AptarGroup's Q1 net income attributable to company up 20.1% year-over-year to US$48.4M, driven by balanced core sales growth across each segment, market and geographic region; net sales up 9.5% to US$676.1M

CRYSTAL LAKE, Illinois , April 24, 2014 (press release) – AptarGroup, Inc. (NYSE:ATR) today reported record quarterly revenues and first quarter earnings per share.

First Quarter 2014 Summary

  • Reported sales (and core sales excluding currency effects) rose 9% to $676 million
  • Core sales excluding currency effects increased in each business segment, market and geographic region
  • Reported earnings per share rose 11% to $0.71 compared to $0.64 in the prior year excluding charges related to the European restructuring plan ($0.05 per share) in 2013
  • A higher effective tax rate reduced earnings per share by approximately $0.03 compared to the prior year when excluding the impact of the European restructuring plan in 2013

FIRST QUARTER RESULTS

For the quarter ended March 31, 2014, reported sales increased 9% to $676 million from $618 million a year ago. Changes in currency exchange rates did not have a significant impact on the sales growth.

First Quarter Segment Sales Analysis

(Change Over Prior Year)

   

Beauty +
Home

  Pharma  

Food +
Beverage

 

Total
AptarGroup

Product Sales (including tooling)   9%   12%   5%   9%
Currency Effects   -1%   3%   1%   0%
Total Reported Growth   8%   15%   6%   9%

Commenting on the quarter, Stephen Hagge, President and CEO, said, “We are pleased to report an excellent first quarter with balanced core sales growth across each segment, market and geographic region. Our Pharma segment had another outstanding performance with particularly strong demand from the consumer health care and prescription drug markets. It was also encouraging to see the rise in sales at our Beauty + Home segment driven by increased demand from the beauty and personal care markets. Our Food + Beverage segment’s sales also increased despite custom tooling sales declining compared to the prior year.”

Hagge continued, “The broad-based increases in sales drove our earnings to a record first quarter level. This was in spite of certain headwinds that included negative currency effects and facility start-up costs primarily related to our Beauty + Home segment’s Latin American operations, and a higher effective tax rate.”

DIVIDEND

As previously announced, on April 11, 2014, the Board of Directors increased the quarterly cash dividend by 12% to $0.28 per share. The payment date is May 21, 2014, to stockholders of record as of April 30, 2014. Hagge commented on the increase, “This increase is reflective of our strong financial condition and confidence in the future. 2014 will be our twenty first consecutive year of increased dividends. Our balanced capital allocation strategy allows for increased dividends, share repurchases and investments that will contribute to future growth.”

OUTLOOK

Regarding the Company’s outlook, Hagge stated, “I am encouraged by the current level of project discussions with customers who are seeking innovative packaging solutions to help grow their businesses. I am optimistic that we will see some of these new projects coming to market over the next twelve months. Looking to the second quarter, we expect broad-based demand for our innovative dispensing solutions to continue across each of our business segments and drive growth over the prior year. In the near-term, the emerging market currency environments are expected to remain challenging and we don’t anticipate the impact from resin pricing adjustments to be as favorable as it was in the prior year. We expect second quarter earnings per share to be in the range of $0.78 to $0.83 compared to $0.77 per share a year ago excluding the charges related to our European restructuring plan.”


APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
         
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
         
    Three Months Ended
    March 31,
   

2014

 

2013

         
Net Sales   $ 676,051     $ 617,633  
Cost of Sales (exclusive of depreciation        
shown below)     453,411       418,486  
Selling, Research & Development and        
Administrative     106,674       94,307  
Depreciation and Amortization (1)     37,247       36,171  
Restructuring Initiatives     -       4,067  
Operating Income     78,719       64,602  
Other Income/(Expense):        
Interest Expense     (4,881 )     (5,081 )
Interest Income     1,016       849  
Equity in income of affiliates     (1,546 )     (262 )
Miscellaneous, net     372       (706 )
Income before Income Taxes     73,680       59,402  
Provision for Income Taxes     25,272       19,424  
Net Income   $ 48,408     $ 39,978  
         
Net (Income)/Loss Attributable to Noncontrolling Interests     (19 )     51  
Net Income Attributable to AptarGroup, Inc.   $ 48,389     $ 40,029  
Net Income Attributable to AptarGroup, Inc. Per Common Share:  
Basic   $ 0.74     $ 0.61  
Diluted   $ 0.71     $ 0.59  
         
Average Numbers of Shares Outstanding:        
Basic     65,468       66,155  
Diluted     68,232       68,296  

Notes to Condensed Consolidated Financial Statements:

(1) Depreciation and Amortization for the quarter ended March 31, 2013 included approximately $0.5 million of accelerated depreciation related to the European restructuring plan.

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
         
    March 31, 2014   December 31, 2013
ASSETS        
         
Cash and Equivalents   $ 317,177   $ 309,861
Receivables, net     505,505     438,221
Inventories     358,709     353,159
Other Current Assets     97,651     97,170
Total Current Assets     1,279,042     1,198,411
Net Property, Plant and Equipment     870,051     864,662
Goodwill, net     359,681     358,865
Other Assets     71,659     75,824
Total Assets   $ 2,580,433   $ 2,497,762
         
LIABILITIES AND EQUITY        
         
Short-Term Obligations   $ 174,288   $ 139,770
Accounts Payable and Accrued Liabilities     411,506     403,051
Total Current Liabilities     585,794     542,821
Long-Term Obligations     354,758     354,814
Deferred Liabilities     120,995     119,819
Total Liabilities     1,061,547     1,017,454
         
AptarGroup, Inc. Stockholders' Equity     1,518,326     1,479,757
Noncontrolling Interests in Subsidiaries     560     551
Total Equity     1,518,886     1,480,308
         
Total Liabilities and Equity   $ 2,580,433   $ 2,497,762

 

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
         
    Three Months Ended
    March 31,
         
    2014   2013

NET SALES

       
Beauty + Home   $ 391,236     $ 363,472  
Pharma     194,349       168,869  
Food + Beverage     90,466       85,292  
Total Net Sales   $ 676,051     $ 617,633  
         

SEGMENT INCOME (1)

       
Beauty + Home   $ 27,781     $ 24,415  
Pharma     52,482       45,980  
Food + Beverage     9,080       8,550  
Restructuring Initiatives & Related Depreciation (2)     -       (4,526 )
Corporate and Other     (11,798 )     (10,785 )
Total Income Before Interest and Taxes   $ 77,545     $ 63,634  
Interest Expense, Net     (3,865 )     (4,232 )
Income before Income Taxes   $ 73,680     $ 59,402  
         

SEGMENT INCOME AS % OF NET SALES

       
Beauty + Home     7.1 %     6.7 %
Pharma     27.0 %     27.2 %
Food + Beverage     10.0 %     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, restructuring initiatives and income taxes.

(2) - Restructuring Initiatives & Related Depreciation includes the following expense items:

Depreciation:

  2014   2013
European Restructuring Plan     $ -   $ (459 )
           

Restructuring Initiatives:

         
European Restructuring Plan   $ -   $ (4,067 )
Total Restructuring Initiatives & Related Depreciation   $ -   $ (4,526 )

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.