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 AptarGroup Reports Second Quarter Results
   Thursday, July 27, 2017 5:00:02 PM ET

AptarGroup, Inc. (ATR ) today announced its second quarter results.

Second Quarter 2017 Summary

-- Reported sales were in line with the prior year

-- Excluding the negative impact from changes in foreign currency exchange rates, core sales increased 1% as robust core sales growth in the Pharma and Food + Beverage segments offset a decline in Beauty + Home

-- Reported net income (11% of net sales) increased to $65 million (+10%) primarily due to a lower effective tax rate

-- EBITDA (20% of net sales) decreased to $124 million (-7%) primarily due to decreases in business in certain markets and higher raw material costs

-- Reported earnings per share were $1.01 compared to $0.91 reported in the prior year (+11%) and $0.90 in the prior year when adjusting for changes in currency exchange rates (+12%)

-- Current period earnings per share included certain tax benefits equivalent to $0.09 per share related to stock-based compensation and $0.05 per share primarily related to the Company’s planned cash repatriation activities

Second Quarter Results

For the quarter ended June 30, 2017, reported sales were in line with the prior year at $618 million. Core sales, which exclude the negative impact from changes in currency exchange rates, increased approximately 1%.

                          Second Quarter Segment Sales Analysis
                                (Change Over Prior Year)
                             Beauty + Home    Pharma     Food + BeverageTotal AptarGroup
                            ------------- ------------- --------------- ----------------
Core Sales Growth                (4%)           8%             7%              1%
Currency Effects (1)             (1%)          (2%)           (1%)            (1%)
                            ------------- ------------- --------------- ----------------
Total Reported Sales Growth      (5%)           6%             6%              0%
                            ============= ============= =============== ================
 
(1) - Currency effects are approximated by translating last year’s
amounts at this year’s foreign exchange rates.
 

Commenting on the quarter, Stephan Tanda, President and CEO, said, "Our Pharma and Food + Beverage segments performed very well in the quarter with growth across each of their respective markets. Our Beauty + Home segment had another challenging quarter with decreased product sales across each end market and lower custom tooling sales. In Brazil we are feeling the effects of the difficult local economic condition. We also experienced operational challenges at a facility that produces decorative components sold to the beauty market and this, along with higher raw material costs, negatively impacted the segment’s profitability. We are moving forward with initiatives to return this segment to core growth while we work to improve operational efficiencies."

Aptar’s reported earnings per share increased 11% to $1.01 compared to $0.91 reported a year ago. Prior year adjusted earnings per share, which adjusts for comparable exchange rates, would have been $0.90. Current period earnings per share included approximately $0.14 related to certain tax benefits.

Year-to-Date Results

For the six months ended June 30, 2017, reported sales increased 1% to $1.22 billion from $1.20 billion a year ago. Core sales, which exclude the negative impact from changes in currency exchange rates and the positive impact from acquisitions, increased approximately 2%.

                     Six Months Year-to-Date Segment Sales Analysis
                                (Change Over Prior Year)
                             Beauty + Home    Pharma     Food + BeverageTotal AptarGroup
                            ------------- ------------- --------------- ----------------
Core Sales Growth                (2%)           9%             3%              2%
Acquisitions                      1%            0%             0%              1%
Currency Effects (1)             (1%)          (2%)           (2%)            (2%)
                            ------------- ------------- --------------- ----------------
Total Reported Sales Growth      (2%)           7%             1%              1%
                            ============= ============= =============== ================
 
(1) - Currency effects are approximated by translating last year’s
amounts at this year’s foreign exchange rates.
 

Tanda commented on the year-to-date results, "It’s been a mixed first half for our Beauty + Home segment with positive growth in the first quarter being more than offset by a difficult second quarter. Our Pharma segment has grown consistently and our Food + Beverage segment has performed well despite the continued difficult comparisons to the prior year for our beverage business in Asia."

For the six months year-to-date, Aptar’s reported earnings per share increased 15% to $1.81 compared to $1.58 reported a year ago. Prior year adjusted earnings per share, which adjusts for costs related to the Mega Airless acquisition and comparable exchange rates, would have been $1.64. The six months year-to-date earnings per share included approximately $0.18 related to certain tax benefits.

Outlook

Commenting on Aptar’s outlook, Tanda said, "Looking ahead to the third quarter, we expect our Beauty + Home segment to continue to face headwinds in the short-term. In addition to continued weakness in North America and Brazil, we now anticipate some risk with our business in China due to the recent excessive heat wave resulting in energy restrictions. This not only impacts our facilities but our suppliers’ as well. It’s too early to estimate the effects but we are watching the situation closely. The business pipeline in our Pharma segment remains solid, although it will likely be difficult to report year-on-year sales growth due to some significant custom tooling sales that occurred in the prior year third quarter. We expect Food + Beverage to continue to grow over the prior year as we further leverage our capabilities and technologies across different categories. Though we face certain near-term challenges, we remain positive about our long-term growth opportunities across each business segment. We are dedicated to executing our growth strategy, investing for the future and helping our customers to grow their businesses with our innovative dispensing solutions."

Aptar expects earnings per share for the third quarter to be in the range of $0.77 to $0.82 compared to $0.82 per share reported in the prior year. Our guidance range is based on an effective tax rate range of 26.5% to 28.5%, which includes an estimated potential tax benefit from our adoption of the new accounting standard for share-based compensation. Adjusting for changes in foreign currency exchange rates, comparable adjusted earnings per share for the prior year were approximately $0.83.

Cash Dividend

As previously reported, the Board declared on July 13, 2017 a quarterly cash dividend of $0.32 per share, payable August 16, 2017 to stockholders of record as of July 26, 2017.

Open Conference Call

There will be a conference call on Friday, July 28, 2017 at 8:00 a.m. Central Time to discuss AptarGroup’s second quarter results for 2017. 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 for a limited time 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 prior year adjusted earnings per share and adjusted EBITDA, which exclude the impact of transaction costs and purchase accounting adjustments that affected inventory values related to the Mega Airless acquisition. 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. Aptar’s management believes these non-GAAP financial measures provide useful information to our investors 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 Aptar’s core operating performance. These non-GAAP financial measures also provide investors with certain information used by Aptar’s management when making financial and operational decisions. 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," "potential" 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 impact and extent of contamination found at the Company’s facility in Brazil; economic conditions worldwide including potential deflationary conditions in regions we rely on for growth; political conditions worldwide; significant fluctuations in foreign currency exchange rates or our effective tax rate; 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                                                                                                                               Six Months Ended
                                                                                                                                             June 30,                                                                                                                     June 30,
                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------------
                                                                                                            2017                                                                   2016                                                                    2017                                                                     2016
                                                                                     -----------------------------------------------                        -----------------------------------------------                        -------------------------------------------------                        -------------------------------------------------
                                                                                                                                                                                                                                                                                                             
Net Sales                                                                                               $ 617,746                                                              $ 619,999                                                              $ 1,219,062                                                              $ 1,202,337
Cost of Sales (exclusive of depreciation and amortization shown                                           399,954                                                                389,863                                                                  784,886                                                                  764,066
below) (1)
Selling, Research & Development and Administrative (2)                                                     95,659                                                                 96,131                                                                  197,175                                                                  199,146
Depreciation and Amortization                                                           37,242                           40,390                             74,573                             76,277  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating Income                                                                                           84,891                                                                 93,615                                                                  162,428                                                                  162,848
Other Income/(Expense):
  Interest Expense                                                                                         (7,712 )                                                               (9,203 )                                                                (15,974 )                                                                (17,794 )
  Interest Income                                                                                             643                                                                    460                                                                      973                                                                    1,044
  Equity in Results of Affiliates                                                                             (22 )                                                                  (51 )                                                                    (70 )                                                                   (172 )
  Miscellaneous, net                                                                     1,768                             (463 )                                               1,691                             (1,723 )
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income before Income Taxes                                                                                 79,568                                                                 84,358                                                                  149,048                                                                  144,203
Provision for Income Taxes                                                              14,379                           25,307                             32,054                             41,286  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Income                                                                                              $  65,189                                                              $  59,051                                                              $   116,994                                                              $   102,917
                                                                                                                                                                                                                                                                                                             
Net (Income)/Loss Attributable to Noncontrolling Interests                                 (15 )                                                (3 )                                                   -                                 (6 )
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Income Attributable to AptarGroup, Inc.                                                             $  65,174                                           $  59,048                                           $   116,994                                           $   102,911  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
Net Income Attributable to AptarGroup, Inc. per Common Share:
  Basic                                                                                                 $    1.04                                           $    0.94                                           $      1.87                                           $      1.64  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
  Diluted                                                                                               $    1.01                                           $    0.91                                           $      1.81                                           $      1.58  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                             
Average Numbers of Shares Outstanding:
  Basic                                                                                                    62,631                                                                 63,053                                                                   62,494                                                                   62,888
  Diluted                                                                                                  64,828                                                                 64,785                                                                   64,519                                                                   65,063
                                                                                                                                                                                                                                                                                                             
Notes to the Condensed Consolidated Financial Statements:
(1) For the six months ended June 30, 2016, Cost of Sales included
the effect of approximately $2.6 million of purchase accounting
adjustments to inventory related to the Mega Airless acquisition.
 
(2) For the six months ended June 30, 2016, Selling, Research &
Development and Administrative included approximately $5.6 million
of costs related to the Mega Airless acquisition.
 
 
                                                                                      AptarGroup, Inc.
                                                                   Condensed Consolidated Financial Statements (Unaudited)
                                                                                         (continued)
                                                                                       (In Thousands)
                                                                                 Consolidated Balance Sheets
                                                                               
                                                                                            June 30, 2017                                                           December 31, 2016
                                                                                   -----------------------------                                            ------------------------------
ASSETS
                                                                                                                                                             
Cash and Equivalents                                                                                  $   336,915                                                              $    466,287
Receivables, net                                                                                          499,697                                                                   433,127
Inventories                                                                                               320,082                                                                   296,914
Other Current Assets                                                                    87,775                                                 73,842
                                                                                   -------------------- ---------                                           -------------------- ----------
  Total Current Assets                                                                                  1,244,469                                                                 1,270,170
Net Property, Plant and Equipment                                                                         831,708                                                                   784,321
Goodwill                                                                                                  429,579                                                                   407,522
Other Assets                                                                           158,108                                                144,772
                                                                                   -------------------- ---------                                           -------------------- ----------
Total Assets                                                                                          $ 2,663,864                                                              $  2,606,785
                                                                                   ==================== =========                                           ==================== ==========
                                                                                                                                                             
LIABILITIES AND EQUITY
                                                                                                                                                             
Short-Term Obligations                                                                                $     7,889                                                              $    173,816
Accounts Payable and Accrued Liabilities                                               471,171                                                369,139
                                                                                   -------------------- ---------                                           -------------------- ----------
  Total Current Liabilities                                                                               479,060                                                                   542,955
Long-Term Obligations                                                                                     770,648                                                                   772,737
Deferred Liabilities                                                                   104,980                                                116,851
                                                                                   -------------------- ---------                                           -------------------- ----------
Total Liabilities                                                                                       1,354,688                                                                 1,432,543
                                                                                                                                                             
AptarGroup, Inc. Stockholders’ Equity                                                                   1,308,877                                                                 1,173,950
Noncontrolling Interests in Subsidiaries                                                   299                                                    292
                                                                                   -------------------- ---------                                           -------------------- ----------
Total Equity                                                                         1,309,176                                              1,174,242
                                                                                   -------------------- ---------                                           -------------------- ----------
                                                                                                                                                             
Total Liabilities and Equity                                                                          $ 2,663,864                                                              $  2,606,785
                                                                                   ==================== =========                                           ==================== ==========
 
 
                                                                                                                                                                                                                                     AptarGroup, Inc.
                                                                                                                                                                                                                                   Reconciliation of EBIT and EBITDA to Net Income (Unaudited)
                                                                                                                                                                                                                                     (In Thousands)
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                                                                                                                      June 30, 2017
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                           Consolidated                                          Beauty + Home                                          Pharma                                         Food + Beverage                                    Corporate & Other                                    Net Interest
                                                                                        ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Net Sales                                                                                                  $ 617,746                                                                                     322,117                                                                201,702                                                                93,927                                                                      -                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Reported net income                                                                                        $  65,189
Reported income taxes                                                                      14,379                                                                                                                                           
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Reported income before income taxes                                                                           79,568                                                                                      25,203                                                                 59,792                                                                12,577                                                                (10,935 )                                                              (7,069 )
Adjustments:
  None
                                                                                                                                                                                                                                                               
                                                                                        ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Earnings before income taxes                                                                                  79,568                                                                                      25,203                                                                 59,792                                                                12,577                                                                (10,935 )                                                              (7,069 )
Interest expense                                                                                               7,712                                                                                                                                                                                                                                                                                                                                                                                 7,712
Interest income                                                                              (643 )                                                                                                                                                               (643 )
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------ --------------------
Earnings before net interest and taxes (EBIT)                                                                 86,637                                                                                      25,203                                                                 59,792                                                                12,577                                                                (10,935 )                                                                   -
Depreciation and amortization                                                              37,242          19,347         9,857        6,117         1,921            -  
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ --------------------
Earnings before net interest, taxes, depreciation and amortization                                         $ 123,879                          $  44,550                        $  69,649                        $ 18,694                        $  (9,014 )                                         $      -  
(EBITDA)
                                                                                        ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Segment income margins (Income before income taxes / Reported Net                                                                                                                                            7.8 %                                                                 29.6 %                                                                13.4 %
Sales)
EBITDA margins (EBITDA / Reported Net Sales)                                                                    20.1 %                                                                                      13.8 %                                                                 34.5 %                                                                19.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                                                                                                                      June 30, 2016
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                           Consolidated                                          Beauty + Home                                          Pharma                                         Food + Beverage                                    Corporate & Other                                    Net Interest
                                                                                        ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Net Sales                                                                                                  $ 619,999                                                                                     340,321                                                                191,034                                                                88,644                                                                      -                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Reported net income                                                                                        $  59,051
Reported income taxes                                                                      25,307                                                                                                                                           
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Reported income before income taxes                                                                           84,358                                                                                      30,547                                                                 58,597                                                                13,593                                                                 (9,636 )                                                              (8,743 )
Adjustments:
  None
                                                                                                                                                                                                                                                               
                                                                                        ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------
Earnings before income taxes                                                                                  84,358                                                                                      30,547                                                                 58,597                                                                13,593                                                                 (9,636 )                                                              (8,743 )
Interest expense                                                                                               9,203                                                                                                                                                                                                                                                                                                                                                                                 9,203
Interest income                                                                              (460 )                                                                                                                                                               (460 )
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------ --------------------
Earnings before net interest and taxes (EBIT)                                                                 93,101                                                                                      30,547                                                                 58,597                                                                13,593                                                                 (9,636 )                                                                   -
Depreciation and amortization                                                              40,390          22,239        10,360        6,072         1,719            -  
                                                                                        -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------ --------------------
Earnings before net interest, taxes, depreciation and amortization                                         $ 133,491                          $  52,786                        $  68,957                        $ 19,665                        $  (7,917 )                                         $      -  
(EBITDA)
                                                                                        ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ==================== ==================== ==================== ======= ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Segment income margins (Income before income taxes / Reported Net                                                                                                                                            9.0 %                                                                 30.7 %                                                                15.3 %
Sales)
EBITDA margins (EBITDA / Reported Net Sales)                                                                    21.5 %                                                                                      15.5 %                                                                 36.1 %                                                                22.2 %
 
 
                                                                                                                                                                                                                                     AptarGroup, Inc.
                                                                                                                                                                                                                                  Reconciliation of EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA
                                                                                                                                                                                                                                     to Net Income (Unaudited)
                                                                                                                                                                                                                                     (In Thousands)
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                       Six Months Ended
                                                                                                                                                                                                                                                                                                         June 30, 2017
                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                             Consolidated                                           Beauty + Home                                          Pharma                                          Food + Beverage                                    Corporate & Other                                     Net Interest
                                                                                         ------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Net Sales                                                                                                   $ 1,219,062                                                                                     644,565                                                                398,614                                                                175,883                                                                      -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Reported net income                                                                                         $   116,994
Reported income taxes                                                                         32,054                                                                                                                                            
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Reported income before income taxes                                                                             149,048                                                                                      47,411                                                                118,862                                                                 19,717                                                                (21,941 )                                                              (15,001 )
Adjustments:
  None
                                                                                                                                                                                                                                                                   
                                                                                         ------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Earnings before income taxes                                                                                    149,048                                                                                      47,411                                                                118,862                                                                 19,717                                                                (21,941 )                                                              (15,001 )
Interest expense                                                                                                 15,974                                                                                                                                                                                                                                                                                                                                                                                  15,974
Interest income                                                                                 (973 )                                                                                                                                                                 (973 )
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------- --------------------
Earnings before net interest and taxes (EBIT)                                                                   164,049                                                                                      47,411                                                                118,862                                                                 19,717                                                                (21,941 )                                                                    -
Depreciation and amortization                                                                 74,573          39,227        19,628        11,923         3,795             -  
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Earnings before net interest, taxes, depreciation and amortization                                          $   238,622                          $  86,638                        $ 138,490                        $  31,640                        $ (18,146 )                                         $       -  
(EBITDA)
                                                                                         ==================== ========= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Segment income margins (Income before income taxes / Reported Net                                                                                                                                               7.4 %                                                                 29.8 %                                                                 11.2 %
Sales)
EBITDA margins (EBITDA / Reported Net Sales)                                                                       19.6 %                                                                                      13.4 %                                                                 34.7 %                                                                 18.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                       Six Months Ended
                                                                                                                                                                                                                                                                                                         June 30, 2016
                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                             Consolidated                                           Beauty + Home                                          Pharma                                          Food + Beverage                                    Corporate & Other                                     Net Interest
                                                                                         ------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Net Sales                                                                                                   $ 1,202,337                                                                                     654,657                                                                374,169                                                                173,511                                                                      -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Reported net income                                                                                         $   102,917
Reported income taxes                                                                         41,286                                                                                                                                            
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Reported income before income taxes                                                                             144,203                                                                                      54,075                                                                111,833                                                                 22,876                                                                (27,831 )                                                              (16,750 )
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                                                                           152,420                                                                                      56,226                                                                112,259                                                                 22,876                                                                (22,191 )                                                              (16,750 )
Interest expense                                                                                                 17,794                                                                                                                                                                                                                                                                                                                                                                                  17,794
Interest income                                                                               (1,044 )                                                                                                                                                               (1,044 )
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------- --------------------
Adjusted earnings before net interest and taxes (Adjusted EBIT)                                                 169,170                                                                                      56,226                                                                112,259                                                                 22,876                                                                (22,191 )                                                                    -
Depreciation and amortization                                                                 76,277          41,497        19,617        11,896         3,267             -  
                                                                                         -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted earnings before net interest, taxes, depreciation and                                              $   245,447                          $  97,723                        $ 131,876                        $  34,772                        $ (18,924 )                                         $       -  
amortization (Adjusted EBITDA)
                                                                                         ==================== ========= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Segment income margins (Income before income taxes / Reported Net                                                                                                                                               8.3 %                                                                 29.9 %                                                                 13.2 %
Sales)
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)                                                     20.4 %                                                                                      14.9 %                                                                 35.2 %                                                                 20.0 %
 
 
                                                                                                                                                            AptarGroup, Inc.
                                                                                                                                    Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
                                                                                                                                             ($ in thousands, except per share information)
                                                                                                                                                                                  
                                                                                                                                                         Three Months Ended                                                                                                       Six Months Ended
                                                                                                                                                              June 30,                                                                                             June 30,
                                                                                                              ----------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------
                                                                                                                             2017                                        2016                                                     2017                                  2016
                                                                                                              --------------------------------                        ----------------------------------------------                        --------------------                       -----------------------------------------------
                                                                                                                                                                                                                                                                                        
Income before Income Taxes                                                                                         $ 79,568                                                              $ 84,358                                                    $    149,048                                         $ 144,203
                                                                                                                                                                                                                                                                                        
Adjustments:
-------------------------------------------------------------------
  Transaction costs related to the Mega Airless acquisition                                                                                                                                                                                                                                                   5,640
  Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                                                                                                           2,577
  Foreign currency effects (1)                                                                                                    (1,189 )                              (2,729 )
                                                                                                              ------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------------------------------------------ -------------------- ------- --------------------
Adjusted Income before Income Taxes                                                                                $ 79,568                        $ 83,169              $    149,048                      $ 149,691  
                                                                                                              ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ========== ========== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
Provision for Income Taxes                                                                                         $ 14,379                                                              $ 25,307                                                    $     32,054                                         $  41,286
                                                                                                                                                                                                                                                                                        
Adjustments:
-------------------------------------------------------------------
  Transaction costs related to the Mega Airless acquisition                                                                                                                                                                                                                                                   1,483
  Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                                                                                                             859
  Foreign currency effects (1)                                                                                                      (344 )                                (675 )
                                                                                                              ------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------------------------------------------ -------------------- ------- --------------------
Adjusted Provision for Income Taxes                                                                                $ 14,379                        $ 24,963              $     32,054                      $  42,953  
                                                                                                              ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ========== ========== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
Net (Income)/Loss Attributable to Noncontrolling Interests                                                         $    (15 )                                                            $     (3 )                                                  $          -                                         $      (6 )
                                                                                                                                                                                                                                                                                        
Net Income Attributable to AptarGroup, Inc.                                                                        $ 65,174                                                              $ 59,048                                                    $    116,994                                         $ 102,911
                                                                                                                                                                                                                                                                                        
Adjustments:
-------------------------------------------------------------------
  Transaction costs related to the Mega Airless acquisition                                                                                                                                                                                                                                                   4,157
  Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                                                                                                           1,718
  Foreign currency effects (1)                                                                                                      (845 )                              (2,054 )
                                                                                                              ------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------------------------------------------ -------------------- ------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc.                                                               $ 65,174                        $ 58,203              $    116,994                      $ 106,732  
                                                                                                              ====== ====== ==================== ==================== ==================== ====== ==================== ==================== ========== ========== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
Average Number of Diluted Shares Outstanding                                                                         64,828                                                                64,785                                                          64,519                                            65,063
                                                                                                                                                                                                                                                                                        
Net Income Attributable to AptarGroup, Inc. Per Diluted Share                                                      $   1.01                                                              $   0.91                                                    $       1.81                                         $    1.58
                                                                                                                                                                                                                                                                                        
Adjustments:
-------------------------------------------------------------------
  Transaction costs related to the Mega Airless acquisition                                                                                                                                                                                                                                                    0.06
  Purchase accounting adjustments related to Mega Airless inventory                                                                                                                                                                                                                                            0.03
  Foreign currency effects (1)                                                                                                     (0.01 )                               (0.03 )
                                                                                                              ------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------------------------------------------ -------------------- ------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted                                                   $   1.01                        $   0.90              $       1.81                      $    1.64  
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.
 
 
                                                                                                        AptarGroup, Inc.
                                                                                Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
                                                                                         ($ in thousands, except per share information)
                                                                     
                                                                                                                                                             Three Months Ended
                                                                                                                                                                September 30,
                                                                                                            --------------------------------------------------------------------------------------------------------------------
                                                                                                                Expected 2017                                2016
                                                                                                            --------------------                                           --------------------------------------------------
                                                                                                                                                                            
Income before Income Taxes                                                                                                                                                                    $     75,001
                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
  Foreign currency effects (1)                                                                                                                                                    1,020  
                                                                                                                                                                           -------------------- ---------- --------------------
Adjusted Income before Income Taxes                                                                                                                                                           $     76,021  
                                                                                                                                                                           ==================== ========== ====================
                                                                                                                                                                            
                                                                                                                                                                            
Provision for Income Taxes                                                                                                                                                                    $     21,901
                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
  Foreign currency effects (1)                                                                                                                                                      307  
                                                                                                                                                                           -------------------- ---------- --------------------
Adjusted Provision for Income Taxes                                                                                                                                                           $     22,208  
                                                                                                                                                                           ==================== ========== ====================
                                                                                                                                                                            
                                                                                                                                                                            
Net (Income)/Loss Attributable to Noncontrolling Interests                                                                                                                                    $         (2 )
                                                                                                                                                                            
Net Income Attributable to AptarGroup, Inc.                                                                                                                                                   $     53,098
                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
  Foreign currency effects (1)                                                                                                                                                      713  
                                                                                                                                                                           -------------------- ---------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc.                                                                                                                                          $     53,811  
                                                                                                                                                                           ==================== ========== ====================
                                                                                                                                                                            
Average Number of Diluted Shares Outstanding                                                                                                                                                        64,690
                                                                                                                                                                            
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)                                               $0.77 - $0.82                                                                 $       0.82
                                                                                                                                                                            
Adjustments:
-----------------------------------------------------------------
  Foreign currency effects (1)                                                                                            0.01  
                                                                                                            -------------------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted                                                $0.77 - $0.82                           $       0.83  
Share (2)
                                                                                                            ==================== ==================== ==================== ==================== ========== ====================
                                                                                                                                                                            
(1) Foreign currency effects are approximations of the adjustment
necessary to state the prior year earnings per share using foreign
currency exchange rates as of June 30, 2017.
 
(2) AptarGroup’s expected earnings per share range for the third
quarter of 2017 is based on an effective tax rate range of 26.5% to
28.5% which includes an estimate of a potential impact from our
adoption of the new accounting standard for share-based compensation.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170727006588r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006588/en/

SOURCE: AptarGroup, Inc.

AptarGroup, Inc. 
Investor Relations Contact: 
Matthew DellaMaria 
matt.dellamaria@aptar.com 
815-477-0424 
or 
Media Contact: 
Katie Reardon 
katie.reardon@aptar.com 
815-477-0424


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