Exhibit 99.1
AptarGroup Reports Second Quarter Results;
Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 26, 2012--AptarGroup, Inc. (NYSE:ATR) today reported second quarter results and announced that the Board of Directors declared a quarterly dividend.
Second Quarter 2012 Summary
- Reported sales declined 6% (core sales increased 2% excluding currency effects)
- Changes in currency exchange rates negatively impacted results
- Softness in Europe affected each segment
- Core sales increased significantly in Latin America and Asia
- Stelmi Group acquisition closed on July 3, 2012, and will broaden Pharma segment portfolio
- Earnings per share of $0.61 included a negative impact of $0.05 per share related to Stelmi acquisition costs
SECOND QUARTER RESULTS
For the quarter ended June 30, 2012, reported sales declined 6% to $578 million from $615 million a year ago. AptarGroup estimates that changes in currency exchange rates negatively impacted sales by approximately 8% in the quarter.
| Second Quarter Segment Sales Analysis |
| (Change Over Prior Year) |
| | Beauty + | | | | Food + | | Total |
| | Home | | Pharma | | Beverage | | AptarGroup |
| Product Sales (including tooling) | | 0% | | 4% | | 6% | | 2% |
| Currency Effects | | -8% | | -8% | | -4% | | -8% |
| Total Reported Growth | | -8% | | -4% | | 2% | | -6% |
| | | | | | | | |
Commenting on the quarter, Stephen Hagge, President and CEO, said, “The diversity of our business enabled us to grow core sales in a challenging environment. Broad-based softness in Europe affected each of our business segments as the economic uncertainty there resulted in reduced consumer spending and increased caution by certain customers. Offsetting part of this weakness was strong demand from customers in Latin America and Asia.”
Hagge continued, “Currency exchange rates had a significant negative impact on our results in the quarter as did the costs related to the Stelmi acquisition. We estimate that the negative impact of changes in currency exchange rates accounted for approximately 8% of the decline in sales and had approximately the same effect on earnings in the quarter. Traditionally, some of our cross-currency transactions have partially offset translation effects on earnings, but recently, the net transaction effect has become minimal. We reported second quarter earnings per share of $0.61, including the negative impact of $0.05 per share related to Stelmi acquisition costs, compared to $0.74 per share a year ago. If today’s exchange rates were in place a year ago, we estimate that the prior year’s second quarter earnings per share would have been approximately $0.68 per share.”
YEAR-TO-DATE RESULTS
Hagge stated, “We are very pleased with the growth we are seeing in Asia and Latin America. Even with the challenges presented by some of the economic uncertainties in Europe and the U.S., we grew consolidated sales excluding currency effects by 4% over the prior year’s strong level.”
Year-to-date reported sales decreased 2% to $1.17 billion from $1.19 billion a year ago. Changes in exchange rates negatively impacted sales by approximately 6%. Reported diluted earnings per share, which included a negative impact of $0.06 per share related to Stelmi acquisition costs, decreased 9% to $1.24 per share compared to $1.37 per share a year ago. If the 2012 exchange rates were in place in 2011, AptarGroup estimates that the earnings per share for the first six months of 2011 would have been approximately $1.30 per share.
STELMI ACQUISITION UPDATE
Hagge commented on the recent acquisition, “We completed the Stelmi Group acquisition on July 3, 2012, and we are excited about the opportunities to grow this business. Our second quarter and year-to-date results were negatively affected by approximately $5.5 million ($0.05 per share) and $5.8 million ($0.06 per share), respectively, of professional fees associated with the acquisition. We expect the transaction to be accretive on an annual basis in the range of $0.12 to $0.16 per share, assuming current exchange rates. However, we anticipate that Stelmi’s results will have a negative impact of approximately $0.01 on earnings per share in the third quarter because of purchase price accounting adjustments and a small amount of additional professional fees related to the transaction. After the third quarter, we expect the transaction to contribute to our earnings growth.”
OUTLOOK
Hagge commented, “We currently expect the softness in Europe and the challenging currency exchange rate environment to continue into the third quarter. We are seeing some continued caution on the part of our customers, primarily from fragrance/cosmetic, personal care, and consumer health care customers in Europe. We expect earnings per share for the third quarter to be in the range of $0.61 to $0.66 per share compared to $0.72 per share reported in the prior year. It’s important to note that had today’s currency exchange rates been in place a year ago, we estimate that the prior year’s third quarter earnings per share would have been approximately $0.65 per share. In addition, prior year results were positively impacted by approximately $0.02 per share related to a lower effective tax rate.”
CASH DIVIDEND
The Board of Directors declared on July 17, 2012, a quarterly dividend of $.22 per share, payable August 30, 2012 to shareholders of record as of August 9, 2012.
OPEN CONFERENCE CALL
There will be a conference call on Friday, July 27, 2012 at 8:00 a.m. CDT to discuss the Company’s second quarter results for 2012. 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.
AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, home care, 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.
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 including the recent slowdown in Europe; 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; our ability to successfully integrate the Stelmi acquisition; 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 | | Six Months Ended |
| | June 30, | | June 30, |
| | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | |
| Net Sales | | $ | 577,503 | | | $ | 614,929 | | | $ | 1,170,001 | | | $ | 1,191,447 | |
Cost of Sales (exclusive of depreciation shown below) | | | 390,225 | | | | 409,481 | | | | 791,295 | | | | 792,151 | |
Selling, Research & Development and Administrative | | | 87,625 | | | | 90,290 | | | | 176,124 | | | | 180,769 | |
| Depreciation and Other Amortization | | | 32,597 | | | | 34,914 | | | | 65,151 | | | | 68,519 | |
| Operating Income | | | 67,056 | | | | 80,244 | | | | 137,431 | | | | 150,008 | |
| Other Income/(Expense): | | | | | | | | |
| Interest Expense | | | (3,904 | ) | | | (4,607 | ) | | | (9,146 | ) | | | (9,227 | ) |
| Interest Income | | | 794 | | | | 1,544 | | | | 1,822 | | | | 3,096 | |
| Equity in income of affiliates | | | (158 | ) | | | - | | | | (289 | ) | | | - | |
| Miscellaneous, net | | | (1,247 | ) | | | (285 | ) | | | (1,000 | ) | | | (706 | ) |
| Income before Income Taxes | | | 62,541 | | | | 76,896 | | | | 128,818 | | | | 143,171 | |
| Provision for Income Taxes | | | 20,889 | | | | 25,609 | | | | 43,353 | | | | 47,416 | |
| Net Income | | $ | 41,652 | | | $ | 51,287 | | | $ | 85,465 | | | $ | 95,755 | |
| | | | | | | | |
| Net Loss Attributable to Noncontrolling Interests | | | 34 | | | | 2 | | | | 30 | | | | 11 | |
| Net Income Attributable to AptarGroup, Inc. | | $ | 41,686 | | | $ | 51,289 | | | $ | 85,495 | | | $ | 95,766 | |
| Net Income Attributable to AptarGroup, Inc. Per Common Share: | | | | | | | | |
| Basic | | $ | 0.63 | | | $ | 0.77 | | | $ | 1.29 | | | $ | 1.43 | |
| Diluted | | $ | 0.61 | | | $ | 0.74 | | | $ | 1.24 | | | $ | 1.37 | |
| | | | | | | | |
| Average Numbers of Shares Outstanding: | | | | | | | | |
| Basic | | | 66,580 | | | | 66,939 | | | | 66,388 | | | | 66,933 | |
| Diluted | | | 68,758 | | | | 69,438 | | | | 68,940 | | | | 69,902 | |
| | | | |
| APTARGROUP, INC. |
| Condensed Consolidated Financial Statements (Unaudited) |
| (continued) |
| (In Thousands) |
| CONSOLIDATED BALANCE SHEETS |
| | | | |
| | June 30, 2012 | | December 31, 2011 |
| ASSETS | | | | |
| | | | |
| Cash and Equivalents | | $ | 300,873 | | $ | 377,616 |
| Receivables, net | | | 421,735 | | | 389,020 |
| Inventories | | | 299,321 | | | 285,155 |
| Other Current Assets | | | 88,198 | | | 92,159 |
| Total Current Assets | | | 1,110,127 | | | 1,143,950 |
| Net Property, Plant and Equipment | | | 773,962 | | | 754,715 |
| Goodwill, net | | | 230,784 | | | 233,689 |
| Other Assets | | | 32,365 | | | 26,941 |
| Total Assets | | $ | 2,147,238 | | $ | 2,159,295 |
| | | | |
| LIABILITIES AND EQUITY | | | | |
| | | | |
| Short-Term Obligations | | $ | 130,744 | | $ | 183,668 |
| Accounts Payable and Accrued Liabilities | | | 331,738 | | | 335,181 |
| Total Current Liabilities | | | 462,482 | | | 518,849 |
| Long-Term Obligations | | | 253,454 | | | 254,910 |
| Deferred Liabilities | | | 83,392 | | | 94,964 |
| Total Liabilities | | | 799,328 | | | 868,723 |
| | | | |
| AptarGroup, Inc. Stockholders' Equity | | | 1,347,149 | | | 1,289,776 |
| Noncontrolling Interests in Subsidiaries | | | 761 | | | 796 |
| Total Equity | | | 1,347,910 | | | 1,290,572 |
| | | | |
| Total Liabilities and Equity | | $ | 2,147,238 | | $ | 2,159,295 |
| | | | | | | | |
| APTARGROUP, INC. |
| Condensed Consolidated Financial Statements (Unaudited) |
| (continued) |
| (In Thousands) |
| SEGMENT INFORMATION |
| | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | | | | | | | |
| | 2012 | | 2011 | | 2012 | | 2011 |
NET SALES | | | | | | | | |
| Beauty + Home | | $ | 369,284 | | | $ | 402,738 | | | $ | 746,435 | | | $ | 779,000 | |
| Pharma | | | 132,979 | | | | 138,703 | | | | 273,022 | | | | 270,707 | |
| Food + Beverage | | | 75,240 | | | | 73,488 | | | | 150,544 | | | | 141,740 | |
| Total Net Sales | | $ | 577,503 | | | $ | 614,929 | | | $ | 1,170,001 | | | $ | 1,191,447 | |
| | | | | | | | |
SEGMENT INCOME (1) | | | | | | | | |
| Beauty + Home | | $ | 33,652 | | | $ | 39,877 | | | $ | 66,624 | | | $ | 72,530 | |
| Pharma (2) | | | 31,110 | | | | 40,369 | | | | 70,482 | | | | 79,257 | |
| Food + Beverage | | | 7,853 | | | | 8,613 | | | | 14,641 | | | | 16,185 | |
| Corporate and Other | | | (6,964 | ) | | | (8,900 | ) | | | (15,605 | ) | | | (18,670 | ) |
| Total Income Before Interest and Taxes | | $ | 65,651 | | | $ | 79,959 | | | $ | 136,142 | | | $ | 149,302 | |
| Interest Expense, Net | | | (3,110 | ) | | | (3,063 | ) | | | (7,324 | ) | | | (6,131 | ) |
| Income before Income Taxes | | $ | 62,541 | | | $ | 76,896 | | | $ | 128,818 | | | $ | 143,171 | |
| | | | | | | | |
SEGMENT INCOME AS % OF NET SALES | | | | | | | | |
| Beauty + Home | | | 9.1 | % | | | 9.9 | % | | | 8.9 | % | | | 9.3 | % |
| Pharma (2) | | | 23.4 | % | | | 29.1 | % | | | 25.8 | % | | | 29.3 | % |
| Food + Beverage | | | 10.4 | % | | | 11.7 | % | | | 9.7 | % | | | 11.4 | % |
| | | | | | | | |
| Notes to Condensed Consolidated Financial Statements: |
| (1) - The Company evaluates performance of its business units and allocates resources based upon segment income defined as earnings before net interest expense, certain corporate expenses, and income taxes. |
| (2) - Pharma segment income for the second quarter and year-to-date 2012 includes costs of $5,454 and $5,837, respectively, related to the Stelmi acquisition. |
CONTACT:
AptarGroup, Inc.
Matthew DellaMaria
815-477-0424
