AptarGroup Reports Record First Quarter Revenue; Earnings Per Share Equal Prior Year’s Record First Quarter Level
Wednesday, April 25, 2012 5:15:00 PM ET AptarGroup, Inc. (ATR ) today reported record first quarter sales.
Earnings per share equaled the prior year’s all-time high first quarter
earnings per share.
First Quarter 2012 Summary
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Reported sales grew 3% (6% excluding currency effects) to first
quarter record of $592 million
--
Changes in currency exchange rates negatively affected results
--
Each segment’s sales increased over the prior year
--
Operating income rose to record first quarter level of $70.4 million
--
Earnings per share of $.64 were equal to the prior year’s record
first quarter level
FIRST QUARTER RESULTS
For the quarter ended March 31, 2012, reported sales increased 3% to
$592.5 million from $576.5 million a year ago. Changes in currency
exchange rates had a negative effect of 3% on the sales growth.
First Quarter Segment Sales Analysis
(Change Over Prior Year)
Beauty + Pharma Food + Total
Home Beverage AptarGroup
-------- ------ -------- ---------
Product Sales (including tooling) 3 % 8 % 11 % 6 %
Currency Effects -3 % -2 % -1 % -3 %
---- ---- --- --- ---- ---- ----- ----
Total Reported Growth 0 % 6 % 10 % 3 %
==== ==== === === ==== ==== ===== ====
Commenting on the quarter, Stephen Hagge, President and CEO, said, "I am
pleased to report we achieved record first quarter sales with core
growth of 6%. Our Beauty + Home segment realized core sales growth of 3%
on increased sales of our products to each of the markets we serve.
Strong demand for our nasal dispensing devices drove our Pharma
segment’s sales growth while increased demand for our value-adding
dispensing closures from the beverage market was a key factor behind our
Food + Beverage segment’s performance. We also had a very successful
quarter in the emerging regions."
Hagge continued, "Operating margins were negatively affected by
increased custom tooling sales as well as costs associated with the
start-up of our facilities in North Carolina and India. However, in
spite of these negative effects we achieved record first quarter
operating income. We also faced currency headwinds and a higher
effective tax rate than the prior year but we maintained the same level
of earnings per share as prior year’s record first quarter level."
OUTLOOK
Hagge commented, "As we look forward to the rest of the year, we are
encouraged by the many projects we are actively working on with our
customers across all of our segments and we are on schedule with
bringing our newer facilities’ capacity on-line. In the near-term, we
expect a challenging input cost environment and there is inflation in
some emerging regions. We also anticipate currency exchange rates to
create stronger headwinds in the second quarter compared to the prior
year. Presently we expect diluted earnings per share to be in the range
of $.70 to $.75 per share compared to our all-time high quarterly
earnings per share of $.74 reported last year."
OPEN CONFERENCE CALL
There will be a conference call on Thursday, April 26, 2012 at 8:00 a.m.
CDT to discuss the Company’s first quarter results for 2012. The call
will last approximately one hour. Interested parties are invited to
listen to a live webcast by visiting the Investor Relations page at www.aptar.com.
Replay of the conference call can also be accessed on the Investor
Relations page of the web site.
AptarGroup, Inc. is a leading global supplier of a broad range of
innovative dispensing systems for the fragrance/cosmetic, personal care,
pharmaceutical, household and food/beverage markets. AptarGroup is
headquartered in Crystal Lake, Illinois, with manufacturing facilities
in North America, Europe, Asia and South America. For more information,
visit www.aptar.com.
This press release contains forward-looking statements. Forward-looking
statements are made pursuant to the safe harbor provisions of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are based on management’s beliefs as well as
assumptions made by and information currently available to management.
Accordingly, AptarGroup’s actual results may differ materially from
those expressed or implied in such forward-looking statements due to
known or unknown risks and uncertainties that exist including, but not
limited to, economic, environmental or political conditions in the
various markets and countries in which AptarGroup operates, changes in
customer and/or consumer spending levels; financial conditions of
customers and suppliers; fluctuations in the cost of raw materials,
components and other input costs; the Company’s ability to increase
prices, contain costs and improve productivity; changes in capital
availability or cost, including interest rate fluctuations; the
competitive marketplace; fiscal and monetary policy; changes in foreign
currency exchange rates; direct or indirect consequences of acts of war
or terrorism; and labor relations. For additional information on
these and other risks and uncertainties, please see AptarGroup’s filings
with the Securities and Exchange Commission, including its Form 10-K’s
and Form 10-Q’s. Readers are cautioned not to place undue reliance on
forward-looking statements. AptarGroup undertakes no
obligation to update any forward-looking statements, whether as a result
of new information, future events or otherwise.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
-----------------------------------
2012 2011
----------------- -----------------
Net Sales $ 592,498 $ 576,518
Cost of Sales (exclusive of depreciation
shown below) 401,070 382,670
Selling, Research & Development and
Administrative 88,499 90,479
Depreciation and Other Amortization 32,554 33,605
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Operating Income 70,375 69,764
Other Income/(Expense):
Interest Expense (5,242 ) (4,620 )
Interest Income 1,028 1,552
Equity in Results of Affiliates (131 ) 0
Miscellaneous, net 247 (421 )
------- ------- -
Income before Income Taxes 66,277 66,275
Provision for Income Taxes 22,464 21,807
------- -------
Net Income $ 43,813 $ 44,468
Net (Income)/Loss Attributable to Noncontrolling Interests (4 ) 9
------- - -------
Net Income Attributable to AptarGroup, Inc. $ 43,809 $ 44,477
====== ======= ====== =======
Net Income Attributable to AptarGroup, Inc. Per Common Share:
Basic $ 0.66 $ 0.66
====== ======= ====== =======
Diluted $ 0.64 $ 0.64
====== ======= ====== =======
Average Numbers of Shares Outstanding:
Basic 66,196 66,926
Diluted 68,785 69,914
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
March 31, 2012 December 31, 2011
ASSETS
Cash and Equivalents $ 329,805 $ 377,616
Receivables, net 440,820 389,020
Inventories 300,808 285,155
Other Current Assets 105,690 92,159
--------- ---------
Total Current Assets 1,177,123 1,143,950
Net Property, Plant and Equipment 787,639 754,715
Goodwill, net 237,915 233,689
Other Assets 35,380 26,941
--------- ---------
Total Assets $ 2,238,057 $ 2,159,295
======= ========= ======== =========
LIABILITIES AND EQUITY
Short-Term Obligations $ 151,860 $ 183,668
Accounts Payable and Accrued Liabilities 348,787 335,181
--------- ---------
Total Current Liabilities 500,647 518,849
Long-Term Obligations 254,696 254,910
Deferred Liabilities 98,407 94,964
--------- ---------
Total Liabilities 853,750 868,723
AptarGroup, Inc. Stockholders’ Equity 1,383,508 1,289,776
Noncontrolling Interests in Subsidiaries 799 796
--------- ---------
Total Equity 1,384,307 1,290,572
--------- ---------
Total Liabilities and Equity $ 2,238,057 $ 2,159,295
======= ========= ======== =========
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
Three Months Ended
March 31,
-----------------------------------
2012 2011
----------------- -----------------
NET SALES
--------------------------------
Beauty + Home $ 377,151 $ 376,262
Pharma 140,043 132,004
Food + Beverage 75,304 68,252
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Total Net Sales $ 592,498 $ 576,518
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SEGMENT INCOME (1)
--------------------------------
Beauty + Home $ 32,972 $ 32,653
Pharma 39,372 38,888
Food + Beverage 6,788 7,572
Corporate Expenses and Other (8,641 ) (9,770 )
------- - ------- -
Income Before Interest and Taxes $ 70,491 $ 69,343
Interest Expense, Net (4,214 ) (3,068 )
------- - ------- -
Income before Income Taxes $ 66,277 $ 66,275
====== ======= ====== =======
SEGMENT INCOME AS % OF NET SALES
--------------------------------
Beauty + Home 8.7 % 8.7 %
Pharma 28.1 % 29.5 %
Food + Beverage 9.0 % 11.1 %
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and
allocates resources based upon income before net interest expense,
certain corporate expenses, and income taxes.
SOURCE: AptarGroup, Inc.
AptarGroup, Inc.
Matthew DellaMaria, 815-477-0424
