Jarden Corp. ( JAH) Q4 2011 Earnings Call February 15, 2012 04:45 pm ET Executives Rachel Schacter - ICR Martin Franklin - Executive Chairman Ian Ashken - Vice Chairman & CFO Jim Lillie - CEO Analysts Bill Chappell - SunTrust Joe Altobello - Oppenheimer Charlie Strauzer - CJS Securities Greg Badishkanian - Citigroup Jason Gere - RBC Capital Markets Andrew Burns - D.A. Davidson Karru Martinson - Deutsche Bank Presentation Operator
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» Jarden's CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Jarden's Management Discusses Q2 2011 Results - Earnings Call Transcript
» Jarden Corporation Q4 2008 Earnings Call Transcript
And now, I'd like to turn the call over to Executive Chairman, Martin Franklin. Martin, please go ahead.Martin Franklin Thank you, Rachel. 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. For 2011, Jarden delivered record revenues, segment earnings and adjusted earnings per share to culminate what has been a decade of outstanding performance. We met all of our principle financial goals for 2011, we achieved organic sales growth of over 3% with actual sales growth of almost 11%. We generated cash flow from operations of over $425 million against our target of $350 million and up significantly from $289 million in 2010. And we recorded an increase in adjusted earnings per share of approximately 18% well in excess of our 10% growth target. We were very close to achieving our long-term goal of expanding gross margins by 50 basis points per annum with a companywide increase of 44 basis points this year on an adjusted basis. Additionally, we ended the year with over $800 million of cash. We have continued along our path of consistent profitable growth and once again our record results are a testament to the strength and diversified business model and our proactive entrepreneurial culture. We are very proud of the performance we delivered in 2011 and remain confident that the strategies we have implemented to leverage our market leading brands with product innovation and geographic expansion will allow us to increase our future sales rates above GDP growth while expanding margins. As many of you know in 2011, Jarden celebrated its tenth anniversary since Ian and I joined the company and took over leadership in September 2001. Over this time, we’ve remained true to the core principles on which Jarden has been built and as encapsulated in Jarden’s DNA. We have remained focus on our strategic mission to provide consumers with authentic brands they can trust, product innovation and compelling value. Through a combination of organic growth and disciplined acquisitions, we have grown from a primarily US focused company with annual revenues of approximately $300 million into a Global Fortune 500 consumer products company with annual revenues approaching $7 billion.
As we have grown, we have sought diversification; diversification across our brands, product lines, distribution and supply chain. Today almost 40% of our sales are generated outside the United States versus less than 2% ten years ago. We are the largest hard goods, sporting goods company in the world, a major player in the small appliance market in the Americas as well as a leader in a number of other niche domestic markets such infant care, food preservation and home safety.This diversity in product strength creates natural hedges, which, in my view are a key differentiating factor that has allowed us to outperform our peers during the recent turbulent times. Today, our company is not only larger but far stronger. This was certainly put to the test in the recent economic crisis and the company proved its extraordinary resiliency. While our stock price has risen by more than a 1000% over the last decade significantly outperforming the S&P 500, we’re disappointed that this increase has been driven almost entirely by Jarden’s earnings per share growth rather than any multiple expansion. In our opinion, the quality and resilience of our company has not been fully recognized by the public markets. As such, given the strength in our liquidity, in August 2011, the Board approved a new share repurchase program to purchase up to $500 million in value of our shares from time to time. Since the time of this authorization, we’ve been active in the market, but limited in our ability to acquire a meaningful number of shares due to daily volume rules and quiet period restrictions. Read the rest of this transcript for free on seekingalpha.com