Sunbeam 2003 Annual Report Download - page 45

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Jarden Corporation
Notes to Consolidated Financial Statements (continued)
Effective November 1, 2001, the Company sold its majority interest in Microlin, LLC (“Microlin”),
for $1,000 in cash plus contingent consideration based upon future performance through December 31,
2012 and the cancellation of future funding requirements. The Company recorded a pretax loss of $1.4
million in 2001 related to the sale.
4. Pro Forma Financial Information
The following unaudited pro forma financial information gives pro forma effect to the Tilia
Acquisition, the Diamond Acquisition and the Lehigh Acquisition (as described in Note 3 above) with
the related financings as if they had been consummated as of the beginning of the earliest period
presented. The unaudited pro forma financial information presented does not exclude the $21.8 million
non-cash restricted stock charge and related tax benefit recorded in 2003 or the net $4.4 million income
tax valuation allowance released in 2002:
Year Ended December 31,
2003 2002
(in thousands, except per share data)
Net sales .............................................. $684,876 $635,361
Operating income ...................................... 86,696 104,777
Net income ............................................ 37,898 52,085
Diluted earnings per share ............................... $ 1.61 $ 2.41
5. Business Segment Information
The Company reports four business segments: branded consumables, consumer solutions, plastic
consumables and other.
In the branded consumables segment, the Company markets, distributes and in certain cases
manufactures a broad line of branded products that includes clothespins, craft items, food preparation
kits, home canning jars, jar closures, kitchen matches, plastic cutlery, rope, cord and twine, storage and
workshop accessories, toothpicks and other accessories marketed under the Ball®, Bernardin®,
Crawford®, Diamond®, Forster®, Kerr®, Lehigh®and Leslie-Locke®brand names. As discussed in Note
3, the Diamond Brands wood manufacturing operation and branded product distribution business and
the Lehigh home improvement business have been included in the branded consumables segment
effective February 1, 2003 and September 2, 2003, respectively. In the consumer solutions segment,
which was created upon the acquisition of Tilia in April 2002, the Company sources, markets and
distributes an array of innovative kitchen products under the market leading FoodSaver®brand name, as
well as the VillaWare®brand name. The plastic consumables segment manufactures, markets and
distributes a wide variety of consumer and medical plastic products, including products used by the
Company’s branded consumables segment (plastic cutlery) and consumer solutions segment
(containers). As discussed in Note 3, the Diamond Brands plastic manufacturing operation is included
in the plastic consumables segment effective February 1, 2003. The other segment is primarily a
producer of zinc strip.
page 43