-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JCIbu9xmm6OS8np62kVLrVjr3Fr7hMI8eZeNyjGG17Sw2N1kY+YNmV+q5Qh5qK2i csKjZ3BPrJgnN8Jptoen7w== 0001157523-08-001101.txt : 20080208 0001157523-08-001101.hdr.sgml : 20080208 20080207203237 ACCESSION NUMBER: 0001157523-08-001101 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080207 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080208 DATE AS OF CHANGE: 20080207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APTARGROUP INC CENTRAL INDEX KEY: 0000896622 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 363853103 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11846 FILM NUMBER: 08586616 BUSINESS ADDRESS: STREET 1: 475 W TERRA COTTA AVE STREET 2: STE E CITY: CRYSTAL LAKE STATE: IL ZIP: 60014 BUSINESS PHONE: 8154770424 MAIL ADDRESS: STREET 1: 475 W. TERRA COTTA AVE. SUITE E CITY: CRYSTAL LAKE STATE: IL ZIP: 60014 8-K 1 a5605565.htm APTARGROUP, INC. 8-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934


February 7, 2008
Date of Report (Date of earliest event reported)


AptarGroup, Inc.
(Exact name of registrant as specified in its charter)

Delaware

1-11846

36-3853103

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

475 West Terra Cotta Avenue, Suite E, Crystal Lake, Illinois 60014

(Address of principal executive offices)

Registrant’s telephone number, including area code: 815-477-0424

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02     Results of Operations and Financial Condition.

On February 7, 2008, AptarGroup, Inc. ("AptarGroup") announced its results of operations and financial condition for the fourth quarter and year ended December 31, 2007. The press release regarding this announcement is furnished as Exhibit 99.1 hereto.

The information in Item 2.02 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release issued by AptarGroup, Inc. dated February 7, 2008.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

AptarGroup, Inc.

 

Date: February 7, 2008 By:

/s/ Stephen J. Hagge

Stephen J. Hagge

Executive Vice President,
Chief Operating Officer, and
Chief Financial Officer


Exhibit Index

99.1  

Press Release issued by AptarGroup, Inc. dated February 7, 2008.

EX-99.1 2 a5605565ex991.htm EXHIBIT 99.1

Exhibit 99.1

AptarGroup Posts Record Fourth Quarter and Annual Results

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Feb. 7, 2008-- AptarGroup, Inc. (NYSE:ATR) today reported record fourth quarter and annual results.

Highlights

  • Fourth quarter sales rose 15% pushing annual sales to an all-time high $1.9 billion
  • Fourth quarter earnings per share before discontinued operations increased 24% to $.47
  • Income from discontinued operations accounted for an additional $.03 per share
  • Sales and profits increased across each business segment
  • Repurchased 473,000 shares in the quarter and over 2 million shares for the year

FOURTH QUARTER RESULTS

For the quarter ended December 31, 2007, sales increased 15% to a record $483.8 million from $422.4 million in the fourth quarter of 2006. Continued increased demand for AptarGroup’s innovative dispensing systems drove sales growth by 6% and changes in exchange rates contributed approximately 9%.

Commenting on the quarter, Peter Pfeiffer, President and Chief Executive Officer, said, “I am happy to report that our record fourth quarter added to an already exceptional year-to-date performance and we completed the strongest year in the history of our company. Our three business segments, Beauty & Home, Closures, and Pharma, each contributed to our growth despite some softness in the U.S. personal care market. The overall positive fourth quarter performance is noteworthy when we consider that last year’s results were also quite strong.”

Fourth Quarter Segment Sales Analysis
(Growth Over Prior Year)
     

Beauty &
Home

  Closures   Pharma  

Total
AptarGroup

Product and Custom Tooling Sales 6% 4% 8% 6%
Currency Effects 9%   7%   11%   9%
Total Growth 15%   11%   19%   15%

Pfeiffer added, “While the competitive environment remained challenging, and we continued to face rising material and other costs in the fourth quarter, increased product sales and cost containment efforts allowed operating income to reach a record level of $49.2 million. Beauty & Home segment income increased 22% to $21.4 million, Closures segment income increased 8% to $10.2 million, and Pharma segment income increased 25% to $27.7 million. Also in the quarter, we sold our Australian operation to an Australian-based company. This operation was not significant to our consolidated results. We will continue to serve our customers in this region by selling our products through this company while allowing the new management to grow the business with local support and resources. The gain on this sale, net of tax, was approximately $2.2 million or $.03 per share.” Diluted earnings per share from continuing operations increased 24% to $.47 per share compared to $.38 per share in the prior year. Additionally, AptarGroup spent $19.6 million to repurchase approximately 473,000 shares of its common stock in the quarter.

ANNUAL RESULTS

Commenting on AptarGroup’s full year performance, Pfeiffer said, “Each of our business segments enjoyed solid sales growth during the year enabling us to achieve our 42nd consecutive year of sales growth. We reported record sales of $1.9 billion, up 18% from $1.6 billion in 2006. Increased product sales accounted for 10% of our sales growth, acquisitions added 1% and changes in exchange rates added 7%. Also, increased profits across each of our business segments drove consolidated operating income to a record $210.7 million up from $161.6 million a year ago. Production efficiencies and cost containment efforts more than offset higher material costs and a challenging competitive price environment.”

Diluted earnings per share from continuing operations rose 36% to a record level of $1.95 per share, up from $1.43 per share a year ago. AptarGroup spent $76.4 million to repurchase approximately 2 million shares of common stock in 2007, leaving approximately 2 million shares authorized for repurchase at the end of the year. Also during the year, AptarGroup paid $34.4 million in dividends to stockholders, or $.50 per share.

OUTLOOK

Pfeiffer commented, “We are cautiously optimistic about the coming quarter. While there is some uncertainty regarding the economic outlook in the U.S., we are well positioned to withstand slowness in one particular region because of our broad geographic presence and the diverse end-markets that we serve. We expect continuing demand for our convenient dispensing systems will result in sales improvements across each of our business segments in the first quarter of 2008. We are still in a competitive environment and face rising costs, but we are committed to passing these cost increases along in our selling prices where possible. The ongoing dedication by our talented employees and our long-term strategy to be the innovation leader in our field have served us well in the past and should do so in the future. We estimate that diluted earnings per share for the first quarter of 2008 will be in the range of $.46 to $.49 per share compared to $.41 per share in the prior year.”

OPEN CONFERENCE CALL

There will be a conference call on Friday February 8, 2008 at 8:00 a.m. CST to discuss the Company’s fourth quarter and annual results for 2007. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site.

AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit the AptarGroup web site at www.aptargroup.com.

This press release contains 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 management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, those related to overall business conditions in the various markets in which AptarGroup operates, the competitive marketplace, fiscal and monetary policy, changes in foreign exchange rates, direct or indirect consequences of acts of war or terrorism, labor relations and other risks and uncertainties discussed from time to time in AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements.

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
     
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
 
Three Months Ended Year Ended
December 31,   December 31,

2007

2006

2007

2006

 
Net Sales $ 483,758 $ 422,387 $ 1,892,167 $ 1,601,385
Cost of Sales (exclusive of depreciation
shown below) 334,480 289,448 1,283,773 1,086,269
Selling, Research & Development and
Administrative 68,893 61,044 274,196 238,907
Depreciation and Other Amortization 31,220   31,103   123,466   114,606  
Operating Income 49,165 40,792 210,732 161,603
Other Income/(Expense):
Interest Expense (5,157 ) (4,799 ) (19,492 ) (16,985 )
Interest Income 3,318 1,461 8,918 4,214
Equity in Results of Affiliates 57 86 483 506
Minority Interests 37 14 33 (80 )
Miscellaneous, net 834   202   (679 ) (952 )
Income from Continuing Operations
before Income Taxes 48,254 37,756 199,995 148,306
Provision for Income Taxes 14,690   10,581   60,488   45,410  
Income from Continuing Operations 33,564 27,175 139,507 102,896
Income from Discontinued Operations, Net of Tax 2,232   0   2,232   0  
Net Income $ 35,796   $ 27,175   $ 141,739   $ 102,896  
 
Net Income per Share - Basic (a)
Continuing Operations $ 0.49 $ 0.39 $ 2.03 $ 1.48
Discontinued Operations 0.03   0   0.03   0  
$ 0.52   $ 0.39   $ 2.06   $ 1.48  
 
Net Income per Share - Diluted (a)
Continuing Operations $ 0.47 $ 0.38 $ 1.95 $ 1.43
Discontinued Operations 0.03   0   0.03   0  
$ 0.50   $ 0.38   $ 1.98   $ 1.43  
 
Average Number of Shares – Basic (a) 68,376 69,060 68,769 69,654
Average Number of Shares - Diluted (a) 70,983 70,854 71,523 71,744
 
Notes to Condensed Consolidated Financial Statements:
(a) - Previously reported Net Income per Share and Average Number of Shares have been restated to reflect the two-for-one stock split on May 9, 2007.
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
 
December 31, 2007 December 31, 2006
ASSETS
 
Cash and Equivalents $ 313,739 $ 170,576
Receivables, net 360,736 320,969
Inventories 272,556 226,455
Other Current Assets 56,414 44,820
Total Current Assets 1,003,445 762,820
Net Property, Plant and Equipment 656,508 591,077
Goodwill, net 222,668 207,882
Other Assets 29,329 30,233
Total Assets $ 1,911,950 $ 1,592,012
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Short-Term Obligations $ 216,158 $ 127,424
Accounts Payable and Accrued Liabilities 349,031 272,761
Total Current Liabilities 565,189 400,185
Long-Term Obligations 146,711 168,877
Deferred Liabilities 81,032 76,550
Total Liabilities 792,932 645,612
Stockholders' Equity 1,119,018 946,400
Total Liabilities and Stockholders' Equity $ 1,911,950 $ 1,592,012
APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
     
Three Months Ended Year Ended
December 31, December 31,
 

2007

2006

2007

2006

NET SALES
 
Beauty & Home $ 254,461 $ 221,802 $ 1,005,218 $ 837,093
Closures 124,968 112,465 493,000 441,203
Pharma 104,251 87,896 393,868 322,603
Other 78   224   81   486  
Total Net Sales $ 483,758   $ 422,387   $ 1,892,167   $ 1,601,385  
 
SEGMENT INCOME (1)
 
Beauty & Home $ 21,417 $ 17,524 $ 99,553 $ 72,396
Closures 10,198 9,483 50,036 44,031
Pharma 27,716 22,199 106,161 80,841
Corporate Expenses and Other (9,238 ) (8,112 ) (45,181 ) (36,191 )

Total Income from Continuing Operations before Interest and Taxes

$ 50,093 $ 41,094 $ 210,569 $ 161,077
Less: Interest Expense, Net 1,839   3,338   10,574   12,771  

Income from Continuing Operations before Income Taxes

$ 48,254   $ 37,756   $ 199,995   $ 148,306  
 
SEGMENT INCOME %
Beauty & Home 8.4 % 7.9 % 9.9 % 8.6 %
Closures 8.2 % 8.4 % 10.1 % 10.0 %
Pharma 26.6 % 25.3 % 27.0 % 25.1 %
 

Income from Continuing Operations before Interest and Taxes

10.4 % 9.7 % 11.1 % 10.1 %
 
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items.

CONTACT:
AptarGroup, Inc.
Stephen J. Hagge
815-477-0424

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