Sunbeam 2011 Annual Report Download - page 5

It is with a great sense of pride that Jarden
celebrated its 10th anniversary in 2011.
A decade ago our Company had annual
revenue of approximately $300 million almost all
of which was domestic, six manufacturing facilities,
less than 800 employees, and a clearly defined
new strategy: to build a portfolio of authentic,
leading consumer brands, serving primarily
niche markets, and to drive exceptional financial
performance based on investments in innovative
new products, our brands and our people.
Over the last 10 years Jarden has remained true
to the core principles on which it was built, as
encapsulated in the eight elements of Jarden’s
DNA. At the same time Jarden has grown,
organically and through a series of disciplined
acquisitions, into a global, Fortune 500 company.
As we have grown, we have sought diversification.
Today, Jarden is a diversified global consumer
products company with a highly talented team,
an expansive distribution network and an
infrastructure in place to support our growth.
The Company has annual sales approaching $7
billion, approximately 40% of which are derived
from international markets. We offer more than
120 brands, many of which are synonymous with
the categories they serve. Our success is made
possible through the confidence consumers have
in our products across our operating segments and
the innovation we bring to the market, which sets
us apart from our peers.
Our commitment to building long-term value
for our shareholders has remained consistent.
In 2011, we were honored to receive various
acknowledgements from Fortune magazine
in its annual issue highlighting the largest 500
companies in America, including: an overall ranking
of #379, a ranking of #38 in terms of annual EPS
growth over the last decade, a ranking of #14
in terms of total rate of return to shareholders
over the last decade, and a ranking of #1 in
terms of total rate of return to shareholders over
the last decade within the Consumer Products
category. On September 24, 2001, the day we
were appointed as the new management team, the
shares of the Company (fka Alltrista Corporation)
closed at $2.38, on a split adjusted basis.
$1,000 invested on that date would be worth
approximately $16,000 as of the date of this letter.
As expected, 2011 marked another year of
global macroeconomic uncertainty. Despite this
backdrop, we met all of our principal financial
goals, reporting another year of record sales,
segment earnings and earnings per share. Our
performance was particularly pleasing in a year in
which, in addition to macroeconomic headwinds,
we witnessed several unusual weather patterns
and natural disasters including the earthquake and
Tsunami in Japan, floods in the spring, a drought
in the summer, Hurricane Irene in the fall, and a
mild start to the winter. Despite these challenges,
the diversification of our overall portfolio and our
proactive, entrepreneurial culture enabled Jarden
not only to withstand these obstacles, but also to
produce a year of record results.
In 2011, sales grew by almost 11% on an actual
basis, 5% on an organic basis, and over 3% on an
organic basis adjusting for currency movements.
We generated cash flow from operations of over
$425 million, well above our target of $350 million.
We reported record segment earnings of $791
million and increased adjusted earnings per share
by approximately 18%, compared to our base line
goal of 10%. Additionally, we ended the year with
over $800 million of cash. We are extremely proud
of this financial performance and believe that it
offers a sound foundation to pursue continued
consistent, profitable growth in the future.
One of Jarden’s core competencies has been our
ability to successfully integrate acquisitions into
our operating platform and culture. Our 2010
acquisition of Mapa Spontex was our first of a
predominantly international business, offering new
challenges and opportunities. The newly named
Jarden Home and Family business has blossomed
under Jarden’s ownership and we are extremely
proud of the team that delivered a successful
integration during 2011 of brands such as NUK®,
Mapa® and Spontex®, ahead of our budget
in terms of both time and financial results. In
December we opened our first African subsidiary
in Johannesburg, South Africa, as we continue to
focus on investments to increase our presence in
new and underpenetrated international markets.
The year included the evaluation of a large number
of acquisition opportunities and our decision to
invest in our own company rather than pursue
them is a further illustration of our disciplined and
stringent acquisition criteria.
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