News Details

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Oct. 26, 2017-- AptarGroup, Inc. (NYSE: ATR), a global leader in innovative packaging technologies that build brand value, today announced its third quarter results.

Third Quarter 2017 Summary

• Reported sales increased 6% over the prior year driven by 3% core growth and a 3% favorable impact from exchange rates
• Each business segment achieved core sales growth
• Lower custom tooling sales negatively impacted the sales growth by 2%
• Reported net income (9% of net sales) increased to $54 million (+1%)
• EBITDA (19% of net sales) decreased to $118 million (-4%)
• Profit margins were negatively impacted by operational challenges at our decorative facility in Europe, higher professional fees, raw material cost increases and certain currency transaction losses
• Reported earnings per share were $0.83 compared to $0.82 in the prior year (+1%)
• Compared to the prior year, earnings per share for the current period included certain tax benefits amounting to approximately $0.05 related to foreign tax settlements and $0.01 related to stock-based compensation

Third Quarter Results

For the quarter ended September 30, 2017, reported sales increased 6% over the prior year to $624 million. Core sales, which exclude the positive impact from changes in currency exchange rates, increased approximately 3%.

Commenting on the quarter, Stephan Tanda, President and CEO, said, “We are pleased to report sales growth in each of our business segments. Our Pharma segment, the leading provider of drug delivery systems to the pharmaceutical industry, grew sales despite a difficult comparison to the prior year, which included a significant amount of custom tooling sales related to a specific project. Demand for our products was broad-based across each end market, and was especially strong in the consumer health care and injectables markets. In our Beauty + Home segment, sales to the personal care and home care markets improved over the prior year, with new business wins contributing to the growth. We continue to offer the industry’s broadest solutions portfolio and are encouraged by the sales improvements in Beauty + Home as we move forward with our initiatives to return this business to long-term sustainable growth. Our Food + Beverage segment had an excellent quarter as demand for our innovative dispensing closures increased in both the food and beverage markets. Offsetting the positive effects of our segments’ sales growth were several factors that negatively impacted our earnings. We continue to address the operational challenges at our decorative facility in Europe, which had a negative impact on our quarterly results. We also experienced higher professional fees related to specific projects, increased raw material costs and negative currency transaction losses related to our operations in Argentina.”

Aptar’s reported earnings per share increased 1% to $0.83 compared to $0.82 reported a year ago. Current period earnings per share included a positive impact of approximately $0.06 related to certain tax benefits compared to the prior year. Adjusting for changes in currency translation rates, comparable earnings per share for the prior year were approximately $0.85.

Year-to-Date Results

For the nine months ended September 30, 2017, reported sales increased 3% to $1.84 billion from $1.79 billion a year ago. Core sales, which exclude the positive impact from acquisitions, increased approximately 2%. Changes in currency exchange rates did not have a significant impact on the sales growth.

Tanda commented on the year-to-date results, “We reported top line growth through the first nine months of the year and our Pharma and Food + Beverage segments have performed well, with sales growth in each end market. When we exclude the positive contribution from last year’s acquisition, our Beauty + Home segment achieved sales in line with prior year sales. The diversity of our business continues to be a key strength of Aptar as we serve eight end markets across the globe.”

For the nine months year-to-date, Aptar’s reported earnings per share increased 10% to $2.64 compared to $2.40 reported a year ago. The nine months year-to-date earnings per share included a positive impact of approximately $0.20 related to certain tax benefits compared to the prior year. Prior year adjusted earnings per share, which adjusts for costs related to the Mega Airless acquisition, would have been $2.49.

Outlook

Commenting on Aptar’s outlook, Tanda said, “Looking ahead to the fourth quarter, we expect revenue growth in each segment. We also anticipate certain headwinds will continue, including higher raw material costs and lower results at our decorative facility. We see these as transitory and thus not affecting our long-term view. We remain committed to returning Beauty + Home to profitable growth in the near-term and successfully implementing our new initiatives. Our strong balance sheet allows us to invest in new capabilities and technologies while we remain well-positioned to take advantage of strategic opportunities. We look forward to continuing to leverage our deep understanding of consumer trends and behaviors in order to create value-enhancing solutions for our customers and end consumers around the world.”

Aptar expects earnings per share for the fourth quarter to be in the range of $0.68 to $0.73, excluding any costs related to our current initiatives, compared to $0.77 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 estimate of a potential tax benefit from our adoption of the new accounting standard for share-based compensation. Prior year earnings per share included a positive impact of approximately $0.08 related to certain tax benefits. Adjusting for changes in currency translation rates, comparable earnings per share for the prior year were approximately $0.82.

Cash Dividend

As previously reported, the Board declared on October 19, 2017 a quarterly cash dividend of $0.32 per share, payable November 22, 2017 to stockholders of record as of November 1, 2017.

Open Conference Call

There will be a conference call on Friday, October 27, 2017 at 8:00 a.m. Central Time to discuss Aptar’s third 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.

Aptar 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.

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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