Exhibit 99.1
AptarGroup Reports Record First Quarter; Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 14, 2005--AptarGroup,
Inc. (NYSE:ATR) today reported record sales and net income for the
first quarter of 2005.
FIRST QUARTER RESULTS
For the quarter ended March 31, 2005, sales increased nine percent
to a record $344.0 million from $315.6 million in the prior year. In
the quarter, the Company recorded approximately $5 million of custom
tooling sales compared to $13 million recorded in the prior year.
Sales excluding changes in foreign currency exchange rates increased
approximately six percent from the prior year. Net income increased to
a first quarter record of $22.1 million from $21.2 million a year ago.
Diluted earnings per share increased five percent to $.60 per share
from $.57 per share in the prior year.
MANAGEMENT COMMENT
Commenting on the quarter, Carl A. Siebel, President and Chief
Executive Officer, said, "Increased sales of products across all of
the markets we serve combined with price increases led to record first
quarter sales. Demand for our dispensing systems was particularly
strong from the food/beverage, personal care and household markets.
Higher sales allowed us to overcome the adverse impacts of the weaker
dollar on imports to the U.S., increased costs of materials and
continued price competition, and resulted in record first quarter
earnings.
"Late in the quarter, we completed the previously announced
acquisition of a company in Switzerland that manufactures aerosol
valves with bag-on-valve technology. We are excited to have this
unique technology in our product line as it serves a growing niche
within the aerosol valve market. The impact of this acquisition on the
first quarter results was not significant."
BUSINESS SEGMENT PERFORMANCE
For the quarter, sales of the Dispensing Systems segment increased
seven percent to $281.3 million from $262.2 million in the prior year.
The increase is primarily due to increased sales to the personal care,
food/beverage and fragrance/cosmetic markets and changes in exchange
rates. Dispensing Systems segment income (income before interest
expense in excess of interest income, corporate expenses, income taxes
and unusual items) increased to $32.1 million from $31.3 million in
the prior year.
For the quarter, sales of the SeaquistPerfect segment increased 17
percent to $65.5 million from $55.8 million in the prior year. The
increase is primarily due to increased sales to the personal care and
household markets, the acquisition of the company that makes
bag-on-valves and the weaker U.S. dollar. SeaquistPerfect segment
income increased to $6.7 million from $5.3 million a year ago.
OUTLOOK
Siebel commented, "Looking forward, we expect the momentum we
experienced in the first quarter to continue into the second quarter.
Based upon current information, we anticipate demand to be
particularly strong from the personal care, pharmaceutical and
food/beverage markets."
"As previously mentioned, we have filed for U.S. federal income
tax refunds relating to research and development expenditures incurred
from 2000 through 2002. We are in process of finalizing this matter
and presently expect the tax benefit to be approximately $1.2 million.
Also in Italy, the government has offered an incentive relating to
taxation of government grants. We estimate that, if elected, the
related reduction in income taxes would be in the area of $2.1 million
in 2005. Excluding any impact of the pending tax-related items noted
above, we anticipate that diluted earnings per share for the second
quarter of 2005 will be in the range of $.68 to $.73 per share
compared to $.61 per share in the prior year."
CASH DIVIDEND
The Board of Directors declared a quarterly dividend of $.15 per
share, payable May 20, 2005 to stockholders of record as of April 29,
2005.
OPEN CONFERENCE CALL
There will be a conference call on Friday, April 15, 2005 at 8:00
a.m. CDT 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, 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.
The following Condensed Consolidated Financial Statements are
unaudited.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED
MARCH 31,
---------------------------
2005 2004
------------- ------------
Net Sales $343,999 $315,603
Cost of Sales (exclusive of
depreciation shown below) 232,478 211,581
Selling, Research & Development
and Administrative 51,640 48,269
Depreciation and Other Amortization 25,532 24,050
------------- ------------
Operating Income 34,349 31,703
Other Income/(Expense):
Interest Expense (2,738) (2,229)
Interest Income 815 1,018
Equity in Results of Affiliates 332 442
Minority Interests 0 (119)
Miscellaneous, net (305) 413
------------- ------------
Income before Income Taxes 32,453 31,228
Provision for Income Taxes 10,385 9,993
------------- ------------
Net Income $22,068 $21,235
============= ============
Net Income per Share - Basic $0.62 $0.58
============= ============
Net Income per Share - Diluted $0.60 $0.57
============= ============
Average Number of Shares - Basic 35,639 36,402
Average Number of Shares - Diluted 36,773 37,355
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
March 31, Dec. 31,
2005 2004
ASSETS
Cash and Equivalents $144,861 $170,368
Receivables, net 274,619 266,894
Inventories 191,863 189,349
Other Current Assets 34,029 34,618
----------- -----------
Total Current Assets 645,372 661,229
Net Property, Plant and Equipment 523,301 534,762
Goodwill, net 149,163 140,239
Other Assets 45,840 37,796
----------- -----------
Total Assets $1,363,676 $1,374,026
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $80,714 $63,292
Accounts Payable and Accrued Liabilities 211,431 213,569
----------- -----------
Total Current Liabilities 292,145 276,861
Long-Term Obligations 142,228 142,581
Deferred Liabilities 81,278 81,387
----------- -----------
Total Liabilities 515,651 500,829
Stockholders' Equity 848,025 873,197
----------- -----------
Total Liabilities and Stockholders' Equity $1,363,676 $1,374,026
=========== ===========
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED MARCH 31,
----------------------------
2005 2004
------------ ------------
NET SALES
Dispensing Systems $281,316 $262,235
SeaquistPerfect 65,458 55,761
Intersegment Eliminations (2,775) (2,393)
------------ ------------
Total Net Sales $343,999 $315,603
============ ============
SEGMENT INCOME (1)
Dispensing Systems $32,127 $31,297
SeaquistPerfect 6,744 5,292
Corporate Expenses and Other (4,495) (4,150)
------------ ------------
Income before Interest and Taxes 34,376 32,439
Less: Interest Expense, Net 1,923 1,211
------------ ------------
Income before Income Taxes $32,453 $31,228
============ ============
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and
allocates resources based upon income before interest expense in
excess of interest income, corporate expenses, income taxes and
unusual items.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424