Exhibit 99.1
AptarGroup Reports All-Time High Quarterly Results; Declares Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Oct. 17, 2007--AptarGroup,
Inc. (NYSE:ATR) today reported the highest quarterly results in its
history. The Company's Board of Directors also declared a quarterly
dividend of $.13 per share.
Third Quarter 2007 Highlights
-- Earnings per share climbed 40% to a record $.56 per share
-- German tax law changes contributed $.03 per share
-- Sales rose 20% to a record $485.7 million
-- Pharma and Beauty & Home segments were particularly strong
-- $19.7 million spent to repurchase 545,000 shares
THIRD QUARTER RESULTS
For the quarter ended September 30, 2007, sales increased 20% to a
record $485.7 million, up from $404.9 million a year ago. Strong
dispensing system sales accounted for 13% of the growth while changes
in exchange rates contributed 6% and acquisitions added 1%.
Commenting on the quarter, Carl Siebel, President and CEO, said,
"I'm pleased to report that we had another excellent quarter. Our
international presence and dedication to being the innovation leader
in our industry enabled us to once again post increased sales and
profits across each of our business segments."
Third Quarter Segment Sales Analysis
(Growth Over Prior Year)
Beauty & Total
Home Closures Pharma AptarGroup
--------------------------------------
Product and Custom Tooling Sales 15% 5% 21% 13%
Currency Effects 6% 5% 7% 6%
Sales from Acquired Companies 1% 1% 0% 1%
--------------------------------------
Total Growth 22% 11% 28% 20%
======================================
Operating income increased to a record $57.4 million, up 29% from
$44.6 million a year ago primarily due to the strength of the Pharma
and Beauty & Home segments. Beauty & Home segment income (income
before interest expense net of interest income, stock option and
corporate expenses, income taxes and unusual items) increased 38% to
$25.6 million driven by demand from the personal care and
fragrance/cosmetic markets. Strong demand for nasal spray pumps and
metered dose inhaler valves drove Pharma segment income to $29.4
million or an increase of 35%. Closures segment income rose 6% to
$12.5 million primarily due to stronger sales to the food and beverage
market.
Diluted earnings per share increased 40% to a record $.56 per
share compared to $.40 per share in the prior year. Included in 2007
earnings per share is a positive tax benefit of approximately $.03 per
share related to tax law changes in Germany. Siebel added, "Record
earnings were driven by strong demand for our innovative products,
particularly in our Pharma and Beauty & Home segments where we also
realized improved operating performance. Our Closures segment also
posted increased profits primarily due to strong demand from the
European and Latin American markets. However, Closures' growth was
hampered by softer demand from the U.S. personal care market."
YEAR-TO-DATE RESULTS
For the year-to-date, sales increased 19% to a record $1.4 billion
from approximately $1.2 billion a year ago. Dispensing system sales
increased 12% while changes in exchange rates added 6% and
acquisitions contributed 1% to AptarGroup's top line.
Operating income increased to a record $161.6 million, up 34% from
$120.8 million a year ago. Diluted earnings per share, including the
$.03 per share positive tax benefit recorded in the third quarter,
increased 41% to $1.48 per share compared to $1.05 per share a year
ago.
OUTLOOK
Siebel commented, "Looking to the fourth quarter, we expect each
of our business segments to grow over the prior year with notable
strength coming from our Pharma and Beauty & Home segments. We
estimate that diluted earnings per share for the fourth quarter will
be in the range of $.43 to $.46 per share, or an increase of 13% to
21%, compared to $.38 per share reported a year ago."
CASH DIVIDEND AND SHARE REPURCHASE PROGRAM
The Board of Directors declared a quarterly dividend of $.13 per
share, payable November 21, 2007 to shareholders of record as of
October 31, 2007. Also during the quarter, the Company repurchased
approximately 545,000 shares of common stock for $19.7 million leaving
approximately 2.5 million shares authorized for repurchase at the end
of the third quarter.
OPEN CONFERENCE CALL
There will be a conference call on Thursday October 18, 2007 at
8:00 a.m. CDT to discuss the Company's third 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 Nine Months Ended
September 30, September 30,
--------------------- -----------------------
2007 2006 2007 2006
---------- ---------- ----------- -----------
Net Sales $ 485,692 $ 404,905 $1,408,409 $1,178,998
Cost of Sales (exclusive
of depreciation shown
below) 330,438 274,517 949,293 796,821
Selling, Research &
Development and
Administrative 65,773 57,406 205,303 177,863
Depreciation and Other
Amortization 32,065 28,340 92,246 83,503
---------- ---------- ----------- -----------
Operating Income 57,416 44,642 161,567 120,811
Other Income/(Expense):
Interest Expense (4,880) (4,479) (14,335) (12,186)
Interest Income 2,222 1,012 5,600 2,753
Equity in Results of
Affiliates 158 177 426 420
Minority Interests (22) 38 (4) (94)
Miscellaneous, net (303) (219) (1,513) (1,154)
---------- ---------- ----------- -----------
Income before Income
Taxes 54,591 41,171 151,741 110,550
Provision for Income
Taxes 15,196 12,928 45,798 34,829
---------- ---------- ----------- -----------
Net Income $ 39,395 $ 28,243 $ 105,943 $ 75,721
========== ========== =========== ===========
Net Income per Share
- - Basic (a) $ 0.58 $ 0.41 $ 1.54 $ 1.08
========== ========== =========== ===========
Net Income per Share
- - Diluted (a) $ 0.56 $ 0.40 $ 1.48 $ 1.05
========== ========== =========== ===========
Average Number of Shares
- - Basic (a) 68,488 69,292 68,902 69,838
Average Number of Shares
- - Diluted (a) 70,909 70,878 71,717 72,066
(a) Previously reported Net Income per Share and Average Number of
Shares have been restated to reflect the two-for-one stock split on
May 9, 2007.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
September 30, 2007 December 31, 2006
ASSETS
Cash and Equivalents $ 270,073 $ 170,576
Receivables, net 380,187 320,969
Inventories 263,426 226,455
Other Current Assets 64,280 44,820
------------------ ------------------
Total Current Assets 977,966 762,820
Net Property, Plant and Equipment 628,745 591,077
Goodwill, net 219,903 207,882
Other Assets 28,077 30,233
------------------ ------------------
Total Assets $ 1,854,691 $ 1,592,012
================== ==================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Short-Term Obligations $ 207,065 $ 127,424
Accounts Payable and Accrued
Liabilities 340,368 272,761
------------------ ------------------
Total Current Liabilities 547,433 400,185
Long-Term Obligations 146,545 168,877
Deferred Liabilities 85,733 76,550
------------------ ------------------
Total Liabilities 779,711 645,612
Stockholders' Equity 1,074,980 946,400
------------------ ------------------
Total Liabilities and
Stockholders' Equity $ 1,854,691 $ 1,592,012
================== ==================
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- -----------------------
2007 2006 2007 2006
---------- ---------- ----------- -----------
NET SALES
Beauty & Home $ 258,613 $ 212,400 $ 750,757 $ 615,291
Closures 126,519 113,808 368,032 328,738
Pharma 100,559 78,632 289,617 234,707
Other 1 65 3 262
---------- ---------- ----------- -----------
Total Net Sales $ 485,692 $ 404,905 $1,408,409 $1,178,998
========== ========== =========== ===========
SEGMENT INCOME (1)
Beauty & Home $ 25,561 $ 18,487 $ 78,136 $ 54,872
Closures 12,494 11,825 39,838 34,548
Pharma 29,407 21,731 78,445 58,642
Corporate Expenses and
Other (10,213) (7,405) (35,943) (28,079)
---------- ---------- ----------- -----------
Total Income Before
Interest and Taxes $ 57,249 $ 44,638 $ 160,476 $ 119,983
Less: Interest Expense,
Net 2,658 3,467 8,735 9,433
---------- ---------- ----------- -----------
Income before Income
Taxes $ 54,591 $ 41,171 $ 151,741 $ 110,550
========== ========== =========== ===========
SEGMENT INCOME %
Beauty & Home 9.9% 8.7% 10.4% 8.9%
Closures 9.9% 10.4% 10.8% 10.5%
Pharma 29.2% 27.6% 27.1% 25.0%
Income before Interest
and Taxes 11.8% 11.0% 11.4% 10.2%
========== ========== =========== ===========
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and
allocates resources based upon income before interest expense net of
interest income, stock option and corporate expenses, income taxes
and unusual items.
CONTACT: AptarGroup, Inc.
Stephen J. Hagge, 815-477-0424