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Photo: Aptar
“Strong sales growth in our Pharma business and broad-based margin expansion helped us achieve another quarter of strong earnings per share growth. Our proprietary drug delivery systems continue to see healthy demand, sales for our active material science technologies grew nicely in the quarter and volumes for consumer dispensing solutions continued to progressively improve in
Second Quarter 2024 Highlights
- Reported sales increased 2% and core sales increased 3%
-
Reported earnings per share increased 8% to
$1.34 and adjusted earnings per share increased 12% to$1.37 -
Reported net income increased 9% to
$90 million and adjusted EBITDA increased 6% from the prior year to$193 million - Pharma segment delivered reported sales growth of 6% and core sales growth of 7% with continued demand for proprietary drug delivery systems
- Margins continued to improve over the prior year quarter, driven by sales of higher value products, and improved operational performance and cost management efforts
-
Increased the quarterly dividend by approximately 10% to
$0.45 per share
First Six Months 2024 Highlights
- Double-digit EPS growth over the prior year period
-
Net cash provided by operations increased to
$236 million compared to$182 million in the prior year period -
Free cash flow increased to
$92 million compared to$27 million in the prior year
Second Quarter Results
For the quarter ended
Second Quarter Segment Sales Analysis
|
|||||
|
Aptar
|
Aptar
|
Aptar
|
Total
|
|
Reported Sales Growth |
6% |
(2)% |
(1)% |
2% |
|
Currency Effects (1) |
1% |
1% |
1% |
1% |
|
Acquisitions |
0% |
0% |
0% |
0% |
|
Core Sales Growth |
7% |
(1)% |
0% |
3% |
|
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
Aptar Pharma had an increase in reported sales of 6% and core sales of 7% over the prior year quarter. The segment’s strong performance was driven by continued growth for proprietary drug delivery systems used for allergic rhinitis, central nervous system therapeutics, emergency and pain medicines, as well as eye care and nasal decongestants. Sales declined in the Injectables division compared to the prior year quarter as sales normalized following last year’s strong second quarter catch up from the Enterprise Resource Planning (ERP) implementation in the first quarter of 2023. For the first six months of the year, the Injectables division grew 14%. The Active Material Science division returned to growth after a period of destocking due to COVID.
Aptar Beauty’s reported sales decreased 2%, and with currency effects core sales were down 1% compared to the prior year quarter. Volumes in the quarter grew over the prior year period as sales in
Aptar Closures’ reported sales decreased 1% from the prior year quarter and the segment’s core sales were flat. Increased volumes were offset by the pass through of lower resin costs. Margins for Closures were flat over the prior year quarter as ongoing cost containment efforts and operational performance were offset by the timing of pass through of lower resin costs.
Aptar reported second quarter earnings per share of
Year-To-Date Results
For the six months ended
Six Months Year-To-Date Segment Sales Analysis
|
|||||
|
Aptar
|
Aptar
|
Aptar
|
Total
|
|
Total Reported Sales Growth |
10% |
(1)% |
0% |
4% |
|
Currency Effects (1) |
0% |
0% |
0% |
0% |
|
Acquisitions |
0% |
0% |
0% |
0% |
|
Core Sales Growth |
10% |
(1)% |
0% |
4% |
|
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
For the six months ended
Outlook
Regarding Aptar’s outlook, Tanda stated, “We had a strong first half, and we expect growth to continue in the third quarter. We anticipate growth for our proprietary drug delivery systems to continue, driven by increased demand for nasally delivered central nervous system drugs and allergy therapies. We are also seeing growing demand for elastomeric components used for GLP-1. For our consumer dispensing technologies, we are seeing pockets of strength and progressive recovery in
Aptar currently expects earnings per share for the third 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 increased the quarterly cash dividend by approximately 10% to
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 |
|
Six Months Ended |
|||||||||||||
|
|
|||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
$ |
910,063 |
|
|
$ |
895,906 |
|
|
$ |
1,825,511 |
|
|
$ |
1,755,973 |
|
|
Cost of Sales (exclusive of depreciation and amortization shown below) |
|
567,440 |
|
|
|
573,711 |
|
|
|
1,150,196 |
|
|
|
1,131,133 |
|
|
Selling, Research & Development and Administrative |
|
149,330 |
|
|
|
141,428 |
|
|
|
302,110 |
|
|
|
289,351 |
|
|
Depreciation and Amortization |
|
64,968 |
|
|
|
62,267 |
|
|
|
129,317 |
|
|
|
121,526 |
|
|
Restructuring Initiatives |
|
2,315 |
|
|
|
1,943 |
|
|
|
5,795 |
|
|
|
13,467 |
|
|
Operating Income |
|
126,010 |
|
|
|
116,557 |
|
|
|
238,093 |
|
|
|
200,496 |
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|||||||||
Interest Expense |
|
(10,061 |
) |
|
|
(9,688 |
) |
|
|
(20,236 |
) |
|
|
(19,916 |
) |
|
Interest Income |
|
3,102 |
|
|
|
648 |
|
|
|
6,000 |
|
|
|
1,320 |
|
|
Net Investment (Loss) Gain |
|
(140 |
) |
|
|
2,891 |
|
|
|
452 |
|
|
|
3,079 |
|
|
Equity in Results of Affiliates |
|
130 |
|
|
|
643 |
|
|
|
(91 |
) |
|
|
512 |
|
|
Miscellaneous Expense, net |
|
(795 |
) |
|
|
(173 |
) |
|
|
(1,654 |
) |
|
|
(1,344 |
) |
|
Income before Income Taxes |
|
118,246 |
|
|
|
110,878 |
|
|
|
222,564 |
|
|
|
184,147 |
|
|
Provision for Income Taxes |
|
27,788 |
|
|
|
27,831 |
|
|
|
49,173 |
|
|
|
46,514 |
|
|
Net Income |
$ |
90,458 |
|
|
$ |
83,047 |
|
|
$ |
173,391 |
|
|
$ |
137,633 |
|
|
Net (Gain) Loss Attributable to Noncontrolling Interests |
|
(4 |
) |
|
|
25 |
|
|
|
167 |
|
|
|
203 |
|
|
Net Income Attributable to |
$ |
90,454 |
|
|
$ |
83,072 |
|
|
$ |
173,558 |
|
|
$ |
137,836 |
|
|
Net Income Attributable to |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
1.36 |
|
|
$ |
1.27 |
|
|
$ |
2.62 |
|
|
$ |
2.11 |
|
|
Diluted |
$ |
1.34 |
|
|
$ |
1.24 |
|
|
$ |
2.57 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Numbers of Shares Outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
66,312 |
|
|
|
65,568 |
|
|
|
66,188 |
|
|
|
65,470 |
|
|
Diluted |
|
67,575 |
|
|
|
66,855 |
|
|
|
67,509 |
|
|
|
66,748 |
|
|
||||||
Condensed Consolidated Financial Statements (Unaudited) |
||||||
(continued) |
||||||
($ In Thousands) |
||||||
Consolidated Balance Sheets |
||||||
|
|
|
|
|||
ASSETS |
|
|
|
|||
|
|
|
|
|||
Cash and Equivalents |
$ |
221,492 |
|
$ |
223,643 |
|
Short-term Investments |
|
2,399 |
|
|
— |
|
Accounts and Notes Receivable, Net |
|
737,764 |
|
|
677,822 |
|
Inventories |
|
484,608 |
|
|
513,053 |
|
Prepaid and Other |
|
147,387 |
|
|
134,761 |
|
Total Current Assets |
|
1,593,650 |
|
|
1,549,279 |
|
Property, Plant and Equipment, Net |
|
1,466,276 |
|
|
1,478,063 |
|
|
|
950,075 |
|
|
963,418 |
|
Other Assets |
|
443,256 |
|
|
461,130 |
|
Total Assets |
$ |
4,453,257 |
|
$ |
4,451,890 |
|
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||
|
|
|
|
|||
Short-Term Obligations |
$ |
405,719 |
|
$ |
458,220 |
|
Accounts Payable, Accrued and Other Liabilities |
|
762,390 |
|
|
793,089 |
|
Total Current Liabilities |
|
1,168,109 |
|
|
1,251,309 |
|
Long-Term Obligations |
|
681,532 |
|
|
681,188 |
|
Deferred Liabilities and Other |
|
193,401 |
|
|
198,095 |
|
Total Liabilities |
|
2,043,042 |
|
|
2,130,592 |
|
|
|
|
|
|||
|
|
2,396,449 |
|
|
2,306,824 |
|
Noncontrolling Interests in Subsidiaries |
|
13,766 |
|
|
14,474 |
|
Total Stockholders' Equity |
|
2,410,215 |
|
|
2,321,298 |
|
|
|
|
|
|||
Total Liabilities and Stockholders' Equity |
$ |
4,453,257 |
|
$ |
4,451,890 |
|
|||||||||||||||||||||||||
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 |
|||||||||||||
|
$ |
910,063 |
|
|
|
$ |
414,533 |
|
|
$ |
321,487 |
|
|
$ |
174,043 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Reported net income |
$ |
90,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported income taxes |
|
27,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported income before income taxes |
|
118,246 |
|
|
|
|
111,814 |
|
|
|
22,773 |
|
|
|
11,971 |
|
|
|
(21,353 |
) |
|
|
(6,959 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring initiatives |
|
2,315 |
|
|
|
|
65 |
|
|
|
1,199 |
|
|
|
893 |
|
|
|
158 |
|
|
|
|||
Net investment loss |
|
140 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
140 |
|
|
|
|||
Transaction costs related to acquisitions |
|
140 |
|
|
|
|
— |
|
|
|
140 |
|
|
|
— |
|
|
|
— |
|
|
|
|||
Adjusted earnings before income taxes |
|
120,841 |
|
|
|
|
111,879 |
|
|
|
24,112 |
|
|
|
12,864 |
|
|
|
(21,055 |
) |
|
|
(6,959 |
) |
|
Interest expense |
|
10,061 |
|
|
|
|
|
|
|
|
|
|
|
|
10,061 |
|
|||||||||
Interest income |
|
(3,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
(3,102 |
) |
|||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
127,800 |
|
|
|
|
111,879 |
|
|
|
24,112 |
|
|
|
12,864 |
|
|
|
(21,055 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
64,968 |
|
|
|
|
29,609 |
|
|
|
20,526 |
|
|
|
14,254 |
|
|
|
579 |
|
|
|
|||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
192,768 |
|
|
|
$ |
141,488 |
|
|
$ |
44,638 |
|
|
$ |
27,118 |
|
|
$ |
(20,476 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Reported net income margins (Reported net income / Reported |
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
21.2 |
% |
|
|
|
34.1 |
% |
|
|
13.9 |
% |
|
|
15.6 |
% |
|
|
|
|
|||||
|
Three Months Ended
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
|||||||||||||
|
$ |
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 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 |
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
20.2 |
% |
|
|
|
32.2 |
% |
|
|
13.1 |
% |
|
|
15.8 |
% |
|
|
|
|
|
|||||||||||||||||||||||||
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) |
|||||||||||||||||||||||||
($ In Thousands) |
|||||||||||||||||||||||||
|
Six Months Ended
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
|||||||||||||
|
$ |
1,825,511 |
|
|
|
$ |
821,826 |
|
|
$ |
648,807 |
|
|
$ |
354,878 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Reported net income |
$ |
173,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported income taxes |
|
49,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported income before income taxes |
|
222,564 |
|
|
|
|
215,166 |
|
|
|
39,969 |
|
|
|
24,841 |
|
|
|
(43,176 |
) |
|
|
(14,236 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring initiatives |
|
5,795 |
|
|
|
|
89 |
|
|
|
3,909 |
|
|
|
1,653 |
|
|
|
144 |
|
|
|
|||
Net investment gain |
|
(452 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(452 |
) |
|
|
|||
Transaction costs related to acquisitions |
|
140 |
|
|
|
|
— |
|
|
|
140 |
|
|
|
— |
|
|
|
— |
|
|
|
|||
Adjusted earnings before income taxes |
|
228,047 |
|
|
|
|
215,255 |
|
|
|
44,018 |
|
|
|
26,494 |
|
|
|
(43,484 |
) |
|
|
(14,236 |
) |
|
Interest expense |
|
20,236 |
|
|
|
|
|
|
|
|
|
|
|
|
20,236 |
|
|||||||||
Interest income |
|
(6,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
(6,000 |
) |
|||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
242,283 |
|
|
|
|
215,255 |
|
|
|
44,018 |
|
|
|
26,494 |
|
|
|
(43,484 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
129,317 |
|
|
|
|
58,411 |
|
|
|
41,754 |
|
|
|
27,785 |
|
|
|
1,367 |
|
|
|
|||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
371,600 |
|
|
|
$ |
273,666 |
|
|
$ |
85,772 |
|
|
$ |
54,279 |
|
|
$ |
(42,117 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Reported net income margins (Reported net income / Reported |
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
20.4 |
% |
|
|
|
33.3 |
% |
|
|
13.2 |
% |
|
|
15.3 |
% |
|
|
|
|
|||||
|
Six Months Ended
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate
|
|
Net Interest |
|||||||||||||
|
$ |
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 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 |
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
19.1 |
% |
|
|
|
31.5 |
% |
|
|
12.2 |
% |
|
|
15.2 |
% |
|
|
|
|
|
||||||||||||||||
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) |
||||||||||||||||
(In Thousands, Except Per Share Data) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before Income Taxes |
$ |
118,246 |
|
|
$ |
110,878 |
|
|
$ |
222,564 |
|
|
$ |
184,147 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Restructuring initiatives |
|
2,315 |
|
|
|
1,943 |
|
|
|
5,795 |
|
|
|
13,467 |
|
|
Net investment loss (gain) |
|
140 |
|
|
|
(2,891 |
) |
|
|
(452 |
) |
|
|
(3,079 |
) |
|
Transaction costs related to acquisitions |
|
140 |
|
|
|
— |
|
|
|
140 |
|
|
|
255 |
|
|
Foreign currency effects (1) |
|
|
|
(1,007 |
) |
|
|
|
|
230 |
|
|||||
Adjusted Earnings before Income Taxes |
$ |
120,841 |
|
|
$ |
108,923 |
|
|
$ |
228,047 |
|
|
$ |
195,020 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Provision for Income Taxes |
$ |
27,788 |
|
|
$ |
27,831 |
|
|
$ |
49,173 |
|
|
$ |
46,514 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Restructuring initiatives |
|
567 |
|
|
|
494 |
|
|
|
1,458 |
|
|
|
3,559 |
|
|
Net investment loss (gain) |
|
34 |
|
|
|
(708 |
) |
|
|
(111 |
) |
|
|
(754 |
) |
|
Transaction costs related to acquisitions |
|
35 |
|
|
|
— |
|
|
|
35 |
|
|
|
65 |
|
|
Foreign currency effects (1) |
|
|
|
(253 |
) |
|
|
|
|
58 |
|
|||||
Adjusted Provision for Income Taxes |
$ |
28,424 |
|
|
$ |
27,364 |
|
|
$ |
50,555 |
|
|
$ |
49,442 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (Income) Loss Attributable to Noncontrolling Interests |
$ |
(4 |
) |
|
$ |
25 |
|
|
$ |
167 |
|
|
$ |
203 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income Attributable to |
$ |
90,454 |
|
|
$ |
83,072 |
|
|
$ |
173,558 |
|
|
$ |
137,836 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Restructuring initiatives |
|
1,748 |
|
|
|
1,449 |
|
|
|
4,337 |
|
|
|
9,908 |
|
|
Net investment loss (gain) |
|
106 |
|
|
|
(2,183 |
) |
|
|
(341 |
) |
|
|
(2,325 |
) |
|
Transaction costs related to acquisitions |
|
105 |
|
|
|
— |
|
|
|
105 |
|
|
|
190 |
|
|
Foreign currency effects (1) |
|
|
|
(754 |
) |
|
|
|
|
172 |
|
|||||
Adjusted Net Income Attributable to |
$ |
92,413 |
|
|
$ |
81,584 |
|
|
$ |
177,659 |
|
|
$ |
145,781 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Number of Diluted Shares Outstanding |
|
67,575 |
|
|
|
66,855 |
|
|
|
67,509 |
|
|
|
66,748 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income Attributable to |
$ |
1.34 |
|
|
$ |
1.24 |
|
|
$ |
2.57 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Restructuring initiatives |
|
0.03 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.15 |
|
|
Net investment loss (gain) |
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Foreign currency effects (1) |
|
|
|
(0.01 |
) |
|
|
|
|
— |
|
|||||
Adjusted Net Income Attributable to |
$ |
1.37 |
|
|
$ |
1.22 |
|
|
$ |
2.63 |
|
|
$ |
2.18 |
|
|
(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. |
|
||||||||||||||||
Reconciliation of Free Cash Flow to Net Cash Provided by Operations (Unaudited) |
||||||||||||||||
(In Thousands) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Cash Provided by Operations |
$ |
143,579 |
|
|
$ |
83,897 |
|
|
$ |
235,912 |
|
|
$ |
182,201 |
|
|
Capital Expenditures |
|
(68,205 |
) |
|
|
(77,187 |
) |
|
|
(143,866 |
) |
|
|
(155,012 |
) |
|
Free Cash Flow |
$ |
75,374 |
|
|
$ |
6,710 |
|
|
$ |
92,046 |
|
|
$ |
27,189 |
|
|
||||||
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) |
||||||
(In Thousands, Except Per Share Data) |
||||||
|
Three Months Ending
|
|||||
|
Expected 2024 |
|
2023 |
|||
|
|
|
|
|||
Income before Income Taxes |
|
|
$ |
110,049 |
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|||
Restructuring initiatives |
|
|
|
6,161 |
|
|
Net investment loss |
|
|
|
1,240 |
|
|
Realized gain on investments included in net investment loss above |
|
|
|
4,188 |
|
|
Transaction costs related to acquisitions |
|
|
|
— |
|
|
Foreign currency effects (1) |
|
|
|
(1,412 |
) |
|
Adjusted Earnings before Income Taxes |
|
|
$ |
120,226 |
|
|
|
|
|
|
|||
Provision for Income Taxes |
|
|
$ |
25,751 |
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|||
Restructuring initiatives |
|
|
|
1,611 |
|
|
Net investment loss |
|
|
|
304 |
|
|
Realized gain on investments included in net investment loss above |
|
|
|
1,026 |
|
|
Transaction costs related to acquisitions |
|
|
|
— |
|
|
Foreign currency effects (1) |
|
|
|
(330 |
) |
|
Adjusted Provision for Income Taxes |
|
|
$ |
28,362 |
|
|
|
|
|
|
|||
Net Loss Attributable to Noncontrolling Interests |
|
|
$ |
(2 |
) |
|
|
|
|
|
|||
Net Income Attributable to |
|
|
$ |
84,296 |
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|||
Restructuring initiatives |
|
|
|
4,550 |
|
|
Net investment loss |
|
|
|
936 |
|
|
Realized gain on investments included in net investment loss above |
|
|
|
3,162 |
|
|
Transaction costs related to acquisitions |
|
|
|
— |
|
|
Foreign currency effects (1) |
|
|
|
(1,082 |
) |
|
Adjusted Net Income Attributable to |
|
|
$ |
91,862 |
|
|
|
|
|
|
|||
Average Number of Diluted Shares Outstanding |
|
|
|
67,035 |
|
|
|
|
|
|
|||
Net Income Attributable to |
|
|
$ |
1.26 |
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|||
Restructuring initiatives |
|
|
|
0.07 |
|
|
Net investment loss |
|
|
|
0.01 |
|
|
Realized gain on investments included in net investment loss above |
|
|
|
0.05 |
|
|
Transaction costs related to acquisitions |
|
|
|
— |
|
|
Foreign currency effects (1) |
|
|
|
(0.02 |
) |
|
Adjusted Net Income Attributable to |
|
|
$ |
1.37 |
|
|
(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 third 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 23.5% to 25.5%. This tax rate range compares to our third quarter of 2023 effective tax rate of 23% on reported earnings per share and 24% on adjusted earnings per share. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725389689/en/
Investor Relations Contact:
mary.skafidas@aptar.com
815-479-5530
Media Contact:
katie.reardon@aptar.com
815-479-5671
Source: