Name: Will Crock Pots and Ball Jars get this company an $80 stock price?
Uploaded: 2015-06-17
Duration: 3 min 25 s
Description: Jarden CEO James E. Lillie talks with Fortune's Susie Gharib about predictions for the company's future.

So, Jim, your company is Jarden. Mm- hm. Is pretty much considered a bellweather for the consumer. You have everything from baseball gear and camping equipment, to Crock Pots and Ball Jars. So you have a very good insight into how the consumer feels about spending money. So how is the American consumer doing these days? I actually think the American consumer is doing pretty well. It's been a constantly evolving process over the last several years, it's been a gradual U- shaped recovery, but I think they feel pretty good. If you hear about job security you don't hear about massive unemployment anymore. 401k balances are relatively high, and I think at the end of the day You take the improvement in wages, more money in their pocket for disposable income purposes off of gas prices, and relative economic security, I think they feel pretty good. Everybody assumes that because gasoline prices have stayed low, and now it's almost a year that this is having an impact on consumers feeling a little bit freer about spending. Is that really true? Are you seeing that? I think they think it's really more of a permanent feature or fixture in their lifestyles. You know every once in a while you have one off gas prices increases of them going down. But after they've been there for a year it's a pretty constant. And I think they can rely on that money being around. Mm- hm. You are in so many different parts of the consumer business area. Mm- hm. Is there one area of your company that's Stronger, where are most of the orders coming in? We have 120 or so active brands and we really don't have a hockey stick covering the sins of another business. But across our entire portfolio, obviously we have good growing aspects of the business, like our Yankee Candle business continues to do very well. Our marmot apparel business continues to do very well. But, the entire business is really growing at kind of a 3 %-% 5 clip with whether being kind of the leader in pushing businesses ahead or behind. But you do have such a vast collection of brands. We do. Are you looking to add More companies, more brands. Are you looking to buy? We are absolutely looking to buy. We are in a low- rate environment for the time being. Obviously, the feds meeting and so the rates are going to go up, but I think, right now, we generate a tremendous amount of cash, and in this low- rate environment, certainly wanna keep looking for MNA opportunities. Are we gonna hear next week that you bought another company? I don't think you're gonna hear next week that we bought another company, but we really like to have brands that are number one in their categories. We're happy to have number two if we have number one as well. But we find that number one brands are very economically resilient. During the '08, '09 time period our revenue was only down 2 % and our EBITDA was essentially flat. During that period of time, because our brand's resonated with consumers and they resonated with the retailers, and so that's really kind of our tactical strategy is to be the number one in each categories. One way we can tell that Jarden is doing pretty well is looking at your stock, and it's up almost 30 % since Last year at this time. Mm- hm. What is this gonna take to keep that momentum? We expect to be able to deliver 10 % plus earnings growth every year over the next several years. And if you do that, you deliver the $ 4 a share in 2018, and you take the current multiple of 20, that implies a $ 80 stock price. In about two and a half years, and if you get multiple expansion, which we expect we will continue to get multiple expansion, you're looking at an $ 80 to $ 100 stock price two years out.

Will Crock Pots and Ball Jars get this company an $80 stock price?

Leadership

CEO James E. Lillie on company predictions.

Will Crock Pots and Ball Jars increase Jarden's stock price?

Jarden CEO James E. Lillie talks with Fortune's Susie Gharib about predictions for the company's future.