Aptar Reports Fourth Quarter and Annual 2023 Results
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Photo: Aptar
“I am pleased to report that we delivered strong fourth quarter and full year results. In 2023, we achieved year-over-year double-digit earnings per share growth, an increase of net income of almost 20% and a 15% increase in adjusted EBITDA. Our focus on cost management and operational leverage yielded margin expansion for each segment compared to the prior year and we also decreased selling, general and administrative (SG&A) expenses as a percentage of sales,” said
Tanda added, “Our Pharma segment had an exceptional year. In 2023, we had the highest number of new product launches since 2018, while adding an equal, risk-adjusted value of new project opportunities to the pipeline, which bodes well for continued, solid growth. A big driver of this success can be attributed to our proprietary pharma dosing and dispensing systems, which reported over 20% core sales growth in the fourth quarter and double-digit growth for the year. Our beauty dispensing solutions in fragrance also delivered double-digit core sales growth for 2023, rounding out a very successful year for us. Of course, there is more work to be done and we look forward to continuing the positive momentum into 2024 and beyond.”
Fourth Quarter 2023 Highlights
-
Reported sales increased 5% and net income increased 6% to
$62 million -
Core sales increased 2% and adjusted EBITDA increased 22% from the prior year to
$179 million -
Reported earnings per share increased about 4% to
$0.93 compared to$0.89 in the prior year and adjusted earnings per share increased 27% to$1.21 compared to$0.95 in the prior year (including comparable exchange rates) - Margins continued to expand across all three segments over the prior year
- Achieved an adjusted EBITDA margin within the raised long-term target range
Annual 2023 Highlights
-
Achieved annual sales of
$3.5 billion , with sales growth driven evenly by favorable product mix, volume growth and pricing - Reported sales grew 5% and core sales increased 3%
-
Reported earnings per share increased 18% to
$4.25 and adjusted earnings per share increased 24% to$4.78 -
Reported net income increased 19% to
$284 million and adjusted EBITDA increased 15% to$708 million - Margin improvement was driven by cost management, mix of higher value products, higher productivity and lower input costs
-
Operating cash flow was
$575 million , up from$479 million in 2022 -
Generated
$263 million in free cash flow, up from$196 million in 2022
Fourth Quarter Results
For the quarter ended
Fourth Quarter Segment Sales Analysis
|
||||
|
Aptar Pharma |
Aptar Beauty |
Aptar Closures |
Total
|
Reported Sales Growth |
15% |
(2%) |
(1%) |
5% |
Currency Effects (1) |
(4%) |
(4%) |
(2%) |
(3%) |
Acquisitions |
0% |
0% |
(1%) |
0% |
Core Sales Growth |
11% |
(6%) |
(4%) |
2% |
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
Aptar Pharma’s performance was driven by strong double-digit core sales growth for proprietary drug delivery systems used for emergency medicines, allergic rhinitis, central nervous system therapeutics, as well as eye care, nasal saline rinses, and nasal decongestants. The injectables division sales were basically flat after two years of strong core sales increases. Sales for elastomeric components used for biologics continued to grow in the quarter. Demand for active material science solutions declined due to non-recurring sales of Activ-Film™ used for at home COVID-19 test kits.
Aptar Beauty’s core sales declined compared to the prior year’s quarter, due to continued market softness in
Aptar Closures segment core sales declined compared with the prior year’s quarter due to the passing through of lower resin costs to our customers. Unit volumes were up in certain categories such as beverage in
Aptar reported fourth quarter earnings per share of
Annual Results
For the year ended
Annual Segment Sales Analysis
|
||||
|
Aptar
|
Aptar
|
Aptar
|
Total
|
Total Reported Sales Growth |
12% |
4% |
(5)% |
5% |
Currency Effects (1) |
(2)% |
(2)% |
(1)% |
(2)% |
Acquisitions |
0% |
0% |
(1)% |
0% |
Core Sales Growth |
10% |
2% |
(7)% |
3% |
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
For the year ended
Outlook
Regarding Aptar’s outlook, Tanda stated, “In 2024, we intend to build on our positive momentum from the previous year and anticipate starting strong in the first quarter. We expect demand for pharma’s proprietary drug delivery systems and elastomeric components for biologics to continue to grow. We also expect our beauty and closures segments to benefit from a progressive recovery of the North American market and we anticipate continued demand for our fragrance dispensing technologies. We remain focused on reducing SG&A as a percentage of sales and reducing our fixed costs. We are looking forward to another dynamic year.”
Aptar currently expects earnings per share for the first quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of
Cash Dividends and Share Repurchases
As previously announced, Aptar’s Board of Directors approved a quarterly cash dividend of
Open Conference Call
There will be a conference call held on
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
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 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
Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except Per Share Data) Consolidated Statements of Income |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
838,480 |
|
|
$ |
795,914 |
|
|
$ |
3,487,450 |
|
|
$ |
3,322,249 |
|
Cost of Sales (exclusive of depreciation and amortization shown below) |
|
526,227 |
|
|
|
520,297 |
|
|
|
2,224,051 |
|
|
|
2,158,411 |
|
Selling, Research & Development and Administrative |
|
138,295 |
|
|
|
127,911 |
|
|
|
565,783 |
|
|
|
544,262 |
|
Depreciation and Amortization |
|
64,381 |
|
|
|
58,888 |
|
|
|
248,593 |
|
|
|
233,706 |
|
Restructuring Initiatives |
|
25,376 |
|
|
|
3,608 |
|
|
|
45,004 |
|
|
|
6,597 |
|
Operating Income |
|
84,201 |
|
|
|
85,210 |
|
|
|
404,019 |
|
|
|
379,273 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
(10,518 |
) |
|
|
(10,159 |
) |
|
|
(40,418 |
) |
|
|
(40,827 |
) |
Interest Income |
|
2,107 |
|
|
|
671 |
|
|
|
4,373 |
|
|
|
2,700 |
|
Net Investment (Loss) Gain |
|
(426 |
) |
|
|
(1,026 |
) |
|
|
1,413 |
|
|
|
(2,110 |
) |
Equity in Results of Affiliates |
|
712 |
|
|
|
651 |
|
|
|
2,226 |
|
|
|
467 |
|
Miscellaneous Income (Expense), net |
|
4,553 |
|
|
|
(1,655 |
) |
|
|
3,212 |
|
|
|
(4,799 |
) |
Income before Income Taxes |
|
80,629 |
|
|
|
73,692 |
|
|
|
374,825 |
|
|
|
334,704 |
|
Provision for Income Taxes |
|
18,384 |
|
|
|
14,298 |
|
|
|
90,649 |
|
|
|
95,149 |
|
Net Income |
$ |
62,245 |
|
|
$ |
59,394 |
|
|
$ |
284,176 |
|
|
$ |
239,555 |
|
Net Loss (Income) Attributable to Noncontrolling Interests |
|
110 |
|
|
|
(398 |
) |
|
|
311 |
|
|
|
(267 |
) |
Net Income Attributable to |
$ |
62,355 |
|
|
$ |
58,996 |
|
|
$ |
284,487 |
|
|
$ |
239,288 |
|
Net Income Attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.95 |
|
|
$ |
0.90 |
|
|
$ |
4.34 |
|
|
$ |
3.66 |
|
Diluted |
$ |
0.93 |
|
|
$ |
0.89 |
|
|
$ |
4.25 |
|
|
$ |
3.59 |
|
|
|
|
|
|
|
|
|
||||||||
Average Numbers of Shares Outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
65,813 |
|
|
|
65,272 |
|
|
|
65,616 |
|
|
|
65,402 |
|
Diluted |
|
67,131 |
|
|
|
66,442 |
|
|
|
66,905 |
|
|
|
66,719 |
|
Condensed Consolidated Financial Statements (Unaudited) (continued) ($ In Thousands) Consolidated Balance Sheets |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
|
|
|
|
||
Cash and Equivalents |
$ |
223,643 |
|
$ |
141,732 |
Accounts and Notes Receivable, Net |
|
677,822 |
|
|
676,987 |
Inventories |
|
513,053 |
|
|
486,806 |
Prepaid and Other |
|
134,761 |
|
|
124,766 |
Total Current Assets |
|
1,549,279 |
|
|
1,430,291 |
Property, Plant and Equipment, Net |
|
1,478,063 |
|
|
1,343,664 |
|
|
963,418 |
|
|
945,632 |
Other Assets |
|
461,130 |
|
|
483,871 |
Total Assets |
$ |
4,451,890 |
|
$ |
4,203,458 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
|
|
|
|
||
Short-Term Obligations |
$ |
458,220 |
|
$ |
122,791 |
Accounts Payable, Accrued and Other Liabilities |
|
793,089 |
|
|
794,385 |
Total Current Liabilities |
|
1,251,309 |
|
|
917,176 |
Long-Term Obligations |
|
681,188 |
|
|
1,052,597 |
Deferred Liabilities and Other |
|
198,095 |
|
|
165,481 |
Total Liabilities |
|
2,130,592 |
|
|
2,135,254 |
|
|
|
|
||
|
|
2,306,824 |
|
|
2,053,935 |
Noncontrolling Interests in Subsidiaries |
|
14,474 |
|
|
14,269 |
Total Stockholders' Equity |
|
2,321,298 |
|
|
2,068,204 |
|
|
|
|
||
Total Liabilities and Stockholders' Equity |
$ |
4,451,890 |
|
$ |
4,203,458 |
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) |
||||||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
||||||||||||
|
$ |
838,480 |
|
|
|
$ |
385,059 |
|
|
$ |
287,741 |
|
|
$ |
165,680 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
62,245 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
18,384 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
80,629 |
|
|
|
|
99,812 |
|
|
|
12,567 |
|
|
|
(5,559 |
) |
|
|
(17,780 |
) |
|
|
(8,411 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
25,376 |
|
|
|
|
3,195 |
|
|
|
8,033 |
|
|
|
13,867 |
|
|
|
281 |
|
|
|
||
Net investment loss |
|
426 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
426 |
|
|
|
||
Transaction costs related to acquisitions |
|
225 |
|
|
|
|
— |
|
|
|
225 |
|
|
|
— |
|
|
|
— |
|
|
|
||
Adjusted earnings before income taxes |
|
106,656 |
|
|
|
|
103,007 |
|
|
|
20,825 |
|
|
|
8,308 |
|
|
|
(17,073 |
) |
|
|
(8,411 |
) |
Interest expense |
|
10,518 |
|
|
|
|
|
|
|
|
|
|
|
|
10,518 |
|
||||||||
Interest income |
|
(2,107 |
) |
|
|
|
|
|
|
|
|
|
|
|
(2,107 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
115,067 |
|
|
|
|
103,007 |
|
|
|
20,825 |
|
|
|
8,308 |
|
|
|
(17,073 |
) |
|
|
— |
|
Depreciation and amortization |
|
64,381 |
|
|
|
|
28,118 |
|
|
|
21,516 |
|
|
|
13,998 |
|
|
|
749 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
179,448 |
|
|
|
$ |
131,125 |
|
|
$ |
42,341 |
|
|
$ |
22,306 |
|
|
$ |
(16,324 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
21.4 |
% |
|
|
|
34.1 |
% |
|
|
14.7 |
% |
|
|
13.5 |
% |
|
|
|
|
|
Three Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
||||||||||||
|
$ |
795,914 |
|
|
|
$ |
335,166 |
|
|
$ |
292,742 |
|
|
$ |
168,006 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
59,394 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
14,298 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
73,692 |
|
|
|
|
83,773 |
|
|
|
16,654 |
|
|
|
2,891 |
|
|
|
(20,138 |
) |
|
|
(9,488 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
3,608 |
|
|
|
|
— |
|
|
|
2,765 |
|
|
|
843 |
|
|
|
— |
|
|
|
||
Net investment loss |
|
1,026 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,026 |
|
|
|
||
Adjusted earnings before income taxes |
|
78,326 |
|
|
|
|
83,773 |
|
|
|
19,419 |
|
|
|
3,734 |
|
|
|
(19,112 |
) |
|
|
(9,488 |
) |
Interest expense |
|
10,159 |
|
|
|
|
|
|
|
|
|
|
|
|
10,159 |
|
||||||||
Interest income |
|
(671 |
) |
|
|
|
|
|
|
|
|
|
|
|
(671 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
87,814 |
|
|
|
|
83,773 |
|
|
|
19,419 |
|
|
|
3,734 |
|
|
|
(19,112 |
) |
|
|
— |
|
Depreciation and amortization |
|
58,888 |
|
|
|
|
24,056 |
|
|
|
20,125 |
|
|
|
13,355 |
|
|
|
1,352 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
146,702 |
|
|
|
$ |
107,829 |
|
|
$ |
39,544 |
|
|
$ |
17,089 |
|
|
$ |
(17,760 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
18.4 |
% |
|
|
|
32.2 |
% |
|
|
13.5 |
% |
|
|
10.2 |
% |
|
|
|
|
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) |
||||||||||||||||||||||||
|
Year Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
||||||||||||
|
$ |
3,487,450 |
|
|
|
$ |
1,520,993 |
|
|
$ |
1,267,697 |
|
|
$ |
698,760 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
284,176 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
90,649 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
374,825 |
|
|
|
|
388,415 |
|
|
|
59,210 |
|
|
|
33,615 |
|
|
|
(70,370 |
) |
|
|
(36,045 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
45,004 |
|
|
|
|
4,852 |
|
|
|
20,683 |
|
|
|
17,927 |
|
|
|
1,542 |
|
|
|
||
Net investment gain |
|
(1,413 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,413 |
) |
|
|
||
Realized gain on investments included in net investment gain above |
|
4,188 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,188 |
|
|
|
||
Transaction costs related to acquisitions |
|
480 |
|
|
|
|
— |
|
|
|
424 |
|
|
|
56 |
|
|
|
— |
|
|
|
||
Adjusted earnings before income taxes |
|
423,084 |
|
|
|
|
393,267 |
|
|
|
80,317 |
|
|
|
51,598 |
|
|
|
(66,053 |
) |
|
|
(36,045 |
) |
Interest expense |
|
40,418 |
|
|
|
|
|
|
|
|
|
|
|
|
40,418 |
|
||||||||
Interest income |
|
(4,373 |
) |
|
|
|
|
|
|
|
|
|
|
|
(4,373 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
459,129 |
|
|
|
|
393,267 |
|
|
|
80,317 |
|
|
|
51,598 |
|
|
|
(66,053 |
) |
|
|
— |
|
Depreciation and amortization |
|
248,593 |
|
|
|
|
109,366 |
|
|
|
83,399 |
|
|
|
52,095 |
|
|
|
3,733 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
707,722 |
|
|
|
$ |
502,633 |
|
|
$ |
163,716 |
|
|
$ |
103,693 |
|
|
$ |
(62,320 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
20.3 |
% |
|
|
|
33.0 |
% |
|
|
12.9 |
% |
|
|
14.8 |
% |
|
|
|
|
|
Year Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate & Other |
|
Net Interest |
||||||||||||
|
$ |
3,322,249 |
|
|
|
$ |
1,361,256 |
|
|
$ |
1,222,535 |
|
|
$ |
738,458 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
239,555 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
95,149 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
334,704 |
|
|
|
|
346,995 |
|
|
|
65,850 |
|
|
|
32,185 |
|
|
|
(72,199 |
) |
|
|
(38,127 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
6,597 |
|
|
|
|
— |
|
|
|
5,539 |
|
|
|
1,058 |
|
|
|
— |
|
|
|
||
Net investment loss |
|
2,110 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,110 |
|
|
|
||
Realized gain on investments included in net investment loss above |
|
1,213 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,213 |
|
|
|
||
Transaction costs related to acquisitions |
|
231 |
|
|
|
|
231 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
||
Adjusted earnings before income taxes |
|
344,855 |
|
|
|
|
347,226 |
|
|
|
71,389 |
|
|
|
33,243 |
|
|
|
(68,876 |
) |
|
|
(38,127 |
) |
Interest expense |
|
40,827 |
|
|
|
|
|
|
|
|
|
|
|
|
40,827 |
|
||||||||
Interest income |
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
(2,700 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
382,982 |
|
|
|
|
347,226 |
|
|
|
71,389 |
|
|
|
33,243 |
|
|
|
(68,876 |
) |
|
|
— |
|
Depreciation and amortization |
|
233,706 |
|
|
|
|
94,396 |
|
|
|
80,498 |
|
|
|
52,866 |
|
|
|
5,946 |
|
|
|
— |
|
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
616,688 |
|
|
|
$ |
441,622 |
|
|
$ |
151,887 |
|
|
$ |
86,109 |
|
|
$ |
(62,930 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
18.6 |
% |
|
|
|
32.4 |
% |
|
|
12.4 |
% |
|
|
11.7 |
% |
|
|
|
|
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data) |
||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|||||||
Income before Income Taxes |
$ |
80,629 |
|
$ |
73,692 |
|
|
$ |
374,825 |
|
|
$ |
334,704 |
|
|
|
|
|
|
|
|
|
|||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||
Restructuring initiatives |
|
25,376 |
|
|
3,608 |
|
|
|
45,004 |
|
|
|
6,597 |
|
Net investment loss (gain) |
|
426 |
|
|
1,026 |
|
|
|
(1,413 |
) |
|
|
2,110 |
|
Realized gain on investments included in net investment loss (gain) above |
|
— |
|
|
— |
|
|
|
4,188 |
|
|
|
1,213 |
|
Transaction costs related to acquisitions |
|
225 |
|
|
— |
|
|
|
480 |
|
|
|
231 |
|
Foreign currency effects (1) |
|
|
|
2,877 |
|
|
|
|
|
8,204 |
|
|||
Adjusted Earnings before Income Taxes |
$ |
106,656 |
|
$ |
81,203 |
|
|
$ |
423,084 |
|
|
$ |
353,059 |
|
|
|
|
|
|
|
|
|
|||||||
Provision for Income Taxes |
$ |
18,384 |
|
$ |
14,298 |
|
|
$ |
90,649 |
|
|
$ |
95,149 |
|
|
|
|
|
|
|
|
|
|||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||
Net effect of items included in the Provision for Income Taxes (2) |
|
— |
|
|
1,350 |
|
|
|
— |
|
|
|
(5,850 |
) |
Restructuring initiatives |
|
6,769 |
|
|
1,023 |
|
|
|
11,939 |
|
|
|
1,818 |
|
Net investment loss (gain) |
|
104 |
|
|
251 |
|
|
|
(346 |
) |
|
|
517 |
|
Realized gain on investments included in net investment loss (gain) above |
|
— |
|
|
— |
|
|
|
1,026 |
|
|
|
297 |
|
Transaction costs related to acquisitions |
|
56 |
|
|
— |
|
|
|
121 |
|
|
|
57 |
|
Foreign currency effects (1) |
|
|
|
558 |
|
|
|
|
|
2,332 |
|
|||
Adjusted Provision for Income Taxes |
$ |
25,313 |
|
$ |
17,480 |
|
|
$ |
103,389 |
|
|
$ |
94,320 |
|
|
|
|
|
|
|
|
|
|||||||
Net (Income) Loss Attributable to Noncontrolling Interests |
$ |
110 |
|
$ |
(398 |
) |
|
$ |
311 |
|
|
$ |
(267 |
) |
|
|
|
|
|
|
|
|
|||||||
Net Income Attributable to |
$ |
62,355 |
|
$ |
58,996 |
|
|
$ |
284,487 |
|
|
$ |
239,288 |
|
|
|
|
|
|
|
|
|
|||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||
Net effect of items included in the Provision for Income Taxes (2) |
|
— |
|
|
(1,350 |
) |
|
|
— |
|
|
|
5,850 |
|
Restructuring initiatives |
|
18,607 |
|
|
2,585 |
|
|
|
33,065 |
|
|
|
4,779 |
|
Net investment loss (gain) |
|
322 |
|
|
775 |
|
|
|
(1,067 |
) |
|
|
1,593 |
|
Realized gain on investments included in net investment loss (gain) above |
|
— |
|
|
— |
|
|
|
3,162 |
|
|
|
916 |
|
Transaction costs related to acquisitions |
|
169 |
|
|
— |
|
|
|
359 |
|
|
|
174 |
|
Foreign currency effects (1) |
|
|
|
2,319 |
|
|
|
|
|
5,872 |
|
|||
Adjusted Net Income Attributable to |
$ |
81,453 |
|
$ |
63,325 |
|
|
$ |
320,006 |
|
|
$ |
258,472 |
|
|
|
|
|
|
|
|
|
|||||||
Average Number of Diluted Shares Outstanding |
|
67,131 |
|
|
66,442 |
|
|
|
66,905 |
|
|
|
66,719 |
|
|
|
|
|
|
|
|
|
|||||||
Net Income Attributable to |
$ |
0.93 |
|
$ |
0.89 |
|
|
$ |
4.25 |
|
|
$ |
3.59 |
|
|
|
|
|
|
|
|
|
|||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||
Net effect of items included in the Provision for Income Taxes (2) |
|
— |
|
|
(0.02 |
) |
|
|
— |
|
|
|
0.09 |
|
Restructuring initiatives |
|
0.28 |
|
|
0.04 |
|
|
|
0.49 |
|
|
|
0.07 |
|
Net investment loss (gain) |
|
— |
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
0.03 |
|
Realized gain on investments included in net investment loss (gain) above |
|
— |
|
|
— |
|
|
|
0.05 |
|
|
|
0.01 |
|
Transaction costs related to acquisitions |
|
— |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Foreign currency effects (1) |
|
|
|
0.03 |
|
|
|
|
|
0.08 |
|
|||
Adjusted Net Income Attributable to |
$ |
1.21 |
|
$ |
0.95 |
|
|
$ |
4.78 |
|
|
$ |
3.87 |
|
(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. |
||||||||||||||
(2) Items included in the Provision for Income Taxes reflects a tax expense related to a legal entity reorganization. |
Reconciliation of Free Cash Flow to Net Cash Provided by Operations (Unaudited) (In Thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
||||||||
Net Cash Provided by Operations |
$ |
219,637 |
|
|
$ |
172,268 |
|
|
$ |
575,239 |
|
|
$ |
478,617 |
|
Capital Expenditures |
|
(81,143 |
) |
|
|
(84,296 |
) |
|
|
(312,342 |
) |
|
|
(310,427 |
) |
Proceeds from Government Grants |
|
— |
|
|
|
10,737 |
|
|
|
— |
|
|
|
27,795 |
|
Free Cash Flow |
$ |
138,494 |
|
|
$ |
98,709 |
|
|
$ |
262,897 |
|
|
$ |
195,985 |
|
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data) |
|||||
|
Three Months Ending
|
||||
|
Expected 2024 |
|
|
2023 |
|
|
|
|
|
||
Income before Income Taxes |
|
|
$ |
73,269 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
11,524 |
|
Net investment gain |
|
|
|
(188 |
) |
Transaction costs related to acquisitions |
|
|
|
255 |
|
Foreign currency effects (1) |
|
|
|
1,304 |
|
Adjusted Earnings before Income Taxes |
|
|
$ |
86,164 |
|
|
|
|
|
||
Provision for Income Taxes |
|
|
$ |
18,683 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
3,065 |
|
Net investment gain |
|
|
|
(46 |
) |
Transaction costs related to acquisitions |
|
|
|
65 |
|
Foreign currency effects (1) |
|
|
|
333 |
|
Adjusted Provision for Income Taxes |
|
|
$ |
22,100 |
|
|
|
|
|
||
Net Loss Attributable to Noncontrolling Interests |
|
|
$ |
178 |
|
|
|
|
|
||
Net Income Attributable to |
|
|
$ |
54,764 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
8,459 |
|
Net investment gain |
|
|
|
(142 |
) |
Transaction costs related to acquisitions |
|
|
|
190 |
|
Foreign currency effects (1) |
|
|
|
971 |
|
Adjusted Net Income Attributable to |
|
|
$ |
64,242 |
|
|
|
|
|
||
Average Number of Diluted Shares Outstanding |
|
|
|
66,735 |
|
|
|
|
|
||
Net Income Attributable to |
|
|
$ |
0.82 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
0.13 |
|
Net investment gain |
|
|
|
— |
|
Transaction costs related to acquisitions |
|
|
|
— |
|
Foreign currency effects (1) |
|
|
|
0.01 |
|
Adjusted Net Income Attributable to |
|
|
$ |
0.96 |
|
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using spot rates as of |
|||||
(2) AptarGroup’s expected earnings per share range for the first quarter of 2024, excluding any restructuring expenses, acquisition costs and changes in fair value of equity investments, is based on an effective tax rate range of 24.5% to 26.5%. This tax rate range compares to our first quarter of 2023 effective tax rate of 25.5% on reported earnings per share and 25.6% on adjusted earnings per share. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208100452/en/
Investor Relations Contact:
mary.skafidas@aptar.com
815-479-5530
Media Contact:
katie.reardon@aptar.com
815-479-5671
Source: