Executives of Jarden Corporation, the parent company of K2, told attendees at the Barclays Capital investor conference in Boston that its ski business will be down by less than 20 percent for the year, better than what’s expected from the sector as a whole. Saying it has the only ski company that makes a profit, the chief executive of Jarden, Martin Franklin, later added, “If you’re the No. 1 player, you have a lot more protection in the marketplace.”
Franklin said that since Jarden makes its skis to order, and since retailers have been delaying orders, it has been conservative on its 2009-10 business. The company’s chief operating officer, Jim Lillie, said that since Jarden takes orders for skis in the first quarter, it could adjust its numbers as the year went on, and so its operating results will not feel a strong effect.
Within its Outdoor Solutions segment, Jarden contends it has the top market share in the U.S. for ball gloves and balls, camp stoves, fishing, lanterns, skis and bindings, sleeping bags and tents.
Expecting solid cash flow from operations in the second half despite the current economic downturn, Jarden says it currently has no need for capital markets. The company will continue to invest in new products and brand development while it maintains a conservative balance sheet and leverage levels. Adjusted Ebitda was $298 million for the 2008 fiscal year, up from $204 million before its 2007 acquisition of Coleman, K2 and Pure Fishing.
