Sunbeam 2013 Annual Report Download - page 7

own stock is one of the best investments we can
make. At the same time, we remain opportunistic
yet disciplined in our approach to acquisitions, and
employ a thoughtful balance between patience and
swiftness to act.
The theme of this year’s annual report is
“Uncommon Value.” As we analyze the building
blocks that have made up Jarden’s success, we
believe Jarden’s DNA and the culture that has
evolved sets us apart in the consumer products
sector. Our business model is truly unique for a
company with annualized revenue of approximately
$8 billion and a compound annual revenue growth
rate since 2001 of over 30%.
Jarden has proven resilient in down cycles, as seen
by our performance in 2008 and 2009, and has
delivered signicant growth in healthier economic
conditions. This sustained growth regardless of
the economy can be attributed to the consistent
leadership from our Ofce of the Chairman, the
consistent application of our operating principles
and the consistent implementation of our capital
allocation priorities. We have always been business
builders with three internal mantras. The rst is that
our best assets go home every night; the second is
to treat the Company’s cash as if it were your own;
and third is that we have no asset in Jarden that
couldn’t be better. This philosophy, coupled with
Jarden’s DNA, has led to consistent consolidated
performance across our portfolio of over 120
distinct brands. We believe that despite the many
differences in the end markets we serve, and the
independent operating cultures of our different
businesses, they all benet operationally and
strategically from being part of Jarden.
We have created a culture of developing talent
from within and will further these efforts in the
years ahead. We try to avoid the arrogance that
can come with scale and continue to maintain our
“think lean, act large” entrepreneurial culture. In
2013, brand equity investment reached a new record
of approximately 6% of sales, or over $415 million.
It is this consistent focus on driving new product
innovation that we believe sets the foundation for
Jarden to continue its leadership positions in the vast
majority of its target markets for years to come.
Organic growth in 2013 was 4.4%, or nearly $300
million. This healthy performance was augmented
by the addition of a number of new brands to the
portfolio, the best known being the Hardy y-
shing and Yankee Candle brands. Yankee Candle
was our largest acquisition to date and we are
delighted to welcome their signicant organization
to the Jarden family. This is a very “Jardenesque”
company that further diversies our product
categories and distribution channels and clearly ts
our acquisition criteria, which have remained largely
unchanged since Jarden’s 2001 inception, namely:
1) Category-leading positions in niche
consumer markets with defensible
moats around the business
2) Recurring revenue with margin
expansion opportunities
3) Strong cash ow characteristics
4) Talented management teams
5) Attractive transaction valuations,
accretive from day one pre-synergies
As we look to 2014 and beyond, we believe
that our updated long-term objectives provide
a realistic and positive outlook for the next ve
years. Many aspects of our goals are evergreen and
consistent by design; a factor in delivering reliable
performance each year. Other goals however
require updating given Jarden’s operational and
nancial progress. Our new ve-year operating
plan is designed to meet these goals, not necessarily
every quarter but rather over an extended period
of time.
These goals include:
• Delivering Long-Term Average Organic Sales
Growth of 3%-5%
• Continuing to Leverage SG&A
• Expanding Segment Earnings Margins +150bps
from the Current 12.7% Level
• Generating Average, Annual Adjusted Earnings
Growth of at Least 10%
• Producing at Least $4 Billion of Cash Flow
from Operations over the Next Five Years
WE TRY TO AVOID THE
ARROGANCE THAT CAN
COME WITH SCALE and
continue to maintain our
“think lean, act large”
entrepreneurial culture.
Jarden Corporation Annual Report 2013 3