Sunbeam 2006 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2006 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

20.QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
Summarized quarterly results of operations for 2006 and 2005 were as follows (see Note 3for a discussion of the
Company’s acquisitions that occurred during these periods):
First Second Third Fourth
(millions of dollars, except per share amounts) Quarter Quarter Quarter(1) Quarter Total
2006
Net sales $791.7$962.0$1,033.1$1,059.5$3,846.3
Gross profit 185.7 232.1 265.2 259.3 942.3
Net income 5.713.351.335.7 106.0
Basic earnings per share(2) 0.09 0.21 0.79 0.53 1.62
Diluted earnings per share(2) 0.09 0.20 0.78 0.52 1.59
2005
Net sales $521.3$754.4$938.0$975.4$3,189.1
Gross profit 120.9196.5238.7230.7786.8
Net income — 32.825.42.560.7
Basic (loss) earnings per share(2) (0.51)0.13 0.41 0.04 0.23
Diluted (loss) earnings per share(2) (0.51)0.12 0.40 0.04 0.22
(1) Third quarter of 2005 includes a non-cash restricted stock charge of $29.8million and related tax benefit.
(2) Earnings per share calculations for each quarter are based on the weighted average number of shares outstanding for each period, and the sum of the quarterly
amounts may not necessarily equal the annual earnings per share amounts.
21.SUBSEQUENT EVENTS
As discussed in Note 9,Debt, on January 29,2007,the Company launched a cash tender offer (the “Tender Offer”) for
its $180 million aggregate principal amount 93/4%Senior Subordinated Notes due 2012.As of the consent date of February
9,2007,the Company purchased approximately $167 million, or approximately 93%of the aggregate principal amount out-
standing of its 93/4%Senior Subordinated Notes due 2012.In connection with such purchase, the Company also paid a ten-
der premium of approximately $9.5million for such notes.
On February 13,2007,the Company completed its registered public offering for $550 million aggregate principal
amount of 71/2%Senior Subordinated Notes due 2017.On February 14,2007,the Company completed an add-on offering
of $100 million principal amount of 71/2%Senior Subordinated Notes due 2017.The net proceeds of approximately $636
million from the new senior subordinated notes offerings will be used to fund the Tender Offer, pay down a portion of the
outstanding term loan balance under its senior credit facilities and for general corporate purposes, including the funding of
capital expenditures and potential acquisitions. The Company also amended certain aspects of its Senior Credit Facility, effec-
tive February 13,2007,to allow for the paydown of the 93/4%Senior Subordinated Notes due 2012 in its entirety, appoint a
new administrative agent; reduce the applicable margin on Term Loan B1from 1%to .75%per annum for base rate loans
and from 2%to 1.75%for Eurodollar loans; add the ability of the Company to enter into one or more incremental term
loans and to increase our revolving loan commitments in an aggregate principal amount not to exceed $750 million, of which
an aggregate $150 million can be utilized to increase our revolving loan commitments; and modify certain of its restrictive and
financial covenants, among other things. The Tender Offer, new senior subordinated notes offerings and the amendment to
the Senior Credit Facility are collectively referred to herein as the “Financing Transactions.”
As of the consent date (February 9,2007)of the Tender Offer and in conjunction with the Financing Transactions, the Company
recorded a loss on early extinguishment of debt in its Consolidated Statements of Income consisting of: (a) the tender premium of
approximately $9.5million; (b) the write-off of related unamortized deferred debt issuance costs of approximately $3.7million; (c)
the write-off of the fair market value of the interest rate swaps related to the 9 3/4%Senior Subordinated Notes due 2012 ($4.5mil-
lion liability) included within the non-debt balances arising from interest rate swap activity in the Consolidated Balance Sheet; (d) the
write-off of unamortized recouponment proceeds of approximately $3.7million; and (e) other related write-offs and expenses of
approximately $0.6million. Additional tender premium and related expenses will be similarly treated when incurred.
Notes to Consolidated Financial Statements
Jarden Corporation 2006 Annual Report
87