CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Jul. 27, 2017--
AptarGroup, Inc. (NYSE:ATR) today announced its second quarter results.
Second Quarter 2017 Summary
-
Reported sales were in line with the prior year
-
Excluding the negative impact from changes in foreign currency
exchange rates, core sales increased 1% as robust core sales growth in
the Pharma and Food + Beverage segments offset a decline in Beauty +
Home
-
Reported net income (11% of net sales) increased to $65 million
(+10%) primarily due to a lower effective tax rate
-
EBITDA (20% of net sales) decreased to $124 million (-7%) primarily
due to decreases in business in certain markets and higher raw
material costs
-
Reported earnings per share were $1.01 compared to $0.91 reported
in the prior year (+11%) and $0.90 in the prior year when adjusting
for changes in currency exchange rates (+12%)
-
Current period earnings per share included certain tax benefits
equivalent to $0.09 per share related to stock-based compensation and
$0.05 per share primarily related to the Company’s planned cash
repatriation activities
Second Quarter Results
For the quarter ended June 30, 2017, reported sales were in line with
the prior year at $618 million. Core sales, which exclude the negative
impact from changes in currency exchange rates, increased approximately
1%.
|
Second Quarter Segment Sales Analysis
(Change Over Prior Year)
|
|
|
Beauty + Home
|
Pharma
|
Food + Beverage
|
Total AptarGroup
|
|
Core Sales Growth
|
(4%)
|
8%
|
7%
|
1%
|
|
Currency Effects (1) |
(1%)
|
(2%)
|
(1%)
|
(1%)
|
|
Total Reported Sales Growth
|
(5%)
|
6%
|
6%
|
0%
|
|
|
|
(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, “Our
Pharma and Food + Beverage segments performed very well in the quarter
with growth across each of their respective markets. Our Beauty + Home
segment had another challenging quarter with decreased product sales
across each end market and lower custom tooling sales. In Brazil we are
feeling the effects of the difficult local economic condition. We also
experienced operational challenges at a facility that produces
decorative components sold to the beauty market and this, along with
higher raw material costs, negatively impacted the segment’s
profitability. We are moving forward with initiatives to return this
segment to core growth while we work to improve operational
efficiencies.”
Aptar’s reported earnings per share increased 11% to $1.01 compared to
$0.91 reported a year ago. Prior year adjusted earnings per share, which
adjusts for comparable exchange rates, would have been $0.90. Current
period earnings per share included approximately $0.14 related to
certain tax benefits.
Year-to-Date Results
For the six months ended June 30, 2017, reported sales increased 1% to
$1.22 billion from $1.20 billion a year ago. Core sales, which exclude
the negative impact from changes in currency exchange rates and the
positive impact from acquisitions, increased approximately 2%.
|
Six Months Year-to-Date Segment Sales Analysis
(Change Over Prior Year)
|
|
|
Beauty + Home
|
Pharma
|
Food + Beverage
|
Total AptarGroup
|
|
Core Sales Growth
|
(2%)
|
9%
|
3%
|
2%
|
|
Acquisitions
|
1%
|
0%
|
0%
|
1%
|
|
Currency Effects (1) |
(1%)
|
(2%)
|
(2%)
|
(2%)
|
|
Total Reported Sales Growth
|
(2%)
|
7%
|
1%
|
1%
|
|
|
|
(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’s been a mixed first
half for our Beauty + Home segment with positive growth in the first
quarter being more than offset by a difficult second quarter. Our Pharma
segment has grown consistently and our Food + Beverage segment has
performed well despite the continued difficult comparisons to the prior
year for our beverage business in Asia.”
For the six months year-to-date, Aptar’s reported earnings per share
increased 15% to $1.81 compared to $1.58 reported a year ago. Prior year
adjusted earnings per share, which adjusts for costs related to the Mega
Airless acquisition and comparable exchange rates, would have been
$1.64. The six months year-to-date earnings per share included
approximately $0.18 related to certain tax benefits.
Outlook
Commenting on Aptar’s outlook, Tanda said, “Looking ahead to the third
quarter, we expect our Beauty + Home segment to continue to face
headwinds in the short-term. In addition to continued weakness in North
America and Brazil, we now anticipate some risk with our business in
China due to the recent excessive heat wave resulting in energy
restrictions. This not only impacts our facilities but our suppliers’ as
well. It’s too early to estimate the effects but we are watching the
situation closely. The business pipeline in our Pharma segment remains
solid, although it will likely be difficult to report year-on-year sales
growth due to some significant custom tooling sales that occurred in the
prior year third quarter. We expect Food + Beverage to continue to grow
over the prior year as we further leverage our capabilities and
technologies across different categories. Though we face certain
near-term challenges, we remain positive about our long-term growth
opportunities across each business segment. We are dedicated to
executing our growth strategy, investing for the future and helping our
customers to grow their businesses with our innovative dispensing
solutions.”
Aptar expects earnings per share for the third quarter to be in the
range of $0.77 to $0.82 compared to $0.82 per share reported in the
prior year. Our guidance range is based on an effective tax rate range
of 26.5% to 28.5%, which includes an estimated potential tax benefit
from our adoption of the new accounting standard for share-based
compensation. Adjusting for changes in foreign currency exchange rates,
comparable adjusted earnings per share for the prior year were
approximately $0.83.
Cash Dividend
As previously reported, the Board declared on July 13, 2017 a quarterly
cash dividend of $0.32 per share, payable August 16, 2017 to
stockholders of record as of July 26, 2017.
Open Conference Call
There will be a conference call on Friday, July 28, 2017 at 8:00 a.m.
Central Time to discuss AptarGroup’s second quarter results for 2017.
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.
AptarGroup, Inc. is a leading global supplier of a broad range of
innovative dispensing and sealing solutions for the beauty, personal
care, home care, prescription drug, consumer health care, injectables,
food, and 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.
Presentation of Non-GAAP Information
This press release refers to certain non-GAAP financial measures,
including prior year adjusted earnings per share and adjusted EBITDA,
which exclude the impact of transaction costs and purchase accounting
adjustments that affected inventory values related to the Mega Airless
acquisition. Core sales and adjusted earnings per share also exclude the
impact of foreign currency translation effects. 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.
This press release contains forward-looking statements, including
certain statements set forth under the “Outlook” section of this press
release. 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 possible impact
and consequences of the fire at the Company’s facility in Annecy,
France; the impact and extent of contamination found at the Company’s
facility in Brazil; economic conditions worldwide including potential
deflationary conditions in regions we rely on for growth; political
conditions worldwide; significant fluctuations in foreign currency
exchange rates or our effective tax rate; 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, including changes in tax rates;
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 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
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
617,746
|
|
|
$
|
619,999
|
|
|
$
|
1,219,062
|
|
|
$
|
1,202,337
|
|
|
Cost of Sales (exclusive of depreciation and amortization shown
below) (1)
|
|
|
399,954
|
|
|
|
389,863
|
|
|
|
784,886
|
|
|
|
764,066
|
|
|
Selling, Research & Development and Administrative (2)
|
|
|
95,659
|
|
|
|
96,131
|
|
|
|
197,175
|
|
|
|
199,146
|
|
|
Depreciation and Amortization
|
|
|
37,242
|
|
|
|
40,390
|
|
|
|
74,573
|
|
|
|
76,277
|
|
|
Operating Income
|
|
|
84,891
|
|
|
|
93,615
|
|
|
|
162,428
|
|
|
|
162,848
|
|
|
Other Income/(Expense):
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
(7,712
|
)
|
|
|
(9,203
|
)
|
|
|
(15,974
|
)
|
|
|
(17,794
|
)
|
|
Interest Income
|
|
|
643
|
|
|
|
460
|
|
|
|
973
|
|
|
|
1,044
|
|
|
Equity in Results of Affiliates
|
|
|
(22
|
)
|
|
|
(51
|
)
|
|
|
(70
|
)
|
|
|
(172
|
)
|
|
Miscellaneous, net
|
|
|
1,768
|
|
|
|
(463
|
)
|
|
|
1,691
|
|
|
|
(1,723
|
)
|
|
Income before Income Taxes
|
|
|
79,568
|
|
|
|
84,358
|
|
|
|
149,048
|
|
|
|
144,203
|
|
|
Provision for Income Taxes
|
|
|
14,379
|
|
|
|
25,307
|
|
|
|
32,054
|
|
|
|
41,286
|
|
|
Net Income
|
|
$
|
65,189
|
|
|
$
|
59,051
|
|
|
$
|
116,994
|
|
|
$
|
102,917
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Income)/Loss Attributable to Noncontrolling Interests
|
|
|
(15
|
)
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
(6
|
)
|
|
Net Income Attributable to AptarGroup, Inc.
|
|
$
|
65,174
|
|
|
$
|
59,048
|
|
|
$
|
116,994
|
|
|
$
|
102,911
|
|
|
Net Income Attributable to AptarGroup, Inc. per Common Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.04
|
|
|
$
|
0.94
|
|
|
$
|
1.87
|
|
|
$
|
1.64
|
|
|
Diluted
|
|
$
|
1.01
|
|
|
$
|
0.91
|
|
|
$
|
1.81
|
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Numbers of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
62,631
|
|
|
|
63,053
|
|
|
|
62,494
|
|
|
|
62,888
|
|
|
Diluted
|
|
|
64,828
|
|
|
|
64,785
|
|
|
|
64,519
|
|
|
|
65,063
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the Condensed Consolidated Financial Statements:
|
|
(1) For the six months ended June 30, 2016, Cost of Sales included
the effect of approximately $2.6 million of purchase accounting
adjustments to inventory related to the Mega Airless acquisition.
|
|
|
|
(2) For the six months ended June 30, 2016, Selling, Research &
Development and Administrative included approximately $5.6 million
of costs related to the Mega Airless acquisition.
|
|
|
|
|
|
AptarGroup, Inc.
|
|
Condensed Consolidated Financial Statements (Unaudited)
|
|
(continued)
|
|
(In Thousands)
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Equivalents
|
|
|
$
|
336,915
|
|
|
$
|
466,287
|
|
Receivables, net
|
|
|
|
499,697
|
|
|
|
433,127
|
|
Inventories
|
|
|
|
320,082
|
|
|
|
296,914
|
|
Other Current Assets
|
|
|
|
87,775
|
|
|
|
73,842
|
|
Total Current Assets
|
|
|
|
1,244,469
|
|
|
|
1,270,170
|
|
Net Property, Plant and Equipment
|
|
|
|
831,708
|
|
|
|
784,321
|
|
Goodwill
|
|
|
|
429,579
|
|
|
|
407,522
|
|
Other Assets
|
|
|
|
158,108
|
|
|
|
144,772
|
|
Total Assets
|
|
|
$
|
2,663,864
|
|
|
$
|
2,606,785
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Obligations
|
|
|
$
|
7,889
|
|
|
$
|
173,816
|
|
Accounts Payable and Accrued Liabilities
|
|
|
|
471,171
|
|
|
|
369,139
|
|
Total Current Liabilities
|
|
|
|
479,060
|
|
|
|
542,955
|
|
Long-Term Obligations
|
|
|
|
770,648
|
|
|
|
772,737
|
|
Deferred Liabilities
|
|
|
|
104,980
|
|
|
|
116,851
|
|
Total Liabilities
|
|
|
|
1,354,688
|
|
|
|
1,432,543
|
|
|
|
|
|
|
|
|
|
AptarGroup, Inc. Stockholders' Equity
|
|
|
|
1,308,877
|
|
|
|
1,173,950
|
|
Noncontrolling Interests in Subsidiaries
|
|
|
|
299
|
|
|
|
292
|
|
Total Equity
|
|
|
|
1,309,176
|
|
|
|
1,174,242
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
$
|
2,663,864
|
|
|
$
|
2,606,785
|
|
|
|
|
|
AptarGroup, Inc.
|
|
Reconciliation of EBIT and EBITDA to Net Income (Unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
Beauty + Home
|
|
Pharma
|
|
Food + Beverage
|
|
Corporate & Other
|
|
Net Interest
|
|
Net Sales
|
|
$
|
617,746
|
|
|
|
|
322,117
|
|
|
|
201,702
|
|
|
|
93,927
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
65,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
|
14,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes
|
|
|
79,568
|
|
|
|
|
25,203
|
|
|
|
59,792
|
|
|
|
12,577
|
|
|
|
(10,935
|
)
|
|
|
(7,069
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
79,568
|
|
|
|
|
25,203
|
|
|
|
59,792
|
|
|
|
12,577
|
|
|
|
(10,935
|
)
|
|
|
(7,069
|
)
|
|
Interest expense
|
|
|
7,712
|
|
|
|
|
|
|
|
|
|
|
|
|
7,712
|
|
|
Interest income
|
|
|
(643
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(643
|
)
|
|
Earnings before net interest and taxes (EBIT)
|
|
|
86,637
|
|
|
|
|
25,203
|
|
|
|
59,792
|
|
|
|
12,577
|
|
|
|
(10,935
|
)
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
37,242
|
|
|
|
|
19,347
|
|
|
|
9,857
|
|
|
|
6,117
|
|
|
|
1,921
|
|
|
|
-
|
|
|
Earnings before net interest, taxes, depreciation and amortization
(EBITDA)
|
|
$
|
123,879
|
|
|
|
$
|
44,550
|
|
|
$
|
69,649
|
|
|
$
|
18,694
|
|
|
$
|
(9,014
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income margins (Income before income taxes / Reported Net
Sales)
|
|
|
|
|
|
7.8
|
%
|
|
|
29.6
|
%
|
|
|
13.4
|
%
|
|
|
|
|
|
EBITDA margins (EBITDA / Reported Net Sales)
|
|
|
20.1
|
%
|
|
|
|
13.8
|
%
|
|
|
34.5
|
%
|
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
Beauty + Home
|
|
Pharma
|
|
Food + Beverage
|
|
Corporate & Other
|
|
Net Interest
|
|
Net Sales
|
|
$
|
619,999
|
|
|
|
|
340,321
|
|
|
|
191,034
|
|
|
|
88,644
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
59,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
|
25,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes
|
|
|
84,358
|
|
|
|
|
30,547
|
|
|
|
58,597
|
|
|
|
13,593
|
|
|
|
(9,636
|
)
|
|
|
(8,743
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
84,358
|
|
|
|
|
30,547
|
|
|
|
58,597
|
|
|
|
13,593
|
|
|
|
(9,636
|
)
|
|
|
(8,743
|
)
|
|
Interest expense
|
|
|
9,203
|
|
|
|
|
|
|
|
|
|
|
|
|
9,203
|
|
|
Interest income
|
|
|
(460
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(460
|
)
|
|
Earnings before net interest and taxes (EBIT)
|
|
|
93,101
|
|
|
|
|
30,547
|
|
|
|
58,597
|
|
|
|
13,593
|
|
|
|
(9,636
|
)
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
40,390
|
|
|
|
|
22,239
|
|
|
|
10,360
|
|
|
|
6,072
|
|
|
|
1,719
|
|
|
|
-
|
|
|
Earnings before net interest, taxes, depreciation and amortization
(EBITDA)
|
|
$
|
133,491
|
|
|
|
$
|
52,786
|
|
|
$
|
68,957
|
|
|
$
|
19,665
|
|
|
$
|
(7,917
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income margins (Income before income taxes / Reported Net
Sales)
|
|
|
|
|
|
9.0
|
%
|
|
|
30.7
|
%
|
|
|
15.3
|
%
|
|
|
|
|
|
EBITDA margins (EBITDA / Reported Net Sales)
|
|
|
21.5
|
%
|
|
|
|
15.5
|
%
|
|
|
36.1
|
%
|
|
|
22.2
|
%
|
|
|
|
|
|
|
|
|
|
AptarGroup, Inc.
|
|
Reconciliation of EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA
to Net Income (Unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
Beauty + Home
|
|
Pharma
|
|
Food + Beverage
|
|
Corporate & Other
|
|
Net Interest
|
|
Net Sales
|
|
$
|
1,219,062
|
|
|
|
|
644,565
|
|
|
|
398,614
|
|
|
|
175,883
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
116,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
|
32,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes
|
|
|
149,048
|
|
|
|
|
47,411
|
|
|
|
118,862
|
|
|
|
19,717
|
|
|
|
(21,941
|
)
|
|
|
(15,001
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
149,048
|
|
|
|
|
47,411
|
|
|
|
118,862
|
|
|
|
19,717
|
|
|
|
(21,941
|
)
|
|
|
(15,001
|
)
|
|
Interest expense
|
|
|
15,974
|
|
|
|
|
|
|
|
|
|
|
|
|
15,974
|
|
|
Interest income
|
|
|
(973
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(973
|
)
|
|
Earnings before net interest and taxes (EBIT)
|
|
|
164,049
|
|
|
|
|
47,411
|
|
|
|
118,862
|
|
|
|
19,717
|
|
|
|
(21,941
|
)
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
74,573
|
|
|
|
|
39,227
|
|
|
|
19,628
|
|
|
|
11,923
|
|
|
|
3,795
|
|
|
|
-
|
|
|
Earnings before net interest, taxes, depreciation and amortization
(EBITDA)
|
|
$
|
238,622
|
|
|
|
$
|
86,638
|
|
|
$
|
138,490
|
|
|
$
|
31,640
|
|
|
$
|
(18,146
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income margins (Income before income taxes / Reported Net
Sales)
|
|
|
|
|
|
7.4
|
%
|
|
|
29.8
|
%
|
|
|
11.2
|
%
|
|
|
|
|
|
EBITDA margins (EBITDA / Reported Net Sales)
|
|
|
19.6
|
%
|
|
|
|
13.4
|
%
|
|
|
34.7
|
%
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
Beauty + Home
|
|
Pharma
|
|
Food + Beverage
|
|
Corporate & Other
|
|
Net Interest
|
|
Net Sales
|
|
$
|
1,202,337
|
|
|
|
|
654,657
|
|
|
|
374,169
|
|
|
|
173,511
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
102,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
|
41,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes
|
|
|
144,203
|
|
|
|
|
54,075
|
|
|
|
111,833
|
|
|
|
22,876
|
|
|
|
(27,831
|
)
|
|
|
(16,750
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to the Mega Airless acquisition
|
|
|
5,640
|
|
|
|
|
|
|
|
|
|
|
5,640
|
|
|
|
|
Purchase accounting adjustments related to Mega Airless inventory
|
|
|
2,577
|
|
|
|
|
2,151
|
|
|
|
426
|
|
|
|
|
|
|
|
|
Adjusted earnings before income taxes
|
|
|
152,420
|
|
|
|
|
56,226
|
|
|
|
112,259
|
|
|
|
22,876
|
|
|
|
(22,191
|
)
|
|
|
(16,750
|
)
|
|
Interest expense
|
|
|
17,794
|
|
|
|
|
|
|
|
|
|
|
|
|
17,794
|
|
|
Interest income
|
|
|
(1,044
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,044
|
)
|
|
Adjusted earnings before net interest and taxes (Adjusted EBIT)
|
|
|
169,170
|
|
|
|
|
56,226
|
|
|
|
112,259
|
|
|
|
22,876
|
|
|
|
(22,191
|
)
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
76,277
|
|
|
|
|
41,497
|
|
|
|
19,617
|
|
|
|
11,896
|
|
|
|
3,267
|
|
|
|
-
|
|
|
Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA)
|
|
$
|
245,447
|
|
|
|
$
|
97,723
|
|
|
$
|
131,876
|
|
|
$
|
34,772
|
|
|
$
|
(18,924
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income margins (Income before income taxes / Reported Net
Sales)
|
|
|
|
|
|
8.3
|
%
|
|
|
29.9
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
|
|
|
20.4
|
%
|
|
|
|
14.9
|
%
|
|
|
35.2
|
%
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
AptarGroup, Inc.
|
|
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
|
|
($ in thousands, except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes
|
|
|
$
|
79,568
|
|
|
$
|
84,358
|
|
|
$
|
149,048
|
|
$
|
144,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to the Mega Airless acquisition
|
|
|
|
|
|
|
|
|
|
5,640
|
|
|
Purchase accounting adjustments related to Mega Airless inventory
|
|
|
|
|
|
|
|
|
|
2,577
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
(1,189
|
)
|
|
|
|
|
(2,729
|
)
|
|
Adjusted Income before Income Taxes
|
|
|
$
|
79,568
|
|
|
$
|
83,169
|
|
|
$
|
149,048
|
|
$
|
149,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes
|
|
|
$
|
14,379
|
|
|
$
|
25,307
|
|
|
$
|
32,054
|
|
$
|
41,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to the Mega Airless acquisition
|
|
|
|
|
|
|
|
|
|
1,483
|
|
|
Purchase accounting adjustments related to Mega Airless inventory
|
|
|
|
|
|
|
|
|
|
859
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
(344
|
)
|
|
|
|
|
(675
|
)
|
|
Adjusted Provision for Income Taxes
|
|
|
$
|
14,379
|
|
|
$
|
24,963
|
|
|
$
|
32,054
|
|
$
|
42,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Income)/Loss Attributable to Noncontrolling Interests
|
|
|
$
|
(15
|
)
|
|
$
|
(3
|
)
|
|
$
|
-
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to AptarGroup, Inc.
|
|
|
$
|
65,174
|
|
|
$
|
59,048
|
|
|
$
|
116,994
|
|
$
|
102,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to the Mega Airless acquisition
|
|
|
|
|
|
|
|
|
|
4,157
|
|
|
Purchase accounting adjustments related to Mega Airless inventory
|
|
|
|
|
|
|
|
|
|
1,718
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
(845
|
)
|
|
|
|
|
(2,054
|
)
|
|
Adjusted Net Income Attributable to AptarGroup, Inc.
|
|
|
$
|
65,174
|
|
|
$
|
58,203
|
|
|
$
|
116,994
|
|
$
|
106,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of Diluted Shares Outstanding
|
|
|
|
64,828
|
|
|
|
64,785
|
|
|
|
64,519
|
|
|
65,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to AptarGroup, Inc. Per Diluted Share
|
|
|
$
|
1.01
|
|
|
$
|
0.91
|
|
|
$
|
1.81
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to the Mega Airless acquisition
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
Purchase accounting adjustments related to Mega Airless inventory
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
(0.03
|
)
|
|
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted
Share
|
|
|
$
|
1.01
|
|
|
$
|
0.90
|
|
|
$
|
1.81
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 information)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
|
|
|
|
|
Expected 2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes
|
|
|
|
|
|
$
|
75,001
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
|
1,020
|
|
|
Adjusted Income before Income Taxes
|
|
|
|
|
|
$
|
76,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes
|
|
|
|
|
|
$
|
21,901
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
|
307
|
|
|
Adjusted Provision for Income Taxes
|
|
|
|
|
|
$
|
22,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Income)/Loss Attributable to Noncontrolling Interests
|
|
|
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to AptarGroup, Inc.
|
|
|
|
|
|
$
|
53,098
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
|
713
|
|
|
Adjusted Net Income Attributable to AptarGroup, Inc.
|
|
|
|
|
|
$
|
53,811
|
|
|
|
|
|
|
|
|
|
|
Average Number of Diluted Shares Outstanding
|
|
|
|
|
|
|
64,690
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)
|
|
|
$0.77 - $0.82
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Foreign currency effects (1)
|
|
|
|
|
|
|
0.01
|
|
|
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted
Share (2)
|
|
|
$0.77 - $0.82
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
(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, 2017.
|
|
|
|
(2) AptarGroup’s expected earnings per share range for the third
quarter of 2017 is based on an effective tax rate range of 26.5% to
28.5% which includes an estimate of a potential impact from our
adoption of the new accounting standard for share-based compensation.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006588/en/
Source: AptarGroup, Inc.
AptarGroup, Inc.
Investor Relations Contact:
Matthew
DellaMaria
matt.dellamaria@aptar.com
815-477-0424
or
Media
Contact:
Katie Reardon
katie.reardon@aptar.com
815-477-0424