Jarden (

JAH

)

Q2 2011 Earnings Call

July 27, 2011 16:30 p.m. ET

Executives

Erica Pettit – Financial Dynamics

Ian Ashken - Vice Chairman of the Board & Chief Financial Officer

James Lillie – President & Chief Operating Officer

Analysts

Bill Chappell – SunTrust

Jason Gere - RBC Capital Markets

Charles Strauzer – CJS

Greg Badishkanian – Citigroup Global Markets

Joseph Altobello – Oppenheimer

Elizabeth Gilson - Barclays Capital

Bill Leach - CREF

Ann Gilpin - Jeffries and Company

Presentation

Operator

Compare to:
Previous Statements by JAH
» Jarden Corporation Q4 2008 Earnings Call Transcript
» Jarden Corp. Q2 2008 Earnings Call
» Jarden Corp. Q1 2008 Earnings Call Transcript
» Jarden Corp. Q4 2007 Earnings Call Transcript

Good afternoon ladies and gentlemen, and welcome to the Jarden Corporation's conference call. [Operator instructions.] I will now turn the call over to Erica Pettit of FD.

Erica Pettit

Good afternoon, and thank you for joining us for Jarden's second quarter 2011 conference call. In accordance with Regulation FD, or Fair Disclosure, we are webcasting this conference call.

Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Jarden is strictly prohibited. Before we begin, please take note of our cautionary statement regarding forward looking statements at the end of our earnings press release issued today.

While forward looking statements made during this conference call are based on currently available information, our actual results could differ materially from those predicted. However, we undertake no obligation to update any such statements, whether as a result of new information, future events, or otherwise.

Please note that the company has posted supplemental financial data slides, as well as reconciliations of certain non-GAAP to comparable GAAP financial measures on its website. The presentation can be downloaded in the section "For Investors" on Jarden's website under the "Presentations" heading.

And now I'd like to turn the call over to Chief Financial officer Ian Ashken. Ian, please go ahead.

Ian Ashken

Thank you Erica. Unfortunately, Martin had to take his daughter to the hospital this afternoon, so he will not be joining us for the call today. But I'm going to read his prepared remarks as if I'm him. And then I'll switch over to myself when it gets to my comments.

So with that, good afternoon ladies and gentlemen. With me on the call today are Ian Ashken, our vice chairman and chief financial officer, and Jim Lilly, our chief executive officer.

Hopefully you have had the opportunity to review the earnings release we issued earlier this afternoon. Q2 was another strong quarter for Jarden, building on the momentum of Q1 as we delivered overall sales growth of 8% and a record leverage of earnings for Q2, coupled with healthy cash flow.

As always, our success derives from our continued focus on, and commitment to, our brands, our people, and our products. Our results in the quarter were led by our Jarden outdoor solutions segment, which recorded actually sales growth of 11%, including organic sales growth of 3%. JOS's performance exemplifies the strength of our diversified portfolio of trusted, quality brands and our array of innovative seasonal consumer products geared towards enhancing the experience of everyday life.

Given the breadth of our businesses, and the number of categories we serve, primarily on a seasonal basis, we believe that Jarden has become a bellwether for the mainstream U.S. consumer products market.

For example, on our last call, I commented on a trend relating to a shift in manufacturing from Asia to the Americas. Interestingly, this has been discussed increasingly in the media of late. Many commentators get caught up in the news of the day, which is often the result of events that have taken place months, or even years, earlier.

Our approach is to use the visibility we have over the consumer environment over the next 6-9 month period period to continually flex our strategy for the next 3-5 years. A good example of this is the significant increase in the online sales of our outdoor and sporting goods products this year.

Last year we accelerated our strategic initiative to grow our online presence through our own website and those of our retail partners. We continue to invest capital and resources to drive this effort. Today, you can find our outdoor products online in places as diverse as wedding registries and extreme sports websites.

We believe that the internet channel still has meaningful growth to come. We've positioned our business accordingly while not taking our eye of the brick and mortar retail channel, which will always be core to our success.

Looking at, we do not subscribe to the view that the U.S. economy will go backwards into a recession. Nor have we ever anticipated that the recovery will be quick or painless. As I said last August, we believe that the economy will continue to bump along on a slow but upward trajectory.

This positive long term outlook has been supported by an uptick of M&A activity in specialty retail channels this year. We've seen a number of transactions where private equity firms have shown confidence in the growth prospects of specialty retail by requiring online catalog and bricks and mortar specialty retailers to expand their channel distribution.

As you know, I strongly believe that our best assets go home every night. As expressed in Jarden's DNA, we take our responsibilities to our employees and the communities we serve extremely seriously. In April, I was honored to receive on behalf of Jarden the annual New York Fire Commissioner's humanitarian award from the FDNY Foundation.

The award was in recognition of our longstanding commitment to our First Alert brand of fire and safety products to public safety and fire prevention in New York City, including the donation of over 75,000 First Alert carbon monoxide and smoke alarms to help save lives in the New York area.

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