AptarGroup Reports 16% Increase in Fourth Quarter Income and 13% Increase in Annual Income.Business Editors CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Feb. 17, 2000 AptarGroup, Inc. (NYSE NYSE See: New York Stock Exchange :ATR ATR Achilles tendon reflex, see Ankle reflex ) today reported improved results for the fourth quarter and year ended December 31, 1999. FOURTH QUARTER RESULTS For the quarter ended December 31, 1999, the Company reported net income of $15.4 million. This represents a 16 percent increase over the $13.3 million income for the fourth quarter of 1998, excluding the effects of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. court judgment. In the fourth quarter of 1998, the Company recorded $5.6 million, net of taxes, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a favorable patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit lawsuit: see procedure; tort. judgment. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $.42 per share from the $.36 per share for the prior year period, excluding the judgment. Fourth quarter net income including the judgment was $18.9 million, or $.51 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Sales for the quarter increased 22 percent to a record $216.8 million from $178.1 million in the prior year. If the U.S. dollar exchange rate had remained constant, sales for the quarter would have been approximately 29 percent higher than the prior year. Acquisitions accounted for approximately $22 million of fourth quarter sales; however, the impact of acquisitions on net income was not material. ANNUAL RESULTS For the year ended December 31, 1999, the Company reported net income of $62.0 million before a one-time charge of $3.3 million to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. purchased in-process research and development costs associated with an acquisition. This represents a 13 percent increase over the $54.7 million net income in 1998, excluding favorable lawsuit settlements. Diluted earnings per share before the charge increased to $1.68 per share from $1.49 per share in the prior year, excluding the judgment. Including the in-process research and development write-off, net income was $58.7 million, or $1.59 per diluted share. Sales for the year increased 17 percent to a record $834.3 million from $713.5 million in the prior year. Acquisitions accounted for approximately $103 million of sales; however, the impact of acquisitions on net income was not material. If the U.S. dollar exchange rate had remained constant, sales for the year would have been approximately 20 percent higher than the prior year. MANAGEMENT COMMENT Carl A. Siebel, President and Chief Executive Officer, said, &uot;We ended the year with a very strong fourth quarter as a result of increased demand for all of our products. For the quarter, our sales growth (excluding the effects of acquisitions and currency translation) of approximately 16 percent was slightly more than triple our third quarter growth rate and more in line with our historical long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth rate. We achieved record results (excluding the favorable patent lawsuit recorded in the fourth quarter of 1998) despite the adverse effects of increased resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing prices on LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack inventory valuation in the U.S. and temporary interruptions of French operations from severe windstorms and work stoppages relating to the new 35 hour workweek. These results reflect the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our products, markets served and geographic presence as well as a reduction in the overall effective tax rate. Both European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and U.S. operations posted gains in sales and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter.&uot; Commenting on the year, Siebel added, &uot;Sales and operating profits for the year at both our European and U.S. operations increased over the prior year. However, the results were hampered by the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in demand from the fragrance/cosmetics market that began in late 1998 and continued through the first half of 1999 as well as problems during implementation of a major enterprise system at our U.S. dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. closures operation.&uot; Siebel also said, &uot;During the year, we completed several acquisitions and established a manufacturing operation in Brazil, positioning us to better serve the growing global marketplace. Looking forward, we have announced selective price increases for 2000 and we are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the year. We expect improved demand from the fragrance/cosmetics market that began in the second half of 1999 to continue and the outlook for the other markets served by AptarGroup is positive at this time.&uot; STOCK REPURCHASE Stock repurchase A firm's repurchase of outstanding shares of its common stock. PROGRAM During the fourth quarter of 1999, the Company repurchased 235,500 shares of stock under the stock repurchase program that was previously announced in October of 1999 for a maximum of 1 million shares. CASH DIVIDEND As previously announced, the Board of Directors declared a quarterly dividend of $.05 per share, payable March 2, 2000, to shareholders of record as of February 9, 2000. AptarGroup, Inc. is a leading international designer, manufacturer and marketer of pumps, dispensing closures and aerosol aerosol (âr`əsōl,–sŏl): see colloid. aerosol System of tiny liquid or solid particles evenly distributed in a finely divided state through a gas, usually air. valves for fragrance/cosmetics, personal care, pharmaceutical, household/industrial and food products. AptarGroup is headquartered in Crystal Lake, Illinois Crystal Lake is a city located in southeastern McHenry County in northeastern Illinois. It is named after Crystal Lake, a 230 acre (1 km²) lake 1.6 miles (2.6 km) west-southwest of downtown. The population was 38,000 at the 2000 census. , with manufacturing facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe, Asia and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management's beliefs as well as assumptions made by and information currently available to management. Accordingly, the Company's 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 including, but not limited to, those related to overall business conditions in the various markets in which the Company operates, fiscal and monetary policy, changes in foreign exchange rates and other risks and uncertainties discussed from time to time in the Company's filings with the Securities and Exchange Commission, including its Form 10-K's and 10-Q's. Readers are cautioned not to place undue reliance on forward-looking statements.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------- -----------------
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $216,751 $178,120 $834,317 $713,506
Cost of Sales 135,240 111,484 519,704 444,615
Selling, R&, General and
Administrative 37,632 31,084 137,507 119,287
Depreciation and Amortization 16,916 13,079 68,670 54,446
-------- -------- -------- --------
Operating Income 26,963 22,473 108,436 95,158
Other:
Interest Expense (3,989) (1,783) (14,246) (6,451)
Interest Income 227 452 1,170 1,146
Equity in Results of Affiliates (87) 27 (918) 219
Minority Interests (67) (153) (160) (389)
Miscellaneous, net (122) (93) 796 (375)
In-process research and
development write-off -- -- (3,300) --
Lawsuit Settlement, net -- 9,066 -- 9,881
-------- -------- -------- --------
Income before Income Taxes 22,925 29,989 91,778 99,189
Provision for Income Taxes 7,556 11,131 33,066 38,368
-------- -------- -------- --------
Net Income $ 15,369 $ 18,858 $ 58,712 $ 60,821
Adjustments for:
In-process research and
development write-off -- -- 3,300 --
Lawsuit Settlement, net -- (5,603) -- (6,078)
-------- -------- -------- --------
Adjusted Net Income $ 15,369 $ 13,255 $ 62,012 $ 54,743
======== ======== ======== ========
Net Income Per Share - Basic $.42 $.52 $1.62 $1.69
======== ======== ======== ========
Net Income Per Share - Diluted $.42 $.51 $1.59 $1.65
======== ======== ======== ========
Adjusted Net Income Per Share
- Diluted $.42 $.36 $1.68 $1.49
======== ======== ======== ========
Average Number of Shares:
Basic 36,435 36,098 36,353 36,051
Diluted 36,943 36,773 36,913 36,799
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands, Except Per Share Data)
CONSOLIDATED BALANCE SHEETS
December 31, 1999 December 31, 1998
------------------ ------------------
ASSETS
Cash and Equivalents $ 32,416 $ 25,159
Receivables, net 189,926 173,289
Inventories 109,151 101,091
Other Current Assets 21,160 17,110
-------- --------
Total Current Assets 352,653 316,649
Net Property, Plant and Equipment 358,558 325,179
Goodwill, net 127,214 49,688
Other Assets 26,292 23,157
-------- --------
Total Assets $864,717 $714,673
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $ 35,147 $ 37,224
Accounts Payable and Accrued Liabilities 126,068 130,209
-------- --------
Total Current Liabilities 161,215 167,433
Long-Term Obligations 235,649 80,875
Deferred Liabilities 47,584 50,857
-------- --------
Total Liabilities 444,448 299,165
Stockholders' Equity 420,269 415,508
-------- --------
Total Liabilities and Stockholders'
Equity $864,717 $714,673
======== ========
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