Jarden Corp. (JAH) filed Quarterly Report for the period ended 2009-09-30.
Jarden Corporation is a leading provider of niche consumer products used in home food preservation. Jarden Corp. has a market cap of $2.52 billion; its shares were traded at around $28.51 with a P/E ratio of 10.7 and P/S ratio of 0.5. The dividend yield of Jarden Corp. stocks is 1%. Jarden Corp. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated Jarden Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Operating earnings for the three months ended September 30, 2009 in the Outdoor Solutions segment increased $2.5 million or 4.1%, versus the same prior year period primarily as the result of lower SG&A ($23.0 million) and a $2.5 million decrease in reorganization and acquisition-related integration costs, net (collectively “reorganization costs”), partially offset by the gross margin impact of lower sales. Operating earnings for the three months ended September 30, 2009 in the Consumer Solutions segment increased $3.3 million or 4.3%, versus the same prior year period primarily as the result of improved gross margins, which is primarily due to lower commodity and transportation costs in 2009 versus 2008. Operating earnings for the three months ended September 30, 2009 in the Branded Consumables segment increased $2.4 million or 8.2%, versus the same prior year period primarily as the result of the gross margin impact of an increase in sales and a decrease in reorganization costs ($2.5 million), partially offset by an increase in SG&A ($3.5 million). Operating earnings in the Process Solutions segment for the three months ended September 30, 2009 decreased $0.3 million or 6.0%, versus the same prior year period primarily as the result of the gross margin impact of lower sales, partially offset by a decrease in SG&A ($2.0 million) and a decrease on reorganization costs ($0.7 million).
Operating earnings for the nine months ended September 30, 2009 in the Outdoor Solutions segment decreased $14.4 million or 8.3%, versus the same prior year period primarily as the result of the gross margin impact of lower sales, partially offset by a decrease in SG&A ($54.0 million) and a decrease in reorganization costs ($1.5 million). Operating earnings for the nine months ended September 30, 2009 in the Consumer Solutions segment increased $12.0 million or 8.5%, versus the same prior year period primarily as the result of lower SG&A ($19.8 million), partially offset by increased reorganization costs ($3.2 million). Operating earnings for the nine months ended September 30, 2009 in the Branded Consumables segment increased $8.4 million or 14.6%, versus the same prior year period primarily as the result of the improved gross margins and a decrease in reorganization costs ($6.0 million). Operating earnings in the Process Solutions segment for the nine months ended September 30, 2009 decreased $2.7 million or 15.6%, versus the same prior year period primarily as the result of the gross margin impact of lower sales, partially offset by a decrease of SG&A ($3.8 million) reorganization costs ($2.8 million).
Reorganization costs decreased by $12.1 million to $22.5 million for the nine months ended September 30, 2009 versus the same prior year period. The majority of these charges ($19.3 million) relate to plans initiated for 2009 to rationalize the overall cost structure of the Outdoor Solutions segment. The Company also recorded reorganization costs ($3.2 million) during the nine months ended September 30, 2009 within the Consumer Solutions segment for headcount reductions related to cost reduction initiatives.
Net income for the nine months ended September 30, 2009 increased $16.0 million to $128 million versus the same prior year period. For the nine months ended September 30, 2009 diluted earnings per share were $1.53 versus $1.46 for the nine months ended September 30, 2008. The increase in net income was primarily due to the aforementioned decreases in SG&A expense and interest expense, partially offset the increase in the diluted weighed average shares outstanding in 2009 resulting from the issuance of 12 million shares of common stock from the equity offering in April 2009.
Net cash used in financing activities for the nine months ended September 30, 2009 was $11.6 million versus net cash provided by financing activities of $57.0 million for the nine months ended September 30, 2008. The change is primarily due to the incremental net change in short-term debt on a year-over-year basis ($206 million) and payments on long-term debt in excess of proceeds from issuance of long-term debt ($58.1 million) during the nine months ended September 30, 2009, partially offset by the issuance of common stock, net of transaction fees, during 2009 ($203 million).
Net cash used in investing activities for the nine months ended September 30, 2009 and 2008 was $101 million versus $118 million, respectively. For the nine months ended September 30, 2009, capital expenditures were $76.2 million versus $70.0 million for the same prior year period. The Company has historically maintained capital expenditures at less than 2% of net sales and expects that capital expenditures for 2009 will be consistent with this threshold. Additionally, for the nine months ended September 30, 2009 and 2008, net cash used for the acquisition of businesses and earnout payments was $13.7 million and $40.8 million, respectively.
JAH is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management.
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