Exhibit 99.1
AptarGroup Reports All-Time High Quarterly Results; Boosts Dividend 33 Percent
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 20, 2005--AptarGroup, Inc.
(NYSE:ATR) today reported record quarter results and declared an
increased quarterly dividend.
SECOND QUARTER RESULTS
For the quarter ended June 30, 2005, sales increased 14 percent to
a record $356.1 million from $311.8 million in the prior year. Sales
excluding changes in foreign currency exchange rates increased
approximately 11 percent from the prior year. Net income for the
second quarter of 2005 increased to a record $29.3 million from $22.8
million a year ago. Diluted earnings per share increased 33 percent to
$.81 per share compared to $.61 per share in the prior year. Net
income for the second quarter included reduced income taxes of
approximately $3.2 million ($.09 per diluted share) related to
research and development credits in the U.S. and tax changes in Italy.
SIX MONTHS RESULTS
For the six months ended June 30, 2005, sales increased 12 percent
to a record $700.1 million from $627.4 million in the prior year.
Sales excluding changes in foreign currency exchange rates increased
approximately 8 percent from the prior year. Net income for the first
six months of 2005, including the second quarter tax benefits
described above, increased to a record $51.4 million from $44.0
million a year ago. Diluted earnings per share increased 19 percent to
$1.41 per share compared to $1.18 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 that we continued
to build on the momentum we experienced in the first quarter. We
achieved a record level of quarterly sales as a result of strong
demand for our products from the personal care, pharmaceutical,
household and food/beverage markets. Sales to the fragrance/cosmetic
market slowed in the quarter and were approximately equal to the prior
year's level."
Siebel added, "With increased volumes, we were able to leverage
our infrastructure and realize operating efficiencies. In addition, we
were successful in passing through the majority of our raw material
cost increases. These factors contributed to our record earnings per
share."
BUSINESS SEGMENT PERFORMANCE
For the quarter, sales of the Dispensing Systems segment increased
12 percent, to $294.5 million from $261.9 million in the prior year.
The increase is mainly due to increased sales to the personal care,
pharmaceutical and food/beverage markets and changes in exchange
rates. For the first six months, sales increased 10 percent to $575.8
million from $524.1 million in the prior year. Dispensing Systems
segment income (income before interest expense in excess of interest
income, corporate expenses, income taxes and unusual items) increased
to $39.7 million from $35.0 million in the prior year. For the first
six months, Dispensing Systems segment income increased to $71.8
million from $66.3 million in the prior year.
For the quarter, sales of the SeaquistPerfect segment increased 23
percent, to $64.2 million from $52.1 million in the prior year. The
increase is due to improved sales to the personal care and household
markets and the inclusion of sales from EP Spray System SA, which was
acquired in the first quarter of this year. For the first six months,
sales increased 20 percent to $129.6 million from $107.8 million in
the prior year. Second quarter SeaquistPerfect segment income
increased to $6.3 million from $4.8 million a year ago. For the first
six months, SeaquistPerfect segment income increased to $13.1 million
from $10.1 million in the prior year.
OUTLOOK
Siebel commented, "We are optimistic that the trends we have
experienced in the second quarter will continue into the third
quarter. At the present time, we believe demand for our dispensing
systems from all of the markets we serve, other than the
fragrance/cosmetic market, will improve over prior year levels. In
addition, we plan to reduce and redeploy certain personnel at our
French fragrance/cosmetic operations. We plan to implement this
program over a three year period and we expect to realize cost savings
over time. Anticipated charges related to the first phase of this
effort will be approximately $3 million in the second half of 2005 and
will be recorded in the quarter in which they are recognizable for
accounting purposes."
Siebel concluded, "Excluding any effects of this program, we
expect diluted earnings per share for the third quarter of 2005 to be
in the range of $.70 to $.75 compared to $.68 per share in the prior
year."
CASH DIVIDEND INCREASE
The Board of Directors increased the quarterly dividend to $.20
per share, payable August 23, 2005 to shareholders of record as of
August 2, 2005. This represents a 33 percent increase over the
previous quarterly dividend of $.15 per share. Siebel commented, "Our
Board continues to evaluate ways to enhance shareholder value. While
we want to maintain flexibility to pursue opportunities that could
contribute to our growth, we also recognize that our strong financial
position and cash generating ability allow us to return value to
shareholders in the form of dividends. This increase, which follows
last year's doubling of the dividend, is a clear indication of our
commitment to our shareholders and our confidence in our business."
SHARE REPURCHASE ACTIVITY
During the quarter, the Company repurchased 631,000 shares of
common stock bringing the cumulative total shares repurchased under
the current share repurchase program to approximately 3.5 million
shares. At the end of the second quarter, the remaining balance of
shares authorized for repurchase under the program was approximately
1.5 million shares.
OPEN CONFERENCE CALL
There will be a conference call on Thursday July 21, 2005 at 8:00
a.m. CDT to discuss the Company's second quarter results for 2005. 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 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
http://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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------------------------
2005 2004 2005 2004
-------------------------------------------
Net Sales $356,112 $311,844 $700,111 $627,447
Cost of Sales (exclusive of
depreciation shown below) 238,641 206,202 471,119 417,783
Selling, Research &
Development and
Administrative 51,060 46,793 102,700 95,062
Depreciation and Other
Amortization 25,282 23,433 50,814 47,483
-------------------------------------------
Operating Income 41,129 35,416 75,478 67,119
Other Income/(Expense):
Interest Expense (3,026) (2,495) (5,764) (4,724)
Interest Income 747 872 1,562 1,890
Equity in Results of
Affiliates 503 251 835 693
Minority Interests 71 (153) 71 (272)
Miscellaneous, net (533) (388) (838) 25
-------------------------------------------
Income before Income Taxes 38,891 33,503 71,344 64,731
Provision for Income Taxes 9,567 10,721 19,952 20,714
-------------------------------------------
Net Income $29,324 $22,782 $51,392 $44,017
===========================================
Net Income per Share -
Basic $0.83 $0.62 $1.45 $1.21
===========================================
Net Income per Share -
Diluted $0.81 $0.61 $1.41 $1.18
===========================================
Average Number of Shares -
Basic 35,226 36,527 35,431 36,464
Average Number of Shares -
Diluted 36,321 37,462 36,526 37,377
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
June 30, 2005 December 31, 2004
ASSETS
Cash and Equivalents $123,526 $170,368
Receivables, net 277,971 266,894
Inventories 186,516 189,349
Other Current Assets 31,469 34,618
--------------- ------------------
Total Current Assets 619,482 661,229
Net Property, Plant and
Equipment 498,910 534,762
Goodwill, net 144,716 140,239
Other Assets 44,243 37,796
--------------- ------------------
Total Assets $1,307,351 $1,374,026
=============== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $83,948 $63,292
Accounts Payable and Accrued
Liabilities 209,224 213,569
--------------- ------------------
Total Current Liabilities 293,172 276,861
Long-Term Obligations 141,376 142,581
Deferred Liabilities 75,012 81,387
--------------- ------------------
Total Liabilities 509,560 500,829
Stockholders' Equity 797,791 873,197
--------------- ------------------
Total Liabilities and
Stockholders' Equity $1,307,351 $1,374,026
=============== ==================
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------------------------
2005 2004 2005 2004
--------------------- ---------------------
NET SALES
Dispensing Systems $294,485 $261,879 $575,801 $524,114
SeaquistPerfect 64,152 52,054 129,610 107,815
Intersegment Eliminations (2,525) (2,089) (5,300) (4,482)
--------------------- ---------------------
Total Net Sales $356,112 $311,844 $700,111 $627,447
===================== =====================
SEGMENT INCOME (1)
Dispensing Systems $39,700 $34,970 $71,827 $66,267
SeaquistPerfect 6,329 4,758 13,073 10,050
Corporate Expenses and
Other (4,859) (4,602) (9,354) (8,752)
--------------------- ---------------------
Income before Interest and
Taxes 41,170 35,126 75,546 67,565
Less: Interest Expense,
Net 2,279 1,623 4,202 2,834
--------------------- ---------------------
Income before Income Taxes $38,891 $33,503 $71,344 $64,731
===================== =====================
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