Exhibit 99.1
Aptargroup Reports Record First Quarter Earnings Per Share
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 15, 2010--Aptargroup, Inc. (NYSE:ATR) today reported record first quarter earnings per share. Also, the Board of Directors today declared a quarterly cash dividend of $.15 per share.
First Quarter 2010 Summary
- Reported diluted earnings per share jumped 47% to a first quarter record of $.56
- Beauty & Home and Closures segments experienced strong volume growth
- Demand from the fragrance and personal care markets helped drive results
- Pharma segment maintained stable performance and operating margin
- Sales rose 11% (excluding currency effects)
- License agreement which expands product offerings announced
FIRST QUARTER RESULTS
For the quarter ended March 31, 2010, reported sales increased 17% to $505.5 million from $431.8 million in the first quarter of 2009. When currency effects are excluded, sales increased 11% over the prior year.
| First Quarter Segment Sales Analysis | ||||||||
| (Growth Over Prior Year) | ||||||||
Beauty & | Closures | Pharma | Total | |||||
| Product Sales (including tooling) | 17% | 9% | -1% | 11% | ||||
| Currency Effects | 7% | 6% | 5% | 6% | ||||
| Total Growth | 24% | 15% | 4% | 17% | ||||
Commenting on the quarter, Peter Pfeiffer, President and CEO, said, “We are very pleased with our strong first quarter performance. Both our Beauty & Home and Closures segments turned in exceptional operating results driven by rebounding demand in the personal care and fragrance/cosmetic markets. Our strategy to manage our cost structure, without sacrificing critical capacity or research and development, has kept us in position to serve our customers well as their businesses return to more normalized levels with the improving economic outlook. Beauty & Home sales increased 17% excluding changes in currency exchange rates and segment income jumped 150% to $27 million. Closures sales increased 9% excluding changes in currency exchange rates and segment income rose 47% to $17.1 million. Our Pharma segment turned in another stable performance as sales excluding changes in currency exchange rates decreased slightly and segment income increased 2% to $29.7 million.
“On a consolidated basis, operating income increased 52% to $61.6 million. This improved performance was driven by strong sales in our Beauty & Home and Closures segments combined with the stable operating margin of our Pharma segment. Reported diluted earnings per share increased 47% to a record $.56 per share, compared to $.38 per share in the prior year.”
LICENSE AGREEMENT
In the quarter, the Company entered into a license agreement that will support future growth primarily in the food and beverage markets. The cost of prepaid royalties and certain supporting equipment was approximately $3 million. Commenting on the transaction, Pfeiffer stated, “This is a strategic step that broadens our product range with cost-effective closure systems that have certain tamper evident features such as foil seals and pull rings. These systems, which are already on the market, have many potential applications, especially in the food and beverage markets.”
OUTLOOK
Pfeiffer commented, “Our visibility has improved somewhat. We anticipate that the recovering economic climate in conjunction with the absence of the inventory destocking we experienced in the first half of 2009 will lead to our growth in the second quarter over the prior year. We presently expect demand to remain strong from those markets that were most seriously affected by the economic downturn including the fragrance/cosmetic and personal care markets.
“We currently estimate that diluted earnings per share for the second quarter of 2010 will be in the range of $.60 to $.65 per share compared to $.41 per share in the prior year which included approximately $.03 per share related to charges from our consolidation/severance program that began in the second quarter of last year.”
OPEN CONFERENCE CALL
There will be a conference call on Friday, April 16, 2010 at 8:00 a.m. CDT to discuss the Company’s first quarter results for 2010. 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.
CASH DIVIDEND AND SHARE REPURCHASE PROGRAM
The Board of Directors declared a quarterly dividend of $.15 per share, payable May 19, 2010 to shareholders of record as of April 28, 2010. Also during the quarter, the Company repurchased approximately 200,000 shares of common stock for approximately $8 million leaving approximately 3.5 million shares authorized for repurchase at the end of the first quarter.
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.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; the Company’s ability to successfully implement its strategic realignment; 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, | ||||||
2010 | 2009 | |||||
| Net Sales | $ 505,469 | $ 431,816 | ||||
| Cost of Sales (exclusive of depreciation | ||||||
| shown below) | 331,156 | 289,721 | ||||
| Selling, Research & Development and | ||||||
| Administrative (1) | 78,696 | 71,438 | ||||
| Depreciation and Other Amortization | 33,991 | 30,101 | ||||
| Facilities Consolidation and Severance Expenses | - | - | ||||
| Operating Income | 61,626 | 40,556 | ||||
| Other Income/(Expense): | ||||||
| Interest Expense | (3,472 | ) | (3,447 | ) | ||
| Interest Income | 766 | 1,275 | ||||
| Equity in Results of Affiliates | - | - | ||||
| Miscellaneous, net | (1,002 | ) | (119 | ) | ||
| Income before Income Taxes | 57,918 | 38,265 | ||||
| Provision for Income Taxes (1) | 18,823 | 11,671 | ||||
| Net Income | 39,095 | 26,594 | ||||
| Net (Income)/Loss Attributable to Noncontrolling Interests | (73 | ) | 71 | |||
| Net Income Attributable to Aptargroup, Inc. | $ 39,022 | $ 26,665 | ||||
| Net Income Attributable to Aptargroup, Inc. Per Common | ||||||
| Share: | ||||||
| Basic | $ 0.58 | $ 0.39 | ||||
| Diluted | $ 0.56 | $ 0.38 | ||||
| Average Number of Shares Outstanding: | ||||||
| Basic | 67,576 | 67,677 | ||||
| Diluted | 69,846 | 69,519 | ||||
Notes to Consolidated Statements of Income:
(1) In order to be comparable to the current period presentation, the Company revised its 2009 presentation relating to a French research and development tax credit by reclassifying amounts from Provision for Income Taxes to Selling, Research & Development and Administrative. For further details, refer to the Company's Form 8-K that was filed with the Securities and Exchange Commission on July 17, 2009.
| APTARGROUP, INC. | ||||
| Condensed Consolidated Financial Statements (Unaudited) | ||||
| (continued) | ||||
| (In Thousands) | ||||
| CONSOLIDATED BALANCE SHEETS | ||||
| March 31, 2010 | December 31, 2009 | |||
| ASSETS | ||||
| Cash and Equivalents | $ 337,807 | $ 332,964 | ||
| Receivables, net | 352,394 | 319,787 | ||
| Inventories | 235,990 | 230,807 | ||
| Other Current Assets | 67,405 | 59,933 | ||
| Total Current Assets | 993,596 | 943,491 | ||
| Net Property, Plant and Equipment | 732,420 | 764,068 | ||
| Goodwill, net | 224,683 | 230,578 | ||
| Other Assets | 15,893 | 18,056 | ||
| Total Assets | $ 1,966,592 | $ 1,956,193 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Short-Term Obligations | $ 159,664 | $ 128,355 | ||
| Accounts Payable and Accrued Liabilities | 292,077 | 288,960 | ||
| Total Current Liabilities | 451,741 | 417,315 | ||
| Long-Term Obligations | 207,295 | 209,616 | ||
| Deferred Liabilities | 73,600 | 75,626 | ||
| Total Liabilities | 732,636 | 702,557 | ||
| Aptargroup, Inc. Stockholders' Equity | 1,233,092 | 1,252,845 | ||
| Noncontrolling Interests in Subsidiaries | 864 | 791 | ||
| Total Equity | 1,233,956 | 1,253,636 | ||
| Total Liabilities and Stockholders' Equity | $ 1,966,592 | $ 1,956,193 | ||
| APTARGROUP, INC. | ||||||
| Condensed Consolidated Financial Statements (Unaudited) | ||||||
| (continued) | ||||||
| (In Thousands) | ||||||
| SEGMENT INFORMATION | ||||||
| Three Months Ended | ||||||
| March 31, | ||||||
2010 | 2009 | |||||
NET SALES | ||||||
| Beauty & Home | $ 263,440 | $ 211,672 | ||||
| Closures | 134,764 | 117,176 | ||||
| Pharma | 107,265 | 102,925 | ||||
| Other | - | 43 | ||||
| Total Net Sales | $ 505,469 | $ 431,816 | ||||
SEGMENT INCOME (1) (2) | ||||||
| Beauty & Home | $ 26,979 | $ 10,811 | ||||
| Closures | 17,093 | 11,617 | ||||
| Pharma | 29,690 | 29,204 | ||||
| Corporate Expenses and Other | (13,211 | ) | (11,124 | ) | ||
| Total Income before Interest and Taxes | $ 60,551 | $ 40,508 | ||||
| Interest Expense, Net | (2,706 | ) | (2,172 | ) | ||
| Net Income/(Loss) Attributable to Noncontrolling Interests | 73 | (71 | ) | |||
| Income Before Income Taxes | $ 57,918 | $ 38,265 | ||||
SEGMENT INCOME AS % OF NET SALES | ||||||
| Beauty & Home | 10.2 | % | 5.1 | % | ||
| Closures | 12.7 | % | 9.9 | % | ||
| Pharma | 27.7 | % | 28.4 | % | ||
Notes to Segment Information:
(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.
(2) In order to be comparable to the current period presentation, the Company revised its 2009 presentation relating to a French research and development tax credit. For further details, see Note (1) to Consolidated Statements of Income.
CONTACT:
Stephen J. Hagge
Aptargroup, Inc.
815-477-0424