AptarGroup's Q1 net income down 1.6% year-over-year to US$43.8M as increased custom tooling sales and costs related to start-up of plants in North Carolina and India pressured margins; net sales up 2.8% to US$592.5M

CRYSTAL LAKE, Illinois , April 25, 2012 (press release) – AptarGroup, Inc. (NYSE:ATR) today reported record first quarter sales. Earnings per share equaled the prior year's all-time high first quarter earnings per share.

First Quarter 2012 Summary

Reported sales grew 3% (6% excluding currency effects) to first quarter record of $592 million
Changes in currency exchange rates negatively affected results
Each segment's sales increased over the prior year
Operating income rose to record first quarter level of $70.4 million
Earnings per share of $.64 were equal to the prior year's record first quarter level

FIRST QUARTER RESULTS

For the quarter ended March 31, 2012, reported sales increased 3% to $592.5 million from $576.5 million a year ago. Changes in currency exchange rates had a negative effect of 3% on the sales growth.

Commenting on the quarter, Stephen Hagge, President and CEO, said, "I am pleased to report we achieved record first quarter sales with core growth of 6%. Our Beauty + Home segment realized core sales growth of 3% on increased sales of our products to each of the markets we serve. Strong demand for our nasal dispensing devices drove our Pharma segment's sales growth while increased demand for our value-adding dispensing closures from the beverage market was a key factor behind our Food + Beverage segment's performance. We also had a very successful quarter in the emerging regions."

Hagge continued, "Operating margins were negatively affected by increased custom tooling sales as well as costs associated with the start-up of our facilities in North Carolina and India. However, in spite of these negative effects we achieved record first quarter operating income. We also faced currency headwinds and a higher effective tax rate than the prior year but we maintained the same level of earnings per share as prior year's record first quarter level."

OUTLOOK

Hagge commented, "As we look forward to the rest of the year, we are encouraged by the many projects we are actively working on with our customers across all of our segments and we are on schedule with bringing our newer facilities' capacity on-line. In the near-term, we expect a challenging input cost environment and there is inflation in some emerging regions. We also anticipate currency exchange rates to create stronger headwinds in the second quarter compared to the prior year. Presently we expect diluted earnings per share to be in the range of $.70 to $.75 per share compared to our all-time high quarterly earnings per share of $.74 reported last year."

OPEN CONFERENCE CALL

There will be a conference call on Thursday, April 26, 2012 at 8:00 a.m. CDT to discuss the Company's first quarter results for 2012. 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 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 www.aptar.com.

 
 
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
         
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
         
    Three Months Ended
    March 31,
    2012   2011
         
Net Sales   $ 592,498     $ 576,518  
Cost of Sales (exclusive of depreciation        
shown below)     401,070       382,670  
Selling, Research & Development and        
Administrative     88,499       90,479  
Depreciation and Other Amortization     32,554       33,605  
Operating Income     70,375       69,764  
Other Income/(Expense):        
Interest Expense     (5,242 )     (4,620 )
Interest Income     1,028       1,552  
Equity in Results of Affiliates     (131 )     0  
Miscellaneous, net     247       (421 )
Income before Income Taxes     66,277       66,275  
Provision for Income Taxes     22,464       21,807  
Net Income   $ 43,813     $ 44,468  
         
Net (Income)/Loss Attributable to Noncontrolling Interests     (4 )     9  
Net Income Attributable to AptarGroup, Inc.   $ 43,809     $ 44,477  
Net Income Attributable to AptarGroup, Inc. Per Common Share:        
Basic   $ 0.66     $ 0.66  
Diluted   $ 0.64     $ 0.64  
         
Average Numbers of Shares Outstanding:        
Basic     66,196       66,926  
Diluted     68,785       69,914  
                 
                 
                 
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
         
    March 31, 2012   December 31, 2011
ASSETS        
         
Cash and Equivalents   $ 329,805   $ 377,616
Receivables, net     440,820     389,020
Inventories     300,808     285,155
Other Current Assets     105,690     92,159
Total Current Assets     1,177,123     1,143,950
Net Property, Plant and Equipment     787,639     754,715
Goodwill, net     237,915     233,689
Other Assets     35,380     26,941
Total Assets   $ 2,238,057   $ 2,159,295
         
LIABILITIES AND EQUITY        
         
Short-Term Obligations   $ 151,860   $ 183,668
Accounts Payable and Accrued Liabilities     348,787     335,181
Total Current Liabilities     500,647     518,849
Long-Term Obligations     254,696     254,910
Deferred Liabilities     98,407     94,964
Total Liabilities     853,750     868,723
         
AptarGroup, Inc. Stockholders' Equity     1,383,508     1,289,776
Noncontrolling Interests in Subsidiaries     799     796
Total Equity     1,384,307     1,290,572
         
Total Liabilities and Equity   $ 2,238,057   $ 2,159,295
             
             
             
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
         
    Three Months Ended
    March 31,
         
    2012   2011

NET SALES

       
Beauty + Home   $ 377,151     $ 376,262  
Pharma     140,043       132,004  
Food + Beverage     75,304       68,252  
Total Net Sales   $ 592,498     $ 576,518  
         

SEGMENT INCOME (1)

       
Beauty + Home   $ 32,972     $ 32,653  
Pharma     39,372       38,888  
Food + Beverage     6,788       7,572  
Corporate Expenses and Other     (8,641 )     (9,770 )
Income Before Interest and Taxes   $ 70,491     $ 69,343  
Interest Expense, Net     (4,214 )     (3,068 )
Income before Income Taxes   $ 66,277     $ 66,275  
         

SEGMENT INCOME AS % OF NET SALES

       
Beauty + Home     8.7 %     8.7 %
Pharma     28.1 %     29.5 %
Food + Beverage     9.0 %     11.1 %
         

 

 

Notes to Condensed Consolidated Financial Statements:

 

(1) - The Company evaluates performance of its business units and allocates resources based upon income before net interest expense, certain corporate expenses, and income taxes.

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