Jarden Corporation reported its financial results for the three and six months ended June 30, 2009. For the three months ended June 30, 2009, net sales decreased 6.6% to $1.3 billion compared to $1.4 billion for the same period in the previous year.
For the six months ended June 30, 2009, net sales decreased 6.5% to $2.4 billion compared to $2.6 billion for the same period in the previous year. Approximately $102 million of the $169 million decrease in net sales was due to foreign exchange fluctuations between the periods.
For the six months ended June 30, 2009, the company recorded net income of $53.8 million, or 67 cents per diluted share, compared to net income of $47.7 million, or 62 cents per diluted share, in the six months ended June 30, 2008. On a non-GAAP basis, adjusted net income was $69.8 million, or 87 cents per diluted share, for the six months ended June 30, 2009, compared to $71.3 million, or 93 cents per diluted share, for the six months ended June 30, 2008.
Martin E. Franklin, Chairman and CEO of Jarden Corporation, commented, “Our exceptional cash flow during the quarter was reflective of a number of management initiatives during this tough macro economic time. Our focus on working capital management led to improvements in inventory, receivables and payables during the quarter. Despite the expected decline in revenue and earnings resulting from the recessionary environment, our proactive, disciplined approach to controlling costs during a period of lower sales resulted in improved gross and As Adjusted EBITDA margins during the quarter, with a positive impact on cash flow. This strong performance would not have been possible without the continued dedication and hard work of our most important asset, our employees.”
Mr. Franklin continued, “Jarden's success is built around owning leading brands spread across diverse, niche markets with three similar characteristics: market leadership positions; strong cash flow; and good management. We have been able to demonstrate the benefit of this strategy, coupled with Jarden's DNA operating culture, in this recessionary environment. Our belief is that our businesses will continue to outperform their categories in good as well as difficult market conditions.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Three months ended
June 30, 2009 June 30, 2008
Adjusted Adjusted
As Adjust- (non- As Adjust- (non-
Reported ments GAAP) Reported ments GAAP)
(GAAP) (1)(2) (1)(2) (GAAP) (1)(2) (1)(2)
Net sales $1,269.7 $-- $1,269.7 $1,360.0 $-- $1,360.0
Cost of sales 913.3 -- 913.3 979.2 -- 979.2
Gross profit 356.4 -- 356.4 380.8 -- 380.8
Selling,
general and
administrative
expenses 240.7 (3.8) 236.9 256.5 (4.0) 252.5
Reorganization
and acquisition-
related
integration costs,
net 6.0 (5.6) 0.4 11.1 (11.1) --
Operating
earnings 109.7 9.4 119.1 113.2 15.1 128.3
Interest expense,
net 38.8 -- 38.8 42.6 -- 42.6
Income before
taxes 70.9 9.4 80.3 70.6 15.1 85.7
Income tax
provision 26.0 2.9 28.9 27.6 3.3 30.9
Net income $44.9 $6.5 $51.4 $43.0 $11.8 $54.8
Earnings per
share:
Basic $0.53 $0.61 $0.57 $0.73
Diluted $0.53 $0.60 $0.56 $0.72
Weighted average
shares
outstanding :
Basic 84.4 84.4 75.3 75.3
Diluted 85.2 85.2 76.4 76.4
