AptarGroup, Inc. (NYSE:ATR) today reported first quarter sales
and earnings per share. Excluding currency effects, comparable
earnings per share increased significantly over the prior year
despite a slight decline in sales.
First Quarter 2015 Summary
- Excluding currency translation
effects, core sales declined 1%
- Earnings per share reached $0.70, a
17% increase over the prior year currency-adjusted earnings per
share of $0.60
- Reported sales and earnings per
share were negatively impacted by weak foreign currencies,
primarily the Euro
- Reported sales decreased 13% to $590
million and reported earnings per share decreased 1% to $0.70 per
share from $0.71 per share reported in the prior year
- Pharma segment delivered excellent
results with core sales growth in each market
- Each business segment achieved
operating profit margins equal to or above the prior year’s
levels
FIRST QUARTER RESULTS
For the quarter ended March 31, 2015, reported sales decreased
13% to $590 million from $676 million a year ago. Excluding the
negative impact from changes in currency exchange rates, core sales
decreased by 1%.
First Quarter Segment Sales Analysis (Change Over Prior
Year) Beauty + Food + Total Home
Pharma Beverage AptarGroup Sales Growth Before
Currency Effects (Core Sales) (4%) 7% (4%) (1%) Currency Effects
(1) (12%) (15%) (6%) (12%) Total Reported
Sales Growth (16%) (8%) (10%) (13%)
(1) - Currency effects are determined by translating last year's
amounts at this year's foreign exchange rates.
Commenting on the quarter, Stephen Hagge, President and CEO,
said, “I am pleased that we were able to achieve strong earnings
per share growth on a comparable currency-adjusted basis despite
softness in certain markets. Our results were primarily driven by
another excellent quarter for our Pharma segment that grew cores
sales in each of its markets. We also benefited from cost
containment efforts and lower raw material costs across each
business segment. We are on the right track toward improving the
margin profile of our Beauty + Home segment and while we are in the
early stages, I think this quarter’s result was a good start. In
addition, after a slow start to the quarter, our Food + Beverage
segment’s sales gained momentum as the quarter progressed.”
AptarGroup reported earnings per share of $0.70 compared to
$0.71 per share a year ago. Assuming a comparable foreign currency
exchange rate environment, comparable earnings per share for the
prior year were approximately $0.60.
OUTLOOK
Commenting on AptarGroup’s outlook, Hagge said, “As we look
forward to the second quarter, we are expecting another quarter of
solid earnings growth on a comparable currency-adjusted basis. The
weak foreign currency environment should continue to be a
significant headwind on our translated results. Recent near-term
macro-economic forecasts point to deceleration in the developing
regions and there remains some uncertainty around the pace of
growth in the US and Europe. However, our level of project dialog
with customers is good and we are optimistic that we will continue
to drive growth through our targeted market approach with the
industry’s broadest product portfolio. We will also continue to
focus on cost containment as we create affordable innovation for
our customers and consumers.”
AptarGroup expects earnings per share for the second quarter to
be in the range of $0.73 to $0.78 per share compared to $0.79 per
share reported in the prior year. Assuming a comparable foreign
currency exchange rate environment, comparable earnings per share
for the prior year were approximately $0.66.
CASH DIVIDEND
As previously reported, the Board of Directors declared a
quarterly cash dividend of $0.28 per share. The payment date is May
20, 2015, to stockholders of record as of April 29, 2015.
OPEN CONFERENCE CALL
There will be a conference call on Friday, May 1, 2015 at 8:00
a.m. Central Time to discuss AptarGroup’s first quarter results for
2015. 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.aptar.com. Replay of the conference call can
also be accessed on the Investor Relations page of the website.
AptarGroup, Inc. is a leading global supplier of a broad range
of innovative dispensing solutions for the beauty, personal care,
home care, prescription drug, consumer health care, injectables,
food, and beverage markets. AptarGroup is headquartered in Crystal
Lake, Illinois, with manufacturing facilities in North America,
Europe, Asia and South America. For more information, visit
www.aptar.com.
This press release contains forward-looking statements. Words
such as “expects,” “anticipates,” “believes,” “estimates,” and
other similar expressions or future or conditional verbs such as
“will,” “should,” “would” and “could” are intended to identify such
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, economic, environmental or
political conditions in the various markets and countries in which
AptarGroup operates; changes in customer and/or consumer spending
levels; financial conditions of customers and suppliers;
consolidations within our customer or supplier bases; fluctuations
in the cost of raw materials, components and other input costs; the
Company’s ability to increase prices, contain costs and improve
productivity; changes in capital availability or cost, including
interest rate fluctuations; the competitive marketplace; fiscal and
monetary policies and other regulations; inflationary pressures and
changes in foreign currency exchange rates; direct or indirect
consequences of acts of war or terrorism; and labor relations. For
additional information on these and other risks and uncertainties,
please see AptarGroup’s filings with the Securities and Exchange
Commission, including its Form 10-K’s and Form 10-Q’s. Readers are
cautioned not to place undue reliance on forward-looking
statements. AptarGroup undertakes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise.
APTARGROUP, INC. Condensed Consolidated Financial
Statements (Unaudited) (In Thousands, Except Per
Share Data)
CONSOLIDATED STATEMENTS OF INCOME Three
Months Ended March 31,
2015
2014 Net Sales $ 589,811 $ 676,051 Cost
of Sales (exclusive of depreciation shown below) 385,979 453,411
Selling, Research & Development and Administrative 96,187
106,674 Depreciation and Amortization
34,060
37,247 Operating Income 73,585
78,719 Other Income/(Expense): Interest Expense (7,303 ) (4,881 )
Interest Income 1,731 1,016 Equity in income of affiliates (119 )
(1,546 ) Miscellaneous, net
(199 )
372 Income before Income Taxes 67,695
73,680 Provision for Income Taxes
22,596
25,272 Net Income $ 45,099 $ 48,408
Net Loss/(Income) Attributable to Noncontrolling Interests
72 (19
) Net Income Attributable to AptarGroup, Inc.
$ 45,171 $
48,389 Net Income Attributable to AptarGroup,
Inc. Per Common Share: Basic
$ 0.73
$ 0.74 Diluted
$ 0.70 $
0.71 Average Numbers of Shares
Outstanding: Basic 62,292 65,468 Diluted 64,494 68,232
APTARGROUP, INC. Condensed Consolidated Financial
Statements (Unaudited) (continued) (In Thousands)
CONSOLIDATED BALANCE SHEETS March 31, 2015
December 31, 2014 ASSETS Cash and Equivalents $ 385,693 $
399,762 Receivables, net 421,560 406,976 Inventories 284,579
311,072 Other Current Assets
103,494
96,128 Total Current Assets 1,195,326 1,213,938 Net
Property, Plant and Equipment 756,488 811,655 Goodwill, net 309,396
329,741 Other Assets
73,816
81,856 Total Assets
$
2,335,026 $ 2,437,190
LIABILITIES AND EQUITY Short-Term Obligations $ 22,587 $
251,976 Accounts Payable and Accrued Liabilities
340,334 352,762 Total Current
Liabilities 362,921 604,738 Long-Term Obligations 812,232 588,892
Deferred Liabilities
133,075
139,644 Total Liabilities 1,308,228 1,333,274
AptarGroup, Inc. Stockholders' Equity 1,026,361 1,103,407
Noncontrolling Interests in Subsidiaries
437
509 Total Equity
1,026,798
1,103,916 Total Liabilities and Equity
$ 2,335,026 $
2,437,190 APTARGROUP, INC. Condensed
Consolidated Financial Statements (Unaudited) (continued) (In
Thousands)
SEGMENT INFORMATION Three Months
Ended March 31,
2015
2014
NET SALES
Beauty + Home $ 329,414 $ 391,236 Pharma 178,669 194,349 Food +
Beverage
81,728
90,466 Total Net Sales $
589,811 $ 676,051
SEGMENT INCOME
(1)
Beauty + Home $ 23,375 $ 27,781 Pharma 52,001 52,482 Food +
Beverage 9,050 9,080 Corporate and Other
(11,159 ) (11,798
) Total Income Before Interest and Taxes $ 73,267 $
77,545 Interest Expense, Net
(5,572
) (3,865 ) Income
before Income Taxes $ 67,695
$ 73,680
SEGMENT INCOME AS %
OF NET SALES
Beauty + Home 7.1 % 7.1 % Pharma 29.1 % 27.0 % Food + Beverage 11.1
% 10.0 % Notes to Condensed Consolidated Financial Statements: (1)
- The Company evaluates performance of its business units and
allocates resources based upon segment income defined as earnings
before net interest expense, certain corporate expenses, and income
taxes.
AptarGroup, Inc.Matthew DellaMaria, 815-477-0424
AptarGroup (NYSE:ATR)
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