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 AptarGroup Reports Third Quarter Results
   Thursday, October 27, 2016 5:00:02 PM ET

AptarGroup, Inc. (ATR ) today announced third quarter results.

Third Quarter 2016 Summary

-- Reported sales increased 1% to $590 million

-- Changes in foreign currency exchange rates had a negative impact of 1% on the sales growth

-- Recently acquired Mega Airless contributed approximately $18 million or 3% of the sales growth and approximately $0.02 per share to reported earnings per share

-- Reported earnings per share were $0.82 compared to $0.83 reported in the prior year

-- Reported earnings per share included a negative impact of approximately $0.01 (approximately $1.4 million pre-tax expense) related to the timing of costs in excess of insurance proceeds associated with a facility fire that occurred earlier in the year; previous third quarter earnings per share guidance excluded any potential impact related to the fire

-- Adjusting to a comparable foreign currency environment ($0.01), prior year adjusted earnings per share were $0.82, or even with current period earnings per share

-- Reported pre-tax earnings of $75 million were approximately 13% of net sales

-- EBITDA of $123 million was approximately 21% of net sales

THIRD QUARTER RESULTS

For the quarter ended September 30, 2016, reported sales increased 1% to $590 million from $586 million a year ago. Excluding the negative impact from changes in currency exchange rates and the positive impact from acquisitions, core sales decreased by approximately 1%.

                                                              Third Quarter Segment Sales Analysis
                                                                    (Change Over Prior Year)
                                Beauty +       Pharma        Food +         Total
                                                     Home                                                            Beverage                        AptarGroup
                                                 ----------  -------------------- ----------  -------------------- ----------  -------------------- ----------
Core Sales Growth                                   (6 %)          9 %          (6 %)         (1 %)
Acquisitions                                         5 %                              1 %                              0 %                              3 %
Currency Effects (1)                                (1 %)         (1 %)         (2 %)         (1 %)
                                                 ----- ----- -------------------- ----- ----- -------------------- ----- ----- -------------------- ----- -----
Total Reported Sales Growth                         (2 %)          9 %          (8 %)          1 %
                                                 ===== ===== ==================== ===== ===== ==================== ===== ===== ==================== ===== =====
(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, "Challenging market conditions made it difficult to achieve top line core growth for two of our business segments. Our Beauty + Home segment experienced sluggish demand in all regions other than Latin America, which again delivered strong sales growth. The beauty and personal care markets remain soft and while we believe there is much potential for the home care market, demand was very weak compared to the prior year. Our Food + Beverage segment was impacted by a decrease in sales to the beverage market, mainly in China, while sales to the food market increased. Our Pharma segment reported strong sales growth principally due to a significant increase in custom tooling sales and increased demand related to our consumer health care business. Sales to the prescription drug market increased slightly compared to very strong growth recorded a year ago while sales to the injectables market declined in the quarter due to the timing of certain validations of our new capacity in Europe. Despite the mix of market challenges, we were able to achieve a pre-tax earnings margin of approximately 13% and a strong consolidated EBITDA margin of approximately 21% in the quarter."

AptarGroup reported earnings per share of $0.82 compared to $0.83 per share a year ago. Adjusting to achieve a comparable foreign exchange rate environment, comparable prior year third quarter earnings per share were $0.82, even with the current year.

YEAR-TO-DATE RESULTS

For the nine months ended September 30, 2016, reported sales increased 1% to $1.79 billion from $1.77 billion a year ago. Excluding the negative impact from changes in currency exchange rates and the positive impact from acquisitions, core sales also increased by approximately 1%.

                                                         Nine Months Year to Date Segment Sales Analysis
                                                                    (Change Over Prior Year)
                                Beauty +       Pharma        Food +         Total
                                                     Home                                                            Beverage                        AptarGroup
                                                 ----------  -------------------- ----------  -------------------- ----------  -------------------- ----------
Core Sales Growth                                   (1 %)          5 %           0 %           1 %
Acquisitions                                         4 %                              1 %                              0 %                              2 %
Currency Effects (1)                                (3 %)         (1 %)         (3 %)         (2 %)
                                                 ----- ----- -------------------- ----- ----- -------------------- ----- ----- -------------------- ----- -----
Total Reported Sales Growth                          0 %           5 %          (3 %)          1 %
                                                 ===== ===== ==================== ===== ===== ==================== ===== ===== ==================== ===== =====
(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, "We reported top line growth through the first nine months despite challenging macroeconomic conditions in several markets and improved our Adjusted EBITDA margin over the prior year. The diversity of our business continues to be a strength of Aptar. Though sales to the personal care, home care and beverage markets were below the prior year, we increased sales in each of the markets served by our Pharma segment, as well as in the beauty and food markets."

For the nine months year to date, AptarGroup reported earnings per share of $2.40 compared to $2.41 per share a year ago. Comparable adjusted earnings per share increased 6% to $2.45 compared to $2.32 for 2015. Adjustments to reported results necessary to arrive at comparable adjusted earnings per share are set forth in the accompanying tables.

SHARE REPURCHASE AUTHORIZATION AND INCREASED CASH DIVIDEND

As previously announced on October 20, 2016, the Board of Directors authorized the repurchase of up to $350 million of the Company’s common stock. This new authorization replaces all previous authorizations. AptarGroup may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions. The Board also increased the quarterly cash dividend by 7% to $0.32 per share. The payment date is November 23, 2016, to stockholders of record as of November 2, 2016.

OUTLOOK

Commenting on AptarGroup’s outlook, Hagge said, "We currently don’t expect a significant change in the macroeconomic conditions or the cautionary positions of certain customers as we head into the fourth quarter, which is traditionally a slower quarter for us. There is still a lot of geopolitical and economic uncertainty around the globe and this is causing some customers to reduce inventory levels, reduce promotional spending and delay projects. Also, the markets we serve remain competitive and we anticipate that resin costs will increase over the prior year level. It’s important that we focus on cost containment as we seek out and invest in growth opportunities. Our balance sheet remains strong and although market uncertainties may persist in the near-term, our long-term outlook is positive. We will continue to be a trusted partner for our customers as we help them grow their businesses with affordable innovative dispensing and sealing solutions."

AptarGroup expects earnings per share for the fourth quarter, excluding any potential impacts of the timing of costs incurred and any related insurance reimbursements associated with the Aptar Annecy facility fire, to be in the range of $0.63 to $0.68 compared to $0.68 per share reported in the prior year. Adjusting for special items in the prior year, adjusted earnings per share for the prior year were approximately $0.67.

OPEN CONFERENCE CALL

There will be a conference call on Friday, October 28, 2016 at 8:00 a.m. Central Time to discuss AptarGroup’s third quarter results for 2016. 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 and sealing 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.

Presentation of Non-GAAP Information

This press release refers to certain non-GAAP financial measures, including adjusted earnings per share, adjusted EBIT and adjusted EBITDA, which exclude the impact of transaction costs and purchase accounting adjustments that affected inventory values related to the Mega Airless acquisition, certain items included in the provision for income taxes (primarily a significant tax refund) that were recorded in the first quarter of 2016, income from a change in the method of valuing inventory (from LIFO to FIFO) that was recorded in the second quarter of 2015, transaction costs associated with the Mega Airless acquisition and a gain on insurance recovery recorded in the fourth quarter of 2015. Comparable core sales and adjusted earnings per share also exclude the impact of foreign currency translation effects. Non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures provided by other companies. AptarGroup’s management believes it is useful to present these non-GAAP financial measures because they allow for a better period over period comparison of operating results by removing the impact of items that, in management’s view, do not reflect AptarGroup’s core operating performance. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results, but should be read in conjunction with the unaudited condensed consolidated statements of income and other information presented herein. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in the accompanying tables.

This press release contains forward-looking statements, including certain statements set forth under the "Outlook" section of this press release. Words such as "expects," "anticipates," "believes," "estimates," "future" 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 our beliefs as well as assumptions made by and information currently available to us. Accordingly, our 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 in our operations and business environment including, but not limited to, the possible impact and consequences of the fire at the Company’s facility in Annecy, France; the ability to integrate the acquired Mega Airless business; economic conditions worldwide including 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 materials, components and other input costs; the availability of raw materials and components; our ability to successfully implement facility expansions and new facility projects; 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 our filings with the Securities and Exchange Commission, including the discussion under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-Ks and Form 10-Qs. We undertake 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                                                                                                            Nine Months Ended
                                                                                                                                           September 30,                                                                                                                                   September 30,
                                                                                     -------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                            2016                                                2015                                                                    2016                                                  2015
                                                                                     -----------------------------------------------                        -----------------------------------------------                        -------------------------------------------------                        -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                 
Net Sales                                                                                               $ 589,729                                                              $ 586,290                                                              $ 1,792,066                                                              $ 1,770,376
Cost of Sales (exclusive of depreciation and amortization shown                                           381,041                                                                381,424                                                                1,145,107                                                                1,142,681
below)
Selling, Research & Development and Administrative                                                         86,695                                                                 81,370                                                                  285,841                                                                  266,869
Depreciation and Amortization                                                           39,667                           35,439                            115,944                            103,664  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating Income                                                                                           82,326                                                                 88,057                                                                  245,174                                                                  257,162
Other Income/(Expense):
   Interest Expense                                                                                        (8,753 )                                                               (8,948 )                                                                (26,547 )                                                                (25,446 )
   Interest Income                                                                                            715                                                                  1,762                                                                    1,759                                                                    4,598
   Equity in Results of Affiliates                                                                            (15 )                                                                 (209 )                                                                   (187 )                                                                   (735 )
   Miscellaneous, net                                                                      728                           (1,285 )                                                (995 )                                              (2,752 )
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income before Income Taxes                                                                                 75,001                                                                 79,377                                                                  219,204                                                                  232,827
Provision for Income Taxes                                                              21,901                           26,115                             63,187                             76,925  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Income                                                                                              $  53,100                                                              $  53,262                                                              $   156,017                                                              $   155,902
                                                                                                                                                                                                                                                                                                                                                                 
Net (Income)/Loss Attributable to Noncontrolling Interests                                  (2 )                                               (15 )                                                  (8 )                                                  55  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Income Attributable to AptarGroup, Inc.                                                             $  53,098                                           $  53,247                                           $   156,009                                           $   155,957  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
Net Income Attributable to AptarGroup, Inc. per Common Share:
   Basic                                                                                                $    0.84                                           $    0.85                                           $      2.48                                           $      2.49  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
   Diluted                                                                                              $    0.82                                           $    0.83                                           $      2.40                                           $      2.41  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                 
Average Numbers of Shares Outstanding:
   Basic                                                                                                   62,858                                                                 62,886                                                                   62,878                                                                   62,627
   Diluted                                                                                                 64,690                                                                 64,454                                                                   64,989                                                                   64,609
                                                                         AptarGroup, Inc.
                                                      Condensed Consolidated Financial Statements (Unaudited)
                                                                            (continued)
                                                                          (In Thousands)
                                                                    Consolidated Balance Sheets
                                                                                            
                                                                                     September 30, 2016                                    December 31, 2015
                                                                               -----------------------------                       ------------------------------
ASSETS
                                                                                                                                    
Cash and Equivalents                                                                              $   432,737                                         $    489,901
Short-term Investments                                                                   -                            29,816
                                                                               -------------------- ---------                      -------------------- ----------
   Total Cash and Equivalents, and Short-term Investments                                             432,737                                              519,717
Receivables, net                                                                                      463,472                                              391,571
Inventories                                                                                           322,028                                              294,912
Other Current Assets                                                                83,974                            88,794
                                                                               -------------------- ---------                      -------------------- ----------
   Total Current Assets                                                                             1,302,211                                            1,294,994
Net Property, Plant and Equipment                                                                     818,030                                              765,383
Goodwill, net                                                                                         424,780                                              310,240
Other Assets                                                                       139,861                            66,428
                                                                               -------------------- ---------                      -------------------- ----------
Total Assets                                                                                      $ 2,684,882                                         $  2,437,045
                                                                               ==================== =========                      ==================== ==========
                                                                                                                                    
LIABILITIES AND EQUITY
                                                                                                                                    
Short-Term Obligations                                                                            $   142,012                                         $     56,967
Accounts Payable and Accrued Liabilities                                           362,358                           354,928
                                                                               -------------------- ---------                      -------------------- ----------
   Total Current Liabilities                                                                          504,370                                              411,895
Long-Term Obligations                                                                                 776,766                                              760,848
Deferred Liabilities                                                               117,400                           114,596
                                                                               -------------------- ---------                      -------------------- ----------
Total Liabilities                                                                                   1,398,536                                            1,287,339
                                                                                                                                    
AptarGroup, Inc. Stockholders’ Equity                                                               1,286,051                                            1,149,411
Noncontrolling Interests in Subsidiaries                                               295                               295
                                                                               -------------------- ---------                      -------------------- ----------
Total Equity                                                                     1,286,346                         1,149,706
                                                                               -------------------- ---------                      -------------------- ----------
                                                                                                                                    
Total Liabilities and Equity                                                                      $ 2,684,882                                         $  2,437,045
                                                                               ==================== =========                      ==================== ==========
                                                                                                                                                                                                                                     AptarGroup, Inc.
                                                                                                                                                                                                                                  Reconciliation of EBIT and EBITDA to Net Income (Unaudited)
                                                                                                                                                                                                                                     (In Thousands)
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                               Three Months Ended
                                                                                                                                                                                                                                                                                                  September 30, 2016
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                           
                                                                                                           Consolidated                                            Beauty +                                             Pharma                                             Food +                                            Corporate                                        Net Interest
                                                                                                                                                                                                           Home                                                                                                                                       Beverage                                                               & Other
                                                                                        -----------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- ----------------------------------------------   -------------------- ----------------------------------------------   -------------------- ----------------------------------------------
Net Sales                                                                                                  $ 589,729                                                                                     316,030                                                                191,194                                                                82,505                                                                     -                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Reported net income                                                                                        $  53,100
Reported income taxes                                                                      21,901                                                                                                                                          
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------------------------------------
Reported income before income taxes                                                                           75,001                                                                                      25,380                                                                 55,037                                                                10,101                                                                (7,479 )                                                              (8,038 )
Interest expense                                                                                               8,753                                                                                                                                                                                                                                                                                                                                                                                8,753
Interest income                                                                              (715 )                                                                                                                                                              (715 )
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------- ------ --------------------
Earnings before net interest and taxes (EBIT)                                                                 83,039                                                                                      25,380                                                                 55,037                                                                10,101                                                                (7,479 )                                                                   -
Depreciation and amortization                                                              39,667          21,653        10,185        6,064        1,765            -  
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
Earnings before net interest, taxes, depreciation and amortization                                         $ 122,706                          $  47,033                        $  65,222                        $ 16,165                        $ (5,714 )                                         $      -  
(EBITDA)
                                                                                        ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ==================== ====== ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Segment income margins                                                                                                                                                                                       8.0 %                                                                 28.8 %                                                                12.2 %
EBITDA margins (EBITDA / Reported Net Sales)                                                                    20.8 %                                                                                      14.9 %                                                                 34.1 %                                                                19.6 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                  Three Months Ended
                                                                                                                                                                                                                                                                                                  September 30, 2015
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                           Consolidated                                            Beauty +                                             Pharma                                             Food +                                            Corporate                                        Net Interest
                                                                                                                                                                                                           Home                                                                                                                                       Beverage                                                               & Other
                                                                                        -----------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- ----------------------------------------------   -------------------- ----------------------------------------------   -------------------- ----------------------------------------------
Net Sales                                                                                                  $ 586,290                                                                                     321,638                                                                175,427                                                                89,225                                                                     -                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Reported net income                                                                                        $  53,262
Reported income taxes                                                                      26,115                                                                                                                                          
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------------------------------------
Reported income before income taxes                                                                           79,377                                                                                      27,961                                                                 52,941                                                                13,236                                                                (7,575 )                                                              (7,186 )
Interest expense                                                                                               8,948                                                                                                                                                                                                                                                                                                                                                                                8,948
Interest income                                                                            (1,762 )                                                                                                                                                            (1,762 )
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------- ------ --------------------
Earnings before net interest and taxes (EBIT)                                                                 86,563                                                                                      27,961                                                                 52,941                                                                13,236                                                                (7,575 )                                                                   -
Depreciation and amortization                                                              35,439          19,096         9,070        5,465        1,808            -  
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
Earnings before net interest, taxes, depreciation and amortization                                         $ 122,002                          $  47,057                        $  62,011                        $ 18,701                        $ (5,767 )                                         $      -  
(EBITDA)
                                                                                        ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ==================== ====== ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Segment income margins                                                                                                                                                                                       8.7 %                                                                 30.2 %                                                                14.8 %
EBITDA margins (EBITDA / Reported Net Sales)                                                                    20.8 %                                                                                      14.6 %                                                                 35.3 %                                                                21.0 %
                                                                                                                                                                                                                                     AptarGroup, Inc.
                                                                                                                                                                                                                                   Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                     (In Thousands)
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                     Nine Months Ended
                                                                                                                                                                                                                                                                                                       September 30, 2016
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                              Consolidated                                             Beauty +                                             Pharma                                              Food +                                             Corporate                                         Net Interest
                                                                                                                                                                                                               Home                                                                                                                                        Beverage                                                                & Other
                                                                                          -------------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------
Net Sales                                                                                                    $ 1,792,066                                                                                     970,687                                                                565,363                                                                256,016                                                                      -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Reported net income                                                                                          $   156,017
Reported income taxes                                                                          63,187                                                                                                                                            
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Reported income before income taxes                                                                              219,204                                                                                      79,455                                                                166,870                                                                 32,977                                                                (35,310 )                                                              (24,788 )
Adjustments:
   Transaction costs related to the Mega Airless acquisition                                                       5,640                                                                                                                                                                                                                                                                                                            5,640
   Purchase accounting adjustments related to Mega Airless inventory                            2,577           2,151           426                                                                        
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Adjusted earnings before income taxes                                                                            227,421                                                                                      81,606                                                                167,296                                                                 32,977                                                                (29,670 )                                                              (24,788 )
Interest expense                                                                                                  26,547                                                                                                                                                                                                                                                                                                                                                                                  26,547
Interest income                                                                                (1,759 )                                                                                                                                                               (1,759 )
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------- --------------------
Adjusted earnings before net interest and taxes (Adjusted EBIT)                                                  252,209                                                                                      81,606                                                                167,296                                                                 32,977                                                                (29,670 )                                                                    -
Depreciation and amortization                                                                 115,944          63,150        29,802        17,960         5,032             -  
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted earnings before net interest, taxes, depreciation and                                               $   368,153                          $ 144,756                        $ 197,098                        $  50,937                        $ (24,638 )                                         $       -  
amortization (Adjusted EBITDA)
                                                                                          ==================== ========= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Segment income margins                                                                                                                                                                                           8.2 %                                                                 29.5 %                                                                 12.9 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)                                                      20.5 %                                                                                      14.9 %                                                                 34.9 %                                                                 19.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                        Nine Months Ended
                                                                                                                                                                                                                                                                                                       September 30, 2015
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                              Consolidated                                             Beauty +                                             Pharma                                              Food +                                             Corporate                                         Net Interest
                                                                                                                                                                                                               Home                                                                                                                                        Beverage                                                                & Other
                                                                                          -------------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------   -------------------- -----------------------------------------------
Net Sales                                                                                                    $ 1,770,376                                                                                     970,176                                                                537,396                                                                262,804                                                                      -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Reported net income                                                                                          $   155,902
Reported income taxes                                                                          76,925                                                                                                                                            
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Reported income before income taxes                                                                              232,827                                                                                      78,529                                                                160,404                                                                 37,277                                                                (22,535 )                                                              (20,848 )
Adjustments:
   Change in inventory valuation methods (from LIFO to FIFO)                                                      (7,427 )                                                                                                                                                                                                                                                                                                         (7,427 )
                                                                                                                                                                                                                                                                    
                                                                                          ------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Adjusted earnings before income taxes                                                                            225,400                                                                                      78,529                                                                160,404                                                                 37,277                                                                (29,962 )                                                              (20,848 )
Interest expense                                                                                                  25,446                                                                                                                                                                                                                                                                                                                                                                                  25,446
Interest income                                                                                (4,598 )                                                                                                                                                               (4,598 )
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------- --------------------
Adjusted earnings before net interest and taxes (Adjusted EBIT)                                                  246,248                                                                                      78,529                                                                160,404                                                                 37,277                                                                (29,962 )                                                                    -
Depreciation and amortization                                                                 103,664          56,914        26,699        15,717         4,334             -  
                                                                                          -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted earnings before net interest, taxes, depreciation and                                               $   349,912                          $ 135,443                        $ 187,103                        $  52,994                        $ (25,628 )                                         $       -  
amortization (Adjusted EBITDA)
                                                                                          ==================== ========= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Segment income margins                                                                                                                                                                                           8.1 %                                                                 29.8 %                                                                 14.2 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)                                                      19.8 %                                                                                      14.0 %                                                                 34.8 %                                                                 20.2 %
                                                                                                                                                          AptarGroup, Inc.
                                                                                                                                  Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
                                                                                                                                           ($ in thousands, except per share information)
                                                                                                                   Three Months Ended                                                                                           Nine Months Ended
                                                                                                                                         September 30,                                                                                               September 30,
                                                                                           ----------------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------
                                                                                                          2016                                        2015                                                            2016                                         2015
                                                                                           --------------------------------                        ----------------------------------------------                        ---------------------------------                        -----------------------------------------------
                                                                                                                                                                                                                                                                                                                                     
Income before Income Taxes                                                                      $ 75,001                                                              $ 79,377                                                $ 219,204                                                              $ 232,827
                                                                                                                                                                                                                                                                                                                                     
Adjustments:
---------------------------------------------------------------------
   Transaction costs related to the Mega Airless acquisition                                                                                                                                                                      5,640
   Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                              2,577
   Change in inventory valuation methods (from LIFO to FIFO)                                                                                                                                                                                                                                            (7,427 )
   Foreign currency effects (1)                                                                                (1,076 )                                            (2,624 )
                                                                                           ------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------------------------------------------- -------------------- ------- --------------------
Adjusted Income before Income Taxes                                                             $ 75,001                        $ 78,301          $ 227,421                        $ 222,776  
                                                                                           ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ====== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                     
Provision for Income Taxes                                                                      $ 21,901                                                              $ 26,115                                                $  63,187                                                              $  76,925
                                                                                                                                                                                                                                                                                                                                     
Adjustments:
---------------------------------------------------------------------
   Net effect of items included in the Provision for Income Taxes (2)                                                                                                                                                             2,923
   Transaction costs related to the Mega Airless acquisition                                                                                                                                                                      1,483
   Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                                859
   Change in inventory valuation methods (from LIFO to FIFO)                                                                                                                                                                                                                                            (2,599 )
   Foreign currency effects (1)                                                                                  (581 )                                            (1,105 )
                                                                                           ------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------------------------------------------- -------------------- ------- --------------------
Adjusted Provision for Income Taxes                                                             $ 21,901                        $ 25,534          $  68,452                        $  73,221  
                                                                                           ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ====== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                     
Net (Income)/Loss Attributable to Noncontrolling Interests                                      $     (2 )                                                            $    (15 )                                              $      (8 )                                                            $      55
                                                                                                                                                                                                                                                                                                                                     
Net Income Attributable to AptarGroup, Inc.                                                     $ 53,098                                                              $ 53,247                                                $ 156,009                                                              $ 155,957
                                                                                                                                                                                                                                                                                                                                     
Adjustments:
---------------------------------------------------------------------
   Net effect of items included in the Provision for Income Taxes (2)                                                                                                                                                            (2,923 )
   Transaction costs related to the Mega Airless acquisition                                                                                                                                                                      4,157
   Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                              1,718
   Change in inventory valuation methods (from LIFO to FIFO)                                                                                                                                                                                                                                            (4,828 )
   Foreign currency effects (1)                                                                                  (495 )                                            (1,519 )
                                                                                           ------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------------------------------------------- -------------------- ------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc.                                            $ 53,098                        $ 52,752          $ 158,961                        $ 149,610  
                                                                                           ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ====== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                     
Average Number of Diluted Shares Outstanding                                                      64,690                                                                64,454                                                   64,989                                                                 64,609
                                                                                                                                                                                                                                                                                                                                     
Net Income Attributable to AptarGroup, Inc. Per Diluted Share                                   $   0.82                                                              $   0.83                                                $    2.40                                                              $    2.41
                                                                                                                                                                                                                                                                                                                                     
Adjustments:
---------------------------------------------------------------------
   Net effect of items included in the Provision for Income Taxes (2)                                                                                                                                                             (0.04 )
   Transaction costs related to the Mega Airless acquisition                                                                                                                                                                       0.06
   Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                               0.03
   Change in inventory valuation methods (from LIFO to FIFO)                                                                                                                                                                                                                                             (0.07 )
   Foreign currency effects (1)                                                                                 (0.01 )                                             (0.02 )
                                                                                           ------------------------------------------------------- -------------------- ------ -------------------- -------------------- -------------------------------------------------------- -------------------- ------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted                                $   0.82                        $   0.82          $    2.45                        $    2.32  
Share
                                                                                           ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ====== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                     
(1) Foreign currency effects are approximations of the adjustment
necessary to state the prior year earnings and earnings per share
using current period foreign currency exchange rates.
(2) Items included in the Provision for Income Taxes primarily
reflect the effect of a French income tax refund.
                                                                                     AptarGroup, Inc.
                                                             Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
                                                                      ($ in thousands, except per share information)
                                                                                                             Three Months Ended
                                                                                                                                   December 31,
                                                                                       ----------------------------------------------------------------------------------------------------
                                                                                             Expected 2016                                 2015
                                                                                       -----------------------                       ---------------------------------------------------
                                                                                                                                                                                            
Income before Income Taxes                                                                                                                              $      61,744
                                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
   Costs associated with Mega Airless acquisition                                                                                                               1,892
   Gain on insurance recovery                                                                                                               (2,900 )
                                                                                                                                     -------------------- ----------- --------------------
Adjusted Income before Income Taxes                                                                                                                     $      60,736  
                                                                                                                                     ==================== =========== ====================
                                                                                                                                                                                            
Provision for Income Taxes                                                                                                                              $      18,351
                                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
   Costs associated with Mega Airless acquisition                                                                                                                 354
   Gain on insurance recovery                                                                                                                 (986 )
                                                                                                                                     -------------------- ----------- --------------------
Adjusted Provision for Income Taxes                                                                                                                     $      17,719  
                                                                                                                                     ==================== =========== ====================
                                                                                                                                                                                            
Net (Income)/Loss Attributable to Noncontrolling Interests                                                                                              $          (2 )
                                                                                                                                                                                            
Net Income Attributable to AptarGroup, Inc.                                                                                                             $      43,391
                                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
   Costs associated with Mega Airless acquisition                                                                                                               1,538
   Gain on insurance recovery                                                                                                               (1,914 )
                                                                                                                                     -------------------- ----------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc.                                                                                                    $      43,015  
                                                                                                                                     ==================== =========== ====================
                                                                                                                                                                                            
Average Number of Diluted Shares Outstanding                                                                                                                   64,266
                                                                                                                                                                                            
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (1)                                $ 0.63 - $0.68                                         $        0.68
                                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
   Costs associated with Mega Airless acquisition                                                                                                                0.02
   Gain on insurance recovery                                                                                             (0.03 )
                                                                                       -------------------------                     -------------------- ----------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted                                 $ 0.63 - $0.68                                         $        0.67  
Share (1)
                                                                                       =========== ============                      ==================== =========== ====================
                                                                                                                                                                                            
(1) AptarGroup’s expected earnings per share range for the fourth
quarter of 2016 excludes any potential effects of the timing of
costs incurred and the related insurance reimbursements associated
with the Aptar Annecy facility fire, which amounts cannot be
reasonably estimated.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161027006894r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006894/en/

SOURCE: AptarGroup, Inc.

AptarGroup, Inc. 
Matthew DellaMaria 
815-477-0424


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