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Jarden Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 29, 2011 04:23PM

Jarden Corp. (JAH) filed Quarterly Report for the period ended 2011-03-31. Jarden Corp. has a market cap of $3.39 billion; its shares were traded at around $36.73 with a P/E ratio of 12.6 and P/S ratio of 0.6. The dividend yield of Jarden Corp. stocks is 1%. Jarden Corp. had an annual average earning growth of 21% over the past 10 years. GuruFocus rated Jarden Corp. the business predictability rank of 2.5-star.



Highlight of Business Operations:

Net sales for the three months ended March 31, 2011 increased $294 million, or 24.7%, to $1.5 billion versus the same prior year period. The overall increase in net sales was primarily due to the 2010 acquisitions (approximately $240 million), increased point of sale in certain product categories, expanded product offerings and favorable foreign currency translation of approximately $12 million. Net sales in the Outdoor Solutions segment increased $63.3 million, or 10.3%, primarily as the result of increased sales in the Coleman business due to expanded air bed product offerings and earthquake-related sales; increased sales in the apparel, fishing and team sports businesses, which is primarily due to increased point of sale; and favorable foreign currency translation of approximately $8 million. Net sales in the Consumer Solutions segment increased $9.4 million, or 2.8%, primarily as the result of increased demand internationally, primarily in Latin America, which is primarily due to gains in distribution. Net sales in the Branded Consumables segment increased $217 million, or 128%, which is mainly due to the contribution from acquisitions (approximately $224 million) and increases in certain categories in the safety and security business, partially offset by softness in firelog and playing card sales. Net sales in the Process Solutions segment increased 8.9% on a year over year basis, primarily due an increase in coinage sales.

Cost of sales increased $202 million, or 22.9%, to $1.1 billion for the three months ended March 31, 2011 versus the same prior year period. The increase is primarily due to the 2010 acquisitions (approximately $160 million), increased sales and a $5.3 million charge during the three months ended March 31, 2011 related to the purchase accounting adjustment for the elimination of manufacturer’s profit in inventory that requires the fair value of the inventory acquired to be valued at the sales price of the finished inventory, less costs to complete and a reasonable profit allowance for selling effort. Cost of sales as a percentage of net sales for the three months ended March 31, 2011 and 2010 was 72.9% and 74.0%, respectively.

Operating earnings for the three months ended March 31, 2011 in the Outdoor Solutions segment increased $10.1 million, or 25.3%, versus the same prior year period primarily due to the gross margin impact of higher sales, partially offset by a $5.6 million increase in SG&A. Operating earnings for the three months ended March 31, 2011 in the Consumer Solutions segment increased $0.2 million, or 0.5%, versus the same prior year period as increased gross margins during 2011 (approximately $7 million) were mostly offset by an increase in SG&A. Operating earnings for the three months ended March 31, 2011 in the Branded Consumables segment increased $15.6 million, or 131%, versus the same prior year period primarily due to the impact of the Acquisition. Operating earnings in the Process Solutions segment for the three months ended March 31, 2011 increased $1.2 million, or 21.4%, versus the same prior year period primarily as the result of the gross margin impact of higher sales.

Net income for the three months ended March 31, 2011 increased $78.0 million to $19.0 million versus the same prior year period. For the three months ended March 31, 2011, earnings (loss) per share was $0.21 per diluted share versus ($0.66) per diluted share for the three months ended March 31, 2010. The increase in net income was primarily due to the $78.1 million of non-cash charges recorded during the three months ended March 31, 2010 related to the Company’s Venezuela operations (see “Venezuela Operations”), incremental earnings from acquisitions and the gross margin impact of higher sales, partially offset by an increase in interest expense ($4.9 million) and the loss on early extinguishment of debt ($12.8 million) recorded during the three months ended March 31, 2011.

Net cash provided by (used in) financing activities was ($106 million) and $221 million for the three months ended March 31, 2011 and 2010, respectively. The change is primarily due the period-over-period decrease in the proceeds from the issuance of long-term debt in excess of payments on long-term debt ($295 million) and the increase in the repurchase of common stock, net of shares tendered ($28.8 million).

Net cash used in investing activities was $26.0 million and $9.3 million the three months ended March 31, 2011 and 2010, respectively. For the three months ended March 31, 2011, capital expenditures were $27.0 million versus $14.8 million for the same prior year period. The Company expects to maintain capital expenditures at an annualized run-rate of approximately 2.5% of net sales.

Read the The complete Report



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