Jarden Corp. (JAH, Financial) filed Quarterly Report for the period ended 2010-09-30.
Jarden Corp. has a market cap of $2.9 billion; its shares were traded at around $32.51 with a P/E ratio of 11.5 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 25.7% over the past 10 years. GuruFocus rated Jarden Corp. the business predictability rank of 3.5-star.JAH is in the portfolios of Murray Stahl of Horizon Asset Management, David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC, Columbia Wanger of Columbia Wanger Asset Management, Kenneth Fisher of Fisher Asset Management, LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, John Keeley of Keeley Fund Management, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Mario Gabelli of GAMCO Investors.
Net income for the three months ended September 30, 2010 increased $6.9 million to $80.6 million versus the same prior year period. For the three months ended September 30, 2010 and 2009 diluted earnings per share was $0.90 and $0.83, respectively. The increase in net income was primarily due to higher sales, incremental earnings from the Acquisition and a decrease in reorganization costs ($4.3 million), partially offset by an increase in interest expense ($11.0 million).
overall economic improvement, new institutional sales and increased promotional activity; offset by unfavorable foreign currency translation (approximately $40 million), which includes the unfavorable impact of approximately $55 million related to the currency devaluation in Venezuela (see Venezuela Operations). Net sales in the Branded Consumables segment increased $360 million, or 61.3%, which is mainly due to the Acquisition, improvements in the safety and security business and new product placements, including safes and shredders and favorable foreign currency translation (approximately $5 million). Net sales in the Process Solutions segment increased 34.7%, primarily due to an increase in the pass through pricing of commodities and increases in coinage and monofilament due to improved market conditions.
Cost of sales increased $446 million, or 16.4%, to $3.2 billion for the nine months ended September 30, 2010 versus the same prior year period. The increase is primarily due to the Acquisition (approximately $220 million), higher sales and the inclusion of a $25.3 million charge during the nine months ended September 30, 2010, related to the purchase accounting adjustment, primarily related to the Acquisition, for the elimination of manufacturers 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 nine months ended September 30, 2010 and 2009 was 72.8% and 72.2%, respectively (72.3% for the nine months ended September 30, 2010 excluding the charge for the elimination of manufacturers profit in inventory). Cost of sales as a percentage of net sales for the nine months ended September 30, 2010 was negatively affected as a result of the currency devaluation in Venezuela (see Venezuela Operations) and the negative impact on gross margin resulting from higher costs in 2010, primarily commodity and transportation costs. Cost of sales as a percentage of net sales for the nine months ended September 30, 2009 was also negatively affected by the sell through during the first quarter of 2009 of higher cost inventory that was built in 2008 during a significant rise in commodity prices.
SG&A increased $186 million, or 26.3%, to $893 million for the nine months ended September 30, 2010 versus the same prior year period. The change is primarily due to the Acquisition, $78.1 million of charges related to the Companys Venezuela operations (see Venezuela Operations), transaction costs, primarily related to acquisitions ($24.6 million) and an increase in stock-based compensation ($6.4 million), partially offset by gains recognized on derivatives not designated as effective hedges ($10.9 million) and a mark-to-market gain ($10.1 million) associated with the Companys Euro-denominated debt and intercompany loans. Additionally, the Company recorded a fair value adjustment related to the recovery of a long-term note from a prior investment, partially offset by a fair value adjustment of a lease termination.
Operating earnings for the nine months ended September 30, 2010 in the Outdoor Solutions segment increased $47.9 million, or 30.3%, versus the same prior year period primarily due to a net gross margin increase (approximately $24 million) due to higher sales, partially offset by other costs and a $19.3 million decrease in reorganization costs and a decrease in SG&A ($4.7 million). Operating earnings for the nine months ended September 30, 2010 in the Consumer Solutions segment decreased $10.2 million, or 6.7%, versus the same prior year period primarily as the result of the unfavorable impact on gross margins (approximately $50 million) related to the currency devaluation in Venezuela (see Venezuela Operations), partially offset by a gross margin increase (approximately $37 million) due to higher sales and a $3.2 million decrease in reorganization costs. Operating earnings for the nine months ended September 30, 2010 in the Branded Consumables segment decreased $1.0 million, or 1.5%, versus the same prior year period primarily due to the impairment charges for goodwill and intangible assets ($18.3 million) and the purchase accounting adjustment for the elimination of manufacturers profit in inventory ($25.3 million), partially offset by the impact of the Acquisition, a net gross margin increase (approximately $7 million) due to higher sales and a $2.7 million decrease in SG&A, excluding the impact of the Acquisition. Operating earnings in the Process Solutions segment for the nine months ended September 30, 2010 increased $4.9 million, or 33.6%, versus the same prior year period primarily as the result of the gross margin impact of higher sales, partially offset by an increase in SG&A ($5.4 million).
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Jarden Corp. has a market cap of $2.9 billion; its shares were traded at around $32.51 with a P/E ratio of 11.5 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 25.7% over the past 10 years. GuruFocus rated Jarden Corp. the business predictability rank of 3.5-star.JAH is in the portfolios of Murray Stahl of Horizon Asset Management, David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC, Columbia Wanger of Columbia Wanger Asset Management, Kenneth Fisher of Fisher Asset Management, LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, John Keeley of Keeley Fund Management, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
Operating earnings for the three months ended September 30, 2010 in the Outdoor Solutions segment increased $5.2 million, or 8.2%, versus the same prior year period primarily due to a net gross margin increase (approximately $7 million) due to higher sales, partially offset by other costs; and a $4.3 million decrease in reorganization and acquisition-related integration costs, net (collectively, reorganization costs); partially offset by an increase in SG&A ($6.7 million). Operating earnings for the three months ended September 30, 2010 in the Consumer Solutions segment decreased $12.1 million, or 15.3%, versus the same prior year period primarily due to the unfavorable impact on gross margins (approximately $10 million) related to the currency devaluation in Venezuela (see Venezuela Operations). Increased gross margins from higher sales were mostly offset by higher costs, primarily ocean freight and commodity costs. Operating earnings for the three months ended September 30, 2010 in the Branded Consumables segment increased $19.1 million, or 60.3%, versus the same prior year period primarily due to the impact of the Acquisition and a $4.2 million decline in SG&A, excluding the impact of the Acquisition. Operating earnings in the Process Solutions segment for the three months ended September 30, 2010 increased 4.3%, versus the same prior year period primarily as the result of the gross margin impact of higher sales, partially offset by an increase in SG&A ($2.0 million).Net income for the three months ended September 30, 2010 increased $6.9 million to $80.6 million versus the same prior year period. For the three months ended September 30, 2010 and 2009 diluted earnings per share was $0.90 and $0.83, respectively. The increase in net income was primarily due to higher sales, incremental earnings from the Acquisition and a decrease in reorganization costs ($4.3 million), partially offset by an increase in interest expense ($11.0 million).
overall economic improvement, new institutional sales and increased promotional activity; offset by unfavorable foreign currency translation (approximately $40 million), which includes the unfavorable impact of approximately $55 million related to the currency devaluation in Venezuela (see Venezuela Operations). Net sales in the Branded Consumables segment increased $360 million, or 61.3%, which is mainly due to the Acquisition, improvements in the safety and security business and new product placements, including safes and shredders and favorable foreign currency translation (approximately $5 million). Net sales in the Process Solutions segment increased 34.7%, primarily due to an increase in the pass through pricing of commodities and increases in coinage and monofilament due to improved market conditions.
Cost of sales increased $446 million, or 16.4%, to $3.2 billion for the nine months ended September 30, 2010 versus the same prior year period. The increase is primarily due to the Acquisition (approximately $220 million), higher sales and the inclusion of a $25.3 million charge during the nine months ended September 30, 2010, related to the purchase accounting adjustment, primarily related to the Acquisition, for the elimination of manufacturers 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 nine months ended September 30, 2010 and 2009 was 72.8% and 72.2%, respectively (72.3% for the nine months ended September 30, 2010 excluding the charge for the elimination of manufacturers profit in inventory). Cost of sales as a percentage of net sales for the nine months ended September 30, 2010 was negatively affected as a result of the currency devaluation in Venezuela (see Venezuela Operations) and the negative impact on gross margin resulting from higher costs in 2010, primarily commodity and transportation costs. Cost of sales as a percentage of net sales for the nine months ended September 30, 2009 was also negatively affected by the sell through during the first quarter of 2009 of higher cost inventory that was built in 2008 during a significant rise in commodity prices.
SG&A increased $186 million, or 26.3%, to $893 million for the nine months ended September 30, 2010 versus the same prior year period. The change is primarily due to the Acquisition, $78.1 million of charges related to the Companys Venezuela operations (see Venezuela Operations), transaction costs, primarily related to acquisitions ($24.6 million) and an increase in stock-based compensation ($6.4 million), partially offset by gains recognized on derivatives not designated as effective hedges ($10.9 million) and a mark-to-market gain ($10.1 million) associated with the Companys Euro-denominated debt and intercompany loans. Additionally, the Company recorded a fair value adjustment related to the recovery of a long-term note from a prior investment, partially offset by a fair value adjustment of a lease termination.
Operating earnings for the nine months ended September 30, 2010 in the Outdoor Solutions segment increased $47.9 million, or 30.3%, versus the same prior year period primarily due to a net gross margin increase (approximately $24 million) due to higher sales, partially offset by other costs and a $19.3 million decrease in reorganization costs and a decrease in SG&A ($4.7 million). Operating earnings for the nine months ended September 30, 2010 in the Consumer Solutions segment decreased $10.2 million, or 6.7%, versus the same prior year period primarily as the result of the unfavorable impact on gross margins (approximately $50 million) related to the currency devaluation in Venezuela (see Venezuela Operations), partially offset by a gross margin increase (approximately $37 million) due to higher sales and a $3.2 million decrease in reorganization costs. Operating earnings for the nine months ended September 30, 2010 in the Branded Consumables segment decreased $1.0 million, or 1.5%, versus the same prior year period primarily due to the impairment charges for goodwill and intangible assets ($18.3 million) and the purchase accounting adjustment for the elimination of manufacturers profit in inventory ($25.3 million), partially offset by the impact of the Acquisition, a net gross margin increase (approximately $7 million) due to higher sales and a $2.7 million decrease in SG&A, excluding the impact of the Acquisition. Operating earnings in the Process Solutions segment for the nine months ended September 30, 2010 increased $4.9 million, or 33.6%, versus the same prior year period primarily as the result of the gross margin impact of higher sales, partially offset by an increase in SG&A ($5.4 million).
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