UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 
 
 July 31, 2019
Date of Report (Date of earliest event reported)
 
AptarGroup, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
(State or other jurisdiction of incorporation)
1-11846
(Commission File Number)
36-3853103
(IRS Employer Identification No.)

265 Exchange Drive, Suite 100, Crystal Lake, Illinois 60014
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: 815-477-0424.
 
N/A
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    




Item 2.02
Results of Operations and Financial Condition.

On July 31, 2019 AptarGroup, Inc. announced certain information related to its results of operations for the quarter and six months ended June 30, 2019.  The press release regarding this announcement is furnished as Exhibit 99.1 hereto.
  
The information in Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 
Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits
 
99.1            Press release issued by AptarGroup, Inc. dated July 31, 2019.
 

 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   
AptarGroup, Inc.
     
     
Date:  July 31, 2019
By:
/s/ Robert W. Kuhn
    Robert W. Kuhn
    Executive Vice President,
    Chief Financial Officer and Secretary

2

 
Exhibit Index
 

 


3
Exhibit 99.1

Aptar Reports Second Quarter Results

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 31, 2019--AptarGroup, Inc. (NYSE:ATR), a global leader in consumer dispensing, active packaging and drug delivery solutions, today reported second quarter 2019 financial results.

Second Quarter 2019 Summary

  • Reported sales increased 5%
  • Core sales, excluding currency and acquisition effects, grew 4%
  • Reported earnings per share increased 30% to $1.12 compared to prior year earnings per share of $0.86
  • Adjusted earnings per share increased 10% to $1.15 compared to prior year adjusted earnings per share of $1.05 (including comparable exchange rates)
  • Reported net income increased 33%
  • Adjusted EBITDA increased 14%, despite foreign currency headwinds
  • Expanded portfolio of services that support pharmaceutical and biotech customers with acquisitions of Nanopharm and Gateway Analytical

Second Quarter Results

For the quarter ended June 30, 2019, reported sales increased to $743 million compared to $711 million in the prior year. Core sales, excluding the impacts from changes in currency exchange rates and acquisitions, increased approximately 4%. Strong broad-based demand for Aptar’s industry leading drug delivery and food dispensing solutions drove top line core growth in the quarter. The Beauty + Home segment faced headwinds from lower custom tooling sales and decreased sales to the personal care market compared to the prior year.


Second Quarter Segment Sales Analysis
(Change Over Prior Year)





 

Beauty +
Home
Pharma Food +
Beverage
Total
AptarGroup
Core Sales Growth

(3%)

10%

10%

4%

Acquisitions

1%

13%

11%

6%

Currency Effects (1)

(5%)

(6%)

(3%)

(5%)

Total Reported Sales Growth

(7%)

17%

18%

5%





 
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

Commenting on the quarter, Stephan Tanda, President and CEO, said, “We performed well overall despite some headwinds that affected our Beauty + Home segment. Our Pharma segment grew across a variety of therapies and applications, especially nasally delivered allergic rhinitis and central nervous system treatments. In addition, we previously announced two strategic acquisitions that will broaden our services platform and bring additional value to our pharmaceutical and biotech customers. It was also a good quarter for our Food + Beverage segment, primarily due to increased demand for our innovative dispensing closures across a wide range of food-related categories. Our Beauty + Home segment continued to make progress on the transformation initiatives although sales declined due to significantly lower custom tooling sales and a pipeline fill connected to a customer’s global launch in the second quarter of last year. Further, currencies continued to be a headwind across each segment.”

Aptar reported earnings per share of $1.12 compared to $0.86 reported a year ago. Current year adjusted earnings per share, excluding restructuring costs and acquisition-related expenses, were $1.15 and up 10% from the prior year adjusted earnings per share, including comparable exchange rates, of $1.05.

Year-to-Date Results

For the six months ended June 30, 2019, reported sales increased approximately 5% to $1.49 billion from $1.41 billion a year ago. Core sales, which exclude the impacts from changes in currency exchange rates and acquisitions, also increased approximately 5%.


Six Months Year-to-Date Segment Sales Analysis
(Change Over Prior Year)




 

Beauty +
Home
Pharma Food +
Beverage
Total
AptarGroup
Core Sales Growth

--

12%

7%

5%

Acquisitions

1%

13%

11%

6%

Currency Effects (1)

(6%)

(7%)

(4%)

(6%)

Total Reported Sales Growth

(5%)

18%

14%

5%





 
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

Tanda commented on the year-to-date results, “It was a solid first half overall for Aptar with good top line core growth of five percent and double-digit growth in adjusted earnings per share. The diversity of our business and our broad portfolio of innovative solutions allow us to deliver growth even when there is softness with certain customers or markets. Our Pharma and Food + Beverage segments continued to record excellent year-on-year core sales growth with improved margins. Our Beauty + Home segment also improved year on year margins despite facing challenging comparables in addition to weakness in certain U.S. markets that appeared in the second quarter.”

For the six months year-to-date, Aptar’s reported earnings per share were $2.08, and up 17%, compared to $1.78 reported a year ago. Current year adjusted earnings per share, which exclude restructuring costs and acquisition-related expenses, were $2.22 and up 13% from prior year adjusted earnings per share, adjusted for comparable exchange rates, of $1.97.

Outlook

Commenting on Aptar’s outlook, Tanda said, “We anticipate core product sales growth across each segment. Our Pharma segment is expected to continue the positive momentum seen in the first half of the year. While we expect product growth in our Beauty + Home segment, some personal care customers are anticipating weaker volumes in the near-term and we expect lower custom tooling sales compared to a year ago. In addition, our expected effective tax rate will be higher than what we reported a year ago, in part due to a recently enacted corporate tax rate increase in France that is retroactive to the beginning of 2019.”

Aptar expects earnings per share for the third quarter, excluding any restructuring costs and acquisition related expenses, to be in the range of $0.91 to $0.97 and this guidance is based on an effective tax rate range of 30% to 32%. The effective tax rate for the prior year third quarter was approximately 23%.


Cash Dividend

As previously announced, the Board declared a quarterly cash dividend of $0.36 per share. The payment date is August 21, 2019, for stockholders of record on July 31, 2019.

Open Conference Call

There will be a conference call on Thursday, August 1, 2019 at 8:00 a.m. Central Time to discuss the Company’s second quarter and year-to-date results for 2019. 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 for a limited time on the Investor Relations page of the website.

Aptar is a leading global supplier of a broad range of innovative dispensing, sealing and active packaging solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food and beverage markets. Aptar uses insights, design, engineering and science to create innovative packaging technologies that build brand value for its customers, and, in turn, make a meaningful difference in the lives, looks, health and homes of people around the world. Aptar is headquartered in Crystal Lake, Illinois and has over 14,000 dedicated employees in 18 different countries. For more information, visit www.aptar.com.


Presentation of Non-GAAP Information

This press release refers to certain non-GAAP financial measures, including current year adjusted earnings per share and adjusted EBITDA, which exclude the impact of restructuring costs, acquisition-related expenses and purchase accounting adjustments that affected inventory values. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. Non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures provided by other companies. Aptar’s management believes these non-GAAP financial measures provide useful information to our investors because they allow for a better period over period comparison of operating results by removing the impact of items that, in management’s view, do not reflect Aptar’s core operating performance. These non-GAAP financial measures also provide investors with certain information used by Aptar’s management when making financial and operational decisions. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results, but should be read in conjunction with the unaudited condensed consolidated statements of income and other information presented herein. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in the accompanying tables. Our outlook is provided on a non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates, or reliably predicted because they are not part of the Company's routine activities, such as restructuring and acquisition costs.

This press release contains forward-looking statements, including certain statements set forth under the “Outlook” section of this press release and statements regarding the anticipated effect of acquisitions. Words such as “expects,” “anticipates,” “believes,” “estimates,” “future,” “potential” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such 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 our beliefs as well as assumptions made by and information currently available to us. Accordingly, our 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 in our operations and business environment including, but not limited to: the successful integration of acquisitions; the impact of tax reform legislation including changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; the execution of the business transformation plan; economic conditions worldwide including potential deflationary or inflationary conditions in regions we rely on for growth; political conditions worldwide; significant fluctuations in foreign currency exchange rates; changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; fluctuations in the cost of materials, components and other input costs; the availability of raw materials and components; our ability to successfully implement facility expansions and new facility projects; our ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; volatility of global credit markets; cybersecurity threats that could impact our networks and reporting systems; fiscal and monetary policies and other regulations; direct or indirect consequences of acts of war or terrorism; work stoppages due to labor disputes; and competition, including technological advances. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-Ks and Form 10-Qs. We undertake no obligation to update publically any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
Consolidated Statements of Income







 

Three Months Ended


Six Months Ended


June 30,


June 30,


 

2019

 


 

2018

 


 

2019

 


 

2018

 








 
Net Sales

$

742,661

 


$

710,608

 


$

1,487,121

 


$

1,413,958

 

Cost of Sales (exclusive of depreciation and amortization shown below) (1)

 

469,441

 


 

464,244

 


 

938,573

 


 

920,066

 

Selling, Research & Development and Administrative (2)

 

113,752

 


 

107,111

 


 

234,967

 


 

219,572

 

Depreciation and Amortization

 

47,867

 


 

40,101

 


 

95,356

 


 

81,276

 

Restructuring Initiatives

 

1,737

 


 

18,214

 


 

11,267

 


 

24,150

 

Operating Income

 

109,864

 


 

80,938

 


 

206,958

 


 

168,894

 

Other Income/(Expense):






Interest Expense

 

(8,756

)


 

(7,964

)


 

(17,970

)


 

(16,019

)

Interest Income

 

1,033

 


 

2,521

 


 

2,781

 


 

4,769

 

Equity in Results of Affiliates

 

9

 


 

(20

)


 

(86

)


 

(85

)

Miscellaneous, net

 

(49

)


 

(577

)


 

417

 


 

(1,444

)

Income before Income Taxes

 

102,101

 


 

74,898

 


 

192,100

 


 

156,115

 

Provision for Income Taxes

 

28,180

 


 

19,117

 


 

55,180

 


 

41,046

 

Net Income

$

73,921

 


$

55,781

 


$

136,920

 


$

115,069

 

Net (Income) Loss Attributable to Noncontrolling Interests

 

(6

)


 

(6

)


 

(1

)


 

6

 

Net Income Attributable to AptarGroup, Inc.

$

73,915

 


$

55,775

 


$

136,919

 


$

115,075

 

Net Income Attributable to AptarGroup, Inc. per Common Share:






Basic

$

1.16

 


$

0.89

 


$

2.17

 


$

1.85

 

Diluted

$

1.12

 


$

0.86

 


$

2.08

 


$

1.78

 








 
Average Numbers of Shares Outstanding:






Basic

 

63,471

 


 

62,402

 


 

63,219

 


 

62,266

 

Diluted

 

66,232

 


 

64,850

 


 

65,842

 


 

64,640

 








 
Notes to the Condensed Consolidated Financial Statements:

(1) For the three and six months ended June 30, 2019, Cost of Sales included the effect of approximately $0.2 million of purchase accounting adjustments to inventory related to acquisitions. For the three and six months ended June 30, 2018, Cost of Sales included the effect of approximately $0.1 million of purchase accounting adjustments to inventory related to acquisitions.

(2) For the three and six months ended June 30, 2019, Selling, Research & Development and Administrative included approximately $1.1 million of acquisition costs. For the three and six months ended June 30, 2018, Selling, Research & Development and Administrative included approximately $2.4 million of acquisition costs.

AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
($ In Thousands)
Consolidated Balance Sheets



 

June 30, 2019
December 31, 2018
ASSETS





 
Cash and Equivalents

$

302,950


$

261,823

Receivables, net

 

599,597


 

569,630

Inventories

 

399,319


 

381,110

Other Current Assets

 

116,675


 

118,245

Total Current Assets

 

1,418,541


 

1,330,808

Net Property, Plant and Equipment

 

1,051,535


 

991,613

Goodwill

 

737,422


 

712,095

Other Assets

 

381,218


 

343,219

Total Assets

$

3,588,716


$

3,377,735




 
LIABILITIES AND EQUITY





 
Short-Term Obligations

$

122,604


$

163,971

Accounts Payable and Accrued Liabilities

 

548,330


 

525,199

Total Current Liabilities

 

670,934


 

689,170

Long-Term Obligations

 

1,148,261


 

1,125,993

Deferred Liabilities

 

188,099


 

139,701

Total Liabilities

 

2,007,294


 

1,954,864




 
AptarGroup, Inc. Stockholders' Equity

 

1,581,106


 

1,422,556

Noncontrolling Interests in Subsidiaries

 

316


 

315

Total Equity

 

1,581,422


 

1,422,871




 
Total Liabilities and Equity

$

3,588,716


$

3,377,735


AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)






 

Three Months Ended


June 30, 2019


 


Consolidated

Beauty + Home

Pharma

Food +
Beverage

Corporate &
Other

Net Interest

Net Sales

$

742,661

 

 

342,080

 

 

281,939

 

 

118,642

 

 

-

 

 

-

 







 
Reported net income

$

73,921

 






Reported income taxes

 

28,180

 






Reported income before income taxes

 

102,101

 

 

26,813

 

 

84,425

 

 

12,195

 

 

(13,609

)

 

(7,723

)

Adjustments:





Restructuring initiatives

 

1,737

 

 

1,259

 

 

(113

)

 

112

 

 

479

 


Transaction costs related to acquisitions

 

1,059

 


 

1,059

 




Purchase accounting adjustments related to acquired companies' inventory

 

222

 


 

222

 




Adjusted earnings before income taxes

 

105,119

 

 

28,072

 

 

85,593

 

 

12,307

 

 

(13,130

)

 

(7,723

)

Interest expense

 

8,756

 





 

8,756

 

Interest income

 

(1,033

)





 

(1,033

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

112,842

 

 

28,072

 

 

85,593

 

 

12,307

 

 

(13,130

)

 

-

 

Depreciation and amortization

 

47,867

 

 

20,673

 

 

16,057

 

 

8,637

 

 

2,500

 

 

-

 

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

160,709

 

$

48,745

 

$

101,650

 

$

20,944

 

$

(10,630

)

$

-

 







 
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

21.6

%

 

14.2

%

 

36.1

%

 

17.7

%









 






 

Three Months Ended


June 30, 2018


 


Consolidated

Beauty + Home

Pharma

Food +
Beverage

Corporate &
Other

Net Interest

Net Sales

$

710,608

 

 

368,536

 

 

241,209

 

 

100,863

 

 

-

 

 

-

 







 
Reported net income

$

55,781

 






Reported income taxes

 

19,117

 






Reported income before income taxes

 

74,898

 

 

10,510

 

 

73,607

 

 

10,329

 

 

(14,105

)

 

(5,443

)

Adjustments:





Restructuring initiatives

 

18,214

 

 

14,631

 

 

1,224

 

 

1,354

 

 

1,005

 


Transaction costs related to acquisitions

 

2,444

 

 

574

 



 

1,870

 


Purchase accounting adjustments related to acquired companies' inventory

 

119

 

 

119

 





Adjusted earnings before income taxes

 

95,675

 

 

25,834

 

 

74,831

 

 

11,683

 

 

(11,230

)

 

(5,443

)

Interest expense

 

7,964

 





 

7,964

 

Interest income

 

(2,521

)





 

(2,521

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

101,118

 

 

25,834

 

 

74,831

 

 

11,683

 

 

(11,230

)

 

-

 

Depreciation and amortization

 

40,101

 

 

20,012

 

 

11,522

 

 

6,380

 

 

2,187

 

 

-

 

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

141,219

 

$

45,846

 

$

86,353

 

$

18,063

 

$

(9,043

)

$

-

 







 
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

19.9

%

 

12.4

%

 

35.8

%

 

17.9

%




AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)






 

Six Months Ended


June 30, 2019


 


Consolidated

Beauty +
Home

Pharma

Food +
Beverage

Corporate &
Other

Net Interest

Net Sales

$

1,487,121

 

 

709,739

 

 

554,640

 

 

222,742

 

 

-

 

 

-

 







 
Reported net income

$

136,920

 






Reported income taxes

 

55,180

 






Reported income before income taxes

 

192,100

 

 

50,994

 

 

165,683

 

 

19,911

 

 

(29,299

)

 

(15,189

)

Adjustments:





Restructuring initiatives

 

11,267

 

 

9,528

 

 

213

 

 

622

 

 

904

 


Transaction costs related to acquisitions

 

1,059

 


 

1,059

 




Purchase accounting adjustments related to acquired companies' inventory

 

222

 


 

222

 




Adjusted earnings before income taxes

 

204,648

 

 

60,522

 

 

167,177

 

 

20,533

 

 

(28,395

)

 

(15,189

)

Interest expense

 

17,970

 





 

17,970

 

Interest income

 

(2,781

)





 

(2,781

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

219,837

 

 

60,522

 

 

167,177

 

 

20,533

 

 

(28,395

)

 

-

 

Depreciation and amortization

 

95,356

 

 

41,414

 

 

31,830

 

 

17,102

 

 

5,010

 

 

-

 

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

315,193

 

$

101,936

 

$

199,007

 

$

37,635

 

$

(23,385

)

$

-

 







 
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

21.2

%

 

14.4

%

 

35.9

%

 

16.9

%









 






 

Six Months Ended


June 30, 2018


 


Consolidated

Beauty +
Home

Pharma

Food +
Beverage

Corporate &
Other

Net Interest

Net Sales

$

1,413,958

 

 

746,709

 

 

471,336

 

 

195,913

 

 

-

 

 

-

 







 
Reported net income

$

115,069

 






Reported income taxes

 

41,046

 






Reported income before income taxes

 

156,115

 

 

37,217

 

 

141,899

 

 

16,255

 

 

(28,006

)

 

(11,250

)

Adjustments:





Restructuring initiatives

 

24,150

 

 

19,647

 

 

1,588

 

 

1,669

 

 

1,246

 


Transaction costs related to acquisitions

 

2,444

 

 

574

 



 

1,870

 


Purchase accounting adjustments related to acquired companies' inventory

 

119

 

 

119

 





Adjusted earnings before income taxes

 

182,828

 

 

57,557

 

 

143,487

 

 

17,924

 

 

(24,890

)

 

(11,250

)

Interest expense

 

16,019

 





 

16,019

 

Interest income

 

(4,769

)





 

(4,769

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

194,078

 

 

57,557

 

 

143,487

 

 

17,924

 

 

(24,890

)

 

-

 

Depreciation and amortization

 

81,276

 

 

41,424

 

 

22,706

 

 

12,878

 

 

4,268

 

 

-

 

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

275,354

 

$

98,981

 

$

166,193

 

$

30,802

 

$

(20,622

)

$

-

 







 
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

19.5

%

 

13.3

%

 

35.3

%

 

15.7

%









 

AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
(In Thousands, Except Per Share Data)




 

Three Months Ended

Six Months Ended


June 30,

June 30,


 

2019

 

 

2018

 

 

2019

 

 

2018

 





 
Income before Income Taxes

$

102,101

 

$

74,898

 

$

192,100

 

$

156,115

 





 
Adjustments:



Restructuring initiatives

 

1,737

 

 

18,214

 

 

11,267

 

 

24,150

 

Transaction costs related to acquisitions

 

1,059

 

 

2,444

 

 

1,059

 

 

2,444

 

Purchase accounting adjustments related to acquired companies' inventory

 

222

 

 

119

 

 

222

 

 

119

 

Foreign currency effects (1)

 

(4,103

)


 

(9,596

)

Adjusted Income before Income Taxes

$

105,119

 

$

91,572

 

$

204,648

 

$

173,232

 





 




 
Provision for Income Taxes

$

28,180

 

$

19,117

 

$

55,180

 

$

41,046

 





 
Adjustments:



Restructuring initiatives

 

488

 

 

4,923

 

 

3,166

 

 

6,528

 

Transaction costs related to acquisitions

 

53

 

 

628

 

 

53

 

 

628

 

Purchase accounting adjustments related to acquired companies' inventory

 

42

 

 

41

 

 

42

 

 

41

 

Foreign currency effects (1)

 

(1,191

)


 

(2,595

)

Adjusted Provision for Income Taxes

$

28,763

 

$

23,518

 

$

58,441

 

$

45,648

 





 




 
Net Income Attributable to Noncontrolling Interests

$

(6

)

$

(6

)

$

(1

)

$

6

 





 
Net Income Attributable to AptarGroup, Inc.

$

73,915

 

$

55,775

 

$

136,919

 

$

115,075

 





 
Adjustments:



Restructuring initiatives

 

1,249

 

 

13,291

 

 

8,101

 

 

17,622

 

Transaction costs related to acquisitions

 

1,006

 

 

1,816

 

 

1,006

 

 

1,816

 

Purchase accounting adjustments related to acquired companies' inventory

 

180

 

 

78

 

 

180

 

 

78

 

Foreign currency effects (1)

 

(2,912

)


 

(7,001

)

Adjusted Net Income Attributable to AptarGroup, Inc.

$

76,350

 

$

68,048

 

$

146,206

 

$

127,590

 





 
Average Number of Diluted Shares Outstanding

 

66,232

 

 

64,850

 

 

65,842

 

 

64,640

 





 
Net Income Attributable to AptarGroup, Inc. Per Diluted Share

$

1.12

 

$

0.86

 

$

2.08

 

$

1.78

 





 
Adjustments:



Restructuring initiatives

 

0.02

 

 

0.20

 

 

0.12

 

 

0.27

 

Transaction costs related to acquisitions

 

0.01

 

 

0.03

 

 

0.02

 

 

0.03

 

Purchase accounting adjustments related to acquired companies' inventory

 

-

 

 

-

 

 

-

 

 

-

 

Foreign currency effects (1)

 

(0.04

)


 

(0.11

)

Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share

$

1.15

 

$

1.05

 

$

2.22

 

$

1.97

 





 
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using current period foreign currency exchange rates.

AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
(In Thousands, Except Per Share Data)


 

Three Months Ending

September 30,

Expected 2019

 

2018

 



 
Income before Income Taxes

$

50,942

 



 
Adjustments:

Restructuring initiatives

 

23,852

 

Transaction costs related to acquisitions

 

7,082

 

Purchase accounting adjustments related to acquired companies' inventory

 

3,287

 

Foreign currency effects (1)

 

(2,197

)

Adjusted Income before Income Taxes

$

82,966

 




 
Provision for Income Taxes

$

11,920

 



 
Adjustments:

Restructuring initiatives

 

6,802

 

Transaction costs related to acquisitions

 

847

 

Purchase accounting adjustments related to acquired companies' inventory

 

843

 

Foreign currency effects (1)

 

(640

)

Adjusted Provision for Income Taxes

$

19,772

 



 


 
Net Income Attributable to Noncontrolling Interests

$

(26

)



 
Net Income Attributable to AptarGroup, Inc.

$

38,996

 



 
Adjustments:

Restructuring initiatives

 

17,050

 

Transaction costs related to acquisitions

 

6,235

 

Purchase accounting adjustments related to acquired companies' inventory

 

2,444

 

Foreign currency effects (1)

 

(1,557

)

Adjusted Net Income Attributable to AptarGroup, Inc.

$

63,168

 



 
Average Number of Diluted Shares Outstanding

 

65,129

 



 
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)

$

0.60

 



 
Adjustments:

Restructuring initiatives

 

0.26

 

Transaction costs related to acquisitions

 

0.09

 

Purchase accounting adjustments related to acquired companies' inventory

 

0.04

 

Foreign currency effects (1)

 

(0.02

)

Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2) $0.91 - $0.97

$

0.97

 



 

(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings per share using foreign currency exchange rates as of June 30, 2019, with the exception of the euro for which a 1.12 rate was used.

(2) AptarGroup’s expected earnings per share range, excluding any restructuring costs, for the third quarter of 2019 is based on an effective tax rate range of 30% to 32%. This tax rate range compares to our third quarter of 2018 effective tax rate of 23% on reported earnings per share and 24% on adjusted earnings per share.

 

Contacts

Investor Relations Contact:
Matt DellaMaria
matt.dellamaria@aptar.com
815-477-0424

Media Contact:
Katie Reardon
katie.reardon@aptar.com
815-477-0424