Exhibit 99.1
AptarGroup Reports Record First Quarter Results; Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 15, 2004--AptarGroup, Inc.
(NYSE:ATR) today reported record sales and income for the first quarter of 2004.
FIRST QUARTER RESULTS
For the quarter ended March 31, 2004, sales increased 19 percent to $315.6
million from $265.1 million in the prior year. Approximately $11 million of the
increase in sales relates to increased custom tooling sales. Sales excluding
changes in foreign currency exchange rates increased approximately eight percent
from the prior year. Net income for the first quarter of 2004 increased to $21.2
million from $19.2 million a year ago. Diluted earnings per share were $.57 per
share compared to $.53 per share in the prior year.
MANAGEMENT COMMENT
Commenting on the quarter, Carl A. Siebel, President and Chief Executive
Officer, said, "We are pleased to report record first quarter results. Sales to
all of the markets we serve increased over the prior year. The increase in sales
reflects volume growth in all markets except for the pharmaceutical market,
higher custom tooling sales and foreign currency translation effects.
"Pharmaceutical sales in the quarter included an increase in custom tooling
sales of approximately $7 million over the prior year, the majority of which
relates to the second phase of a project that accounted for approximately $13
million in total custom tooling sales in 2003 and the first quarter of 2004.
However, the customer associated with this project has informed us of their
decision to cancel the launch of the related product. While we did not forecast
any product sales from this project in 2004, previously expected product sales
in late 2005 and beyond will not be realized. Excluding custom tooling sales and
the effect of foreign currency translation, sales to the pharmaceutical market
decreased from the prior year."
Siebel added, "We continue to focus on innovation while containing costs.
During the first quarter we evaluated our worldwide mold making capacity and
decided to eliminate a mold making operation in the United States which employed
approximately 40 people. It's never an easy decision to close an operation but
we felt it was necessary to streamline this part of our business and reduce
costs. This facility is scheduled to cease operations in the second quarter of
2004. Charges in the first quarter relating to the closing of this operation
were not significant and additional related charges in the future are not
expected to be significant.
"Operating income as a percent of sales for the quarter was negatively
affected by price competition, weakness in pharmaceutical product sales,
increased cost of imports to the U.S. due to the weaker dollar and increased
cost of raw materials. However, our operating income increased compared to the
prior year and contributed to the record first quarter earnings per share."
BUSINESS SEGMENT PERFORMANCE
For the quarter, sales of the Dispensing Systems segment increased 20
percent, to $262.2 million from $219.2 million in the prior year. The increase
is mainly due to increased sales to the food/beverage and personal care markets
and increased sales of custom tooling to the pharmaceutical market. Additionally
changes in exchange rates also positively affected sales. First quarter EBIT
(earnings before interest and taxes) for the Dispensing Systems segment
increased to $31.3 million from $29.9 million in the prior year.
For the quarter, sales of the SeaquistPerfect segment increased 16 percent,
to $55.8 million from $47.9 million in the prior year. The increase is primarily
due to increased demand from the personal care market. First quarter EBIT for
the SeaquistPerfect segment increased to $5.3 million from $4.6 million a year
ago.
OUTLOOK
Siebel commented, "The positive momentum in the first quarter is expected
to continue into the second quarter. We also anticipate that our pharmaceutical
volumes will trend upward in the second quarter and continue to improve
throughout the year. Additionally, we have filed for income tax refunds totaling
approximately $1.5 million in the U.S. relating to research and development
expenditures incurred from 2000 through 2002. These refunds will be recognized
as a reduction of our tax provision when they are received. Excluding the
potential effect of these tax refunds net of related contingent consulting fees,
we anticipate diluted earnings per share for the second quarter of 2004 to be in
the range of $.58 to $.63 per share."
CASH DIVIDEND
The Board of Directors declared a quarterly dividend of $.07 per share,
payable May 21, 2004 to stockholders of record as of April 30, 2004.
OPEN CONFERENCE CALL
There will be a conference call on Friday, April 16, 2004 at 8:00 a.m. CST
to discuss the Company's first quarter results. The call will last approximately
one hour and feature remarks by Carl A. Siebel and Stephen J. Hagge,
AptarGroup's Chief Financial Officer. 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 personal care, fragrance/cosmetic,
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, the Company'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 the Company operates, fiscal and
monetary policy, changes in foreign exchange rates, direct or indirect
consequences of acts of war or terrorism and other risks and uncertainties
discussed from time to time in the Company'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
MARCH 31,
-------------------
2004 2003
--------- ---------
Net Sales $315,603 $265,149
Cost of Sales (exclusive of depreciation
shown below) 211,581 172,588
Selling, Research & Development and
Administrative 48,269 41,449
Depreciation and Other Amortization 24,050 20,772
--------- ---------
Operating Income 31,703 30,340
Other Income/(Expense):
Interest Expense (2,229) (2,409)
Interest Income 1,018 623
Equity in Results of Affiliates 442 182
Minority Interests (119) (19)
Miscellaneous, net 413 164
--------- ---------
Income before Income Taxes 31,228 28,881
Provision for Income Taxes 9,993 9,675
--------- ---------
Net Income $21,235 $19,206
========= =========
Net Income per Share - Basic $0.58 $0.53
========= =========
Net Income per Share - Diluted $0.57 $0.53
========= =========
Weighted Average Number of Shares - Basic 36,402 35,937
Weighted Average Number of Shares - Diluted 37,355 36,504
APTARGROUP, INC.
Condensed Consolidated Financial Statements
(Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 DECEMBER 31, 2003
ASSETS
Cash and Equivalents $181,590 $164,982
Receivables, net 248,090 231,976
Inventories 170,201 165,207
Other Current Assets 31,443 40,289
----------------- -----------------
Total Current Assets 631,324 602,454
Net Property, Plant and Equipment 468,175 483,431
Goodwill 135,566 136,660
Other Assets 45,039 41,798
----------------- -----------------
Total Assets $1,280,104 $1,264,343
================= =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Short-Term Obligations $96,737 $96,710
Accounts Payable and Accrued
Liabilities 193,527 186,510
----------------- -----------------
Total Current Liabilities 290,264 283,220
Long-Term Obligations 124,761 125,196
Deferred Liabilities 73,937 72,876
----------------- -----------------
Total Liabilities 488,962 481,292
Stockholders' Equity 791,142 783,051
----------------- -----------------
Total Liabilities and Stockholders'
Equity $1,280,104 $1,264,343
================= =================
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED
MARCH 31,
-------------------
2004 2003
--------- ---------
NET SALES
Dispensing Systems $262,235 $219,168
SeaquistPerfect 55,761 47,866
Intersegment Eliminations (2,393) (1,885)
--------- ---------
Total Net Sales $315,603 $265,149
========= =========
EARNINGS (1)
Dispensing Systems $31,297 $29,899
SeaquistPerfect 5,292 4,568
Corporate Expenses and Other (4,150) (3,800)
--------- ---------
Earnings before Interest and Taxes (EBIT) 32,439 30,667
Less: Interest Expense, Net 1,211 1,786
--------- ---------
Income before Income Taxes $31,228 $28,881
========= =========
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and
allocates resources based upon earnings before interest expense in
excess of interest income, corporate expenses and income taxes
(collectively referred to as "EBIT") excluding unusual items.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424