Exhibit 99.1
AptarGroup Reports Record Third Quarter Revenue
and Strong Operational Results;
Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Oct. 19, 2005--AptarGroup,
Inc. (NYSE:ATR) today reported record third quarter revenue and strong
operational results. The Company also declared a quarterly dividend.
THIRD QUARTER RESULTS
For the quarter ended September 30, 2005, sales increased five
percent to a record $341.1 million from $325.9 million in the prior
year. Sales excluding changes in foreign currency exchange rates
increased approximately four percent from the prior year. Custom
tooling sales in the quarter decreased to $7.2 million from $17.9
million a year ago. Net income for the third quarter of 2005 was $24.9
million compared to $25.3 million a year ago. Diluted earnings per
share were $.69 per share compared to $.68 per share in the prior
year. Negatively impacting the third quarter 2005 net income were
charges of approximately $2 million ($0.06 per diluted share) related
to the previously announced Redeployment Program affecting
AptarGroup's French fragrance/cosmetic operations.
NINE MONTHS RESULTS
For the nine months ended September 30, 2005, sales increased nine
percent to a record $1.0 billion from $953.3 million in the prior
year. Sales excluding changes in foreign currency exchange rates
increased approximately seven percent from the prior year. Through
September, custom tooling sales decreased to $25.0 million from $40.2
million a year ago. Net income for the first nine months of 2005
increased to $76.3 million from $69.3 million a year ago. Diluted
earnings per share increased 13 percent to $2.10 per share compared to
$1.86 per share in the prior year. Included in the 2005 nine month
earnings per share is the positive impact of reduced income taxes
recorded in the second quarter related to research and development
credits in the U.S. and tax changes in Italy ($.09 per diluted share),
and the negative effect of the Redeployment Program charges recorded
in the third quarter ($.06 per diluted share).
MANAGEMENT COMMENT
Commenting on the quarter, Carl A. Siebel, President and Chief
Executive Officer, said, "We are pleased to report strong operating
results for the quarter and record revenue. Our company continued to
grow in a period that posed challenges for many companies and
individuals around the globe. Increased demand for our innovative
dispensing systems from the personal care, pharmaceutical and
food/beverage markets drove our record third quarter sales. Sales to
the fragrance/cosmetic and household markets were approximately equal
to the prior year's level."
Siebel added, "We continue to diligently manage our costs and have
implemented certain price increases to offset unavoidable cost
increases. These efforts, combined with volume increases, allowed us
to achieve strong profit growth in the quarter before considering the
charges related to our Redeployment Program."
BUSINESS SEGMENT PERFORMANCE
For the quarter, sales of the Dispensing Systems segment increased
four percent to $286.5 million from $276.3 million in the prior year,
despite a decrease in custom tooling sales of approximately $10.7
million. The increase is mainly due to increased sales to the personal
care, pharmaceutical and food/beverage markets. For the first nine
months, sales increased eight percent to $862.3 million from $800.4
million in the prior year, despite a decrease in custom tooling sales
of $15.2 million. Dispensing Systems segment income (income before
interest expense in excess of interest income, corporate expenses,
income taxes and unusual items) increased in the quarter to $43.0
million compared to $37.7 million in the prior year. For the first
nine months, Dispensing Systems segment income increased to $114.8
million from $104.0 million in the prior year.
For the quarter, sales of the SeaquistPerfect segment increased
nine percent, to $56.5 million from $52.0 million in the prior year.
The increase is primarily due to improved sales to the personal care
market and the inclusion of sales from EP Spray System SA, which was
acquired in the first quarter of this year. For the first nine months,
sales increased 16 percent to $186.1 million from $159.8 million in
the prior year. Third quarter SeaquistPerfect segment income increased
to $4.5 million from $4.3 million a year ago. For the first nine
months, SeaquistPerfect segment income increased to $17.5 million from
$14.4 million in the prior year.
REDEPLOYMENT PROGRAM
Siebel also stated, "As we mentioned last quarter, we are reducing
and redeploying certain personnel at our French fragrance/cosmetic
operations. We plan to implement this cost saving program over a three
year period. In addition to the charges recorded in the third quarter,
we expect to record additional after-tax charges of approximately
$300,000 to $600,000 in the fourth quarter."
OUTLOOK
Siebel commented, "As announced on October 4, 2005, we acquired
MBF Developpement SAS and related companies ("MBF"). With MBF's
decorative technology, we are expanding our product offerings to
better serve our fragrance/cosmetic customers.
"Looking to the fourth quarter, we are in the midst of a
challenging environment. The cost of doing business is increasing
particularly when it comes to raw material, transportation and energy.
However, we continue to aggressively control costs and we intend to
increase prices to mitigate the adverse effects of increasing costs.
Thankfully our operations are not located in areas affected by the two
terrible storms that hit the Southern coast of the U.S. and we did not
experience any interruption in our business. However, the effects of
these events on our customers, suppliers and end consumers are
difficult to predict."
Siebel concluded, "Excluding any effects of the Redeployment
Program, we expect diluted earnings per share for the fourth quarter
of 2005 to be in the range of $.62 to $.67 per share compared to
record fourth quarter results of $.65 per share in 2004."
CASH DIVIDEND
The Board of Directors declared a quarterly dividend of $.20 per
share, payable November 23, 2005 to shareholders of record as of
November 2, 2005.
SHARE REPURCHASE ACTIVITY
During the quarter, the Company repurchased approximately 200,000
shares of common stock bringing the cumulative total shares
repurchased under the current share repurchase program to
approximately 3.7 million shares. At the end of the third quarter, the
remaining balance of shares authorized for repurchase under the
program was approximately 1.3 million shares.
OPEN CONFERENCE CALL
There will be a conference call on Thursday October 20, 2005 at
8:00 a.m. CDT to discuss the Company's third 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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- ---------------------
2005 2004 2005 2004
--------- --------- ----------- ---------
Net Sales $341,084 $325,893 $1,041,195 $953,340
Cost of Sales (exclusive of
depreciation
shown below) 225,770 218,417 696,889 636,200
Selling, Research &
Development and
Administrative 49,613 46,963 152,313 142,025
Depreciation and Other
Amortization 23,985 23,196 74,799 70,679
Redeployment Program 2,972 --- 2,972 ---
--------- --------- ----------- ---------
Operating Income 38,744 37,317 114,222 104,436
Other Income/(Expense):
Interest Expense (3,025) (2,794) (8,789) (7,518)
Interest Income 771 1,022 2,333 2,912
Equity in Results of
Affiliates 382 224 1,217 917
Minority Interests 12 1 83 (271)
Miscellaneous, net (6) 1,102 (844) 1,127
--------- --------- ----------- ---------
Income before Income Taxes 36,878 36,872 108,222 101,603
Provision for Income Taxes 11,948 11,615 31,900 32,329
--------- --------- ----------- ---------
Net Income $24,930 $25,257 $76,322 $69,274
========= ========= =========== =========
Net Income per Share - Basic $0.71 $0.70 $2.16 $1.91
========= ========= =========== =========
Net Income per Share -
Diluted $0.69 $0.68 $2.10 $1.86
========= ========= =========== =========
Average Number of Shares -
Basic 34,988 36,107 35,282 36,344
Average Number of Shares -
Diluted 36,010 37,179 36,313 37,298
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004
ASSETS
Cash and Equivalents $164,596 $170,368
Receivables, net 258,916 266,894
Inventories 183,002 189,349
Other Current Assets 27,005 34,618
-------------- --------------
Total Current Assets 633,519 661,229
Net Property, Plant and Equipment 498,755 534,762
Goodwill, net 144,365 140,239
Other Assets 42,459 37,796
-------------- --------------
Total Assets $1,319,098 $1,374,026
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $89,190 $63,292
Accounts Payable and Accrued Liabilities 211,033 213,569
-------------- --------------
Total Current Liabilities 300,223 276,861
Long-Term Obligations 140,670 142,581
Deferred Liabilities 72,385 81,387
-------------- --------------
Total Liabilities 513,278 500,829
Stockholders' Equity 805,820 873,197
-------------- --------------
Total Liabilities and Stockholders'
Equity $1,319,098 $1,374,026
============== ==============
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-----------------------------------------
2005 2004 2005 2004
--------- --------- ----------- ---------
NET SALES
Dispensing Systems $286,489 $276,275 $862,290 $800,389
SeaquistPerfect 56,499 52,024 186,109 159,839
Intersegment Eliminations (1,904) (2,406) (7,204) (6,888)
--------- --------- ----------- ---------
Total Net Sales $341,084 $325,893 $1,041,195 $953,340
========= ========= =========== =========
SEGMENT INCOME (1)
Dispensing Systems $42,979 $37,699 $114,806 $103,966
SeaquistPerfect 4,465 4,318 17,538 14,368
Corporate Expenses and Other (5,340) (3,373) (14,694) (12,125)
Redeployment Program (2) (2,972) --- (2,972) ---
--------- --------- ----------- ---------
Income before Interest and
Taxes 39,132 38,644 114,678 106,209
Less: Interest Expense, Net 2,254 1,772 6,456 4,606
--------- --------- ----------- ---------
Income before Income Taxes $36,878 $36,872 $108,222 $101,603
========= ========= =========== =========
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.
(2) - Redeployment Program charges relate to the Dispensing Systems
segment.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424