Exhibit 99.1
AptarGroup Reports Record Third Quarter Results; Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Oct. 14, 2004--AptarGroup,
Inc. (NYSE:ATR) today reported record sales and income for the third
quarter of 2004.
THIRD QUARTER RESULTS
For the quarter ended September 30, 2004, sales increased 16
percent to a record $325.9 million from $281.3 million in the prior
year. Approximately $5.9 million of the increase in sales relates to
custom tooling sales. Sales excluding changes in foreign currency
exchange rates increased approximately 10 percent from the prior year.
Net income for the third quarter of 2004 increased to a record third
quarter level of $25.3 million from $19.1 million a year ago. Diluted
earnings per share were $.68 per share compared to $.51 per share in
the prior year.
In the third quarter of 2003, the Company recorded a charge of
approximately $1.3 million ($.8 million after taxes) related to
research and development costs associated with dry powder technology
acquired during that quarter.
NINE MONTHS RESULTS
For the nine months ended September 30, 2004, sales increased 14
percent to a record $953.3 million from $834.5 million in the prior
year. Approximately $18.6 million of the increase relates to custom
tooling sales. Sales excluding changes in foreign currency exchange
rates increased approximately seven percent from the prior year. Net
income for the first nine months of 2004 increased to a record $69.3
million from $59.7 million a year ago. Diluted earnings per share were
$1.86 per share compared to $1.62 per share in the prior year.
The results for the first nine months of 2003 include the third
quarter charge of approximately $1.3 million ($.8 million after taxes)
related to the research and development costs discussed above.
MANAGEMENT COMMENT
Commenting on the quarter, Carl A. Siebel, President and Chief
Executive Officer, said, "We are pleased to report another quarter of
record results. Higher unit volume and the weaker U.S. dollar
contributed to the sales increase. Sales to all of the markets we
serve increased, with demand for our dispensing systems particularly
strong from the pharmaceutical, fragrance/cosmetic and food markets.
"The increase in unit volumes and a favorable mix of sales
contributed to the improvement in operating income as a percent of
sales over the prior year. Restraining further operating margin
improvement was the adverse impact of the weaker dollar on imports to
the U.S., increased costs of materials, higher quality-related costs,
increased costs to comply with Section 404 of the Sarbanes-Oxley Act
and continued price competition.
"As previously announced, our strong balance sheet enabled us to
increase the quarterly dividend rate from $.07 per share to $.15 per
share beginning with the dividend we paid in August of this year. In
addition, we spent $38.2 million to repurchase approximately 883
thousand shares during the third quarter. After considering both of
these activities, we remain well-positioned to take advantage of
strategic opportunities in the future."
BUSINESS SEGMENT PERFORMANCE
For the quarter, sales of the Dispensing Systems segment increased
18 percent to $276.3 million from $234.8 million in the prior year.
The increase is due to increased sales (including custom tooling) to
all markets and changes in exchange rates. For the first nine months,
sales increased 15 percent to $800.4 million from $697.2 million in
the prior year. Third quarter EBIT (earnings before interest and
taxes) for the Dispensing Systems segment increased to $37.7 million
from $31.1 million in the prior year. For the first nine months, EBIT
for the segment increased to $104.0 million from $94.9 million in the
prior year.
For the quarter, sales of the SeaquistPerfect segment increased
seven percent to $52.0 million from $48.4 million in the prior year.
The increase is primarily due to the weaker U.S. dollar and increased
sales to the personal care market market. For the first nine months,
sales increased 12 percent to $159.8 million from $143.1 million in
the prior year. Third quarter EBIT for the SeaquistPerfect segment
decreased to $4.3 million from $4.7 million a year ago. For the first
nine months, EBIT increased to $14.4 million from $13.5 million in the
prior year.
OUTLOOK
Siebel commented, "Based upon current information, we expect the
positive momentum we experienced in the third quarter to continue into
the fourth quarter. Currently, we anticipate that diluted earnings per
share for the fourth quarter of 2004 will be in the range of $.57 to
$.62 compared to $.54 per share in the prior year."
CASH DIVIDEND
Yesterday, the Board of Directors declared a quarterly dividend of
$.15 per share, payable November 18, 2004 to shareholders of record as
of October 28, 2004.
OPEN CONFERENCE CALL
There will be a conference call on Friday, October 15, 2004 at
8:00 a.m. CDT to discuss the Company's third quarter results for 2004.
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, 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 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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------
2004 2003 2004 2003
------------------------------------
Net Sales $325,893 $281,310 $953,340 $834,546
Cost of Sales (exclusive of
depreciation shown below) 218,417 185,774 636,200 546,647
Selling, Research & Development
and Administrative 46,963 42,374 142,025 128,672
Depreciation and Other
Amortization 23,196 21,474 70,679 63,786
Acquired Research & Development
Charge - 1,250 - 1,250
------------------------------------
Operating Income 37,317 30,438 104,436 94,191
Other Income/(Expense):
Interest Expense (2,794) (2,410) (7,518) (7,246)
Interest Income 1,022 665 2,912 1,977
Equity in Results of Affiliates 224 189 917 527
Minority Interests 1 (138) (271) (255)
Miscellaneous, net 1,102 (310) 1,127 80
------------------------------------
Income before Income Taxes 36,872 28,434 101,603 89,274
Provision for Income Taxes 11,615 9,327 32,329 29,612
------------------------------------
Net Income (1) $25,257 $19,107 $69,274 $59,662
====================================
Net Income per Share - Basic $0.70 $0.53 $1.91 $1.65
====================================
Net Income per Share - Diluted $0.68 $0.51 $1.86 $1.62
====================================
Average Number of Shares - Basic 36,107 36,207 36,344 36,059
Average Number of Shares - Diluted 37,179 37,159 37,298 36,806
Note to Condensed Consolidated Financial Statements:
(1) For the three and nine months ended September 30, 2003, net income
includes the charge of $1,250 related to Acquired Research &
Development less a tax benefit of $413.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
September December
30, 2004 31, 2003
ASSETS
Cash and Equivalents $153,010 $164,982
Receivables, net 256,352 231,976
Inventories 179,547 165,207
Other Current Assets 30,862 40,289
----------- -----------
Total Current Assets 619,771 602,454
Net Property, Plant and Equipment 481,106 483,431
Goodwill, net 136,059 136,660
Other Assets 44,233 41,798
----------- -----------
Total Assets $1,281,169 $1,264,343
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $50,155 $96,710
Accounts Payable and Accrued Liabilities 208,995 186,510
----------- -----------
Total Current Liabilities 259,150 283,220
Long-Term Obligations 144,325 125,196
Deferred Liabilities 75,609 72,876
----------- -----------
Total Liabilities 479,084 481,292
Stockholders' Equity 802,085 783,051
----------- -----------
Total Liabilities and Stockholders' Equity $1,281,169 $1,264,343
=========== ===========
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-----------------------------------------
2004 2003 2004 2003
-------------------- --------------------
NET SALES
Dispensing Systems $276,275 $234,841 $800,389 $697,173
SeaquistPerfect 52,024 48,444 159,839 143,095
Intersegment Eliminations (2,406) (1,975) (6,888) (5,722)
-------------------- --------------------
Total Net Sales $325,893 $281,310 $953,340 $834,546
==================== ====================
EARNINGS (1)
Dispensing Systems $37,699 $31,133 $103,966 $94,926
SeaquistPerfect 4,318 4,666 14,368 13,465
Corporate Expenses and Other (3,373) (4,370) (12,125) (12,598)
Acquired Research &
Development
Charge - (1,250) - (1,250)
-------------------- --------------------
Earnings before Interest and
Taxes (EBIT) 38,644 30,179 106,209 94,543
Less: Interest Expense, Net 1,772 1,745 4,606 5,269
-------------------- --------------------
Income before Income Taxes $36,872 $28,434 $101,603 $89,274
==================== ====================
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