MIAMI, July 29, 2015 /PRNewswire/ -- Jarden Corporation
(NYSE: JAH) today reported its financial results for the second
quarter ended June 30, 2015.
For the quarter ended June 30,
2015:
- Organic net sales grew 7.0% or $138
million in the second quarter of 2015;
- Reported net sales were $2.01
billion for the second quarter 2015 and $1.98 billion for the same period in 2014;
- Reported gross margin was 30.3% for second quarter 2015,
compared to 30.5% for the same period in 2014;
- Net income of $85.9 million for
second quarter of 2015, compared to net income of $52.1 million for the same period in 2014;
- Earnings per share was $0.44 per
diluted share for second quarter 2015, compared to earnings of
$0.28 per diluted share for the same
period in 2014;
- Adjusted gross margin was 31.0% in the second quarter 2015,
compared to 30.8% for the same period in 2014;
- Adjusted net income was $116
million in the second quarter of 2015, compared to
$116 million for the same period in
2014; and
- Adjusted earnings per share was $0.59 per diluted share in the second quarter of
2015, compared to $0.62 per diluted
share for the same period in 2014.
For the six months ended June 30,
2015:
- Organic net sales grew 5.9% or $220
million;
- Reported net sales were $3.74
billion compared to $3.71
billion for the same period in 2014;
- Reported gross margin was 29.6%, compared to 30.1% for the same
period in 2014;
- Net income of $30.4 million,
compared to net income of $55.8
million for the same period in 2014;
- Earnings per share was $0.16 per
diluted share, compared to $0.29 per
diluted share for the same period in 2014;
- Adjusted gross margin was 30.4%, compared to 30.6% for the same
period in 2014;
- Adjusted net income was $127
million, compared to $142
million for the same period in 2014; and
- Adjusted earnings per share was $0.65 per diluted share, compared to $0.74 per diluted share for the same period in
2014.
"We are pleased to announce another quarter of record net sales
and record segment earnings. The business continues to perform in
line with our expectations. Jarden's authentic brands, supported by
innovation and a robust operational platform, continue to drive our
performance. We look forward to completing our acquisition of
Waddington Group as we move through the third quarter and to
leveraging revenue synergies with them across our Branded
Consumables segment in the years to come," said Martin E. Franklin, Executive Chairman.
James E. Lillie, Chief Executive
Officer, commented, "Our positive momentum has continued and we are
pleased with our progress year-to-date. Posting second quarter
organic growth of 7.0% and a six-month organic growth rate of 5.9%
further affirms our comfort with meeting or exceeding our goal of
3%-5% average organic annual growth and double digit adjusted
earnings per share growth, on a currency neutral basis. It was
particularly encouraging that this positive momentum was broad
based with each of our segments reporting healthy organic
growth."
Effective March 31, 2015, the
Company deconsolidated its businesses in Venezuela and recorded the charges related to
this accounting change, which are detailed in the notes to this
release.
All earnings per share and shares outstanding amounts have been
adjusted to reflect the effect of the 3-for-2 split of the
Company's outstanding shares of common stock that occurred during
the fourth quarter of 2014.
Please see the schedule accompanying this release for a
reconciliation of non-GAAP organic net sales growth, adjusted gross
margins, segment earnings, adjusted net income and adjusted basic
and diluted earnings per share to the comparable GAAP measures.
The Company will be hosting a conference call at 8:30 a.m. (EDT) today, July 29, 2015, to further discuss its second
quarter results. To listen to the call by telephone, please dial
800-344-6698 (domestic) or 785-830-7979 (international) and provide
passcode: 7165138. The call will be simultaneously webcast at
www.jarden.com. Supplemental information can be found in the
For Investors section of the Company's website. A replay of
the call and webcast will be available for three weeks shortly
after completion of the live call. To access the replay, call
888-203-1112 (domestic) or 719-457-0820 (international) and provide
passcode: 7165138 or visit www.jarden.com.
About Jarden Corporation
Jarden Corporation is a diversified, global consumer products
company with a portfolio of over 120 trusted, authentic brands.
Jarden's record of strong financial performance and organic growth
is supported by a focused operating culture coupled with value
enhancing acquisitions and shareholder focused capital allocation.
Jarden operates in three primary business segments through a number
of well recognized brands, including: Branded Consumables: Ball®,
Bee®, Bernardin®, Bicycle®, Billy Boy®, Crawford®, Diamond®,
Envirocooler®, Fiona®, First Alert®, First Essentials®, Hoyle®,
Kerr®, Lehigh®, Lifoam®, Lillo®, Loew Cornell®, Mapa®, Millefiori®,
NUK®, Pine Mountain®, Quickie®, Spontex®, Tigex®, Yankee Candle®
and YOU®; Outdoor Solutions: Abu Garcia®, AeroBed®, Berkley®,
Campingaz® and Coleman®, Dalbello®, ExOfficio®, Fenwick®, Greys®,
Gulp!®, Hardy®, Invicta®, K2®, Marker®, Marmot®, Mitchell®, PENN®,
Rawlings®, Shakespeare®, Squadra®, Stearns®, Stren®, Trilene®,
Völkl® and Zoot®; and Consumer Solutions: Bionaire®, Breville®,
Cadence®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr.
Coffee®, Oster®, Patton®, Rainbow®, Rival®, Seal-a-Meal®, Sunbeam®,
VillaWare® and White Mountain®. Headquartered in Florida, Jarden ranks #348 on the Fortune 500
and has over 30,000 employees worldwide. For further
information about Jarden, please visit www.jarden.com.
Note: This news release contains "forward-looking statements"
within the meaning of the federal securities laws and is intended
to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995, including
statements regarding the Company's earnings per share and adjusted
diluted earnings per share, expected or estimated revenue, meeting
financial goals, segment earnings, net interest expense, income tax
provision, cash flow from operations, restructuring costs and other
non-cash charges, the outlook for the Company's markets and the
demand for its products, consistent profitable growth, free cash
flow, future revenues and gross, operating and EBITDA margin
improvement requirement and expansion, organic net sales growth,
performance trends, bank leverage ratio, the success of new product
introductions, growth in costs and expenses, the impact of
commodities, currencies and transportation costs and the Company's
ability to manage its risk in these areas, repurchase of shares of
common stock from time to time under the Company's stock repurchase
program, our ability to raise new debt, and the impact of
acquisitions, divestitures, restructurings, and other unusual
items, including the Company's ability to integrate and obtain the
anticipated results and synergies from its consummated
acquisitions, the ability of the Company to close the
Waddington Group, Inc. acquisition and the ability of the Company
to raise the funds needed to close the Waddington Group, Inc.
acquisition. These projections and statements are based
on management's estimates and assumptions with respect to future
events and financial performance and are believed to be reasonable,
though are inherently uncertain and difficult to predict. Actual
results could differ materially from those projected as a result of
certain factors. A discussion of factors that could cause results
to vary is included in the Company's periodic and other reports
filed with the Securities and Exchange Commission.
JARDEN
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(in millions, except
earnings per share)
|
|
|
|
|
|
Three months
ended
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
As
|
|
Adjusted
|
|
As
|
|
Adjusted
|
|
|
Reported
|
Adjustments
|
(Non-GAAP)
|
|
Reported
|
Adjustments
|
(Non-GAAP)
|
|
|
(GAAP)
(2)
|
(1)(4)
|
(1)(2)(4)
|
|
(GAAP)
(2)
|
(1)(4)
|
(1)(2)(4)
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
2,005.7
|
$
-
|
$
2,005.7
|
|
$
1,975.1
|
$
-
|
$
1,975.1
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,398.2
|
(14.0)
|
1,384.2
|
|
1,373.1
|
(5.9)
|
1,367.2
|
Gross
profit
|
607.5
|
14.0
|
621.5
|
|
602.0
|
5.9
|
607.9
|
|
|
30.3 %
|
|
31.0 %
|
|
30.5 %
|
|
30.8 %
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
416.0
|
(12.4)
|
403.6
|
|
409.6
|
(18.7)
|
390.9
|
|
|
20.7 %
|
|
20.1 %
|
|
20.7 %
|
|
19.8 %
|
|
|
|
|
|
|
|
|
|
Restructuring
costs, net
|
1.9
|
(1.9)
|
-
|
|
2.3
|
(2.3)
|
-
|
|
Operating
earnings
|
189.6
|
28.3
|
217.9
|
|
190.1
|
26.9
|
217.0
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
51.9
|
(9.7)
|
42.2
|
|
52.9
|
(9.1)
|
43.8
|
Loss on early
extinguishment of debt
|
-
|
-
|
-
|
|
54.4
|
(54.4)
|
-
|
Income before
taxes
|
137.7
|
38.0
|
175.7
|
|
82.8
|
90.4
|
173.2
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
51.8
|
7.9
|
59.7
|
|
30.7
|
26.4
|
57.1
|
|
Net
income
|
$
85.9
|
$
30.1
|
$
116.0
|
|
$
52.1
|
$
64.0
|
$
116.1
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.46
|
|
$ 0.62
|
|
$ 0.28
|
|
$ 0.63
|
|
Diluted
|
$ 0.44
|
|
$ 0.59
|
|
$ 0.28
|
|
$ 0.62
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
186.2
|
|
186.2
|
|
184.7
|
|
184.7
|
|
Diluted
|
195.4
|
|
195.4
|
|
187.7
|
|
187.7
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to
Earnings Release attached
|
JARDEN
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(in millions, except
earnings per share)
|
|
|
|
|
|
Six months
ended
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
As
|
|
Adjusted
|
|
As
|
|
Adjusted
|
|
|
Reported
|
Adjustments
|
(Non-GAAP)
|
|
Reported
|
Adjustments
|
(Non-GAAP)
|
|
|
(GAAP)
(2)
|
(1)(4)
|
(1)(2)(4)
|
|
(GAAP)
(2)
|
(1)(4)
|
(1)(2)(4)
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
3,737.2
|
$
-
|
$
3,737.2
|
|
$
3,706.9
|
$
-
|
$
3,706.9
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
2,629.2
|
(29.3)
|
2,599.9
|
|
2,590.5
|
(17.4)
|
2,573.1
|
Gross
profit
|
1,108.0
|
29.3
|
1,137.3
|
|
1,116.4
|
17.4
|
1,133.8
|
|
|
29.6 %
|
|
30.4 %
|
|
30.1 %
|
|
30.6 %
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
944.7
|
(85.3)
|
859.4
|
|
860.5
|
(30.3)
|
830.2
|
|
|
25.3 %
|
|
23.0 %
|
|
23.2 %
|
|
22.4 %
|
|
|
|
|
|
|
|
|
|
Restructuring
costs, net
|
4.5
|
(4.5)
|
-
|
|
2.6
|
(2.6)
|
-
|
|
Operating
earnings
|
158.8
|
119.1
|
277.9
|
|
253.3
|
50.3
|
303.6
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
104.8
|
(19.3)
|
85.5
|
|
106.9
|
(14.8)
|
92.1
|
Loss on early
extinguishment of debt
|
-
|
-
|
-
|
|
54.4
|
(54.4)
|
-
|
Income before
taxes
|
54.0
|
138.4
|
192.4
|
|
92.0
|
119.5
|
211.5
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
23.6
|
41.8
|
65.4
|
|
36.2
|
33.5
|
69.7
|
|
Net
income
|
$
30.4
|
$
96.6
|
$
127.0
|
|
$
55.8
|
$
86.0
|
$
141.8
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.16
|
|
$ 0.68
|
|
$ 0.30
|
|
$ 0.76
|
|
Diluted
|
$ 0.16
|
|
$ 0.65
|
|
$ 0.29
|
|
$ 0.74
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
185.8
|
|
185.8
|
|
186.2
|
|
186.2
|
|
Diluted
|
194.6
|
|
194.6
|
|
190.4
|
|
190.4
|
|
|
|
See Notes to
Earnings Release attached
|
JARDEN
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
December 31,
2014
|
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
729.9
|
|
$
665.3
|
|
$
1,164.8
|
|
Accounts
receivable, net
|
|
1,256.5
|
|
1,265.2
|
|
1,277.9
|
|
Inventories
|
|
|
1,884.0
|
|
1,695.8
|
|
1,504.7
|
|
Deferred taxes
on income
|
|
222.0
|
|
214.9
|
|
166.2
|
|
Prepaid
expenses and other current assets
|
164.7
|
|
166.3
|
|
204.4
|
|
|
Total current
assets
|
|
4,257.1
|
|
4,007.5
|
|
4,318.0
|
|
Property, plant
and equipment, net
|
810.4
|
|
848.9
|
|
849.9
|
|
Goodwill
|
|
|
2,885.2
|
|
2,690.8
|
|
2,880.2
|
|
Intangible
assets, net
|
|
2,579.0
|
|
2,412.4
|
|
2,598.5
|
|
Other
assets
|
|
|
150.0
|
|
168.7
|
|
152.7
|
|
|
Total
assets
|
|
$
10,681.7
|
|
$
10,128.3
|
|
$
10,799.3
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity:
|
|
|
|
|
|
|
Short-term debt
and current portion of long-term debt
|
$
588.5
|
|
$
767.2
|
|
$
594.9
|
|
Accounts
payable
|
|
800.1
|
|
724.4
|
|
809.9
|
|
Accrued
salaries, wages and employee benefits
|
171.6
|
|
175.6
|
|
195.1
|
|
Other current
liabilities
|
|
425.7
|
|
405.5
|
|
477.3
|
|
|
Total current
liabilities
|
|
1,985.9
|
|
2,072.7
|
|
2,077.2
|
|
Long-term
debt
|
|
4,437.0
|
|
3,963.5
|
|
4,464.0
|
|
Deferred taxes
on income
|
|
1,228.7
|
|
1,164.7
|
|
1,222.1
|
|
Other
non-current liabilities
|
|
439.7
|
|
378.1
|
|
426.7
|
|
|
Total
liabilities
|
|
8,091.3
|
|
7,579.0
|
|
8,190.0
|
|
Total
stockholders' equity
|
|
2,590.4
|
|
2,549.3
|
|
2,609.3
|
|
|
Total
liabilities and stockholders' equity
|
$
10,681.7
|
|
$
10,128.3
|
|
$
10,799.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to
Earnings Release attached
|
JARDEN
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
Cash flows
from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
85.9
|
|
$
52.1
|
|
$
30.4
|
|
$
55.8
|
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
49.5
|
|
47.1
|
|
97.0
|
|
92.7
|
|
|
Venezuela
related charges
|
|
|
-
|
|
-
|
|
60.6
|
|
-
|
|
|
Stock-based
compensation
|
|
|
2.3
|
|
6.1
|
|
41.2
|
|
41.0
|
|
|
Excess tax
benefits from stock-based compensation
|
|
(1.7)
|
|
(1.6)
|
|
(21.5)
|
|
(34.9)
|
|
|
Other non-cash
items
|
|
|
|
1.0
|
|
2.1
|
|
0.7
|
|
(4.9)
|
|
Changes in
operating assets and liabilities, net effects from
acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
(55.9)
|
|
30.0
|
|
(2.3)
|
|
(27.4)
|
|
|
Inventory
|
|
|
|
(149.7)
|
|
(61.2)
|
|
(405.3)
|
|
(236.8)
|
|
|
Accounts
payable
|
|
|
|
77.8
|
|
35.3
|
|
(8.0)
|
|
58.3
|
|
|
Other current
assets and liabilities
|
|
|
39.4
|
|
(26.2)
|
|
(64.8)
|
|
(118.2)
|
|
|
|
Net cash
provided by (used in) operating activities
|
48.6
|
|
83.7
|
|
(272.0)
|
|
(174.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
|
|
53.8
|
|
39.5
|
|
(6.4)
|
|
34.0
|
|
Proceeds from
issuance of long-term debt
|
|
|
2.0
|
|
1.4
|
|
4.0
|
|
691.6
|
|
Payments on
long-term debt
|
|
|
|
(12.1)
|
|
(520.9)
|
|
(24.3)
|
|
(551.0)
|
|
Issuance
(repurchase) of common stock, net
|
|
|
1.1
|
|
(75.9)
|
|
(33.5)
|
|
(269.8)
|
|
Excess tax
benefits from stock-based compensation
|
|
1.7
|
|
1.6
|
|
21.5
|
|
34.9
|
|
Debt issue
costs
|
|
|
|
|
-
|
|
(0.6)
|
|
-
|
|
(16.6)
|
|
Other
|
|
|
|
|
|
-
|
|
(6.6)
|
|
(0.4)
|
|
(8.2)
|
|
|
|
Net cash
provided by (used in) financing activities
|
46.5
|
|
(561.5)
|
|
(39.1)
|
|
(85.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
|
(49.6)
|
|
(58.2)
|
|
(97.7)
|
|
(99.3)
|
|
Acquisition of
businesses, net of cash acquired
|
|
-
|
|
(108.4)
|
|
(33.2)
|
|
(108.4)
|
|
Other
|
|
|
|
|
|
(0.8)
|
|
1.5
|
|
39.1
|
|
4.8
|
|
|
|
Net cash
used in investing activities
|
|
(50.4)
|
|
(165.1)
|
|
(91.8)
|
|
(202.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents
|
|
4.6
|
|
2.0
|
|
(32.0)
|
|
(0.8)
|
Net increase
(decrease) in cash and cash equivalents
|
|
49.3
|
|
(640.9)
|
|
(434.9)
|
|
(463.2)
|
Cash and cash
equivalents at beginning of period
|
|
|
680.6
|
|
1,306.2
|
|
1,164.8
|
|
1,128.5
|
Cash and
cash equivalents at end of period
|
|
|
$
729.9
|
|
$
665.3
|
|
$
729.9
|
|
$
665.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to
Earnings Release attached
|
JARDEN
CORPORATION
|
|
|
|
|
|
NET SALES AND
OPERATING EARNINGS BY SEGMENT (Unaudited)
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded
Consumables
|
|
Consumer
Solutions
|
|
Outdoor
Solutions
|
|
Process
Solutions
|
|
Intercompany
Elimination (a)
|
|
Total
Operating
Segments
|
|
Corporate/
Unallocated
|
|
Consolidated
|
Three
months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
$ 677.3
|
|
$ 473.6
|
|
$ 753.3
|
|
$ 124.6
|
|
$ (23.1)
|
|
$ 2,005.7
|
|
$
-
|
|
$ 2,005.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings (loss)
|
|
$ 115.9
|
|
$ 64.2
|
|
$ 84.9
|
|
$ 19.5
|
|
$
-
|
|
$ 284.5
|
|
$ (25.8)
|
|
$
258.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile to reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating earnings (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs, net
|
(1.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1.9)
|
|
-
|
|
(1.9)
|
|
Acquisition-related and other
costs
|
(5.5)
|
|
(4.5)
|
|
(6.5)
|
|
-
|
|
-
|
|
(16.5)
|
|
(1.2)
|
|
(17.7)
|
|
Depreciation
and amortization
|
(21.3)
|
|
(9.3)
|
|
(14.2)
|
|
(3.0)
|
|
-
|
|
(47.8)
|
|
(1.7)
|
|
(49.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss)
|
$ 87.2
|
|
$ 50.4
|
|
$ 64.2
|
|
$ 16.5
|
|
$
-
|
|
$ 218.3
|
|
$ (28.7)
|
|
$
189.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded
Consumables
|
|
Consumer
Solutions
|
|
Outdoor
Solutions
|
|
Process
Solutions
|
|
Intercompany
Elimination (a)
|
|
Total Operating
Segments
|
|
Corporate/
Unallocated
|
|
Consolidated
|
Three
months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
$ 684.4
|
|
$ 445.6
|
|
$ 754.9
|
|
$ 111.8
|
|
$ (21.6)
|
|
$ 1,975.1
|
|
$
-
|
|
$ 1,975.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings (loss)
|
|
$ 105.5
|
|
$ 55.3
|
|
$ 100.2
|
|
$ 18.3
|
|
$
-
|
|
$ 279.3
|
|
$ (20.8)
|
|
$
258.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile to reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating earnings (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair market
value adjustment to inventory
|
-
|
|
(1.3)
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
-
|
|
(1.3)
|
|
Restructuring
costs, net
|
-
|
|
(0.7)
|
|
(1.6)
|
|
-
|
|
-
|
|
(2.3)
|
|
-
|
|
(2.3)
|
|
Acquisition-related and other
costs
|
(1.4)
|
|
(1.0)
|
|
(5.2)
|
|
-
|
|
-
|
|
(7.6)
|
|
(0.5)
|
|
(8.1)
|
|
Venezuela
related charges (b)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(9.6)
|
|
(9.6)
|
|
Depreciation
and amortization
|
(21.9)
|
|
(6.7)
|
|
(14.3)
|
|
(2.8)
|
|
-
|
|
(45.7)
|
|
(1.4)
|
|
(47.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss)
|
$ 82.2
|
|
$ 45.6
|
|
$ 79.1
|
|
$ 15.5
|
|
$
-
|
|
$ 222.4
|
|
$ (32.3)
|
|
$
190.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Intersegment sales
are recorded at cost plus an agreed-upon intercompany profit on
intersegment sales.
|
(b) Foreign exchange losses
on Venezuela cash conversion in 2014.
|
JARDEN
CORPORATION
|
NET SALES AND
OPERATING EARNINGS BY SEGMENT (Unaudited)
|
(in
millions)
|
|
|
|
|
|
Branded
Consumables
|
|
Consumer
Solutions
|
|
Outdoor
Solutions
|
|
Process
Solutions
|
|
Intercompany
Elimination (a)
|
|
Total Operating
Segments
|
|
Corporate/
Unallocated
|
|
Consolidated
|
Six
months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
$ 1,322.6
|
|
$ 852.8
|
|
$ 1,378.2
|
|
$ 228.7
|
|
$ (45.1)
|
|
$ 3,737.2
|
|
$
-
|
|
$ 3,737.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings (loss)
|
|
$ 190.5
|
|
$ 94.3
|
|
$ 125.3
|
|
$ 30.8
|
|
$
-
|
|
$ 440.9
|
|
$ (83.2)
|
|
$
357.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile to reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating earnings (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs, net
|
(2.5)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2.5)
|
|
(2.0)
|
|
(4.5)
|
|
Acquisition-related and other
costs
|
(9.9)
|
|
(9.2)
|
|
(14.7)
|
|
-
|
|
-
|
|
(33.8)
|
|
(3.0)
|
|
(36.8)
|
|
Venezuela
related charges (b)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(60.6)
|
|
(60.6)
|
|
Depreciation
and amortization
|
(41.8)
|
|
(19.0)
|
|
(27.3)
|
|
(5.8)
|
|
-
|
|
(93.9)
|
|
(3.1)
|
|
(97.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss)
|
$ 136.3
|
|
$ 66.1
|
|
$ 83.3
|
|
$ 25.0
|
|
$
-
|
|
$ 310.7
|
|
$ (151.9)
|
|
$
158.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded
Consumables
|
|
Consumer
Solutions
|
|
Outdoor
Solutions
|
|
Process
Solutions
|
|
Intercompany
Elimination (a)
|
|
Total Operating
Segments
|
|
Corporate/
Unallocated
|
|
Consolidated
|
Six
months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
$ 1,306.2
|
|
$ 789.6
|
|
$ 1,439.0
|
|
$ 214.1
|
|
$ (42.0)
|
|
$ 3,706.9
|
|
$
-
|
|
$ 3,706.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings (loss)
|
|
$ 180.5
|
|
$ 91.8
|
|
$ 155.5
|
|
$ 30.6
|
|
$
-
|
|
$ 458.4
|
|
$ (73.6)
|
|
$
384.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile to reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating earnings (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair market
value adjustment to inventory
|
-
|
|
(1.3)
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
-
|
|
(1.3)
|
|
Restructuring
costs, net
|
-
|
|
(1.0)
|
|
(1.6)
|
|
-
|
|
-
|
|
(2.6)
|
|
-
|
|
(2.6)
|
|
Acquisition-related and other
costs
|
(6.4)
|
|
(4.0)
|
|
(10.4)
|
|
-
|
|
-
|
|
(20.8)
|
|
(0.5)
|
|
(21.3)
|
|
Venezuela
related charges (b)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(13.6)
|
|
(13.6)
|
|
Depreciation
and amortization
|
(41.9)
|
|
(14.4)
|
|
(28.1)
|
|
(5.6)
|
|
-
|
|
(90.0)
|
|
(2.7)
|
|
(92.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss)
|
$ 132.2
|
|
$ 71.1
|
|
$ 115.4
|
|
$ 25.0
|
|
$
-
|
|
$ 343.7
|
|
$ (90.4)
|
|
$
253.3
|
|
|
(a) Intersegment sales
are recorded at cost plus an agreed-upon intercompany profit on
intersegment sales.
|
(b) Venezuela non-cash
impairment, balance sheet remeasurement and deconsolidation charges
in 2015 and foreign exchange losses on Venezuela cash conversion in
2014.
|
JARDEN CORPORATION
NOTES TO EARNINGS
RELEASE
Note 1: Adjustments relate to items that are excluded
from the "As Reported" results to arrive at the "Adjusted" results
for the three and six months ended June 30,
2015 and 2014.
For the three months ended June 30,
2015, adjustments to net income included $1.9 million of restructuring costs primarily
associated with lease exit costs; $17.7
million of costs, primarily associated with rationalization
of manufacturing and distribution facilities and other product
related costs; $8.7 million of
amortization of acquired intangible assets; and $9.7 million of non-cash original issue discount
amortization on convertible notes. Also included in the
adjustments to net income for the three months ended June 30, 2015 is the tax provision adjustment of
$7.9 million, which reflects the
normalization of the adjusted results to the Company's 2015
estimated 34% effective tax rate.
For the three months ended June 30,
2014, adjustments to net income included $1.3 million associated with the manufacturer's
profit in inventory charged to cost of sales, which is the purchase
accounting fair value adjustment to inventory associated with a
tuck-in acquisition; $2.3 million of
restructuring costs primarily associated with international
operations; $8.1 million of
acquisition-related and other costs primarily associated with the
rationalization of international manufacturing facilities;
$9.6 million of Venezuela foreign exchange losses on cash
conversion; $5.6 million of
amortization of acquired intangible assets; $9.1 million of non-cash original issue discount
amortization on convertible notes; and $54.4
million related to the loss on early extinguishment of debt.
Also included in the adjustments to net income for the three
months ended June 30, 2014 is the tax
provision adjustment of $26.4
million, which reflects the normalization of the adjusted
results to the Company's 2014 estimated 33% effective tax rate.
For the six months ended June 30,
2015, adjustments to net income included $60.6 million of Venezuela related charges, consisting of a
non-cash impairment charge related to fixed assets, balance sheet
remeasurement charges, and loss on deconsolidation; $36.8 million of costs primarily associated with
European distribution realignment, rationalization of manufacturing
and distribution facilities and other product related costs,
Venezuela inventory write-down,
and acquisition-related and other costs; $17.2 million of amortization of acquired
intangible assets; $4.5 million of
restructuring costs primarily associated with lease exit costs; and
$19.3 million of non-cash original
issue discount amortization on convertible notes. Also
included in the adjustments to net income for the six months ended
June 30, 2015 is the tax provision
adjustment of $41.8 million, which
reflects the normalization of the adjusted results to the Company's
2015 estimated 34% effective tax rate.
For the six months ended June 30,
2014, adjustments to net income included $1.3 million associated with the manufacturer's
profit in inventory charged to cost of sales, which is the purchase
accounting fair value adjustment to inventory associated with a
tuck-in acquisition; $2.6 million of
restructuring costs primarily associated with international
operations; $21.3 million of
acquisition-related and other costs primarily associated with the
rationalization of international manufacturing facilities;
$13.6 million of Venezuela foreign exchange losses on cash
conversion; $11.5 million of
amortization of acquired intangible assets; $14.8 million of non-cash original issue discount
amortization on convertible notes; and $54.4
million related to the loss on early extinguishment of debt.
Also included in the adjustments to net income for the six
months ended June 30, 2014 is the tax
provision adjustment of $33.5
million, which reflects the normalization of the adjusted
results to the Company's 2014 estimated 33% effective tax rate.
Note 2: All earnings per share and shares
outstanding amounts have been adjusted to reflect the effect of the
3-for-2 split of the Company's outstanding shares of common stock
that occurred during the fourth quarter of 2014.
Note 3: Organic net sales growth is a non-GAAP
measure of net sales growth excluding the impacts of foreign
exchange, certain acquisitions and exited businesses from
year-over-year comparisons. The Company believes this measure
provides investors with a more complete understanding of the
underlying sales trends by providing net sales on a consistent
basis. Organic net sales growth is also one of the measures
used by management to analyze operating performance. The
following table provides a reconciliation of organic net sales
growth to the comparable GAAP measure of net sales growth for the
three and six months ended June 30,
2015:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June 30,
2015
|
|
June 30,
2015
|
Reconciliation of Non-GAAP
measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
increase
|
|
|
$
30.6
|
|
1.5 %
|
|
$
30.3
|
|
0.8 %
|
Foreign
exchange impacts
|
|
120.2
|
|
6.1 %
|
|
212.5
|
|
5.7 %
|
(Acquisitions)
exited businesses, net
|
(13.2)
|
|
(0.6)%
|
|
(23.0)
|
|
(0.6)%
|
Organic net
sales growth
|
|
$
137.6
|
|
7.0 %
|
|
$
219.8
|
|
5.9 %
|
Note 4: This earnings release contains non-GAAP
financial measures that may not be directly comparable to other
similarly titled measures used by other companies. For purposes of
Regulation G, a non-GAAP financial measure is a numerical measure
of a company's historical or future financial performance,
financial position or cash flows that excludes amounts, or is
subject to adjustments that have the effect of excluding amounts,
that are included in the most directly comparable measure
calculated and presented in accordance with GAAP in the statements
of operations, balance sheets, or statements of cash flows of the
Company; or includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the
most directly comparable measure so calculated and presented.
Pursuant to the requirements of Regulation G, the Company has
provided reconciliations of non-GAAP financial measures to the most
directly comparable GAAP financial measures. These non-GAAP
measures are provided because management of the Company uses these
financial measures in monitoring and evaluating the Company's
ongoing financial results and trends. Management uses this
non-GAAP information as an indicator of business performance, and
evaluates overall management with respect to such indicators.
Additionally, the Company uses non-GAAP financial measures because
the Company's credit agreement provides for certain adjustments in
calculations used for determining whether the Company is in
compliance with certain credit agreement covenants, including, but
not limited to, non-cash impairment charges of goodwill,
intangibles and other assets, adjustments relating to certain
restructuring costs, acquisition-related and other costs, non-cash
purchase accounting adjustments, the elimination of manufacturer's
profit in inventory, Venezuela
related charges (deconsolidation, hyperinflationary and foreign
exchange-related charges), non-cash stock-based compensation costs,
gain (loss) on sale of certain assets, loss on early extinguishment
of debt, non-cash original issue discount amortization and other
items, as applicable. Adjusted gross margin is calculated by
dividing adjusted gross profit by net sales. Segment earnings
(As Adjusted EBITDA) margin is calculated by dividing segment
earnings (As Adjusted EBITDA) by net sales. Adjusted selling,
general and administrative expenses (SG&A) margin is calculated
by dividing adjusted SG&A by net sales. Adjusted net
interest expense is calculated by deducting original issue discount
amortization from net interest expense. Adjusted income tax
provision is calculated by adding the income tax provision
adjustment, which reflects the normalization of the adjusted
results to the Company's estimated effective tax rate, to the
income tax provision. These non-GAAP measures should be
considered in addition to, but not as a substitute for, measures of
financial performance prepared in accordance with GAAP.
Adjusted gross margins:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June
30,
|
June
30,
|
Increase/
|
|
June
30,
|
June
30,
|
Increase/
|
|
|
|
|
2015
|
2014
|
(Decrease)
|
|
2015
|
2014
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
Gross margins
as reported
|
|
|
30.3 %
|
30.5 %
|
(0.2)%
|
|
29.6 %
|
30.1 %
|
(0.5)%
|
Fair market
value adjustment to inventory
|
|
-
|
0.1 %
|
(0.1)%
|
|
-
|
-
|
-
|
Acquisition-related and other costs,
net
|
|
0.7 %
|
0.2 %
|
0.5 %
|
|
0.8 %
|
0.5 %
|
0.3 %
|
Adjusted
gross margins
|
|
|
31.0 %
|
30.8 %
|
0.2 %
|
|
30.4 %
|
30.6 %
|
(0.2)%
|
Adjusted selling, general administrative (SG&A)
expenses as a percent of sales:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June
30,
|
June
30,
|
Increase/
|
|
June
30,
|
June
30,
|
Increase/
|
|
|
|
|
2015
|
2014
|
(Decrease)
|
|
2015
|
2014
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
Reported
SG&A expenses
|
|
|
|
|
|
|
|
|
|
as a percent of sales
|
|
|
20.7 %
|
20.7 %
|
-
|
|
25.3%
|
23.2 %
|
2.1 %
|
Acquisition-related and other costs,
net
|
|
(0.2)%
|
(0.1)%
|
(0.1)%
|
|
(0.2)%
|
(0.1)%
|
(0.1)%
|
Venezuela
related charges
|
|
|
-
|
(0.5)%
|
0.5 %
|
|
(1.6)%
|
(0.4)%
|
(1.2)%
|
Amortization of
acquired intangibles
|
|
(0.4)%
|
(0.3)%
|
(0.1)%
|
|
(0.5)%
|
(0.3)%
|
(0.2)%
|
Adjusted
SG&A expenses
|
|
|
20.1 %
|
19.8 %
|
0.3 %
|
|
23.0 %
|
22.4 %
|
0.6 %
|
as a percent of sales
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/jarden-reports-second-quarter-results-300120259.html
SOURCE Jarden Corporation