Exhibit 99.1
AptarGroup Caps Record Year with Strong Fourth Quarter Results
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Feb. 8, 2007--AptarGroup,
Inc. (NYSE:ATR) today reported record fourth quarter and annual
results.
Highlights
-- Fourth quarter sales increase 25% pushing annual sales to
record $1.6 billion
-- Earnings per share of $.77 for the quarter and $2.87 for the
year
-- Strong fourth quarter results for the Company's Beauty & Home
and Pharma segments
-- Over 1 million shares repurchased in the year
FOURTH QUARTER RESULTS
For the quarter ended December 31, 2006, sales increased 25% to a
record $422.4 million from $338.8 million in the fourth quarter of
2005. Increased demand for AptarGroup's innovative dispensing systems
and higher custom tooling sales accounted for 14% of the sales growth.
Changes in exchange rates represented approximately 7% of the growth
while sales from acquired companies contributed 4%.
Commenting on the quarter, Carl A. Siebel, President and Chief
Executive Officer, said, "I am happy to report that we completed the
year with a strong fourth quarter performance, particularly in our
Beauty & Home and Pharma segments. Strong demand for our products
across each of our business segments, as well as foreign currency
effects and contributions from our recent strategic acquisitions,
contributed to our sales growth."
Fourth Quarter Segment Sales Analysis
(Growth Over Prior Year)
Beauty & Total
Home Closures Pharma AptarGroup
-------------------------------------
Product and Custom Tooling Sales 15% 14% 12% 14%
Currency Effects 6% 5% 7% 7%
Sales from Acquired Companies 6% 5% 0% 4%
-------------------------------------
Total Growth 27% 24% 19% 25%
=====================================
Siebel added, "Strong product sales drove operating income to a
record fourth quarter level of $40.8 million in spite of the negative
impact of $2.0 million related to the expensing of stock options that
began in 2006, as well as a challenging competitive environment and
rising material and utility costs. In addition, we experienced
operational difficulties in our European Closures business which
reduced our Closures segment's income during the quarter and hindered
our overall operating income growth." Beauty & Home segment income
increased 59% to $17.5 million, Closures segment income decreased 9%
to $9.5 million, and Pharma segment income increased 16% to $22.2
million.
Diluted earnings per share increased 17% to $.77 per share
compared to $.66 per share in the prior year. Included in 2006
earnings per share is a negative impact of approximately $.04 per
share related to stock option expense and a positive tax benefit of
approximately $.03 per share primarily related to tax law changes in
Germany. Acquisitions were slightly accretive in the quarter.
Additionally, the Company spent $13.3 million to repurchase
approximately 223,000 shares of its common stock in the quarter.
ANNUAL RESULTS
Commenting on AptarGroup's full year performance, Siebel said,
"Each of our business segments enjoyed solid sales growth during the
year enabling us to achieve our 41st consecutive year of sales growth
and report record sales of $1.6 billion, up 16% from $1.4 billion in
2005." Increased product and custom tooling sales accounted for 8% of
the Company's sales growth, sales from acquired companies contributed
7%, and changes in exchange rates added 1%.
Operating income increased to a record $161.6 million up from
$149.8 million a year ago, in spite of the negative impact of a $13.3
million charge related to the expensing of stock options that began in
2006. Strong product sales, improved capacity utilization, and cost
containment efforts, including savings from the previously announced
Redeployment Program in France that began in 2005, more than offset
higher material costs and a challenging competitive price environment.
Diluted earnings per share reached a record level of $2.87 per
share, up from $2.77 per share a year ago. Included in the 2006
earnings per share is a negative impact of approximately $.24 per
share related to stock option expense and the positive impact of the
tax benefit mentioned above of approximately $.03 per share (for a net
negative impact of $.21 per share). The 2005 earnings per share
included a positive impact of approximately $.09 per share related to
prior years' research and development tax credits in the U.S. and
reduced taxes in Italy, as well as the negative impact of
approximately $.07 per share related to the Redeployment Program (for
a net positive impact of $.02 per share). Acquisitions were slightly
accretive in 2006. Also, the Company spent $57.7 million to repurchase
approximately 1.1 million shares of common stock in 2006 leaving 2
million shares authorized for repurchase at the end of the year.
OUTLOOK
Siebel commented, "Demand for our convenient dispensing systems is
expected to improve across each of our business segments in the coming
quarter, and given the current foreign currency environment, we
anticipate strong sales improvement over the prior year. We are still
in an environment of rising material costs but we are committed to
mitigating these effects where possible by passing such increases
along in our selling prices. The competitive environment also remains
challenging. However, we will continue to focus on being the
innovation leader in our niche and, as a result, deliver unique value
to our customers, and ultimately, to end consumers. We estimate that
diluted earnings per share for the first quarter of 2007 will be in
the range of $.68 to $.73 per share compared to $.55 per share in the
prior year."
OPEN CONFERENCE CALL
There will be a conference call on Friday February 9, 2007 at 8:00
a.m. CST to discuss the Company's fourth quarter and annual results
for 2006. The call will last approximately one hour. 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 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, AptarGroup'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
AptarGroup 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 AptarGroup'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 Year Ended
December 31, December 31,
----------------------- -----------------------
2006 (1) 2005 2006 (2) 2005
----------- ----------- ----------- -----------
Net Sales $422,387 $338,814 $1,601,385 $1,380,009
Cost of Sales
(exclusive of
depreciation shown
below) 289,448 227,724 1,086,269 927,585
Selling, Research &
Development and
Administrative 61,044 51,076 238,907 203,389
Depreciation and Other
Amortization 31,103 24,443 114,606 99,242
----------- ----------- ----------- -----------
Operating Income 40,792 35,571 161,603 149,793
Other Income/(Expense):
Interest Expense (4,799) (3,355) (16,985) (12,144)
Interest Income 1,461 671 4,214 3,004
Equity in Results of
Affiliates 86 429 506 1,646
Minority Interests 14 259 (80) 342
Miscellaneous, net 202 156 (952) (688)
----------- ----------- ----------- -----------
Income before Income
Taxes 37,756 33,731 148,306 141,953
Provision for Income
Taxes 10,581 10,019 45,410 41,919
----------- ----------- ----------- -----------
Net Income $27,175 $23,712 $102,896 $100,034
=========== =========== =========== ===========
Net Income per Share -
Basic $0.79 $0.68 $2.95 $2.84
=========== =========== =========== ===========
Net Income per Share -
Diluted $0.77 $0.66 $2.87 $2.77
=========== =========== =========== ===========
Average Number of
Shares - Basic 34,530 34,903 34,827 35,188
Average Number of
Shares - Diluted 35,427 35,935 35,872 36,177
Notes to Condensed Consolidated Financial Statements:
(1) - For the fourth quarter 2006, the following amounts related to
stock option expenses are included in the respective lines of the
above table: Cost of Sales ($.2 million), Selling, Research &
Development and Administrative ($1.8 million), Income Before Income
Taxes ($2.0 million), Net Income ($1.3 million), and Net Income per
Share - Basic and Diluted ($.04 per share).
(2) - For the year 2006, the following amounts related to stock option
expenses are included in the respective lines of the above table:
Cost of Sales ($.9 million), Selling, Research & Development and
Administrative ($12.4 million), Income Before Income Taxes ($13.3
million), Net Income ($8.7 million), and Net Income per Share - Basic
($.25 per share) and Diluted ($.24 per share).
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2006 2005
ASSETS
Cash and Equivalents $170,576 $117,635
Receivables, net 320,969 260,175
Inventories 226,455 184,241
Other Current Assets 44,820 43,240
------------ ------------
Total Current Assets 762,820 605,291
Net Property, Plant and Equipment 591,077 536,820
Goodwill, net 207,882 184,763
Other Assets 30,233 30,445
------------ ------------
Total Assets $1,592,012 $1,357,319
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $127,424 $102,103
Accounts Payable and Accrued Liabilities 272,761 218,659
------------ ------------
Total Current Liabilities 400,185 320,762
Long-Term Obligations 168,877 144,541
Deferred Liabilities 76,550 82,628
------------ ------------
Total Liabilities 645,612 547,931
Stockholders' Equity 946,400 809,388
------------ ------------
Total Liabilities and Stockholders' Equity $1,592,012 $1,357,319
============ ============
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
SALES
Beauty & Home $226,617 $175,950 $849,736 $705,749
Closures 112,750 91,175 442,321 386,431
Pharma 87,985 73,851 323,647 297,827
Other 495 281 1,397 1,363
----------- ----------- ----------- -----------
Total Sales $427,847 $341,257 $1,617,101 $1,391,370
=========== =========== =========== ===========
INTERSEGMENT
ELIMINATIONS
Beauty & Home $(4,815) $(1,722) $(12,643) $(7,383)
Closures (285) (200) (1,118) (1,270)
Pharma (89) (276) (1,044) (1,718)
Other (271) (245) (911) (990)
----------- ----------- ----------- -----------
Total Intersegment
Eliminations $(5,460) $(2,443) $(15,716) $(11,361)
=========== =========== =========== ===========
NET SALES
Beauty & Home $221,802 $174,228 $837,093 $698,366
Closures 112,465 90,975 441,203 385,161
Pharma 87,896 73,575 322,603 296,109
Other 224 36 486 373
----------- ----------- ----------- -----------
Total Net Sales $422,387 $338,814 $1,601,385 $1,380,009
=========== =========== =========== ===========
SEGMENT INCOME (1)
Beauty & Home $17,524 $11,055 $72,396 $54,009
Closures 9,483 10,420 44,031 42,392
Pharma 22,199 19,213 80,841 76,004
Corporate Expenses and
Other (2) (8,112) (4,273) (36,191) (21,312)
----------- ----------- ----------- -----------
Income before Interest
and Taxes 41,094 36,415 161,077 151,093
Less: Interest Expense,
Net 3,338 2,684 12,771 9,140
----------- ----------- ----------- -----------
Income before Income
Taxes $37,756 $33,731 $148,306 $141,953
=========== =========== =========== ===========
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, stock option and corporate expenses,
income taxes and unusual items.
(2) - For the fourth quarter and year-to-date 2006, Corporate Expenses
and Other includes the total amounts related to stock option expenses
of $2.0 million and $13.3 million, respectively.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge
815-477-0424