AptarGroup Reports First Quarter Results; Declares Dividend.Business Editors CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 18, 2002 AptarGroup, Inc. (NYSE NYSE See: New York Stock Exchange :ATR ATR Achilles tendon reflex, see Ankle reflex ) today reported first quarter results that were in line with prior guidance. FIRST QUARTER RESULTS For the quarter ended March 31, 2002, Core Sales (excluding changes in foreign currency exchange rates) decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4 percent from the prior year. Reported sales for the quarter decreased 6 percent to $218.7 million from $232.9 million in the prior year. Net income for the first quarter of 2002, excluding Strategic Initiative charges of $.1 million, was $16.1 million. 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 , before and after the charges, were $.44 per share versus $.52 per share for the prior year period on a comparable basis (excluding approximately $.02 per share recorded in the first quarter of 2001 for goodwill amortization). No Strategic Initiative charges were recorded in the first quarter of the prior year and diluted earnings per share as reported were $.50 per share in 2001. MANAGEMENT COMMENT Commenting on the quarter, Carl A. Siebel For the tech company, see . Siebel, originally Flugzeugbau Halle, was a German aircraft manufacturer in Halle an der Saale. Siebel aircraft included:
Siebel added, "Weak demand from the fragrance/cosmetic market continues to affect our ability to fully absorb absorb To offset sell orders or a new security offering with buy orders. overhead costs overhead costs see fixed costs. . Additionally, we continue to face price competition, particularly in our closures business. Our increased emphasis on cost savings had a positive impact on our first quarter results and we continue to focus on additional cost saving measures which will allow us to be in a better position when business conditions improve." BUSINESS SEGMENT PERFORMANCE Sales of the 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. Systems segment (which represents an aggregate of four of the Company's five business units) declined 7 percent, to $180.0 million from $193.2 million in the prior year. The decline is primarily due to decreased sales to the fragrance/cosmetic market which were partially offset by increased sales to the pharmaceutical market. First quarter EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). (earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income ) for the Dispensing Systems segment decreased to $26.1 million from $32.4 million in the prior year on a comparable basis after adjusting for the elimination of goodwill amortization. Sales of the SeaquistPerfect segment (the Company's fifth business unit which produces 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 markets other than the pharmaceutical market as well as certain spray (networking) spray - A Unix command that sends packets to a host and reports performance statistics. The number of packets, delay between packets and packet length can all be specified. and lotion lotion /lo·tion/ (lo´shun) a liquid suspension, solution, or emulsion for external application to the body. lo·tion n. 1. pumps sold primarily to the personal care market) decreased to $41.6 million from $42.0 million in the prior year. First quarter EBIT for the SeaquistPerfect segment increased to approximately $3.2 million from $2.6 million in the prior year primarily due to price increases and cost savings. OUTLOOK Siebel commented, "Looking forward, we continue to anticipate that our business will gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. improve throughout 2002. Regarding the second quarter, the positive trend in the pharmaceutical market is expected to continue. We are beginning to see an increase in orders from low to mid range fragrance customers in the U.S. However, presently there is no noticeable change in order levels from upper end fragrance customers. While we expect improvement from both the overall fragrance/cosmetic and personal care markets in the second quarter over the first quarter, the strong second quarter of 2001 makes for a difficult comparison. Presently, we anticipate Core Sales for the second quarter of 2002 to be below the prior year's level and diluted earnings per share to be in the range of $.48 to $.54 per share, excluding any Strategic Initiative charges, versus $.56 per share in 2001 on comparable basis (excluding Strategic Initiative Charges of $.13 per share and goodwill amortization of $.02 per share)." Siebel concluded, "Our customers continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about business conditions improving in the second half of the year. Based upon the expected improvement in sales, particularly to the high end fragrance/cosmetic market, we continue to target double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. earnings growth for the full year of 2002 on a comparable basis over 2001." CASH DIVIDEND The Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $.06 per share, payable May 22, 2002 to shareholders of record as of May 1, 2002. OPEN CONFERENCE CALL There will be a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 19, 2002 at 8:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. to discuss the Company's first quarter for 2002. The call will last approximately one hour and feature remarks by Carl A. Siebel and Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and J. Hagge, AptarGroup's Chief Financial Officer. Interested parties are invited to listen to a live webcast by visiting the Investor Relations Investor relations The process by which the corporation communicates with its investors. page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the Web site until 5:00 p.m. CST on May 17, 2002. AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. 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 North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , 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. . For more information,
visit the AptarGroup web site at http://www.aptargroup.com.
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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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, the ability to successfully execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution the Company's Strategic Initiative, changes in foreign exchange rates, direct or indirect consequences of acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. or terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. 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 MARCH 31,
-----------------------------------------
2002
-------------------------------
Excluding
Strategic Strategic
Initiative Initiative
Reported Charges Charges 2001
-------- -------- -------- --------
Net Sales $218,707 $218,707 $232,899
Cost of Sales 139,761 139,761 146,347
Selling, Research &
Development and
Administrative 35,060 35,060 36,581
Goodwill Amortization (1) -- -- 908
Depreciation and Other
Amortization 17,417 70 17,347 17,789
Strategic Initiative Costs:
Severance and Other 29 29 -- --
-------- -------- -------- ---------
Operating Income 26,440 (99) 26,539 31,274
Other:
Interest Expense (2,801) (2,801) (4,634)
Interest Income 330 330 671
Equity in Results of
Affiliates (111) (111) (36)
Minority Interests (30) (30) (240)
Miscellaneous, net 63 63 252
-------- -------- -------- ---------
Income before Income Taxes 23,891 (99) 23,990 27,287
Provision for Income Taxes 7,879 (38) 7,917 9,113
-------- -------- -------- ---------
Net Income Before Cumulative
Effect of a Change in
Accounting Principle 16,012 (61) 16,073 18,174
Cumulative Effect of a Change
in Accounting Principle,
Net of Tax (2) -- -- -- (64)
-------- -------- -------- ---------
Net Income After Cumulative
Effect of a Change in
Accounting Principle (1) $ 16,012 $ (61) $ 16,073 $ 18,110
======== ======== ======== =========
Net Income per Share -
Basic (1,3) $ .45 $ (.00) $ .45 $.51
======== ======== ======== =========
Net Income per Share -
Diluted (1,3) $ .44 $ (.00) $ .44 $.50
======== ======== ======== =========
Average Number of Shares -
Basic 35,863 35,863 35,863 35,683
Average Number of Shares -
Diluted 36,679 36,679 36,679 36,344
Notes to Condensed Consolidated Financial Statements:
(1) Goodwill amortization ($864 after-tax or $.02 per share) was
recorded in 2001 prior to the 1/1/02 adoption of SFAS No. 142,
"Goodwill and Other Intangible Assets".
(2) Represents the impact of the adoption of SFAS No. 133, "Accounting
for Derivative Instruments and Hedging Activities" on January 1,
2001.
(3) Net Income Per Share amounts for 2001 are the same when calculated
using either Net Income Before or After the Cumulative Effect of a
Change in Accounting Principle.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
March 31, 2002 December 31, 2001
-------------- ------------------
ASSETS
Cash and Equivalents $ 52,348 $ 48,013
Receivables, net 192,005 185,131
Inventories 113,240 120,531
Other Current Assets 24,197 21,240
---------- ----------
Total Current Assets 381,790 374,915
Net Property, Plant and Equipment 378,192 381,102
Goodwill, net 122,305 122,569
Other Assets 36,618 36,741
---------- ----------
Total Assets $ 918,905 $ 915,327
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $ 12,708 $ 13,168
Accounts Payable and Accrued
Liabilities 144,500 140,983
---------- ----------
Total Current Liabilities 157,208 154,151
Long-Term Obligations 237,656 239,387
Deferred Liabilities 52,590 52,585
---------- ----------
Total Liabilities 447,454 446,123
Stockholders' Equity 471,451 469,204
---------- ----------
Total Liabilities and Stockholders'
Equity $ 918,905 $ 915,327
========== ==========
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED
MARCH 31,
---------
2002 2001
------ ------
NET SALES
Dispensing Systems $180,027 $193,181
SeaquistPerfect 41,614 42,028
Intersegment Eliminations (2,934) (2,310)
-------- --------
Total Net Sales $218,707 $232,899
======== ========
EARNINGS (as reported)
Dispensing Systems $26,108 $31,549
SeaquistPerfect 3,167 2,600
Corporate Expenses and Other (2,814) (2,899)
Strategic Initiative Charges (1) (99) -
-------- --------
Earnings before Interest and Taxes (EBIT) 26,362 31,250
Less: Interest Expense, Net 2,471 3,963
-------- --------
Income before Income Taxes $23,891 $27,287
======== ========
SUPPLEMENTAL 2001 INFORMATION
Goodwill Amortization (2):
Dispensing Systems - $880
SeaquistPerfect - 25
Corporate and Other - 3
--------
Total Goodwill Amortization - $908
========
Segment Earnings Excluding Goodwill Amortization:
Dispensing Systems - $32,429
SeaquistPerfect - 2,625
Notes to Condensed Consolidated Financial Statements:
(1) Strategic Initiative charges relate to the Dispensing Systems
segment.
(2) Represents goodwill amortization recorded prior to the adoption of
SFAS No. 142, "Goodwill and Other Intangible Assets."
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