UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July
28, 2015
Date
of Report (Date of earliest event reported)
AptarGroup,
Inc.
(Exact
name of registrant as specified in its charter)
Delaware
|
1-11846
|
36-3853103
|
(State or other jurisdiction of
incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
475 West Terra Cotta Avenue, Suite E, Crystal Lake, Illinois
60014
|
(Address
of principal executive offices)
|
Registrant’s
telephone number, including area code: 815-477-0424.
N/A
|
(Former name or former address, if changed since last report)
|
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02
|
Results of Operations and Financial Condition.
|
On July 28, 2015, AptarGroup, Inc. announced certain information related
to its results of operations for the quarter and six months ended June
30, 2015. The press release regarding this announcement is furnished as
Exhibit 99.1 hereto.
The information in Item 2.02 of this Form 8-K and the Exhibits attached
hereto shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, nor shall they be deemed
incorporated by reference in any filing under the Securities Act of
1933, except as shall be expressly set forth by specific reference in
such filing.
Item 9.01
|
Financial Statements and Exhibits.
|
(d) Exhibits
|
|
99.1
|
Press release issued by AptarGroup, Inc. dated July 28, 2015.
|
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
|
AptarGroup, Inc.
|
|
|
|
|
|
Date:
|
July 28, 2015
|
By:
|
/s/ Robert W. Kuhn
|
|
|
|
|
Robert W. Kuhn
|
|
|
|
Executive Vice President,
|
|
|
|
Chief Financial Officer and Secretary
|
Exhibit Index
99.1
|
Press Release issued by AptarGroup, Inc. dated July 28, 2015.
|
3
Exhibit 99.1
AptarGroup’s
Strong Operating Results Drive Record Quarterly Earnings Per Share
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 28, 2015--AptarGroup, Inc.
(NYSE:ATR) today announced record quarterly earnings per share on both a
reported basis and also after excluding the effect of a change in
inventory valuation methods.
Second Quarter 2015 Summary
-
Improved operating margins across each segment drove record
earnings per share
-
Reported earnings per share rose to a record $0.90 compared to
$0.79 reported in the prior year
-
Second quarter pre-tax earnings included a positive impact of
approximately $7.4 million (approximately $0.08 per share after-tax)
related to a change in accounting for certain inventories from the
last in, first out (LIFO) method to the first in, first out (FIFO)
method
-
Excluding the effects of the change to the FIFO inventory valuation
method, earnings per share were $0.82 compared to prior year
currency-adjusted earnings per share of $0.68
-
Excluding currency translation effects, core sales increased
approximately 2% (reported sales decreased 11%)
SECOND QUARTER RESULTS
For the quarter ended June 30, 2015, reported sales decreased 11% to
$594 million from $671 million a year ago. Excluding the negative impact
from changes in currency exchange rates, core sales increased by
approximately 2%.
|
Second Quarter Segment Sales Analysis
|
(Change Over Prior Year)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beauty +
|
|
|
|
|
|
Food +
|
|
|
Total
|
|
|
|
Home
|
|
|
Pharma
|
|
|
Beverage
|
|
|
AptarGroup
|
Sales Growth Before Currency Effects (Core Sales)
|
|
|
(4
|
%)
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
2
|
%
|
Currency Effects (1)
|
|
|
(13
|
%)
|
|
|
(15
|
%)
|
|
|
(7
|
%)
|
|
|
(13
|
%)
|
Total Reported Sales Growth
|
|
|
(17
|
%)
|
|
|
(6
|
%)
|
|
|
2
|
%
|
|
|
(11
|
%)
|
(1) - Currency effects are approximated by translating last year's
amounts at this year's foreign exchange rates.
Commenting on the quarter, Stephen Hagge, President and CEO, said, “This
was a strong quarter that once again reflected our ability to
successfully execute our strategy. We offer a broad portfolio of
dispensing solutions to a variety of end markets. Increases in demand
across multiple markets drove volumes higher in our Pharma and Food +
Beverage segments. This offset some weakness in certain markets served
by our Beauty + Home segment. In addition, currency headwinds affected
each business segment.”
Hagge continued, “I’m pleased that each of our segments reported
improved operating margins compared to the prior year and that we
achieved our highest level of quarterly earnings per share. We continue
to successfully implement new customer projects while we maintain our
focus on cost containment across all three of our business segments.
This focus along with volume increases drove the strong operating
margins in our Pharma and Food + Beverage segments. Our Beauty + Home
segment did a terrific job of remaining responsive to our customers’
needs as we navigated through soft market conditions while pulling the
right levers to improve the operating margin.”
During the second quarter of 2015, AptarGroup changed the method of
valuing inventories at two U.S. locations that used the last in, first
out (“LIFO”) method to the first in, first out (“FIFO”) method. With
this change, all inventories are now valued using the FIFO method which
more closely reflects current costs. The impact of the change resulted
in pre-tax income in the second quarter of approximately $7.4 million,
or approximately $0.08 per diluted share.
AptarGroup reported earnings per share of $0.90 compared to $0.79 per
share a year ago. Excluding the effect of the inventory valuation method
change, earnings per share were $0.82. Assuming a comparable foreign
currency exchange rate environment, comparable earnings per share for
the prior year were approximately $0.68.
YEAR-TO-DATE RESULTS
For the six months ended June 30, 2015, reported sales decreased 12% to
approximately $1.18 billion from approximately $1.35 billion a year ago.
Excluding the negative impact from changes in currency exchange rates,
core sales were approximately equal to the prior year.
Six Months Year-to-Date Segment Sales Analysis
|
(Change Over Prior Year)
|
|
|
|
|
Beauty +
|
|
|
|
|
|
Food +
|
|
|
Total
|
|
|
|
Home
|
|
|
Pharma
|
|
|
Beverage
|
|
|
AptarGroup
|
Sales Growth Before Currency Effects (Core Sales)
|
|
|
(4
|
%)
|
|
|
8
|
%
|
|
|
2
|
%
|
|
|
--
|
|
Currency Effects (1)
|
|
|
(12
|
%)
|
|
|
(15
|
%)
|
|
|
(6
|
%)
|
|
|
(12
|
%)
|
Total Reported Sales Growth
|
|
|
(16
|
%)
|
|
|
(7
|
%)
|
|
|
(4
|
%)
|
|
|
(12
|
%)
|
(1) - Currency effects are approximated by translating last year's
amounts at this year's foreign exchange rates.
Hagge commented on the year-to-date results, “Our reported figures
through the first half of the year include significant negative
translation effects stemming from the strong U.S. dollar relative to a
year ago. When we exclude currency translation effects, our core sales
were approximately equal to the prior year. Certain markets served by
our Beauty + Home business remained soft through the first half but this
was offset by the continued strong performance of our Pharma segment and
the improvement in sales in our Food + Beverage segment.”
AptarGroup reported earnings per share of $1.59 compared to $1.49 per
share a year ago. Excluding the effect of the inventory valuation method
change made in the second quarter, earnings per share were $1.51.
Assuming a comparable foreign currency exchange rate environment,
comparable earnings per share for the prior year were approximately
$1.27.
OUTLOOK
Commenting on AptarGroup’s outlook, Hagge said, “We are looking forward
to building upon the progress we’ve made thus far this year. We are
committed to investing in research and development and in the capital
projects necessary to support our long-term growth. Certain
macro-economic conditions could remain challenging in the near-term,
including the stagnation affecting certain markets in Latin America and
the global foreign exchange environment. However, we will stay focused
and execute our strategy and in doing so, continue to help our customers
grow their businesses with our innovative dispensing solutions.”
AptarGroup expects earnings per share for the third quarter to be in the
range of $0.77 to $0.82 compared to $0.73 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 $0.65.
CASH DIVIDEND
As previously reported, the Board declared on July 16, 2015, a quarterly
dividend of $0.28 per share, payable August 19, 2015 to shareholders of
record as of July 29, 2015.
OPEN CONFERENCE CALL
There will be a conference call on Wednesday, July 29, 2015 at 7:00 a.m.
Central Time to discuss AptarGroup’s second 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
conditions worldwide as well as potential deflationary conditions in
regions we rely on for growth; political conditions worldwide;
significant fluctuations in foreign currency exchange rates; 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 availability of raw materials and components; our
ability to increase prices, contain costs and improve productivity;
changes in capital availability or cost, including interest rate
fluctuations; volatility of global credit markets; cybersecurity threats
that could impact our networks and reporting systems; fiscal and
monetary policies and other regulations, including changes in tax rates;
direct or indirect consequences of acts of war or terrorism; work
stoppages due to labor disputes; and competition, including
technological advances. 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
594,275
|
|
|
$
|
670,631
|
|
|
|
$
|
1,184,086
|
|
|
$
|
1,346,682
|
|
Cost of Sales (exclusive of depreciation
|
|
|
|
|
|
|
|
|
|
|
shown below)
|
|
|
|
375,278
|
|
|
|
451,051
|
|
|
|
|
761,257
|
|
|
|
904,462
|
|
Selling, Research & Development and
|
|
|
|
|
|
|
|
|
|
|
Administrative
|
|
|
|
89,312
|
|
|
|
96,486
|
|
|
|
|
185,499
|
|
|
|
203,160
|
|
Depreciation and Amortization
|
|
|
|
34,165
|
|
|
|
38,466
|
|
|
|
|
68,225
|
|
|
|
75,713
|
|
Operating Income
|
|
|
|
95,520
|
|
|
|
84,628
|
|
|
|
|
169,105
|
|
|
|
163,347
|
|
Other Income/(Expense):
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
(9,195
|
)
|
|
|
(5,246
|
)
|
|
|
|
(16,498
|
)
|
|
|
(10,127
|
)
|
Interest Income
|
|
|
|
1,105
|
|
|
|
1,047
|
|
|
|
|
2,836
|
|
|
|
2,063
|
|
Equity in results of affiliates
|
|
|
|
(407
|
)
|
|
|
(198
|
)
|
|
|
|
(526
|
)
|
|
|
(1,744
|
)
|
Miscellaneous, net
|
|
|
|
(1,268
|
)
|
|
|
(525
|
)
|
|
|
|
(1,467
|
)
|
|
|
(153
|
)
|
Income before Income Taxes
|
|
|
|
85,755
|
|
|
|
79,706
|
|
|
|
|
153,450
|
|
|
|
153,386
|
|
Provision for Income Taxes
|
|
|
|
28,214
|
|
|
|
26,622
|
|
|
|
|
50,810
|
|
|
|
51,894
|
|
Net Income
|
|
|
$
|
57,541
|
|
|
$
|
53,084
|
|
|
|
$
|
102,640
|
|
|
$
|
101,492
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Income)/Loss Attributable to Noncontrolling Interests
|
|
|
|
(2
|
)
|
|
|
(8
|
)
|
|
|
|
70
|
|
|
|
(27
|
)
|
Net Income Attributable to AptarGroup, Inc.
|
|
|
$
|
57,539
|
|
|
$
|
53,076
|
|
|
|
$
|
102,710
|
|
|
$
|
101,465
|
|
Net Income Attributable to AptarGroup, Inc. Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.92
|
|
|
$
|
0.81
|
|
|
|
$
|
1.64
|
|
|
$
|
1.55
|
|
Diluted
|
|
|
$
|
0.90
|
|
|
$
|
0.79
|
|
|
|
$
|
1.59
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Numbers of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
62,697
|
|
|
|
65,328
|
|
|
|
|
62,496
|
|
|
|
65,397
|
|
Diluted
|
|
|
|
64,276
|
|
|
|
67,438
|
|
|
|
|
64,603
|
|
|
|
68,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APTARGROUP, INC.
|
Condensed Consolidated Financial Statements (Unaudited)
|
(continued)
|
(In Thousands)
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Equivalents
|
|
|
$
|
391,810
|
|
|
$
|
399,762
|
Short-term Investments
|
|
|
|
66,897
|
|
|
|
-
|
Total Cash and Equivalents, and Short-term Investments
|
|
|
|
458,707
|
|
|
|
399,762
|
Receivables, net
|
|
|
|
435,448
|
|
|
|
406,976
|
Inventories
|
|
|
|
315,178
|
|
|
|
311,072
|
Other Current Assets
|
|
|
|
102,258
|
|
|
|
96,128
|
Total Current Assets
|
|
|
|
1,311,591
|
|
|
|
1,213,938
|
Net Property, Plant and Equipment
|
|
|
|
776,636
|
|
|
|
811,655
|
Goodwill, net
|
|
|
|
316,480
|
|
|
|
329,741
|
Other Assets
|
|
|
|
73,099
|
|
|
|
81,856
|
Total Assets
|
|
|
$
|
2,477,806
|
|
|
$
|
2,437,190
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Obligations
|
|
|
$
|
23,888
|
|
|
$
|
251,976
|
Accounts Payable and Accrued Liabilities
|
|
|
|
377,569
|
|
|
|
352,762
|
Total Current Liabilities
|
|
|
|
401,457
|
|
|
|
604,738
|
Long-Term Obligations
|
|
|
|
813,007
|
|
|
|
588,892
|
Deferred Liabilities
|
|
|
|
135,652
|
|
|
|
139,644
|
Total Liabilities
|
|
|
|
1,350,116
|
|
|
|
1,333,274
|
|
|
|
|
|
|
|
AptarGroup, Inc. Stockholders' Equity
|
|
|
|
1,127,399
|
|
|
|
1,103,407
|
Noncontrolling Interests in Subsidiaries
|
|
|
|
291
|
|
|
|
509
|
Total Equity
|
|
|
|
1,127,690
|
|
|
|
1,103,916
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
$
|
2,477,806
|
|
|
$
|
2,437,190
|
|
|
|
|
|
|
|
|
|
APTARGROUP, INC.
|
Condensed Consolidated Financial Statements (Unaudited)
|
(continued)
|
(In Thousands)
|
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
NET SALES
|
|
|
|
|
|
|
|
|
|
|
Beauty + Home
|
|
|
$
|
319,124
|
|
|
$
|
385,226
|
|
|
|
$
|
648,539
|
|
|
$
|
776,462
|
|
Pharma
|
|
|
|
183,300
|
|
|
|
195,690
|
|
|
|
|
361,969
|
|
|
|
390,039
|
|
Food + Beverage
|
|
|
|
91,851
|
|
|
|
89,715
|
|
|
|
|
173,578
|
|
|
|
180,181
|
|
Total Net Sales
|
|
|
$
|
594,275
|
|
|
$
|
670,631
|
|
|
|
$
|
1,184,086
|
|
|
$
|
1,346,682
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INCOME (1)
|
|
|
|
|
|
|
|
|
|
|
Beauty + Home
|
|
|
$
|
27,193
|
|
|
$
|
27,198
|
|
|
|
$
|
50,569
|
|
|
$
|
54,979
|
|
Pharma
|
|
|
|
55,462
|
|
|
|
52,793
|
|
|
|
|
107,463
|
|
|
|
105,275
|
|
Food + Beverage
|
|
|
|
14,991
|
|
|
|
12,416
|
|
|
|
|
24,041
|
|
|
|
21,496
|
|
Corporate and Other
|
|
|
|
(3,801
|
)
|
|
|
(8,502
|
)
|
|
|
|
(14,961
|
)
|
|
|
(20,300
|
)
|
Total Income Before Interest and Taxes
|
|
|
$
|
93,845
|
|
|
$
|
83,905
|
|
|
|
$
|
167,112
|
|
|
$
|
161,450
|
|
Interest Expense, Net
|
|
|
|
(8,090
|
)
|
|
|
(4,199
|
)
|
|
|
|
(13,662
|
)
|
|
|
(8,064
|
)
|
Income before Income Taxes
|
|
|
$
|
85,755
|
|
|
$
|
79,706
|
|
|
|
$
|
153,450
|
|
|
$
|
153,386
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INCOME AS % OF NET SALES
|
|
|
|
|
|
|
|
|
|
|
Beauty + Home
|
|
|
|
8.5
|
%
|
|
|
7.1
|
%
|
|
|
|
7.8
|
%
|
|
|
7.1
|
%
|
Pharma
|
|
|
|
30.3
|
%
|
|
|
27.0
|
%
|
|
|
|
29.7
|
%
|
|
|
27.0
|
%
|
Food + Beverage
|
|
|
|
16.3
|
%
|
|
|
13.8
|
%
|
|
|
|
13.9
|
%
|
|
|
11.9
|
%
|
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,
restructuring initiatives and income taxes.
|
CONTACT:
AptarGroup, Inc.
Matthew DellaMaria, 815-477-0424
AptarGroup (NYSE:ATR)
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