AptarGroup reports record third quarter earnings; announces acquisition; declares quarterly cash dividend.CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Oct. 25, 1995--AptarGroup Inc. (NYSE NYSE See: New York Stock Exchange :ATR ATR Achilles tendon reflex, see Ankle reflex ) today reported record third quarter income due to continued strong sales to the fragrance/cosmetics and pharmaceutical markets, lower interest expense and the sale of a non-dispensing closure subsidiary in the fourth quarter of 1994. Third Quarter Results For the quarter ended September September: see month. 30, 1995, the company reported net income of $8.5 million, a 35 percent increase over the $6.3 million reported for the third quarter of 1994. Earnings per share increased 21 percent to 47 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. from 39 cents per share. Per share earnings reflect an 11 percent increase in the average shares outstanding over the 1994 quarter due to an equity offering in the fourth quarter of 1994. Sales for the quarter increased 17 percent to $140.6 million from $119.9 million in the prior year. Nine Months Results For the nine months ended Sept. 30, 1995, the company reported net income of $28.0 million, a 33 percent increase over the $21.1 million reported in 1994. Earnings per share increased 19 percent to $1.56 per share from $1.31 per share, reflecting the increase in the average shares outstanding. Sales for the first nine months of 1995 increased 18 percent to $418.7 million from $355.4 million in the prior year. Management Comment Commenting on the third quarter results, Ervin Er·vin , Samuel James, Jr. 1896-1985. American politician who as U.S. senator from North Carolina (1954-1974) led the committee that investigated the Watergate Scandal during the Nixon administration. J. LeCoque, chairman and chief executive officer, said, ``Improved results were achieved due to the continued strength of pump sales to the fragrance/cosmetics and pharmaceutical markets, reduced interest expense and the sale in the fourth quarter of 1994 of a non-dispensing closure subsidiary, which had a net loss of $.5 million in the third quarter of 1994 and $1.2 million in the first nine months of 1994. Net income for the third quarter of 1995 versus 1994 was negatively impacted by an increase in the tax rate from 37.1 percent to 39 percent due to an increase in the effective tax rate in France.'' LeCoque added that fluctuations in the value of the U.S. dollar favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected the translation of foreign sales. ``If exchange rates had been constant and the sales of the subsidiary that was sold in the fourth quarter of 1994 were excluded from 1994 results, sales would have increased by 16 percent for the quarter and 14 percent for the year to date. The subsidiary that was sold in late 1994 had sales of $2.1 million in the third quarter of 1994 and $7.4 million in the first nine months of 1994,'' LeCoque stated. ``European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. 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 third quarter and the first nine months of 1995. 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. , sales of pumps and 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 increased; however, operating profits continued to be adversely affected by softness in the personal care and household markets, particularly in the demand for 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, and costs of $.1 million for the third quarter and $.8 million for the first nine months related to the start-up Start-up The earliest stage of a new business venture. of the fragrance/cosmetics pump manufacturing facility on the East Coast,'' LeCoque continued. Acquisition AptarGroup also announced the acquisition in October 1995, of Liquid Molding Systems Inc., a U.S. company that owns the patents and has the liquid silicone rubber Noun 1. silicone rubber - made from silicone elastomers; retains flexibility resilience and tensile strength over a wide temperature range synthetic rubber, rubber - any of various synthetic elastic materials whose properties resemble natural rubber molding expertise to produce valves for the SimpliSqueeze(TM) dispensing closure system. SimpliSqueeze(TM) is a no-leak, invertible in·vert v. in·vert·ed, in·vert·ing, in·verts v.tr. 1. To turn inside out or upside down: invert an hourglass. 2. closure with one hand dispensing convenience. The purchase price was approximately $12 million. LMS' sales for calendar 1995 are estimated to be approximately $8 million. Commenting on the acquisition, LeCoque said, ``The LMS (Learning Management System) An information system that administers instructor-led and e-learning courses and keeps track of student progress. Used internally by large enterprises for their employees, an LMS can be used to monitor the effectiveness of the acquisition provides Aptar with technology critical to the success of SimpliSqueeze(TM) and allows us to pursue expansion of this technology to applications in our pump and aerosol valve product lines. The acquisition is not expected to have a dilutive impact on earnings.'' Cash Dividend AptarGroup's board of directors today declared a quarterly dividend of 7 cents per share, payable Nov. 28, 1995 to shareholders of record as of Nov. 7, 1995. AptarGroup Inc. is a leading international manufacturer, designer, and marketer of pumps, aerosol valves, and dispensing closures for personal care, fragrance/cosmetic, pharmaceutical, household, and food products. AptarGroup is headquartered in Crystal Lake, with manufacturing facilities primarily 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. and Europe. (Financial Highlights Follow) -0-
AptarGroup Inc.
Summary of Consolidated Income
For the Three Months and Nine Months Ended
Sept. 30, 1995 and 1994
(In Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
__________________ __________________
1995 1994 1995 1994
____ ____ ____ ____
Net sales $140,630 $119,945 $418,655 $355,384
Cost of sales 90,753 77,050 267,996 225,628
Selling, general and
administrative 24,194 21,552 71,957 62,950
Depreciation and amortization 11,038 10,029 32,334 28,729
________ ________ ________ ________
Operating income 14,645 11,314 46,368 38,077
Other:
Interest expense - net 1,446 2,029 3,803 6,241
Other income - net (694) (730) (2,363) (1,896)
________ ________ ________ ________
752 1,299 1,440 4,345
________ ________ ________ ________
Income before income taxes 13,893 10,015 44,928 33,732
Provision for income taxes 5,418 3,716 16,901 12,681
________ ________ ________ ________
Net income $ 8,475 $ 6,299 $ 28,027 $ 21,051
________ ________ ________ ________
________ ________ ________ ________
Net income per share of
common stock $.47 $.39 $1.56 $1.31
________ ________ ________ ________
________ ________ ________ ________
Average number of shares 17,919 16,079 17,917 16,079
________ ________ ________ ________
________ ________ ________ ________
CONTACT: AptarGroup Inc., Crystal Lake Steve Hagge, 815/477-0424 or Edelman Ed·el·man , Gerald Maurice Born 1929. American biochemist. He shared a 1972 Nobel Prize for research on the chemical structure and nature of antibodies. Worldwide, Chicago Gary Strong, 312/240-2634 |
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