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
Elyse Blye
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 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 + Food + Total 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.” 2014 2013 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. NET SALES SEGMENT INCOME (1) SEGMENT INCOME AS % OF NET SALES 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: Restructuring Initiatives:
Home
Pharma
Beverage
AptarGroup
Product Sales (including tooling)
9%
12%
5%
9%
Currency Effects
-1%
3%
1%
0%
Total Reported Growth
8%
15%
6%
9%
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
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
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
Beauty + Home
$
391,236
$
363,472
Pharma
194,349
168,869
Food + Beverage
90,466
85,292
Total Net Sales
$
676,051
$
617,633
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
Beauty + Home
7.1
%
6.7
%
Pharma
27.0
%
27.2
%
Food + Beverage
10.0
%
10.0
%
2014
2013
European Restructuring Plan
$
-
$
(459
)
European Restructuring Plan
$
-
$
(4,067
)
Total Restructuring Initiatives & Related Depreciation
$
-
$
(4,526
)
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