Sunbeam 2010 Annual Report Download - page 6

BNDED CONSUMABLES
is a leading provider of primarily niche,
market leading branded consumer products
used in and around the home.
Our leading brands include Ball®, Bee®,
Bernardin®, Bicycle®, Billy Boy®, Crawford®,
Diamond®, Dicon®, Fiona®, First Alert®,
First Essentials®, Forster®, Hoyle®, Java-Log®,
Kerr®, Lehigh®, Leslie-Locke®, Lillo®, Loew
Cornell®, Mapa®, NUK®, Pine Mountain®,
Quickie®, Spontex®, Tigex® and Tundra®.
markets, extending the debt maturity
profile of the Company. As disciplined
stewards of capital, our objective
is to strike an appropriate balance
between increased internal investment
in new product development, debt
repayment, additional acquisitions, share
repurchases and dividend increases. As
the management team are significant
shareholders, our interests regarding the
optimal deployment of capital to help
drive the long-term prosperity of Jarden
are aligned with those of all shareholders.
What did all of this mean for Jarden in
2010? We produced record sales of $6
billion and record segment earnings of
$710 million, both a 17% increase over
2009. We maintained our leverage ratio
at less than 3x, as defined by our bank
credit facility, and produced $289 million
of cash flow from operations, finishing
the year with nearly $700 million of
cash on hand. Financially 2010 was a
successful year for Jarden and, most
importantly, we believe it positions us
well to continue our top- and bottom-
line growth in 2011.
Ian Ashken, my friend, colleague and
partner, and I founded the concept of
Jarden when we joined the company
a decade ago. We have always seen
business as a team sport and believe
our most important assets go home
every night. We are profoundly grateful
for the efforts, tenacity and dedication
of the Jarden workforce.
As Jarden has matured, we have
continued to bring on outstanding
talent to help execute our growth plan.
As announced earlier this year, I have
decided to assume the position of
Executive Chairman following our 2011
Annual Meeting and James E. Lillie,
Jarden’s current President and Chief
Operating Officer, who joined us eight
years ago, will become Chief Executive
Officer. I will continue to set Jarden’s
strategic and philosophical direction,
and Jim will continue to focus on the
successful day-to-day management of
the business. The change should be
seamless to the businesses, and I will
continue to work with Ian and Jim within
the “Office of the Chairman”, which was
created in 2005, to effectively lead the
overall company.
While it is satisfying to look back at
the successes of the past ten years, my
real interest is in looking forward to how
Jarden can continue to win in the future.
Undoubtedly, future success will need
to be based on our current operating
plan: to invest in market-leading brands
in niche categories; to leverage our low-
cost, highly efficient operating platform;
and to make disciplined, strategic
acquisitions. We will continue to
balance our drive for growth within the
businesses with our desire to expand
gross margins. We will also need to
be flexible to stay ahead of new macro
trends as they emerge. However, I
believe Jarden’s current market position
and financial foundation provide us a
strong platform from which to grow for
the foreseeable future. It is then down
to hard work and executing on our plan
to determine whether we succeed. I
think I speak for all Jarden’s employees
in saying how much we look forward to
making the most of the opportunities
that lie ahead and striving to create
significant future value for our owners,
the shareholders.
Respectfully yours,
Martin E. Franklin
Chairman and Chief Executive Officer
4
“As disciplined stewards of
capital, our objective is to
strike an appropriate balance
between increased internal
investment in new product
development, debt repayment,
additional acquisitions, share
repurchases and dividend
increases.”
5-Year Financial Highlights
($ in millions)
Net Sales
CAGR = 12%
$5,153
$5,383
$4,660
$3,846
2006 2007 2008 2009 2010
$6,023
Segment Earnings*
CAGR = 14%
$419
$502
$609 $606
$710
* Non-GAAP – For a reconciliation of Segment
Earnings to GAAP Operating Earnings please
see p. 6.
2006 2007 2008 2009 2010
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
0
$700
$600
$500
$400
$300
$200
$100
0