AptarGroup Reports Fourth Quarter and Annual Results; Provides Outlook for 2002.Business Editors CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Feb. 13, 2002 AptarGroup, Inc. (NYSE NYSE See: New York Stock Exchange :ATR ATR Achilles tendon reflex, see Ankle reflex ) today reported fourth quarter 2001 sales and 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 which were less than the prior year and in line with the Company's guidance given in a press release dated January January: see month. 8, 2002. For the year, AptarGroup reported a slight increase in sales over the prior year with diluted earnings per share, before charges related to the Company's previously announced Strategic Initiative, equal to the prior year. FOURTH QUARTER RESULTS For the quarter ended December December: see month. 31, 2001, 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. 5 percent from the prior year. Reported sales for the quarter decreased 4 percent to $205.7 million from $213.5 million in the prior year. Net income, excluding Strategic Initiative charges, was $10.5 million. Diluted earnings per share, before charges, were $.29 per share compared to $.40 per share for the prior year period including a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of approximately $.02 per share recorded in the fourth quarter of 2000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc lower tax rates on foreign deferred tax liabilities. In the quarter, the Company recorded pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $0.8 million related to the Strategic Initiative. Net income as reported, including the effects of the Strategic Initiative, was $9.8 million, or $.27 per share (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. ). ANNUAL RESULTS For the year ended December 31, 2001, Core Sales increased approximately 3 percent from the prior year. Reported sales for the year rose 1 percent to a record $892.0 million from $883.5 million in the prior year. Net income for the year, before the effects of the Strategic Initiative, was $64.8 million compared to $64.7 million in the prior year. Diluted earnings per share of $1.78, before Strategic Initiative charges, equaled the prior year. For the year, the Company recorded pre-tax charges of $9.6 million related to the Strategic Initiative. Net income as reported, including the effects of the Strategic Initiative, was $58.8 million, or $1.61 per share (diluted). 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:
Reflecting on the year, Siebel added, "Our sales reached $892 million, a slight increase over last year's sales, and our profits matched those of 2000, both notable achievements given the challenging economic environment in the second half of the year. This is a reflection of our broad product range, global presence, and market diversity as well as our ongoing cost reduction efforts." BUSINESS SEGMENT PERFORMANCE In reviewing the current economic characteristics of the Company's operating segments, the Company has identified two reportable business segments. The first segment, referred to as 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, represents an aggregate of four of the Company's five business units. The second segment, referred to as SeaquistPerfect, represents 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. For the quarter, reported sales of the Dispensing Systems segment declined 5 percent, to $172.2 million from $180.5 million in the prior year. The decline is due to decreased sales to the fragrance/cosmetic and personal care markets which were partially offset by increased sales to the pharmaceutical market. For the year, the segment's reported sales increased slightly to $747.7 million from $745.4 million in the prior year. Fourth 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 $23.1 million from $27.7 in the prior year primarily due to the underutilization of manufacturing capacities. For the year, EBIT for the segment decreased to $118.1 million from $124.2 million in the prior year. For the quarter, reported sales of the SeaquistPerfect segment were equal to the prior year at $36.1 million. For the year, the segment's reported sales increased 2 percent to $154.2 million from $150.8 million in the prior year. Fourth quarter EBIT for the SeaquistPerfect segment decreased to approximately $0.1 million from $0.6 million a year ago. For the year, EBIT increased to $5.8 million from $5.0 million in the prior year. OUTLOOK Siebel commented, "Looking forward, the positive trend in the pharmaceutical market that began in the second half of 2001 is expected to continue. While we believe that we will see improvement from both the fragrance/cosmetic and personal care markets in the first quarter of 2002 over the depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. levels of the fourth quarter of 2001, it will be difficult to surpass the strong levels achieved in the first quarter of 2001. Presently, we anticipate Core Sales for the first quarter of 2002 to be below the prior year's level by approximately 3 to 6 percent and diluted earnings per share to be in the range of $.42 - $.48 per share, excluding any Strategic Initiative charges, versus $.52 per share in 2001 on a comparable basis after adjusting for the elimination of goodwill amortization. For the first quarter of 2001, we reported $.50 per share including the amortization of goodwill." Siebel concluded, "While we anticipate a relatively slow start to the year, based on discussions with customers and a variety of projects underway, we expect our business to 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. For the full year, we expect double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" earnings growth on a comparable basis over 2001. We are confident that the fundamental principles of our business have not changed. Consumers continue to demand convenience, safety and innovation and that is what we will continue to provide in the way of dispensing solutions. Our pipeline of new projects continues to be active across all markets and we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the 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. prospects of the Company." OPEN CONFERENCE CALL There will be a conference call on Thursday Thursday: see week. , February February: see month. 14, 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 fourth quarter and annual results for 2001. 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 March 13, 2002. AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the personal care, fragrance/cosmetic, 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 DECEMBER 31,
----------------------------------------------
2001
-----------------------
Excluding
Strategic Strategic
Initiative Initiative 2000
Reported Charges Charges --------
-------- ---------- ----------
Net Sales $205,706 $ 205,706 $213,477
Cost of Sales 133,322 70 133,252 135,125
Selling, Research &
Development and
Administrative 36,362 36,362 36,712
Depreciation and
Amortization 18,331 696 17,635 16,079
Strategic Initiative
Costs:
Severance and Other 74 74 --- ---
-------- ---------- ---------- --------
Operating Income 17,617 (840) 18,457 25,561
Other:
Interest Expense (3,168) (3,168) (4,896)
Interest Income 446 446 689
Equity in Results
of Affiliates (80) (80) 369
Minority Interests 31 31 (290)
Miscellaneous, net 630 630 (938)
-------- ---------- ---------- --------
Income before
Income Taxes 15,476 (840) 16,316 20,495
Provision for
Income Taxes 5,666 (107) 5,773 6,137
-------- ---------- ---------- --------
Net Income $ 9,810 $ (733) $ 10,543 $ 14,358
======== ========== ========== ========
Net Income per
Share - Basic $ .27 $ (.02) $ .29 $ .40
======== ========== ========== ========
Net Income per
Share - Diluted $ .27 $ (.02) $ .29 $ .40
======== ========== ========== ========
Average Number
of Shares - Basic 35,859 35,859 35,859 35,600
Average Number
of Shares - Diluted 36,602 36,602 36,602 36,057
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31,
----------------------------------------------
2001
-----------------------
Excluding
Strategic Strategic
Initiative Initiative 2000
Reported Charges Charges --------
-------- ---------- ----------
Net Sales $891,986 $ 891,986 $883,481
Cost of Sales 562,814 170 562,644 553,642
Selling, Research &
Development and
Administrative 146,137 146,137 145,000
Depreciation and
Amortization 73,584 1,857 71,727 70,949
Strategic
Initiative Costs:
Asset Impairment 5,498 5,498 --- ---
Severance and Other 2,085 2,085 --- ---
-------- ---------- ---------- --------
Operating Income 101,868 (9,610) 111,478 113,890
Other:
Interest Expense (15,572) (15,572) (19,002)
Interest Income 1,822 1,822 1,764
Equity in Results
of Affiliates (248) (248) 506
Minority Interests (564) (564) (756)
Miscellaneous, net 1,049 1,049 1,520
-------- ---------- ---------- --------
Income before
Income Taxes 88,355 (9,610) 97,965 97,922
Provision for
Income Taxes 29,447 (3,615) 33,062 33,256
-------- ---------- ---------- --------
Net Income Before
Cumulative Effect
of a Change in
Accounting Principal 58,908 (5,995) 64,903 64,666
Cumulative Effect of
a Change in Accounting
Principal, Net of Tax (1) (64) (64) ---
Net Income After
Cumulative Effect
of a Change in
Accounting Principal $ 58,844 (5,995) $ 64,839 $ 64,666
======== ========== ========== ========
Net Income per Share
Before Change
in Accounting
Principal - Basic $ 1.65 $ (.17) $ 1.81 $ 1.80
======== ========== ========== ========
Net Income per
Share - Basic $ 1.64 $ (.17) $ 1.81 $ 1.80
======== ========== ========== ========
Net Income per
Share - Diluted (2) $ 1.61 $ (.16) $ 1.78 $ 1.78
======== ========== ========== ========
Average Number
of Shares - Basic 35,805 35,805 35,805 35,863
Average Number
of Shares - Diluted 36,529 36,529 36,529 36,369
Notes to Condensed Consolidated Financial Statements:
(1) Represents the impact of the adoption of SFAS No. 133, "Accounting
for Derivative Instruments and Hedging Activities" on January 1,
2001.
(2) Net Income Per Share-Diluted amounts 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
December 31, 2001 December 31, 2000
----------------- -----------------
ASSETS
Cash and Equivalents $ 48,013 $ 55,559
Receivables, net 185,131 210,794
Inventories 120,531 121,522
Other Current Assets 21,240 19,674
---------- ----------
Total Current Assets 374,915 407,549
Net Property, Plant and Equipment 381,102 377,433
Goodwill, net 122,569 127,754
Other Assets 36,741 39,503
---------- ----------
Total Assets $915,327 $952,239
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations $ 16,919 $ 39,574
Accounts Payable and
Accrued Liabilities 140,983 163,528
---------- ----------
Total Current Liabilities 157,902 203,102
Long-Term Obligations 235,636 252,752
Deferred Liabilities 52,585 55,845
---------- ----------
Total Liabilities 446,123 511,699
Stockholders' Equity 469,204 440,540
---------- ----------
Total Liabilities and
Stockholders' Equity $ 915,327 $952,239
========== ==========
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------ ------------
2001 2000 2001 2000
-------- -------- -------- --------
NET SALES
Dispensing Systems $172,169 $180,472 $747,659 $745,391
SeaquistPerfect 36,096 36,082 154,159 150,777
Intersegment
Eliminations (2,559) (3,077) (9,832) (12,687)
-------- -------- -------- --------
Total Net Sales $205,706 $213,477 $891,986 $883,481
======== ======== ======== ========
EARNINGS
Dispensing Systems $ 23,130 $ 27,677 $118,118 $124,194
SeaquistPerfect 58 587 5,843 5,017
Corporate Expenses
and Other (4,150) (3,562) (12,246) (14,051)
Strategic Initiative
Charges (1) (840) --- (9,610) ---
-------- -------- -------- --------
Earnings before Interest
and Taxes (EBIT) 18,198 24,702 102,105 115,160
Less: Interest
Expense, Net 2,722 4,207 13,750 17,238
-------- -------- -------- --------
Income before
Income Taxes $ 15,476 $ 20,495 $ 88,355 $ 97,922
======== ======== ======== ========
Notes to Condensed Consolidated Financial Statements:
(1) Strategic Initiative charges relate to the Dispensing Systems
segment.
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