Aptar Reports Second Quarter 2023 Results

AptarGroup, Inc. reported strong operational performance driven by continued growth of the company’s proprietary drug delivery systems and significant sequential improvement in injectables sales as Enterprise Resource Planning system implementation effects moderated.

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)-- AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported strong operational performance driven by continued growth of the company’s proprietary drug delivery systems and significant sequential improvement in injectables sales as Enterprise Resource Planning (ERP) system implementation effects moderated. Strong sales from prestige and mass fragrance also contributed positively to the results. Reported sales increased by 6% and core sales, excluding currency and acquisition effects, increased by 4%. Aptar reported net income of $83 million for the quarter, a 31% increase over the prior year.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230727441444/en/

Photo: Aptar

Photo: Aptar

Commenting on the second quarter results, Stephan B. Tanda, Aptar President and CEO, said, “Aptar delivered strong, double-digit EPS growth in the second quarter, highlighted by increased core sales in our pharma proprietary dosing and dispensing systems and the success of our beauty dispensing solutions in fragrance. Our strong performance coupled with our ongoing efforts to reduce costs, resulted in improved margins. Additionally, I am proud to share the ESG progress made by our global team, with the recent release of our Corporate Sustainability Report, which highlights key milestones, strategic progress and the competitive advantage our leading position affords us.”

Second Quarter 2023 Highlights

  • Reported sales increased 6% and net income increased 31% to $83 million
  • Core sales increased 4% and adjusted EBITDA of $181 million increased 13% from the prior year
  • Pharma proprietary drug delivery systems grew across the majority of end-use categories
  • Beauty’s fragrance dispensing technologies had double-digit growth in the quarter
  • Reported earnings per share increased 31% to $1.24 compared to $0.95 in the prior year
  • Adjusted earnings per share increased 26% to $1.23 compared to $0.98 in the prior year (including comparable exchange rates)
  • Announced an increase to the quarterly dividend by almost 8% to $0.41 per share
  • Issued new Corporate Sustainability Report highlighting ESG commitments and initiatives

Second Quarter Results

For the quarter ended June 30, 2023, reported sales increased 6% to $896 million compared to $845 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 4%.

Second Quarter Segment Sales Analysis
(Change Over Prior Year)

 

Aptar
Pharma

Aptar
Beauty

Aptar
Closures

Total
AptarGroup

Reported Sales Growth

15%

4%

(6%)

6%

Currency Effects (1)

(2%)

(1%)

(1%)

(1%)

Acquisitions

0%

0%

(1%)

(1%)

Core Sales Growth

13%

3%

(8%)

4%

         

(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

Aptar Pharma’s performance in the quarter was driven by strong core sales for proprietary drug delivery systems used for nasal decongestants, saline rinses, eye care, and cough and cold, as well as allergic rhinitis, emergency medicines, asthma and COPD therapies. Core sales for injectables were consistent with the prior year quarter as the impact from the ERP system implementation improved progressively.

Aptar Beauty’s core sales growth was driven by continued strength in beauty dispensing solutions, including prestige and mass fragrance, as well as color cosmetics. The segment continued to perform well in Europe, which represented more than half of Beauty’s revenue in the quarter, driven by global beauty companies based in the region. China and Latin America continued to see gradual improvements, while in North America, market softness persisted from excess inventories in the personal and home care markets.

Core sales for the Aptar Closures segment declined compared with the prior year’s quarter primarily due to pass-throughs of lower resin prices and continued market challenges in North America, with modest sales growth in Europe and Asia.

Aptar reported second quarter earnings per share of $1.24, an increase of 31%, compared to $0.95 during the same period a year ago. Second quarter adjusted earnings per share, excluding restructuring charges and the unrealized gains or losses on an equity investment, were $1.23, an increase of 26%, compared to $0.98 in the prior year, including comparable exchange rates.

Year-To-Date Results

For the six months ended June 30, 2023, reported sales increased 4% to $1.76 billion compared to $1.69 billion in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 4%.

Six Months Year-To-Date Segment Sales Analysis
(Change Over Prior Year)

 

Aptar
Pharma

Aptar
Beauty

Aptar
Closures

Total
AptarGroup

Total Reported Sales Growth

9%

5%

(7)%

4%

Currency Effects (1)

1%

1%

0%

1%

Acquisitions

0%

0%

(1)%

(1)%

Core Sales Growth

10%

6%

(8)%

4%

         

(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

For the six months ended June 30, 2023, Aptar’s reported earnings per share were $2.07, an increase of 10%, compared to $1.88 reported a year ago. In the first half of the year, adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $2.18 and increased 14% from prior year adjusted earnings per share of $1.91, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 28% (approximately $0.08 cents per share impact compared to the current year effective tax rate of 25%).

Outlook

Regarding Aptar’s outlook, Tanda stated, “As we continue to emerge from the challenging operating environment of the last few years, we are energized for the future and well positioned to create long-term value for all of our stakeholders. Aptar had an exceptionally strong first half of the year due to the tremendous growth of our pharma proprietary drug delivery systems and our fragrance dispensing technologies. The strengths of these core markets are expected to continue into the third quarter. Additionally, the team has done an excellent job focusing on reducing costs while growing the top line— an effort that is continuing. Our consistent track record of returning value to shareholders is underscored by our recently announced dividend increase of almost 8% and ongoing share repurchases.”

Aptar currently expects earnings per share for the third quarter of 2023, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.23 to $1.31. This guidance is based on an effective tax rate range of 25% to 27% which compares to an effective tax rate of 28% on prior year adjusted earnings. The earnings per share guidance range was based on a Euro/US$ exchange rate of 1.09 and the spot rates at the end of June for all other currencies. Our currency exchange rate assumptions equate to an approximately $0.06 per share tailwind when compared to the prior year third quarter earnings.

Cash Dividends and Share Repurchases

As previously announced, Aptar’s Board of Directors increased the quarterly cash dividend by almost 8% to $0.41 per share. The payment date is August 17, 2023, to stockholders of record as of July 27, 2023. During the second quarter, Aptar repurchased 81 thousand shares for approximately $9.3 million. Aptar may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions.

Open Conference Call

There will be a conference call held on Friday, July 28, 2023 at 8:00 a.m. Central Time to discuss the company’s second quarter results for 2023. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations website at investors.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.

About Aptar

Aptar is a global leader in drug and consumer product dosing, dispensing and protection technologies. Aptar serves a number of attractive end markets including pharmaceutical, beauty, food, beverage, personal care and home care. Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has 13,500 dedicated employees in 20 countries. For more information, visit www.aptar.com.

Presentation of Non-GAAP Information

This press release refers to certain non-GAAP financial measures, including current year adjusted earnings per share and adjusted EBITDA, which exclude the impact of business transformation charges (restructuring initiatives), acquisition-related costs, certain purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. 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. Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures. We use free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives. 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. Our outlook is provided on a non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of the company's routine activities, such as restructuring and acquisition costs.

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,” “continues” 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 or other events 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: geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; the impact of COVID-19 and its variants on our global supply chain and our global customers, employees and operations, which has elevated and will continue to elevate many of the risks and uncertainties discussed below; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our restructuring initiatives; our ability to preserve organizational culture and maintain employee productivity in the work-from-home environment caused by the current pandemic; the availability of raw materials and components (particularly from sole sourced suppliers) as well as the financial viability of these suppliers; fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs); significant fluctuations in foreign currency exchange rates or our effective tax rate; the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; changes in customer and/or consumer spending levels; loss of one or more key accounts; our ability to successfully implement facility expansions and new facility projects; our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases; changes in capital availability or cost, including rising interest rates; volatility of global credit markets; our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired, including contingent consideration valuation; our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; direct or indirect consequences of acts of war, terrorism or social unrest; cybersecurity threats that could impact our networks and reporting systems; the impact of natural disasters and other weather-related occurrences; fiscal and monetary policies and other regulations; changes or difficulties in complying with government regulation; changing regulations or market conditions regarding environmental sustainability; work stoppages due to labor disputes; competition, including technological advances; our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; the outcome of any legal proceeding that has been or may be instituted against us and others; our ability to meet future cash flow estimates to support our goodwill impairment testing; the demand for existing and new products; the success of our customers’ products, particularly in the pharmaceutical industry; our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; difficulties in product development and uncertainties related to the timing or outcome of product development; significant product liability claims; and other risks associated with our operations. 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-K and Form 10-Qs. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

AptarGroup, Inc.

Condensed Consolidated Financial Statements (Unaudited)

(In Thousands, Except Per Share Data)

Consolidated Statements of Income

       
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

               

Net Sales

$

895,906

   

$

844,543

   

$

1,755,973

   

$

1,689,475

 

Cost of Sales (exclusive of depreciation and amortization shown below)

 

573,711

     

549,010

     

1,131,133

     

1,091,738

 

Selling, Research & Development and Administrative

 

141,428

     

135,382

     

289,351

     

280,923

 

Depreciation and Amortization

 

62,267

     

58,552

     

121,526

     

117,217

 

Restructuring Initiatives

 

1,943

     

428

     

13,467

     

719

 

Operating Income

 

116,557

     

101,171

     

200,496

     

198,878

 

Other Income (Expense):

             

Interest Expense

 

(9,688

)

   

(11,982

)

   

(19,916

)

   

(20,912

)

Interest Income

 

648

     

989

     

1,320

     

1,277

 

Net Investment Gain (Loss)

 

2,891

     

(483

)

   

3,079

     

(1,733

)

Equity in Results of Affiliates

 

643

     

(276

)

   

512

     

(362

)

Miscellaneous, net

 

(173

)

   

52

     

(1,344

)

   

(1,051

)

Income before Income Taxes

 

110,878

     

89,471

     

184,147

     

176,097

 

Provision for Income Taxes

 

27,831

     

25,858

     

46,514

     

50,113

 

Net Income

$

83,047

   

$

63,613

   

$

137,633

   

$

125,984

 

Net Loss Attributable to Noncontrolling Interests

 

25

     

12

     

203

     

64

 

Net Income Attributable to AptarGroup, Inc.

$

83,072

   

$

63,625

   

$

137,836

   

$

126,048

 

Net Income Attributable to AptarGroup, Inc. per Common Share:

             

Basic

$

1.27

   

$

0.97

   

$

2.11

   

$

1.92

 

Diluted

$

1.24

   

$

0.95

   

$

2.07

   

$

1.88

 
               

Average Numbers of Shares Outstanding:

             

Basic

 

65,568

     

65,475

     

65,470

     

65,509

 

Diluted

 

66,855

     

66,900

     

66,748

     

66,969

 

AptarGroup, Inc.

Condensed Consolidated Financial Statements (Unaudited)

(continued)

($ In Thousands)

Consolidated Balance Sheets

       
 

June 30,
2023

 

December 31,
2022

ASSETS

     
       

Cash and Equivalents

$

120,983

 

$

141,732

Short-term Investments

 

21

   

Accounts and Notes Receivable, Net

 

718,619

   

676,987

Inventories

 

516,338

   

486,806

Prepaid and Other Current Assets

 

160,058

   

124,766

Total Current Assets

 

1,516,019

   

1,430,291

Property, Plant and Equipment, Net

 

1,395,811

   

1,343,664

Goodwill

 

956,908

   

945,632

Other Assets

 

478,974

   

483,871

Total Assets

$

4,347,712

 

$

4,203,458

       

LIABILITIES AND EQUITY

     
       

Short-Term Obligations

$

276,095

 

$

122,791

Accounts Payable, Accrued and Other Liabilities

 

753,690

   

794,385

Total Current Liabilities

 

1,029,785

   

917,176

Long-Term Obligations

 

949,852

   

1,052,597

Deferred Liabilities and Other

 

179,649

   

165,481

Total Liabilities

 

2,159,286

   

2,135,254

       

AptarGroup, Inc. Stockholders' Equity

 

2,174,388

   

2,053,935

Noncontrolling Interests in Subsidiaries

 

14,038

   

14,269

Total Equity

 

2,188,426

   

2,068,204

       

Total Liabilities and Equity

$

4,347,712

 

$

4,203,458

AptarGroup, Inc.

Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)

($ In Thousands)

   
 

Three Months Ended
June 30, 2023

   
 

Consolidated

   

Aptar
Pharma

 

Aptar
Beauty

 

Aptar
Closures

 

Corporate
& Other

 

Net
Interest

Net Sales

$

895,906

     

$

390,700

   

$

329,587

   

$

175,619

   

$

   

$

 
                         

Reported net income

$

83,047

                       

Reported income taxes

 

27,831

                       

Reported income before income taxes

 

110,878

       

98,100

     

21,796

     

14,232

     

(14,210

)

   

(9,040

)

Adjustments:

                       

Restructuring initiatives

 

1,943

       

434

     

479

     

440

     

590

     

Net unrealized investment gain

 

(2,891

)

     

     

     

     

(2,891

)

   

Adjusted earnings before income taxes

 

109,930

       

98,534

     

22,275

     

14,672

     

(16,511

)

   

(9,040

)

Interest expense

 

9,688

                       

9,688

 

Interest income

 

(648

)

                     

(648

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

118,970

       

98,534

     

22,275

     

14,672

     

(16,511

)

   

 

Depreciation and amortization

 

62,267

       

27,332

     

20,825

     

13,100

     

1,010

     

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

181,237

     

$

125,866

   

$

43,100

   

$

27,772

   

$

(15,501

)

 

$

 
                         

Reported net income margins (Reported net income / Reported Net Sales)

 

9.3

%

                     

Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

20.2

%

     

32.2

%

   

13.1

%

   

15.8

%

       
 

Three Months Ended
June 30, 2022

   
 

Consolidated

   

Aptar
Pharma

 

Aptar
Beauty

 

Aptar
Closures

 

Corporate
& Other

 

Net
Interest

Net Sales

$

844,543

     

$

340,231

   

$

317,667

   

$

186,645

   

$

   

$

 
                         

Reported net income

$

63,613

                       

Reported income taxes

 

25,858

                       

Reported income before income taxes

 

89,471

       

87,445

     

20,459

     

8,188

     

(15,628

)

   

(10,993

)

Adjustments:

                       

Restructuring initiatives

 

428

       

     

423

     

5

     

     

Net unrealized investment loss

 

483

       

     

     

     

483

     

Adjusted earnings before income taxes

 

90,382

       

87,445

     

20,882

     

8,193

     

(15,145

)

   

(10,993

)

Interest expense

 

11,982

                       

11,982

 

Interest income

 

(989

)

                     

(989

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

101,375

       

87,445

     

20,882

     

8,193

     

(15,145

)

   

 

Depreciation and amortization

 

58,552

       

23,561

     

20,348

     

13,161

     

1,482

     

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

159,927

     

$

111,006

   

$

41,230

   

$

21,354

   

$

(13,663

)

 

$

 
                         

Reported net income margins (Reported net income / Reported Net Sales)

 

7.5

%

                     

Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

18.9

%

     

32.6

%

   

13.0

%

   

11.4

%

       

AptarGroup, Inc.

Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)

($ In Thousands)

   
 

Six Months Ended
June 30, 2023

   
 

Consolidated

   

Aptar
Pharma

 

Aptar
Beauty

 

Aptar
Closures

 

Corporate
& Other

 

Net
Interest

Net Sales

$

1,755,973

     

$

746,746

   

$

655,976

   

$

353,251

   

$

   

$

 
                         

Reported net income

$

137,633

                       

Reported income taxes

 

46,514

                       

Reported income before income taxes

 

184,147

       

180,490

     

29,228

     

27,527

     

(34,502

)

   

(18,596

)

Adjustments:

                       

Restructuring initiatives

 

13,467

       

1,565

     

9,770

     

962

     

1,170

     

Net unrealized investment gain

 

(3,079

)

     

     

     

     

(3,079

)

   

Transaction costs related to acquisitions

 

255

       

     

199

     

56

     

     

Adjusted earnings before income taxes

 

194,790

       

182,055

     

39,197

     

28,545

     

(36,411

)

   

(18,596

)

Interest expense

 

19,916

                       

19,916

 

Interest income

 

(1,320

)

                     

(1,320

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

213,386

       

182,055

     

39,197

     

28,545

     

(36,411

)

   

 

Depreciation and amortization

 

121,526

       

53,109

     

41,108

     

25,235

     

2,074

     

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

334,912

     

$

235,164

   

$

80,305

   

$

53,780

   

$

(34,337

)

 

$

 
                         

Reported net income margins (Reported net income / Reported Net Sales)

 

7.8

%

                     

Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

19.1

%

     

31.5

%

   

12.2

%

   

15.2

%

       
 

Six Months Ended
June 30, 2022

   
 

Consolidated

   

Aptar
Pharma

 

Aptar
Beauty

 

Aptar
Closures

 

Corporate
& Other

 

Net
Interest

Net Sales

$

1,689,475

     

$

682,693

   

$

626,747

   

$

380,035

   

$

   

$

 
                         

Reported net income

$

125,984

                       

Reported income taxes

 

50,113

                       

Reported income before income taxes

 

176,097

       

179,651

     

34,467

     

18,834

     

(37,220

)

   

(19,635

)

Adjustments:

                       

Restructuring initiatives

 

719

       

     

534

     

185

     

     

Net unrealized investment loss

 

2,574

       

     

     

     

2,574

     

Adjusted earnings before income taxes

 

179,390

       

179,651

     

35,001

     

19,019

     

(34,646

)

   

(19,635

)

Interest expense

 

20,912

                       

20,912

 

Interest income

 

(1,277

)

                     

(1,277

)

Adjusted earnings before net interest and taxes (Adjusted EBIT)

 

199,025

       

179,651

     

35,001

     

19,019

     

(34,646

)

   

 

Depreciation and amortization

 

117,217

       

46,907

     

40,779

     

26,518

     

3,013

     

 

Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)

$

316,242

     

$

226,558

   

$

75,780

   

$

45,537

   

$

(31,633

)

 

$

 
                         

Reported net income margins (Reported net income / Reported Net Sales)

 

7.5

%

                     

Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)

 

18.7

%

     

33.2

%

   

12.1

%

   

12.0

%

       

AptarGroup, Inc.

Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)

(In Thousands, Except Per Share Data)

       
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

               

Income before Income Taxes

$

110,878

   

$

89,471

 

$

184,147

   

$

176,097

 
               

Adjustments:

             

Restructuring initiatives

 

1,943

     

428

   

13,467

     

719

 

Net unrealized investment (gain) loss

 

(2,891

)

   

483

   

(3,079

)

   

2,574

 

Transaction costs related to acquisitions

 

     

   

255

     

 

Foreign currency effects (1)

     

1,718

       

(675

)

Adjusted Earnings before Income Taxes

$

109,930

   

$

92,100

 

$

194,790

   

$

178,715

 
               

Provision for Income Taxes

$

27,831

   

$

25,858

 

$

46,514

   

$

50,113

 
               

Adjustments:

             

Restructuring initiatives

 

494

     

111

   

3,559

     

188

 

Net unrealized investment (gain) loss

 

(708

)

   

119

   

(754

)

   

631

 

Transaction costs related to acquisitions

 

     

   

65

     

 

Foreign currency effects (1)

     

497

       

(192

)

Adjusted Provision for Income Taxes

$

27,617

   

$

26,585

 

$

49,384

   

$

50,740

 
               

Net (Income) Loss Attributable to Noncontrolling Interests

$

25

   

$

12

 

$

203

   

$

64

 
               

Net Income Attributable to AptarGroup, Inc.

$

83,072

   

$

63,625

 

$

137,836

   

$

126,048

 
               

Adjustments:

             

Restructuring initiatives

 

1,449

     

317

   

9,908

     

531

 

Net unrealized investment (gain) loss

 

(2,183

)

   

364

   

(2,325

)

   

1,943

 

Transaction costs related to acquisitions

 

     

   

190

     

 

Foreign currency effects (1)

     

1,221

       

(483

)

Adjusted Net Income Attributable to AptarGroup, Inc.

$

82,338

   

$

65,527

 

$

145,609

   

$

128,039

 
               

Average Number of Diluted Shares Outstanding

 

66,855

     

66,900

   

66,748

     

66,969

 
               

Net Income Attributable to AptarGroup, Inc. Per Diluted Share

$

1.24

   

$

0.95

 

$

2.07

   

$

1.88

 
               

Adjustments:

             

Restructuring initiatives

 

0.02

     

   

0.15

     

0.01

 

Net unrealized investment (gain) loss

 

(0.03

)

   

0.01

   

(0.04

)

   

0.03

 

Transaction costs related to acquisitions

 

     

   

     

 

Foreign currency effects (1)

     

0.02

       

(0.01

)

Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share

$

1.23

   

$

0.98

 

$

2.18

   

$

1.91

 
                             

(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 Free Cash Flow to Net Cash Provided by Operations (Unaudited)

(In Thousands)

       
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

               

Net Cash Provided by Operations

$

83,897

   

$

84,577

   

$

182,201

   

$

176,654

 

Capital Expenditures

 

(77,187

)

   

(74,204

)

   

(155,012

)

   

(147,262

)

Proceeds from Government Grants

 

     

4,839

     

     

12,794

 

Free Cash Flow

$

6,710

   

$

15,212

   

$

27,189

   

$

42,186

 

AptarGroup, Inc.

Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)

(In Thousands, Except Per Share Data)

   
 

Three Months Ending
September 30,

 

Expected 2023

 

2022

       

Income before Income Taxes

   

$

84,915

 
       

Adjustments:

     

Restructuring initiatives

     

2,270

 

Net unrealized investment gain

     

(277

)

Transaction costs related to acquisitions

     

231

 

Foreign currency effects (1)

     

6,405

 

Adjusted Earnings before Income Taxes

   

$

93,544

 
       

Provision for Income Taxes

   

$

30,738

 
       

Adjustments:

     

Net effect of items included in the Provision for Income Taxes (2)

     

(7,200

)

Restructuring initiatives

     

607

 

Net unrealized investment gain

     

(68

)

Transaction costs related to acquisitions

     

57

 

Foreign currency effects (1)

     

2,319

 

Adjusted Provision for Income Taxes

   

$

26,453

 
       

Net Loss Attributable to Noncontrolling Interests

   

$

67

 
       

Net Income Attributable to AptarGroup, Inc.

   

$

54,244

 
       

Adjustments:

     

Net effect of items included in the Provision for Income Taxes (2)

     

7,200

 

Restructuring initiatives

     

1,663

 

Net unrealized investment gain

     

(209

)

Transaction costs related to acquisitions

     

174

 

Foreign currency effects (1)

     

4,086

 

Adjusted Net Income Attributable to AptarGroup, Inc.

   

$

67,158

 
       

Average Number of Diluted Shares Outstanding

     

66,581

 
       

Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3)

   

$

0.81

 
       

Adjustments:

     

Net effect of items included in the Provision for Income Taxes (2)

     

0.11

 

Restructuring initiatives

     

0.03

 

Net unrealized investment gain

     

 

Transaction costs related to acquisitions

     

 

Foreign currency effects (1)

     

0.06

 

Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3)

$1.23 - $1.31

 

$

1.01

 
       

(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using a Euro/US$ exchange rate of 1.09 and the spot rates as of June 30, 2023 for all other applicable foreign currency exchange rates.

 

(2) Items included in the Provision for Income Taxes reflects a tax expense related to a legal entity reorganization.

 

(3) AptarGroup’s expected earnings per share range for the third quarter of 2023, excluding any restructuring expenses, acquisition costs and changes in fair value of equity investments, is based on an effective tax rate range of 25% to 27%. This tax rate range compares to our third quarter of 2022 effective tax rate of 36% on reported earnings per share and 28% on adjusted earnings per share.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727441444/en/

Contacts

Investor Relations Contact:
Mary Skafidas
mary.skafidas@aptar.com
815-479-5530

Media Contact:
Katie Reardon
katie.reardon@aptar.com
815-479-5671

Source: AptarGroup, Inc.

Smart Multimedia Gallery

Photo: Aptar

Powered by Business Wire

View this news release and multimedia online at:
http://www.businesswire.com/news/home/20230727441444/en

MORE ON THIS TOPIC