Jarden Corporation second quarter net sales increased 9% to $1.05 billion compared to $962 million for the same period in the prior year. Net income was $16.7 million, or 23 cents per diluted share, for the three months ended June 30, 2007, compared to $13.3 million, or 20 cents per diluted share, for the three months ended June 30, 2006. Outdoor Solutions sales increased 26.0% to $417 million compared to $331 million.
On a non-GAAP basis, as adjusted net income was $50.6 million, or 70 cents per diluted share for the three months ended June 30, 2007, an increase of 17% per diluted share, compared to $39.5 million, or 60 cents per diluted share, for the three months ended June 30, 2006.
For the six months ended June 30, 2007, net sales increased 7% to $1.9 billion compared to $1.8 billion for the same period in the prior year. Net income was $18.1 million, or 25 cents per diluted share, for the six months ended June 30, 2007, compared to $19.0 million, or 29 cents per diluted share, for the six months ended June 30, 2006. On a non-GAAP basis, as adjusted net income was $72.0 million, or $1.01 per diluted share for the six months ended June 30, 2007, an increase of 20% per diluted share, compared to $55.6 million, or $0.84 per diluted share, for the six months ended June 30, 2006. Please see the schedule accompanying this release for the reconciliation of GAAP to non- GAAP net income and diluted earnings per share.
Martin E. Franklin, Chairman and Chief Executive Officer commented; “The second quarter further supported our strategy of focusing on market leading brands and new product development to deliver strong financial results. The Pure Fishing acquisition, new products and cost controls all contributed to considerable gross margin enhancement. As anticipated, this meaningful improvement allowed us to increase our investment in selling and marketing expenses while still expanding segment earnings margin to 12.4% in the second quarter of this year compared to 10.9% for the second quarter of 2006. Equally satisfying was the significant growth in cash flow from operations with a ten- fold year-over-year increase to over $73 million for the second quarter 2007.”
Mr. Franklin continued, “The performance of the core Jarden businesses has remained strong during the first half of the year, with growth being led by our international and specialty units. With the closing of the K2 transaction anticipated in August, we believe that having a solid platform on which to integrate K2 should accelerate the timing of potential revenue and operating synergies between the businesses. We are excited about this next growth stage for Jarden, and particularly Jarden Outdoor Solutions, and look forward to continuing the positive momentum from the first half of 2007 into the remainder of the year.”
JARDEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except earnings per share)
Three month period ended
June 30, 2007 June 30, 2006
As As
As Adjust- Adjusted As Adjust- Adjusted
Reported ments (non-GAAP) Reported ments (non-GAAP)
(GAAP) (1) (1)(2) (GAAP) (1) (1)(2)
Net sales $1,050.1 $-- $1,050.1 $962.0 $-- $962.0
Cost of sales 787.0 (27.1) 759.9 729.9 -- 729.9
Gross profit 263.1 27.1 290.2 232.1 -- 232.1
Selling, general
and administrative
expenses 190.6 (12.9) 177.7 147.1 (5.5) 141.6
Reorganization and
acquisition-related
integration costs,
net 9.4 (9.4) -- 5.6 (5.6) --
Operating earnings 63.1 49.4 112.5 79.4 11.1 90.5
Interest expense,
net 32.7 -- 32.7 28.3 -- 28.3
Loss on early
extinguishment
of debt 0.9 (0.9) -- -- -- --
Income before taxes 29.5 50.3 79.8 51.1 11.1 62.2
Income tax (benefit)
provision 12.8 16.4 29.2 37.8 (15.1) 22.7
Net income $16.7 $33.9 $50.6 $13.3 $26.2 $39.5
Earnings per share:
Basic $0.24 $0.73 $0.21 $0.61
Diluted $0.23 $0.70 $0.20 $0.60
Weighted average
shares outstanding :
Basic 69.5 69.5 64.5 64.5
Diluted 71.9 71.9 65.5 65.5
