Exhibit 99.1
AptarGroup Posts Record Fourth Quarter and Annual Results
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Feb. 7, 2008-- AptarGroup, Inc. (NYSE:ATR) today reported record fourth quarter and annual results.
Highlights
- Fourth quarter sales rose 15% pushing annual sales to an all-time high $1.9 billion
- Fourth quarter earnings per share before discontinued operations increased 24% to $.47
- Income from discontinued operations accounted for an additional $.03 per share
- Sales and profits increased across each business segment
- Repurchased 473,000 shares in the quarter and over 2 million shares for the year
FOURTH QUARTER RESULTS
For the quarter ended December 31, 2007, sales increased 15% to a record $483.8 million from $422.4 million in the fourth quarter of 2006. Continued increased demand for AptarGroup’s innovative dispensing systems drove sales growth by 6% and changes in exchange rates contributed approximately 9%.
Commenting on the quarter, Peter Pfeiffer, President and Chief Executive Officer, said, “I am happy to report that our record fourth quarter added to an already exceptional year-to-date performance and we completed the strongest year in the history of our company. Our three business segments, Beauty & Home, Closures, and Pharma, each contributed to our growth despite some softness in the U.S. personal care market. The overall positive fourth quarter performance is noteworthy when we consider that last year’s results were also quite strong.”
Fourth Quarter Segment Sales Analysis | |||||||
(Growth Over Prior Year) | |||||||
Beauty & | Closures | Pharma | Total | ||||
Product and Custom Tooling Sales | 6% | 4% | 8% | 6% | |||
Currency Effects | 9% | 7% | 11% | 9% | |||
Total Growth | 15% | 11% | 19% | 15% |
Pfeiffer added, “While the competitive environment remained challenging, and we continued to face rising material and other costs in the fourth quarter, increased product sales and cost containment efforts allowed operating income to reach a record level of $49.2 million. Beauty & Home segment income increased 22% to $21.4 million, Closures segment income increased 8% to $10.2 million, and Pharma segment income increased 25% to $27.7 million. Also in the quarter, we sold our Australian operation to an Australian-based company. This operation was not significant to our consolidated results. We will continue to serve our customers in this region by selling our products through this company while allowing the new management to grow the business with local support and resources. The gain on this sale, net of tax, was approximately $2.2 million or $.03 per share.” Diluted earnings per share from continuing operations increased 24% to $.47 per share compared to $.38 per share in the prior year. Additionally, AptarGroup spent $19.6 million to repurchase approximately 473,000 shares of its common stock in the quarter.
ANNUAL RESULTS
Commenting on AptarGroup’s full year performance, Pfeiffer said, “Each of our business segments enjoyed solid sales growth during the year enabling us to achieve our 42nd consecutive year of sales growth. We reported record sales of $1.9 billion, up 18% from $1.6 billion in 2006. Increased product sales accounted for 10% of our sales growth, acquisitions added 1% and changes in exchange rates added 7%. Also, increased profits across each of our business segments drove consolidated operating income to a record $210.7 million up from $161.6 million a year ago. Production efficiencies and cost containment efforts more than offset higher material costs and a challenging competitive price environment.”
Diluted earnings per share from continuing operations rose 36% to a record level of $1.95 per share, up from $1.43 per share a year ago. AptarGroup spent $76.4 million to repurchase approximately 2 million shares of common stock in 2007, leaving approximately 2 million shares authorized for repurchase at the end of the year. Also during the year, AptarGroup paid $34.4 million in dividends to stockholders, or $.50 per share.
OUTLOOK
Pfeiffer commented, “We are cautiously optimistic about the coming quarter. While there is some uncertainty regarding the economic outlook in the U.S., we are well positioned to withstand slowness in one particular region because of our broad geographic presence and the diverse end-markets that we serve. We expect continuing demand for our convenient dispensing systems will result in sales improvements across each of our business segments in the first quarter of 2008. We are still in a competitive environment and face rising costs, but we are committed to passing these cost increases along in our selling prices where possible. The ongoing dedication by our talented employees and our long-term strategy to be the innovation leader in our field have served us well in the past and should do so in the future. We estimate that diluted earnings per share for the first quarter of 2008 will be in the range of $.46 to $.49 per share compared to $.41 per share in the prior year.”
OPEN CONFERENCE CALL
There will be a conference call on Friday February 8, 2008 at 8:00 a.m. CST to discuss the Company’s fourth quarter and annual results for 2007. 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.aptargroup.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 the AptarGroup web site at www.aptargroup.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, those related to overall business conditions in the various markets in which AptarGroup operates, the competitive marketplace, fiscal and monetary policy, changes in foreign exchange rates, direct or indirect consequences of acts of war or terrorism, labor relations and other risks and uncertainties discussed from time to time in AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements.
APTARGROUP, INC. | |||||||||||
Condensed Consolidated Financial Statements (Unaudited) | |||||||||||
(In Thousands, Except Per Share Data) | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||
Net Sales | $ 483,758 | $ 422,387 | $ 1,892,167 | $ 1,601,385 | |||||||
Cost of Sales (exclusive of depreciation | |||||||||||
shown below) | 334,480 | 289,448 | 1,283,773 | 1,086,269 | |||||||
Selling, Research & Development and | |||||||||||
Administrative | 68,893 | 61,044 | 274,196 | 238,907 | |||||||
Depreciation and Other Amortization | 31,220 | 31,103 | 123,466 | 114,606 | |||||||
Operating Income | 49,165 | 40,792 | 210,732 | 161,603 | |||||||
Other Income/(Expense): | |||||||||||
Interest Expense | (5,157 | ) | (4,799 | ) | (19,492 | ) | (16,985 | ) | |||
Interest Income | 3,318 | 1,461 | 8,918 | 4,214 | |||||||
Equity in Results of Affiliates | 57 | 86 | 483 | 506 | |||||||
Minority Interests | 37 | 14 | 33 | (80 | ) | ||||||
Miscellaneous, net | 834 | 202 | (679 | ) | (952 | ) | |||||
Income from Continuing Operations | |||||||||||
before Income Taxes | 48,254 | 37,756 | 199,995 | 148,306 | |||||||
Provision for Income Taxes | 14,690 | 10,581 | 60,488 | 45,410 | |||||||
Income from Continuing Operations | 33,564 | 27,175 | 139,507 | 102,896 | |||||||
Income from Discontinued Operations, Net of Tax | 2,232 | 0 | 2,232 | 0 | |||||||
Net Income | $ 35,796 | $ 27,175 | $ 141,739 | $ 102,896 | |||||||
Net Income per Share - Basic (a) | |||||||||||
Continuing Operations | $ 0.49 | $ 0.39 | $ 2.03 | $ 1.48 | |||||||
Discontinued Operations | 0.03 | 0 | 0.03 | 0 | |||||||
$ 0.52 | $ 0.39 | $ 2.06 | $ 1.48 | ||||||||
Net Income per Share - Diluted (a) | |||||||||||
Continuing Operations | $ 0.47 | $ 0.38 | $ 1.95 | $ 1.43 | |||||||
Discontinued Operations | 0.03 | 0 | 0.03 | 0 | |||||||
$ 0.50 | $ 0.38 | $ 1.98 | $ 1.43 | ||||||||
Average Number of Shares – Basic (a) | 68,376 | 69,060 | 68,769 | 69,654 | |||||||
Average Number of Shares - Diluted (a) | 70,983 | 70,854 | 71,523 | 71,744 | |||||||
Notes to Condensed Consolidated Financial Statements: | |||||||||||
(a) - Previously reported Net Income per Share and Average Number of Shares have been restated to reflect the two-for-one stock split on May 9, 2007. |
APTARGROUP, INC. | |||
Condensed Consolidated Financial Statements (Unaudited) | |||
(continued) | |||
(In Thousands) | |||
CONSOLIDATED BALANCE SHEETS | |||
December 31, 2007 | December 31, 2006 | ||
ASSETS | |||
Cash and Equivalents | $ 313,739 | $ 170,576 | |
Receivables, net | 360,736 | 320,969 | |
Inventories | 272,556 | 226,455 | |
Other Current Assets | 56,414 | 44,820 | |
Total Current Assets | 1,003,445 | 762,820 | |
Net Property, Plant and Equipment | 656,508 | 591,077 | |
Goodwill, net | 222,668 | 207,882 | |
Other Assets | 29,329 | 30,233 | |
Total Assets | $ 1,911,950 | $ 1,592,012 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Short-Term Obligations | $ 216,158 | $ 127,424 | |
Accounts Payable and Accrued Liabilities | 349,031 | 272,761 | |
Total Current Liabilities | 565,189 | 400,185 | |
Long-Term Obligations | 146,711 | 168,877 | |
Deferred Liabilities | 81,032 | 76,550 | |
Total Liabilities | 792,932 | 645,612 | |
Stockholders' Equity | 1,119,018 | 946,400 | |
Total Liabilities and Stockholders' Equity | $ 1,911,950 | $ 1,592,012 |
APTARGROUP, INC. | |||||||||||
Condensed Consolidated Financial Statements (Unaudited) | |||||||||||
(continued) | |||||||||||
(In Thousands) | |||||||||||
SEGMENT INFORMATION | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||
NET SALES | |||||||||||
Beauty & Home | $ 254,461 | $ 221,802 | $ 1,005,218 | $ 837,093 | |||||||
Closures | 124,968 | 112,465 | 493,000 | 441,203 | |||||||
Pharma | 104,251 | 87,896 | 393,868 | 322,603 | |||||||
Other | 78 | 224 | 81 | 486 | |||||||
Total Net Sales | $ 483,758 | $ 422,387 | $ 1,892,167 | $ 1,601,385 | |||||||
SEGMENT INCOME (1) | |||||||||||
Beauty & Home | $ 21,417 | $ 17,524 | $ 99,553 | $ 72,396 | |||||||
Closures | 10,198 | 9,483 | 50,036 | 44,031 | |||||||
Pharma | 27,716 | 22,199 | 106,161 | 80,841 | |||||||
Corporate Expenses and Other | (9,238 | ) | (8,112 | ) | (45,181 | ) | (36,191 | ) | |||
Total Income from Continuing Operations before Interest and Taxes | $ 50,093 | $ 41,094 | $ 210,569 | $ 161,077 | |||||||
Less: Interest Expense, Net | 1,839 | 3,338 | 10,574 | 12,771 | |||||||
Income from Continuing Operations before Income Taxes | $ 48,254 | $ 37,756 | $ 199,995 | $ 148,306 | |||||||
SEGMENT INCOME % | |||||||||||
Beauty & Home | 8.4 | % | 7.9 | % | 9.9 | % | 8.6 | % | |||
Closures | 8.2 | % | 8.4 | % | 10.1 | % | 10.0 | % | |||
Pharma | 26.6 | % | 25.3 | % | 27.0 | % | 25.1 | % | |||
Income from Continuing Operations before Interest and Taxes | 10.4 | % | 9.7 | % | 11.1 | % | 10.1 | % | |||
Notes to Condensed Consolidated Financial Statements: | |||||||||||
(1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items. |
CONTACT:
AptarGroup, Inc.
Stephen J. Hagge
815-477-0424