CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--October 26, 2017--AptarGroup, Inc. (NYSE: ATR), a global leader in innovative packaging technologies that build brand value, today announced its third quarter results.

For the quarter ended September 30, 2017, reported sales increased 6% over the prior year to $624 million. Core sales, which exclude the positive impact from changes in currency exchange rates, increased approximately 3%.

Commenting on the quarter, Stephan Tanda, President and CEO, said, “We are pleased to report sales growth in each of our business segments. Our Pharma segment, the leading provider of drug delivery systems to the pharmaceutical industry, grew sales despite a difficult comparison to the prior year, which included a significant amount of custom tooling sales related to a specific project. Demand for our products was broad-based across each end market, and was especially strong in the consumer health care and injectables markets. In our Beauty + Home segment, sales to the personal care and home care markets improved over the prior year, with new business wins contributing to the growth. We continue to offer the industry’s broadest solutions portfolio and are encouraged by the sales improvements in Beauty + Home as we move forward with our initiatives to return this business to long-term sustainable growth. Our Food + Beverage segment had an excellent quarter as demand for our innovative dispensing closures increased in both the food and beverage markets. Offsetting the positive effects of our segments’ sales growth were several factors that negatively impacted our earnings. We continue to address the operational challenges at our decorative facility in Europe, which had a negative impact on our quarterly results. We also experienced higher professional fees related to specific projects, increased raw material costs and negative currency transaction losses related to our operations in Argentina.”

Aptar’s reported earnings per share increased 1% to $0.83 compared to $0.82 reported a year ago. Current period earnings per share included a positive impact of approximately $0.06 related to certain tax benefits compared to the prior year. Adjusting for changes in currency translation rates, comparable earnings per share for the prior year were approximately $0.85.

For the nine months ended September 30, 2017, reported sales increased 3% to $1.84 billion from $1.79 billion a year ago. Core sales, which exclude the positive impact from acquisitions, increased approximately 2%. Changes in currency exchange rates did not have a significant impact on the sales growth.

Tanda commented on the year-to-date results, “We reported top line growth through the first nine months of the year and our Pharma and Food + Beverage segments have performed well, with sales growth in each end market. When we exclude the positive contribution from last year’s acquisition, our Beauty + Home segment achieved sales in line with prior year sales. The diversity of our business continues to be a key strength of Aptar as we serve eight end markets across the globe.”

For the nine months year-to-date, Aptar’s reported earnings per share increased 10% to $2.64 compared to $2.40 reported a year ago. The nine months year-to-date earnings per share included a positive impact of approximately $0.20 related to certain tax benefits compared to the prior year. Prior year adjusted earnings per share, which adjusts for costs related to the Mega Airless acquisition, would have been $2.49.

Commenting on Aptar’s outlook, Tanda said, “Looking ahead to the fourth quarter, we expect revenue growth in each segment. We also anticipate certain headwinds will continue, including higher raw material costs and lower results at our decorative facility. We see these as transitory and thus not affecting our long-term view. We remain committed to returning Beauty + Home to profitable growth in the near-term and successfully implementing our new initiatives. Our strong balance sheet allows us to invest in new capabilities and technologies while we remain well-positioned to take advantage of strategic opportunities. We look forward to continuing to leverage our deep understanding of consumer trends and behaviors in order to create value-enhancing solutions for our customers and end consumers around the world.”

Aptar expects earnings per share for the fourth quarter to be in the range of $0.68 to $0.73, excluding any costs related to our current initiatives, compared to $0.77 per share reported in the prior year. Our guidance range is based on an effective tax rate range of 26.5% to 28.5%, which includes an estimate of a potential tax benefit from our adoption of the new accounting standard for share-based compensation. Prior year earnings per share included a positive impact of approximately $0.08 related to certain tax benefits. Adjusting for changes in currency translation rates, comparable earnings per share for the prior year were approximately $0.82.

As previously reported, the Board declared on October 19, 2017 a quarterly cash dividend of $0.32 per share, payable November 22, 2017 to stockholders of record as of November 1, 2017.

There will be a conference call on Friday, October 27, 2017 at 8:00 a.m. Central Time to discuss Aptar’s third quarter results for 2017. 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.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.

Aptar is a leading global supplier of a broad range of innovative dispensing and sealing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit www.aptar.com.

This press release refers to certain non-GAAP financial measures, including prior year adjusted earnings per share and adjusted EBITDA, which exclude the impact of transaction costs and purchase accounting adjustments that affected inventory values related to the Mega Airless acquisition. Core sales and adjusted earnings per share also exclude the impact of foreign currency translation effects. 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. 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.

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” 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 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, the possible impact and consequences of the fire at the Company’s facility in Annecy, France; the impact and extent of contamination found at the Company’s facility in Brazil; economic conditions worldwide including potential deflationary conditions in regions we rely on for growth; political conditions worldwide; significant fluctuations in foreign currency exchange rates or our effective tax rate; changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; fluctuations in the cost of materials, components and other input costs; the availability of raw materials and components; our ability to successfully implement facility expansions and new facility projects; our ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; volatility of global credit markets; cybersecurity threats that could impact our networks and reporting systems; fiscal and monetary policies and other regulations, including changes in tax rates; direct or indirect consequences of acts of war or terrorism; work stoppages due to labor disputes; and competition, including technological advances. 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-Ks and Form 10-Qs. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.


AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
Consolidated Statements of Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016

Net Sales	$	624,326		$	589,729		$	1,843,388		$	1,792,066
Cost of Sales (exclusive of depreciation and amortization shown below) (1)		408,081			381,041			1,192,967			1,145,107
Selling, Research & Development and Administrative (2)		95,748			86,695			292,923			285,841
Depreciation and Amortization		40,087			39,667			114,660			115,944
Operating Income		80,410			82,326			242,838			245,174
Other Income/(Expense):
Interest Expense		(9,733	)		(8,753	)		(25,707	)		(26,547	)
Interest Income		1,113			715			2,086			1,759
Equity in Results of Affiliates		(72	)		(15	)		(142	)		(187	)
Miscellaneous, net		(2,200	)		728			(509	)		(995	)
Income before Income Taxes		69,518			75,001			218,566			219,204
Provision for Income Taxes		15,989			21,901			48,043			63,187
Net Income	$	53,529		$	53,100		$	170,523		$	156,017

Net Income Attributable to Noncontrolling Interests		(6	)		(2	)		(6	)		(8	)
Net Income Attributable to AptarGroup, Inc.	$	53,523		$	53,098		$	170,517		$	156,009
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic	$	0.86		$	0.84		$	2.73		$	2.48
Diluted	$	0.83		$	0.82		$	2.64		$	2.40

Average Numbers of Shares Outstanding:
Basic		62,592			62,858			62,527			62,878
Diluted		64,821			64,690			64,626			64,989

Notes to the Condensed Consolidated Financial Statements:
(1) For the nine months ended September 30, 2016, Cost of Sales included the effect of approximately $2.6 million of purchase accounting adjustments to inventory related to the Mega Airless acquisition.

(2) For the nine months ended September 30, 2016, Selling, Research & Development and Administrative included approximately $5.6 million of costs related to the Mega Airless acquisition.

AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
Consolidated Balance Sheets

	September 30, 2017		December 31, 2016
ASSETS

Cash and Equivalents	$	1,018,666	$	466,287
Receivables, net		510,144		433,127
Inventories		323,404		296,914
Other Current Assets		89,181		73,842
Total Current Assets		1,941,395		1,270,170
Net Property, Plant and Equipment		858,439		784,321
Goodwill		439,147		407,522
Other Assets		169,873		144,772
Total Assets	$	3,408,854	$	2,606,785

LIABILITIES AND EQUITY

Short-Term Obligations	$	246,240	$	173,816
Accounts Payable and Accrued Liabilities		458,797		369,139
Total Current Liabilities		705,037		542,955
Long-Term Obligations		1,271,530		772,737
Deferred Liabilities		110,463		116,851
Total Liabilities		2,087,030		1,432,543

AptarGroup, Inc. Stockholders' Equity		1,321,514		1,173,950
Noncontrolling Interests in Subsidiaries		310		292
Total Equity		1,321,824		1,174,242

Total Liabilities and Equity	$	3,408,854	$	2,606,785

AptarGroup, Inc.
Reconciliation of EBIT and EBITDA to Net Income (Unaudited)
(In Thousands)

	Three Months Ended
	September 30, 2017

				Beauty +						Food +			Corporate &			Net
	Consolidated			Home			Pharma			Beverage			Other			Interest
Net Sales	$	624,326			333,748			199,547			91,031			-			-

Reported net income	$	53,529
Reported income taxes		15,989
Reported income before income taxes		69,518			21,837			55,426			11,668			(10,793	)		(8,620	)
Adjustments:
None

Earnings before income taxes		69,518			21,837			55,426			11,668			(10,793	)		(8,620	)
Interest expense		9,733															9,733
Interest income		(1,113	)														(1,113	)
Earnings before net interest and taxes (EBIT)		78,138			21,837			55,426			11,668			(10,793	)		-
Depreciation and amortization		40,087			20,790			10,834			6,448			2,015			-
Earnings before net interest, taxes, depreciation and amortization (EBITDA)	$	118,225		$	42,627		$	66,260		$	18,116		$	(8,778	)	$	-

Segment income margins (Income before income taxes / Reported Net Sales)					6.5	%		27.8	%		12.8	%
EBITDA margins (EBITDA / Reported Net Sales)		18.9	%		12.8	%		33.2	%		19.9	%

	Three Months Ended
	September 30, 2016

				Beauty +						Food +			Corporate &			Net
	Consolidated			Home			Pharma			Beverage			Other			Interest
Net Sales	$	589,729			316,030			191,194			82,505			-			-

Reported net income	$	53,100
Reported income taxes		21,901
Reported income before income taxes		75,001			25,380			55,037			10,101			(7,479	)		(8,038	)
Adjustments:
None

Earnings before income taxes		75,001			25,380			55,037			10,101			(7,479	)		(8,038	)
Interest expense		8,753															8,753
Interest income		(715	)														(715	)
Earnings before net interest and taxes (EBIT)		83,039			25,380			55,037			10,101			(7,479	)		-
Depreciation and amortization		39,667			21,653			10,185			6,064			1,765			-
Earnings before net interest, taxes, depreciation and amortization (EBITDA)	$	122,706		$	47,033		$	65,222		$	16,165		$	(5,714	)	$	-

Segment income margins (Income before income taxes / Reported Net Sales)					8.0	%		28.8	%		12.2	%
EBITDA margins (EBITDA / Reported Net Sales)		20.8	%		14.9	%		34.1	%		19.6	%

AptarGroup, Inc.
Reconciliation of EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA to Net Income (Unaudited)
(In Thousands)

	Nine Months Ended
	September 30, 2017

				Beauty +						Food +			Corporate &			Net
	Consolidated			Home			Pharma			Beverage			Other			Interest
Net Sales	$	1,843,388			978,313			598,161			266,914			-			-

Reported net income	$	170,523
Reported income taxes		48,043
Reported income before income taxes		218,566			69,248			174,288			31,385			(32,734	)		(23,621	)
Adjustments:
None

Earnings before income taxes		218,566			69,248			174,288			31,385			(32,734	)		(23,621	)
Interest expense		25,707															25,707
Interest income		(2,086	)														(2,086	)
Earnings before net interest and taxes (EBIT)		242,187			69,248			174,288			31,385			(32,734	)		-
Depreciation and amortization		114,660			60,017			30,462			18,371			5,810			-
Earnings before net interest, taxes, depreciation and amortization (EBITDA)	$	356,847		$	129,265		$	204,750		$	49,756		$	(26,924	)	$	-

Segment income margins (Income before income taxes / Reported Net Sales)					7.1	%		29.1	%		11.8	%
EBITDA margins (EBITDA / Reported Net Sales)		19.4	%		13.2	%		34.2	%		18.6	%

	Nine Months Ended
	September 30, 2016

				Beauty +						Food +			Corporate &			Net
	Consolidated			Home			Pharma			Beverage			Other			Interest
Net Sales	$	1,792,066			970,687			565,363			256,016			-			-

Reported net income	$	156,017
Reported income taxes		63,187
Reported income before income taxes		219,204			79,455			166,870			32,977			(35,310	)		(24,788	)
Adjustments:
Transaction costs related to the Mega Airless acquisition		5,640												5,640
Purchase accounting adjustments related to Mega Airless inventory		2,577			2,151			426
Adjusted earnings before income taxes		227,421			81,606			167,296			32,977			(29,670	)		(24,788	)
Interest expense		26,547															26,547
Interest income		(1,759	)														(1,759	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)		252,209			81,606			167,296			32,977			(29,670	)		-
Depreciation and amortization		115,944			63,150			29,802			17,960			5,032			-
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	368,153		$	144,756		$	197,098		$	50,937		$	(24,638	)	$	-

Segment income margins (Income before income taxes / Reported Net Sales)					8.2	%		29.5	%		12.9	%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)		20.5	%		14.9	%		34.9	%		19.9	%

AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
($ in thousands, except per share information)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016

Income before Income Taxes	$	69,518		$	75,001		$	218,566		$	219,204

Adjustments:
Transaction costs related to the Mega Airless acquisition											5,640
Purchase accounting adjustments related to Mega Airless inventory											2,577
Foreign currency effects (1)					3,008						279
Adjusted Income before Income Taxes	$	69,518		$	78,009		$	218,566		$	227,700


Provision for Income Taxes	$	15,989		$	21,901		$	48,043		$	63,187

Adjustments:
Transaction costs related to the Mega Airless acquisition											1,483
Purchase accounting adjustments related to Mega Airless inventory											859
Foreign currency effects (1)					798						123
Adjusted Provision for Income Taxes	$	15,989		$	22,699		$	48,043		$	65,652



Net Income Attributable to Noncontrolling Interests	$	(6	)	$	(2	)	$	(6	)	$	(8	)

Net Income Attributable to AptarGroup, Inc.	$	53,523		$	53,098		$	170,517		$	156,009

Adjustments:
Transaction costs related to the Mega Airless acquisition											4,157
Purchase accounting adjustments related to Mega Airless inventory											1,718
Foreign currency effects (1)					2,210						156
Adjusted Net Income Attributable to AptarGroup, Inc.	$	53,523		$	55,308		$	170,517		$	162,040

Average Number of Diluted Shares Outstanding		64,821			64,690			64,626			64,989

Net Income Attributable to AptarGroup, Inc. Per Diluted Share	$	0.83		$	0.82		$	2.64		$	2.40

Adjustments:
Transaction costs related to the Mega Airless acquisition											0.06
Purchase accounting adjustments related to Mega Airless inventory											0.03
Foreign currency effects (1)					0.03						-
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share	$	0.83		$	0.85		$	2.64		$	2.49

(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 Adjusted Earnings Per Diluted Share (Unaudited)
($ in thousands, except per share information)

	Three Months Ended
	December 31,
	Expected 2017	2016

Income before Income Taxes		$	61,293

Adjustments:
Foreign currency effects (1)			4,396
Adjusted Income before Income Taxes		$	65,689


Provision for Income Taxes		$	11,706

Adjustments:
Foreign currency effects (1)			936
Adjusted Provision for Income Taxes		$	12,642


Net Income Attributable to Noncontrolling Interests		$	(6	)

Net Income Attributable to AptarGroup, Inc.		$	49,581

Adjustments:
Foreign currency effects (1)			3,460
Adjusted Net Income Attributable to AptarGroup, Inc.		$	53,041

Average Number of Diluted Shares Outstanding			64,220

Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)	$0.68 - $0.73	$	0.77

Adjustments:
Foreign currency effects (1)			0.05
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)	$0.68 - $0.73	$	0.82

(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings per share using foreign currency exchange rates as of September 30, 2017.

(2) AptarGroup’s expected earnings per share range for the fourth quarter of 2017 is based on an effective tax rate range of 26.5% to 28.5%, which includes an estimate of a potential tax benefit from our adoption of the new accounting standard for share-based compensation.

CONTACT:
AptarGroup, Inc.
Investor Relations Contact:
Matthew DellaMaria
matt.dellamaria@aptar.com
815-477-0424
or
Media Contact:
Katie Reardon
katie.reardon@aptar.com
815-477-0424

			AptarGroup, Inc.

Date:	October 26, 2017	By:	/s/ Robert W. Kuhn
			Robert W. Kuhn
			Executive Vice President,
			Chief Financial Officer and Secretary



Third Quarter Segment Sales Analysis
(Change Over Prior Year)

	Beauty +		Food +	Total
	Home	Pharma	Beverage	AptarGroup
Core Sales Growth	3%	1%	8%	3%
Currency Effects ⁽¹⁾	3%	3%	2%	3%
Total Reported Sales Growth	6%	4%	10%	6%

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


Nine Months Year-to-Date Segment Sales Analysis
(Change Over Prior Year)

	Beauty +		Food +	Total
	Home	Pharma	Beverage	AptarGroup
Core Sales Growth	0%	6%	5%	2%
Acquisitions	1%	0%	0%	1%
Currency Effects ⁽¹⁾	0%	0%	(1%)	0%
Total Reported Sales Growth	1%	6%	4%	3%

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