Jarden Corporation reported second quarter net sales increased 29.5% to $1.36 billion compared to $1.05 billion for the same period in the previous year. For the three months ended June 30, 2008, net income was $43.0 million, or 56 cents per diluted share, compared to net income of $16.7 million, or 23 cents per diluted share, in the three months ended June 30, 2007.


Net sales for the company’s Outdoor Solutions business, which includes K2, Coleman and Pure Fishing, jumped 69.9% to $708.6 million from $417.1 million last year due to the acquisition of K2 and Pure Fishing. Operating income for the division grew 132% to $74.8 million from $32.2 million. On a pro forma basis, net sales for the division increased only slightly from $707.6 million for the year-ago quarter.

 

On a non-GAAP basis, adjusted net income was $54.8 million, or 72 cents per diluted share, for the three months ended June 30, 2008, compared to $44.5 million, or 62 cents per diluted share, for the three months ended June 30, 2007.

For the first half, net sales increased 38% to $2.6 billion compared to $1.9 billion for the same period in the previous year. For the six months ended June 30, 2008, net income was $47.7 million, or 62 cents per diluted share, compared to net income of $18.1 million, or 25 cents per diluted share, in the six months ended June 30, 2007. On a non-GAAP basis, adjusted net income was $71.3 million, or 93 cents per diluted share, for the six months ended June 30, 2008, compared to $61.6 million, or 87 cents per diluted share, for the six months ended June 30, 2007.


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.


“Jarden posted an outstanding second quarter in a difficult macro economic environment,” said Martin E. Franklin, chairman and CEO of Jarden Corporation. “By any key measure, whether organic sales growth, gross margin expansion, free cash flow, working capital improvements, liquidity and positive momentum, we achieved our macro goals. It was particularly satisfying to deliver organic sales growth in each of our primary business segments and we anticipate continuing to grow sales organically in the second half of 2008. The defensive nature of our diversified business model is proving that market leading brands coupled with innovative, value driven products can win even in this very tough economy.”


Mr. Franklin continued, “We are focused on continuing to execute well in the back half of the year, without cutting back on our investment spend on new product development and marketing that will help drive our success in future years. While we are not immune to the significant headwinds of rising costs and consumer softness affecting many companies in the consumer space, our goal is to take full advantage of the current turmoil to consolidate our leadership positions in the niche markets we serve and reinforce the relevancy of our brands and products to our customers.”

    JARDEN CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

    (in millions, except earnings per share)


                                         Three months ended

                              June 30, 2008             June 30, 2007

                          As    Adjust-  Adjusted     As    Adjust-  Adjusted

                       Reported  ments  (non-GAAP) Reported  ments  (non-GAAP)

                        (GAAP)  (1)(2)    (1)(2)    (GAAP) (1)(2)(3) (1)(2)(3)


    Net sales            $1,360.0 $    —  $1,360.0 $1,050.1  $   —  $1,050.1


    Cost of sales           979.2      —     979.2    787.0   (27.1)    759.9


    Gross profit            380.8      —     380.8    263.1    27.1     290.2


    Selling, general

     and administrative

     expenses               256.5    (4.0)    252.5    190.6    (2.6)    188.0


    Reorganization and

     acquisition-related

     integration costs,

     net                     11.1   (11.1)       —      9.4    (9.4)       —


    Operating earnings      113.2    15.1     128.3     63.1    39.1     102.2


    Interest expense, net    42.6      —      42.6     32.7      —      32.7


    Loss on early

     extinguishment of

     debt                      —      —        —      0.9    (0.9)       —


    Income before taxes      70.6    15.1      85.7     29.5    40.0      69.5


    Income tax provision     27.6     3.3      30.9     12.8    12.2      25.0


    Net income           $   43.0 $  11.8  $   54.8 $   16.7  $ 27.8  $   44.5


    Earnings per share:


      Basic              $   0.57          $   0.73 $   0.24          $   0.64


      Diluted            $   0.56          $   0.72 $   0.23          $   0.62


    Weighted average

     shares outstanding:


      Basic                  75.3              75.3     69.5              69.5


      Diluted                76.4              76.4     71.9              71.