JARDEN CORP - FORM 8-K - EX-99.2 - October 23, 2014

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8-K - FORM 8-K - JARDEN CORPd807241d8k.htm
EX-99.3 - EX-99.3 - JARDEN CORPd807241dex993.htm
EX-99.1 - EX-99.1 - JARDEN CORPd807241dex991.htm

Exhibit 99.2

 

LOGO    JARDEN CORPORATION
   Reconciliation of Non-GAAP Financial Measures
   For the three and nine months ended September 30, 2014 and 2013
   in millions

Segment earnings:

 

     For the three months ended      For the nine months ended  
     September 30,
2014		      September 30,
2013		      September 30,
2014		      September 30,
2013		  

Net income

    $ 108.6       $ 94.9       $ 164.4       $ 166.9   

Income tax provision

      68.8         51.9         105.0         94.3   

Interest expense, net

      52.7         47.5         159.6         143.3   

Loss on early extinguishment of debt

      —           —           54.4         25.9   

Depreciation and amortization

      48.1         39.6         140.8         115.8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings before interest, taxes, depreciation and amortization (EBITDA)

      278.2         233.9         624.2         546.2   

Other adjustments:

            

Fair market value adjustment to inventory

      12.3         5.9         13.6         10.9   

Restructuring costs, net

      0.5         3.0         3.1         4.4   

Acquisition-related and other costs

      14.1         6.8         35.4         6.8   

Foreign exchange-related charges (a)

      3.3         —           16.9         29.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Segment earnings (As Adjusted EBITDA)

    $ 308.4       $ 249.6       $ 693.2       $ 597.3   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the three months ended  
     September 30,
2014		     September 30,
2013		     Increase/
(Decrease)		  

Net sales

    $  2,142.2      $  1,800.8     

Segment earnings (As Adjusted EBITDA)

      308.4        249.6        58.8   

Segment earnings (As Adjusted EBITDA) margin

      14.4 %      13.9 %      0.5 % 

 

(a) Foreign exchange losses on Venezuela cash conversion in 2014 and Venezuela devaluation-related charges in 2013.

Organic net sales:

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 tables provide reconciliation of organic net sales growth to the comparable GAAP measure of net sales growth for the three, nine and trailing twelve months ended September 30, 2014:

 

     For the three months ended September 30, 2014  
     Branded     Consumer     Outdoor     Process              
     Consumables     Solutions     Solutions     Solutions     Eliminations     Consolidated  

Net sales growth

      50.3 %      14.0 %      1.3 %      2.4 %      7.2 %      19.0 % 

Foreign exchange impacts

      0.7 %      0.5 %      0.3 %      (0.3 )%      —          0.4 % 

(Acquisitions)/exited businesses and other, net

      (42.3 )%      (3.5 )%      —          —          —          (13.0 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Organic net sales growth

      8.7 %      11.0 %      1.6 %      2.1 %      7.2 %      6.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     For the nine months ended September 30, 2014  
     Branded     Consumer     Outdoor     Process              
     Consumables     Solutions     Solutions     Solutions     Eliminations     Consolidated  

Net sales growth

      43.7 %      4.4 %      0.5 %      3.8 %      7.4 %      13.8 % 

Foreign exchange impacts

      0.6 %      1.3 %      0.6 %      (0.4 )%      —          0.7 % 

(Acquisitions)/exited businesses and other, net

      (38.0 )%      (1.4 )%      —          —          —          (11.0 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Organic net sales growth

      6.3 %      4.3 %      1.1 %      3.4 %      7.4 %      3.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

Trailing twelve months ended September 30, 2014    Consolidated  

Net sales growth

      15.9 % 

Foreign exchange impacts

      1.1 % 

(Acquisitions)/exited businesses and other, net

      (13.4 )% 
  

 

 

  

Organic net sales growth

      3.6 % 
  

 

 

  

Adjusted gross margin:

 

     For the three months ended  
     September 30,
2014		     September 30,
2013		     Increase/
(Decrease)		  

Gross margin as reported

      31.4 %      29.1 %      2.3 % 

Fair market value adjustment to inventory

      0.6 %      0.3 %      0.3 % 

Acquisition-related and other costs

      0.3 %      —          0.3 % 

Accelerated depreciation

      —          0.1 %      (0.1 )% 
  

 

 

    

 

 

    

 

 

  

Adjusted gross margin

      32.3 %      29.5 %      2.8 % 
  

 

 

    

 

 

    

 

 

  

Adjusted gross margins by segments:

 

     For the three months ended September 30, 2014  
     Branded     Consumer     Outdoor     Process        
     Consumables     Solutions     Solutions     Solutions     Consolidated  

Gross margins as reported

      36.8 %      26.0 %      31.6 %      15.6 %      31.4 % 

Fair market value adjustment to inventory

      0.2 %      1.8 %      —          —          0.6 % 

Acquisition-related and other costs

      —          —          0.9 %      —          0.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted gross margins

      37.0 %      27.8 %      32.5 %      15.6 %      32.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     For the three months ended September 30, 2013  
     Branded     Consumer     Outdoor     Process        
     Consumables     Solutions     Solutions     Solutions     Consolidated  

Gross margins as reported

      30.7 %      26.1 %      31.3 %      16.0 %      29.1 % 

Fair market value adjustment to inventory

      —          —          0.9 %      —          0.3 % 

Accelerated depreciation

      —          0.3 %      0.2 %      —          0.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted gross margins

      30.7 %      26.4 %      32.4 %      16.0 %      29.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted selling, general administrative expenses as a percent of sales:

 

     For the three months ended  
     September 30,
2014		     September 30,
2013		     Increase/
(Decrease)		  

Reported SG&A as a percent of sales

      20.7 %      18.1 %      2.6 % 

Acquisition-related and other costs

      (0.4 )%      (0.4 )%      —     

Foreign exchange-related charges

      (0.2 )%      —          (0.2 )% 

Amortization of acquired intangibles

      (0.3 )%      (0.2 )%      (0.1 )% 
  

 

 

    

 

 

    

 

 

  

Adjusted SG&A as a percent of sales

      19.8 %      17.5 %      2.3 % 
  

 

 

    

 

 

    

 

 

  

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