Jarden Corporation ( JAH)

Q3 2011 Earnings Call

October 26, 2011 4:45 pm ET


Jennifer Milan – Investor Relations, FTI Consulting, Inc.

Martin E. Franklin – Executive Chairman

Ian G. H. Ashken – Vice Chairman and Chief Financial Officer

James E. Lillie – Chief Executive Officer


Charles Strauzer – CJS Securities

William Chappell – Suntrust Robinson Humphrey

Gregory Badishkanian – Citi

Lauren Lieberman – Barclays Capital

Jason Gere – RBC Capital Markets

Jon Andersen – William Blair & Company

Reza Vahabzadeh – Barclays Capital

Ann Gilpin – Jeffries and Company

Karru Martinson – Deutsche Bank Securities Inc.



Well, good afternoon ladies and gentlemen, and welcome to the Jarden Corporation’s conference call. This afternoon’s call will begin with management making some formal remarks, and then when they have concluded, a question-and-answer period will follow. (Operator instructions)

And now, I’d like to turn conference over to Ms. Jennifer Milan of FTI Consulting. Please go ahead, Ms. Milan.

Jennifer Milan

Good afternoon, and thank you for joining us for Jarden’s 2011 third quarter 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 informations, 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 reconciliation of certain non-GAAP to comparable GAAP financial measures to 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 Executive Chairman, Martin Franklin. Martin, please go ahead.

Martin E. Franklin

Thank you, Jack. Good afternoon ladies and gentlemen. With me on the call today are Ian Ashken, our Vice Chairman and CFO; and Jim Lillie, our CEO. Hopefully, you have all had a chance to review the earnings release we issued earlier today.

Q3 was a very strong quarter for Jarden, during which we achieved overall sales growth of 11% including organic sales growth in excess of 5%. This robust growth was driven by exceptional performances across the board within Outdoor Solutions and strong sales within Branded Consumables, particularly in Jarden Home and Family. As always, retailer support of innovative new products, our superior execution at retail and the value proposition we offer to consumers in the continuing difficult macro environment help drive this growth.

I am proud to say that as Jarden enters its second decade at least one of our products can be found in almost every home in America. Yet, Jarden itself is still relatively unknown to many investors despite the Jarden brand name appearing in small print on the vast majority of the products that we sell.

For those of you unfamiliar with Jarden, I’d like to highlight that we are a global consumer products company with a broad portfolio of primarily seasonal staple products. Our diversification, geographic and seasonal provides the benefit of several natural hedges, which help reduce the risk of our exposure to weather, commodity cost increases and broader macroeconomic conditions. We’re focused on offering innovative products supported by trusted authentic brand with compelling value propositions at affordable price points.

Many of the categories we sell, such as baby, pet, consumables and products for sports and outdoor enthusiasts are relatively recession proof. With our one stop offering across many categories, and broad distribution we tend to benefit irrespective of where the consumers choose to shop at specialty, club retailers or mass retailers. These are some of Jarden’s key strengths, which play an important role in ensuring that our products and brands remain leaders in the categories that we serve.

As those of you who are more familiar with us now, we are committed to building upon our brand heritage through additional investments, investments to ensure that our brands remain relevant and got a high awareness amongst our target demographics, including the younger generation and their ever changing wants and needs.

As an example, in honor of K2’s 50 th anniversary in 2012, we have collaborated with the Rolling Stones, who are celebrating the same milestone on our line of commemorative skis and events. The K2 Rolling Stones’ limited edition ski collection, the first of many exciting anniversary related products and promotions is currently available at retail. I’d recommend that you buy early, as similar to many of our K2 skis and snowboards, we anticipate that demand will outstrip supply.

Similarly, our Crock-Pot brand is celebrating its 40 th anniversary this year. As part of our efforts to keep the brand fresh and resonating with the cogeneration of users. We are developing new outreach initiatives that allow like-minded users to share that Crock-Pot recipes and experience.

As an example of our commitment to investing in new product development, we are pleased to announce recently that Mr. Coffee has broadened it’s relationship with Green Mountain Coffee Roasters and it’s K-Cups brewing system. Building on our launch of the Mr. Coffee single serve K-Cups in 2010. Our new agreement allows us to use Keurig technology and additional products with features such as instant hot a feature that allows consumers to enjoy multiple cups of coffee without needing to frequently replenish the water tank.

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