Jarden Outdoor Revenues, Earnings Decline in Third Quarter

Jarden Corporation reported that sales at its Outdoor Solutions segment reached $670.6 million in the third quarter ended Sept. 30, 2013, down 2.0 percent from the third quarter of 2013. Segment earnings dipped 6.8 percent to $66.9 million, or 13.4 percent of revenues.

Organic sales grew 4.1 percent during the quarter, when shipment of many of the company’s outdoor apparel and snowsports brands – K2, Marker, Tubbs, Volkl – peak ahead of the holiday and winter season. Executives said sales to specialty and smaller retailers were stronger than to mass customers.

Jarden derived 37.2 percent of its third-quarter sales from the Outdoor Segment, which owns 21 sporting goods brands across the ball, fishing, outdoor, snowsports and team categories, including Penn, Abu Garcia, Coleman, K2, and Rawlings.

Jarden Corp. also sells small appliances through its Consumer Solutions segment and household products through its Branded Consumables segment. In total, the company reported net sales were $1.8 billion, compared to $1.7 billion for the same period in 2012. Reported gross margin was 29.1 percent for 2013 compared to 29.4 percent for the same period in 2012. Net income was $94.9 million, compared to $76.9 million for the same period in 2012.

Adjusted gross margin was 29.5 percent compared to 30.0 percent for the same period in 2012, while adjusted net income was $117.1 million, compared to $104.0 million for the same period in 2012.

“During the third quarter, we maintained our momentum from the first half of the year, reporting organic sales growth faster than our 3-5 percent targeted long-term average organic growth, record earnings, and adjusted diluted earnings per share growth of 16 percent versus the prior year quarter,” stated Martin E. Franklin, Executive Chairman.

CEO James E. Lillie said broad based business strength drove the company’s top line performance and SG&A control drove the overall EBITDA margin expansion in the quarter.

“The diversity of Jarden’s business continues to help us maximize growth opportunities and at the same time, minimize dependence on any single brand, product, retailer, or region,” Lilie said.

Jarden Outdoor Solutions brands include Abu Garcia, AeroBed, Berkley, Campingaz and Coleman, ExOfficio, Fenwick, Gulp!, Invicta, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene, Volkl and Zoot.