Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Aptar Reports Second Quarter 2024 Results By: AptarGroup, Inc. via Business Wire July 25, 2024 at 17:00 PM EDT AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported solid second quarter results driven by continued growth of the company’s proprietary drug delivery systems and margin improvement. Reported sales increased by 2% and core sales, excluding currency and acquisition effects, increased by 3%. Aptar reported net income of $90 million for the quarter, a 9% increase from the prior year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240725389689/en/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 North America. For the first six months of the year, we achieved double-digit earnings growth and delivered strong net cash provided by operations,” said Stephan B. Tanda, Aptar President and CEO, commenting on the second quarter results. 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 June 30, 2024, reported sales increased 2% to $910 million compared to $896 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 3%. Second Quarter Segment Sales Analysis (Change Over Prior Year) Aptar Pharma Aptar Beauty Aptar Closures Total AptarGroup 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 North America continued to show progressive improvement, however, this was offset by higher tooling sales in the prior year period. Margins continued to improve year over year even with softer sales, due to operational performance and ongoing cost management. 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 $1.34, an increase of 8%, compared to $1.24 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 $1.37, an increase of 12%, compared to $1.22 in the prior year, including comparable exchange rates. Year-To-Date Results For the six months ended June 30, 2024, reported sales increased 4% to $1.83 billion compared to $1.76 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 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 June 30, 2024, Aptar’s reported earnings per share were $2.57, an increase of 24%, compared to $2.07 reported a year ago. Current year adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $2.63 and increased 21% from prior year adjusted earnings per share of $2.18, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 25% (approximately $0.10 per share negative impact compared to the current year effective tax rate of 22%). 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 North America. As volumes come back, we believe we will benefit from our continued focus on cost management and improved operational leverage. Our solid operational performance and our strong balance sheet should position us well for future growth. Even in a slowing economy, we believe in the resilience of our portfolio as demonstrated by our recent dividend increase of approximately 10% on top of last year’s nearly 8% increase.” 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 $1.38 to $1.46. This guidance is based on an effective tax rate range of 23.5% to 25.5% with a comparable adjusted prior year effective tax rate of 24%. The earnings per share guidance range was based on spot rates at the end of June for all currencies. Our currency exchange rate assumptions equate to an approximately $0.02 per share headwind 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 approximately 10% to $0.45 per share. The payment date is August 15, 2024, to stockholders of record as of July 25, 2024. During the second quarter, Aptar repurchased 34 thousand shares for approximately $5 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 26, 2024 at 8:00 a.m. Central Time to discuss the company’s second quarter results for 2024. 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 more than 13,000 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 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 recent events in the Middle East 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; the availability of raw materials and components (particularly from sole sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our fixed cost reduction initiatives, including our optimization initiative; 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 against our systems and/or service providers 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, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net Sales $ 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 AptarGroup, Inc. $ 90,454 $ 83,072 $ 173,558 $ 137,836 Net Income Attributable to AptarGroup, Inc. per Common Share: 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 AptarGroup, Inc. Condensed Consolidated Financial Statements (Unaudited) (continued) ($ In Thousands) Consolidated Balance Sheets June 30, 2024 December 31, 2023 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 Goodwill 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 AptarGroup, Inc. Stockholders' Equity 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 AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Three Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.9 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 21.2 % 34.1 % 13.9 % 15.6 % 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 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 % AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Six Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.5 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 20.4 % 33.3 % 13.2 % 15.3 % 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 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 % 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, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. Per Diluted Share $ 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 AptarGroup, Inc. Per Diluted Share $ 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. 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, 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 AptarGroup, Inc. Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data) Three Months Ending September 30, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 91,862 Average Number of Diluted Shares Outstanding 67,035 Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3) $ 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 AptarGroup, Inc. Per Diluted Share (2) $1.38 - $1.46 $ 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 June 30, 2024 for all applicable foreign currency exchange rates. (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/Contacts Investor Relations Contact: Mary Skafidas mary.skafidas@aptar.com 815-479-5530 Media Contact: Katie Reardon katie.reardon@aptar.com 815-479-5671 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Aptar Reports Second Quarter 2024 Results By: AptarGroup, Inc. via Business Wire July 25, 2024 at 17:00 PM EDT AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported solid second quarter results driven by continued growth of the company’s proprietary drug delivery systems and margin improvement. Reported sales increased by 2% and core sales, excluding currency and acquisition effects, increased by 3%. Aptar reported net income of $90 million for the quarter, a 9% increase from the prior year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240725389689/en/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 North America. For the first six months of the year, we achieved double-digit earnings growth and delivered strong net cash provided by operations,” said Stephan B. Tanda, Aptar President and CEO, commenting on the second quarter results. 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 June 30, 2024, reported sales increased 2% to $910 million compared to $896 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 3%. Second Quarter Segment Sales Analysis (Change Over Prior Year) Aptar Pharma Aptar Beauty Aptar Closures Total AptarGroup 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 North America continued to show progressive improvement, however, this was offset by higher tooling sales in the prior year period. Margins continued to improve year over year even with softer sales, due to operational performance and ongoing cost management. 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 $1.34, an increase of 8%, compared to $1.24 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 $1.37, an increase of 12%, compared to $1.22 in the prior year, including comparable exchange rates. Year-To-Date Results For the six months ended June 30, 2024, reported sales increased 4% to $1.83 billion compared to $1.76 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 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 June 30, 2024, Aptar’s reported earnings per share were $2.57, an increase of 24%, compared to $2.07 reported a year ago. Current year adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $2.63 and increased 21% from prior year adjusted earnings per share of $2.18, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 25% (approximately $0.10 per share negative impact compared to the current year effective tax rate of 22%). 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 North America. As volumes come back, we believe we will benefit from our continued focus on cost management and improved operational leverage. Our solid operational performance and our strong balance sheet should position us well for future growth. Even in a slowing economy, we believe in the resilience of our portfolio as demonstrated by our recent dividend increase of approximately 10% on top of last year’s nearly 8% increase.” 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 $1.38 to $1.46. This guidance is based on an effective tax rate range of 23.5% to 25.5% with a comparable adjusted prior year effective tax rate of 24%. The earnings per share guidance range was based on spot rates at the end of June for all currencies. Our currency exchange rate assumptions equate to an approximately $0.02 per share headwind 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 approximately 10% to $0.45 per share. The payment date is August 15, 2024, to stockholders of record as of July 25, 2024. During the second quarter, Aptar repurchased 34 thousand shares for approximately $5 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 26, 2024 at 8:00 a.m. Central Time to discuss the company’s second quarter results for 2024. 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 more than 13,000 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 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 recent events in the Middle East 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; the availability of raw materials and components (particularly from sole sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our fixed cost reduction initiatives, including our optimization initiative; 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 against our systems and/or service providers 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, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net Sales $ 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 AptarGroup, Inc. $ 90,454 $ 83,072 $ 173,558 $ 137,836 Net Income Attributable to AptarGroup, Inc. per Common Share: 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 AptarGroup, Inc. Condensed Consolidated Financial Statements (Unaudited) (continued) ($ In Thousands) Consolidated Balance Sheets June 30, 2024 December 31, 2023 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 Goodwill 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 AptarGroup, Inc. Stockholders' Equity 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 AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Three Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.9 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 21.2 % 34.1 % 13.9 % 15.6 % 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 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 % AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Six Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.5 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 20.4 % 33.3 % 13.2 % 15.3 % 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 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 % 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, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. Per Diluted Share $ 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 AptarGroup, Inc. Per Diluted Share $ 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. 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, 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 AptarGroup, Inc. Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data) Three Months Ending September 30, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 91,862 Average Number of Diluted Shares Outstanding 67,035 Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3) $ 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 AptarGroup, Inc. Per Diluted Share (2) $1.38 - $1.46 $ 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 June 30, 2024 for all applicable foreign currency exchange rates. (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/Contacts Investor Relations Contact: Mary Skafidas mary.skafidas@aptar.com 815-479-5530 Media Contact: Katie Reardon katie.reardon@aptar.com 815-479-5671
AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported solid second quarter results driven by continued growth of the company’s proprietary drug delivery systems and margin improvement. Reported sales increased by 2% and core sales, excluding currency and acquisition effects, increased by 3%. Aptar reported net income of $90 million for the quarter, a 9% increase from the prior year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240725389689/en/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 North America. For the first six months of the year, we achieved double-digit earnings growth and delivered strong net cash provided by operations,” said Stephan B. Tanda, Aptar President and CEO, commenting on the second quarter results. 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 June 30, 2024, reported sales increased 2% to $910 million compared to $896 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 3%. Second Quarter Segment Sales Analysis (Change Over Prior Year) Aptar Pharma Aptar Beauty Aptar Closures Total AptarGroup 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 North America continued to show progressive improvement, however, this was offset by higher tooling sales in the prior year period. Margins continued to improve year over year even with softer sales, due to operational performance and ongoing cost management. 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 $1.34, an increase of 8%, compared to $1.24 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 $1.37, an increase of 12%, compared to $1.22 in the prior year, including comparable exchange rates. Year-To-Date Results For the six months ended June 30, 2024, reported sales increased 4% to $1.83 billion compared to $1.76 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 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 June 30, 2024, Aptar’s reported earnings per share were $2.57, an increase of 24%, compared to $2.07 reported a year ago. Current year adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $2.63 and increased 21% from prior year adjusted earnings per share of $2.18, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 25% (approximately $0.10 per share negative impact compared to the current year effective tax rate of 22%). 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 North America. As volumes come back, we believe we will benefit from our continued focus on cost management and improved operational leverage. Our solid operational performance and our strong balance sheet should position us well for future growth. Even in a slowing economy, we believe in the resilience of our portfolio as demonstrated by our recent dividend increase of approximately 10% on top of last year’s nearly 8% increase.” 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 $1.38 to $1.46. This guidance is based on an effective tax rate range of 23.5% to 25.5% with a comparable adjusted prior year effective tax rate of 24%. The earnings per share guidance range was based on spot rates at the end of June for all currencies. Our currency exchange rate assumptions equate to an approximately $0.02 per share headwind 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 approximately 10% to $0.45 per share. The payment date is August 15, 2024, to stockholders of record as of July 25, 2024. During the second quarter, Aptar repurchased 34 thousand shares for approximately $5 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 26, 2024 at 8:00 a.m. Central Time to discuss the company’s second quarter results for 2024. 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 more than 13,000 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 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 recent events in the Middle East 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; the availability of raw materials and components (particularly from sole sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our fixed cost reduction initiatives, including our optimization initiative; 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 against our systems and/or service providers 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, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net Sales $ 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 AptarGroup, Inc. $ 90,454 $ 83,072 $ 173,558 $ 137,836 Net Income Attributable to AptarGroup, Inc. per Common Share: 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 AptarGroup, Inc. Condensed Consolidated Financial Statements (Unaudited) (continued) ($ In Thousands) Consolidated Balance Sheets June 30, 2024 December 31, 2023 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 Goodwill 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 AptarGroup, Inc. Stockholders' Equity 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 AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Three Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.9 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 21.2 % 34.1 % 13.9 % 15.6 % 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 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 % AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands) Six Months Ended June 30, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 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 Net Sales) 9.5 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 20.4 % 33.3 % 13.2 % 15.3 % 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 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 % 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, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. Per Diluted Share $ 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 AptarGroup, Inc. Per Diluted Share $ 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. 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, 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 AptarGroup, Inc. Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data) Three Months Ending September 30, 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 AptarGroup, Inc. $ 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 AptarGroup, Inc. $ 91,862 Average Number of Diluted Shares Outstanding 67,035 Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3) $ 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 AptarGroup, Inc. Per Diluted Share (2) $1.38 - $1.46 $ 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 June 30, 2024 for all applicable foreign currency exchange rates. (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. 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Investor Relations Contact: Mary Skafidas mary.skafidas@aptar.com 815-479-5530 Media Contact: Katie Reardon katie.reardon@aptar.com 815-479-5671
