Exhibit 99.1
AptarGroup Reports Record First Quarter Results;
Announces 18% Dividend Increase and 2-for-1 Stock Split;
CEO Carl Siebel to Retire at End of Year
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 18, 2007--AptarGroup, Inc.
(NYSE:ATR) today reported record first quarter results and announced an
increased dividend and stock split. President and CEO, Carl Siebel, announced
his plans to retire effective December 31, 2007.
First Quarter 2007 Highlights
-- Earnings per share soar 49% to record high of $.82 per share
-- Sales jump 20% to record level of $449.8 million
-- Results were strong across all business segments
-- Board boosts annual dividend 18% to $1.04 per share
-- Stock to be split 2-for-1
FIRST QUARTER RESULTS
For the quarter ended March 31, 2007, sales increased 20% to a record
$449.8 million from $375.5 million a year ago. Product sales accounted for 12%
of the growth while changes in exchange rates contributed 6%, acquisitions added
2%.
Commenting on the quarter, Carl Siebel, President and CEO, said, "We had an
outstanding quarter with exceptionally strong profit growth and broad-based
revenue growth reported by all of our business segments. Sales were up in nearly
each geographic region, product category, and end market of our business. Our
strategy to focus on the dispensing systems sector of the packaging industry and
invest in new companies, new technologies, and new research efforts has put us
in position to have such a successful quarter. We are, as we have always been,
committed to helping our customers achieve the best possible dispensing
solutions for their products and thus grow their own businesses. Our results
reflect this commitment and the value our products continually bring to market."
First Quarter Segment Sales Analysis
(Growth Over Prior Year)
Beauty & Total
Home Closures Pharma AptarGroup
--------------------------------------
Product and Custom Tooling Sales 16% 7% 10% 12%
Currency Effects 7% 4% 8% 6%
Sales from Acquired Companies 1% 3% 0% 2%
--------------------------------------
Total Growth 24% 14% 18% 20%
======================================
Operating income increased to a record $46.6 million, up 44% from $32.4
million a year ago, in spite of stock option expense in the first quarter being
approximately $1.6 million higher than the prior year. This is a result of
AptarGroup's ongoing cost containment efforts coupled with strong product sales.
Beauty & Home segment income increased 57% to $26.1 million driven by increased
sales of fragrance/cosmetic pumps and sampling systems, and personal care
aerosol valves and accessories. Closures segment income rose 33% to $14.0
million primarily due to stronger sales to the personal care and household
markets. Pharma segment income increased 33% to $22.7 million due to strong
product sales, particularly sales of metered dose inhaler valves.
Diluted earnings per share increased 49% to $.82 per share compared to $.55
per share in the prior year. Siebel added, "Strong demand for our innovative
dispensing systems across all of our business segments and our ability to
control costs continue to deliver solid earnings growth."
OUTLOOK
Siebel commented, "The outlook for our second quarter is good at this time.
We expect demand for our dispensing systems to continue at a high level and that
our overall sales will improve over the prior year excluding any changes in
exchange rates. With our continued focus on cost management and our ability to
leverage our fixed costs, we expect profits to improve as well. We estimate that
diluted earnings per share for the second quarter will be in the range of $.96
to $1.01 per share on a pre-split basis compared to $.77 per share in the prior
year."
CASH DIVIDEND
The Board of Directors increased the quarterly dividend by 18% to $.26 per
share ($1.04 per share annually on a pre-split basis), payable May 23, 2007 to
shareholders of record as of May 2, 2007.
Siebel commented, "With our cash generating ability and our strong balance
sheet, we are able to return value to shareholders and remain well positioned to
take advantage of strategic acquisitions should they present themselves."
STOCK SPLIT
AptarGroup's Board also approved a 2-for-1 stock split to be effected in
the form of a stock distribution to shareholders of record as of the close of
business on May 2, 2007. AptarGroup currently has approximately 34.6 million
common shares outstanding. Each outstanding share of AptarGroup common stock
will be split into two shares. Certificates representing additional shares as a
result of the stock split will be distributed on or about May 9, 2007.
CARL SIEBEL TO RETIRE
Carl Siebel has advised the Board of his decision to retire effective
December 31, 2007. Mr. Siebel intends to continue to serve as a director of
AptarGroup. The Board has selected Peter Pfeiffer, AptarGroup's Vice Chairman
since 1993, to succeed Siebel as President and CEO effective January 1, 2008. In
addition, the Board announced that the role of Stephen Hagge, Executive Vice
President and CFO, will be expanded and his title will include Chief Operating
Officer effective January 1, 2008.
Siebel commented, "I have worked for the Company for most of my
professional career and I am ready to step back from the day-to-day management
of the business. However, I look forward to continuing to serve on our Board and
playing a part in our future. With the exceptional experience and depth of our
senior management team, I am confident that AptarGroup will continue on the same
successful course for many years to come. Peter Pfeiffer, my long-term
colleague, is an AptarGroup and industry veteran with over 30 years of
experience. Both Peter and Steve Hagge have been instrumental in the outstanding
success of our company and they have partnered with me on each major strategic
initiative undertaken by AptarGroup since I became CEO in 1996."
Board Chairman, King Harris, said, "Carl has been with the Company over 45
years and his legacy of strategic planning, customer focus, core values, and
unbounded energy is embedded in our culture. Over the years he has strengthened
the senior management team and, under his leadership, AptarGroup has expanded
globally through start-up operations and acquisitions and is today present in 19
different countries. During his tenure, revenues have grown from $560 million in
1995 to over $1.6 billion in 2006, and profits have nearly tripled in this same
period. In addition, Carl has led AptarGroup to develop or acquire many
innovative dispensing technologies that have propelled the Company to become the
undisputed leader in its industry."
Harris concluded, "The Board is very confident in AptarGroup's future
leadership with Peter Pfeiffer's broad industry experience and a very capable
senior management team that has worked closely with Carl, Peter, and Steve
executing AptarGroup's strategy over the past decade."
OPEN CONFERENCE CALL
There will be a conference call on Thursday April 19, 2007 at 8:00 a.m. CDT
to discuss AptarGroup's first quarter results for 2007. 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
March 31,
-----------------------
2007 2006
----------- -----------
Net Sales $449,841 $375,468
Cost of Sales (exclusive of depreciation shown
below) 300,260 253,786
Selling, Research & Development and
Administrative 73,725 62,370
Depreciation and Other Amortization 29,237 26,913
----------- -----------
Operating Income 46,619 32,399
Other Income/(Expense):
Interest Expense (4,843) (3,810)
Interest Income 1,622 911
Equity in Results of Affiliates 157 106
Minority Interests 17 (46)
Miscellaneous, net (390) (513)
----------- -----------
Income before Income Taxes 43,182 29,047
Provision for Income Taxes 13,602 9,237
----------- -----------
Net Income $29,580 $19,810
=========== ===========
Net Income per Share - Basic $0.86 $0.56
=========== ===========
Net Income per Share - Diluted $0.82 $0.55
=========== ===========
Average Number of Shares - Basic 34,594 35,075
Average Number of Shares - Diluted 35,912 36,246
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2007 2006
ASSETS
Cash and Equivalents $181,247 $170,576
Receivables, net 362,338 320,969
Inventories 243,502 226,455
Other Current Assets 56,630 44,820
-------------- --------------
Total Current Assets 843,717 762,820
Net Property, Plant and Equipment 594,284 591,077
Goodwill, net 213,558 207,882
Other Assets 30,019 30,233
-------------- --------------
Total Assets $1,681,578 $1,592,012
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $144,633 $127,424
Accounts Payable and Accrued Liabilities 298,182 272,761
-------------- --------------
Total Current Liabilities 442,815 400,185
Long-Term Obligations 168,676 168,877
Deferred Liabilities 83,954 76,550
-------------- --------------
Total Liabilities 695,445 645,612
Stockholders' Equity 986,133 946,400
-------------- --------------
Total Liabilities and Stockholders'
Equity $1,681,578 $1,592,012
============== ==============
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
Three Months Ended
March 31,
-----------------------
2007 2006
----------- -----------
SALES
Beauty & Home $244,396 $197,922
Closures 120,461 105,729
Pharma 87,944 74,957
Other 316 226
----------- -----------
Total Sales $453,117 $378,834
=========== ===========
INTERSEGMENT ELIMINATIONS
Beauty & Home $(2,438) $(2,614)
Closures (480) (241)
Pharma (43) (343)
Other (315) (168)
----------- -----------
Total Intersegment Eliminations $(3,276) $(3,366)
=========== ===========
NET SALES
Beauty & Home $241,958 $195,308
Closures 119,981 105,488
Pharma 87,901 74,614
Other 1 58
----------- -----------
Total Net Sales $449,841 $375,468
=========== ===========
SEGMENT INCOME (1)
Beauty & Home $26,132 $16,633
Closures 13,981 10,537
Pharma 22,682 17,063
Corporate Expenses and Other (16,392) (12,287)
----------- -----------
Income before Interest and Taxes 46,403 31,946
Less: Interest Expense, Net 3,221 2,899
----------- -----------
Income before Income Taxes $43,182 $29,047
=========== ===========
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.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424