $2.74 billion, up $14.8 million, or 0.5 percent from $2.73 billion in 2013. Full year operating earnings reached $193.4 million, down $2.7 million, or 1.4 percent from a year earlier.

Jarden Corporation, which also makes small appliance, playing cards, cleaning products and other branded consumer products through two other segments,  reported total organic net sales grew 11.4 percent, or $252 million, in the fourth quarter ended Dec. 31, 2014.

“Our results reflect broad-based portfolio strength and disciplined execution,” said CEO James E. Lillie. “New records were set both in the fourth quarter and full year 2014 across many metrics, such as revenues, gross margins on a reported as well as on an as adjusted basis, segment earnings, and adjusted diluted earnings per share. Our results from 2014 mark a solid start to achieving our long-term financial goals.  We have entered the year with positive momentum and are focused on achieving our 2015 guidance.”

Fourth quarter financial highlights for Jarden Corporation included:
 

• Net sales grew 10.0 percent or $222 million to $2.44 billion, compared to $2.22 billion for the same period in 2013;
• Reported gross margin was 34.6 percent compared to 28.6 percent for the same period in 2013;
• Net income was $78.1 million, compared to $37.0 million for the same period in 2013;
• Earnings per share was $0.41 per diluted share, compared to $0.19 per diluted share for the same period in 2013;
• Adjusted gross margin was 34.5 percent compared to 33.0 percent for the same period in 2013;
• Adjusted net income was $220 million, compared to $167 million for the same period in 2013; and
• Adjusted earnings per share was $1.15 per diluted share, compared to $0.87 per diluted share for the same period in 2013.

For the year ended Dec. 31, 2014:

• Organic net sales grew 5.8 percent or $430 million;
• Reported net sales grew 12.7 percent or $931 million to $8.29 billion, compared to $7.36 billion for the same period in 2013;
• Reported gross margin was 31.8 percent compared to 28.7 percent for the same period in 2013;
• Net income was $243 million, compared to net income of $204 million for the same period in 2013;
• Earnings per share was $1.28 per diluted share, compared to $1.18 per diluted share for the same period in 2013;
• Adjusted gross margin was 32.2 percent compared to 30.3 percent for the same period in 2013;
• Adjusted net income was $512 million, compared to $413 million for the same period in 2013; and
• Adjusted earnings per share was $2.70 per diluted share, compared to $2.39 per diluted share for the same period in 2013.

“The fourth quarter marked a great end to a strong year of growth,” said Martin E. Franklin, Executive Chairman. “We are pleased to have met or exceeded expectations over the past 13 years. “Jarden once again was the top performing stock as compared to Household and Personal Care peers in the S&P 500 Consumer Staples Index for 2014 on a one-, five-, and ten-year basis.  We are proud of our track record and look forward to continuing our positive performance in 2015 and beyond.”

All earnings per share and shares outstanding amounts have been adjusted to reflect the effects of the 3-for-2 splits of the Company's outstanding shares of common stock that occurred during the fourth quarter of 2014 and during the first quarter of 2013.