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Photo: Aptar
“Aptar delivered another strong quarter driven by our Pharma and Closures segments. We saw increased demand for our proprietary drug delivery systems, active material science solutions and closure technologies, especially for food applications. The Beauty segment saw growth in the personal care and home care markets, but it was not enough to offset tough comparisons from tooling and fragrance dispensing solutions from the prior year period. All three segments continued to demonstrate solid operational performance and margin improvement. We are proud of the strong results and progress we have made for the first nine months of the year and are positioned to achieve double-digit adjusted EPS growth for the full year,” said
Third Quarter 2024 Highlights
- Reported and core sales increased 2%
-
Reported earnings per share increased 17% to
$1.48 and adjusted earnings per share increased 6% to$1.49 -
Reported net income of
$100 million increased 19% and adjusted EBITDA increased 8% from the prior year to$208 million , delivering an adjusted EBITDA margin of 23%, which is at the high end of the long-term target range - Pharma segment delivered reported sales growth of 8% and core sales growth of 7% with continued demand for proprietary drug delivery systems, which grew double digits in the quarter
- Closures segment achieved a solid quarter, with sales and margins within its long-term target ranges
-
Earlier this month, closed the previously announced joint venture transaction in
China , following regulatory approvals, strengthening dispensing technology footprint
First Nine Months 2024 Highlights
- Double-digit earnings per share growth over the prior year period
-
Net cash provided by operations increased to
$465 million compared to$356 million in the prior year period -
Free cash flow increased to
$255 million compared to$124 million in the prior year
Third Quarter Results
For the quarter ended
Third Quarter Segment Sales Analysis (Change Over Prior Year) |
||||
|
Aptar Pharma |
Aptar Beauty |
Aptar Closures |
Total
|
Reported Sales Growth |
8% |
(7)% |
3% |
2% |
Currency Effects (1) |
(1)% |
1% |
1% |
0% |
Acquisitions |
0% |
0% |
0% |
0% |
Core Sales Growth |
7% |
(6)% |
4% |
2% |
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
Aptar Pharma’s reported sales increased 8% from the prior year quarter and core sales were up 7%. The segment’s strong performance was driven by continued demand for proprietary drug delivery systems, which grew double digits in the quarter after growing double digits in the prior year period. Growth in the third quarter was driven by allergy, emergency medicine and central nervous system therapeutics, as well as growing royalty revenues, boosting margins to 36%, which is at the top end of the long-term range. The Active Material Science division also grew double digits, with demand increasing across a number of end markets.
Aptar Beauty’s reported sales decreased 7%, and including currency effects core sales were down 6% compared to the prior year quarter. Approximately 4% of the decline in core sales can be attributed to lower tooling sales, with less favorable product mix contributing the remaining 2% of the decline. While revenue increased from the personal care and home care markets, this increase could not offset the challenging comparisons from prestige fragrance sales in the prior year period. Sales in
Aptar Closures’ reported sales increased 3% from the prior year quarter and the segment’s core sales increased 4%. The increase in core sales was driven mainly by demand for closures in the food end market. Closures delivered a solid quarter and was within its long-term target ranges for both core sales and adjusted EBITDA margins. The segment’s margins increased by nearly 200 basis points over the prior year quarter, due to increased plant utilization and ongoing cost containment efforts.
Aptar reported third quarter earnings per share of
Year-To-Date Results
For the nine months ended
Nine Months Year-To-Date Segment Sales Analysis (Change Over Prior Year) |
||||
|
Aptar Pharma |
Aptar Beauty |
Aptar Closures |
Total
|
Total Reported Sales Growth |
9% |
(3)% |
1% |
3% |
Currency Effects (1) |
0% |
0% |
1% |
0% |
Acquisitions |
0% |
0% |
0% |
0% |
Core Sales Growth |
9% |
(3)% |
2% |
3% |
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates. |
For the nine months ended
Outlook
Regarding Aptar’s outlook, Tanda stated, “Looking to the fourth quarter, we anticipate a solid finish to a strong year. The top line is expected to grow in the fourth quarter, even with some customers having indicated seasonal inventory right-sizing in the beauty and cough & cold end markets. Our pharma business should finish full year 2024 within its core sales long-term target range of 7-11%, driven by demand for allergy medication, emergency medicine and central nervous system therapies. The segment will deliver solid, double-digit adjusted EBITDA growth in 2024 due in part to sales of higher value products and royalties. Our Closures segment has returned to growth and we expect a strong finish to 2024, with healthy adjusted EBITDA margin improvements over the prior year. Beauty is battling a tough macro environment but continues to focus on the bottom line. Innovation, cost mitigation, improved operational leverage and accelerating efficiencies remain key priorities for our teams.”
Aptar currently expects earnings per share for the fourth quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of
Share Repurchase Authorization and Cash Dividend
As previously reported, Aptar’s Board of Directors authorized the repurchase of
Open Conference Call
There will be a conference call held on
About Aptar
Aptar is a global leader in drug and consumer product dosing, dispensing and protection technologies. Aptar serves a number of attractive end markets including pharmaceutical, beauty, food, beverage, personal care and home care. Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in
Presentation of Non-GAAP Information
This press release refers to certain non-GAAP financial measures, including current year adjusted earnings per share and adjusted EBITDA, which exclude the impact of restructuring initiatives, acquisition-related costs, certain purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA margin is adjusted EBITDA divided by reported net sales. 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
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
909,291 |
|
|
$ |
892,997 |
|
|
$ |
2,734,802 |
|
|
$ |
2,648,970 |
|
Cost of Sales (exclusive of depreciation and amortization shown below) |
|
558,511 |
|
|
|
566,691 |
|
|
|
1,708,707 |
|
|
|
1,697,824 |
|
Selling, Research & Development and Administrative |
|
141,604 |
|
|
|
138,137 |
|
|
|
443,714 |
|
|
|
427,488 |
|
Depreciation and Amortization |
|
67,015 |
|
|
|
62,686 |
|
|
|
196,332 |
|
|
|
184,212 |
|
Restructuring Initiatives |
|
3,864 |
|
|
|
6,161 |
|
|
|
9,659 |
|
|
|
19,628 |
|
Operating Income |
|
138,297 |
|
|
|
119,322 |
|
|
|
376,390 |
|
|
|
319,818 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
(12,290 |
) |
|
|
(9,984 |
) |
|
|
(32,526 |
) |
|
|
(29,900 |
) |
Interest Income |
|
3,022 |
|
|
|
946 |
|
|
|
9,022 |
|
|
|
2,266 |
|
Net Investment Gain (Loss) |
|
1,043 |
|
|
|
(1,240 |
) |
|
|
1,495 |
|
|
|
1,839 |
|
Equity in Results of Affiliates |
|
(77 |
) |
|
|
1,002 |
|
|
|
(168 |
) |
|
|
1,514 |
|
Miscellaneous Income (Expense), net |
|
1,136 |
|
|
|
3 |
|
|
|
(518 |
) |
|
|
(1,341 |
) |
Income before Income Taxes |
|
131,131 |
|
|
|
110,049 |
|
|
|
353,695 |
|
|
|
294,196 |
|
Provision for Income Taxes |
|
31,209 |
|
|
|
25,751 |
|
|
|
80,382 |
|
|
|
72,265 |
|
Net Income |
$ |
99,922 |
|
|
$ |
84,298 |
|
|
$ |
273,313 |
|
|
$ |
221,931 |
|
Net Loss (Gain) Attributable to Noncontrolling Interests |
|
117 |
|
|
|
(2 |
) |
|
|
284 |
|
|
|
201 |
|
Net Income Attributable to |
$ |
100,039 |
|
|
$ |
84,296 |
|
|
$ |
273,597 |
|
|
$ |
222,132 |
|
Net Income Attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.51 |
|
|
$ |
1.28 |
|
|
$ |
4.13 |
|
|
$ |
3.39 |
|
Diluted |
$ |
1.48 |
|
|
$ |
1.26 |
|
|
$ |
4.05 |
|
|
$ |
3.32 |
|
|
|
|
|
|
|
|
|
||||||||
Average Numbers of Shares Outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
66,445 |
|
|
|
65,707 |
|
|
|
66,274 |
|
|
|
65,550 |
|
Diluted |
|
67,716 |
|
|
|
67,035 |
|
|
|
67,574 |
|
|
|
66,865 |
|
|
|||||||
|
024 |
|
2023 |
||||
ASSETS |
|
|
|
||||
|
|
|
|
||||
Cash and Equivalents |
$ |
325,524 |
|
$ |
223,643 |
||
Short-term Investments |
|
2,387 |
|
|
— |
||
Accounts and Notes Receivable, Net |
|
698,989 |
|
|
677,822 |
||
Inventories |
|
488,540 |
|
|
513,053 |
||
Prepaid and Other |
|
150,164 |
|
|
134,761 |
||
Total Current Assets |
|
1,665,604 |
|
|
1,549,279 |
||
Property, Plant and Equipment, Net |
|
1,505,209 |
|
|
1,478,063 |
||
|
|
968,293 |
|
|
963,418 |
||
Other Assets |
|
486,109 |
|
|
461,130 |
||
Total Assets |
$ |
4,625,215 |
|
$ |
4,451,890 |
||
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
Short-Term Obligations |
$ |
253,112 |
|
$ |
458,220 |
||
Accounts Payable, Accrued and Other Liabilities |
|
773,540 |
|
|
793,089 |
||
Total Current Liabilities |
|
1,026,652 |
|
|
1,251,309 |
||
Long-Term Obligations |
|
822,731 |
|
|
681,188 |
||
Deferred Liabilities and Other |
|
222,191 |
|
|
198,095 |
||
Total Liabilities |
|
2,071,574 |
|
|
2,130,592 |
||
|
|
|
|
||||
|
|
2,539,009 |
|
|
2,306,824 |
||
Noncontrolling Interests in Subsidiaries |
|
14,632 |
|
|
14,474 |
||
Total Stockholders' Equity |
|
2,553,641 |
|
|
2,321,298 |
||
|
|
|
|
||||
Total Liabilities and Stockholders' Equity |
$ |
4,625,215 |
|
$ |
4,451,890 |
|
||||||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate & Other |
|
Net Interest |
||||||||||||
|
$ |
909,291 |
|
|
|
$ |
420,594 |
|
|
$ |
302,859 |
|
|
$ |
185,838 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
99,922 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
31,209 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
131,131 |
|
|
|
|
120,243 |
|
|
|
17,839 |
|
|
|
18,042 |
|
|
|
(15,725 |
) |
|
|
(9,268 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
3,864 |
|
|
|
|
564 |
|
|
|
1,962 |
|
|
|
877 |
|
|
|
461 |
|
|
|
||
Curtailment gain related to restructuring initiatives |
|
(1,851 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
(1,851 |
) |
|
|
— |
|
|
|
||
Net investment gain |
|
(1,043 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,043 |
) |
|
|
||
Adjusted earnings before income taxes |
|
132,101 |
|
|
|
|
120,807 |
|
|
|
19,801 |
|
|
|
17,068 |
|
|
|
(16,307 |
) |
|
|
(9,268 |
) |
Interest expense |
|
12,290 |
|
|
|
|
|
|
|
|
|
|
|
|
12,290 |
|
||||||||
Interest income |
|
(3,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
(3,022 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
141,369 |
|
|
|
|
120,807 |
|
|
|
19,801 |
|
|
|
17,068 |
|
|
|
(16,307 |
) |
|
|
— |
|
Depreciation and amortization |
|
67,015 |
|
|
|
|
30,787 |
|
|
|
20,420 |
|
|
|
14,912 |
|
|
|
896 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
208,384 |
|
|
|
$ |
151,594 |
|
|
$ |
40,221 |
|
|
$ |
31,980 |
|
|
$ |
(15,411 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
22.9 |
% |
|
|
|
36.0 |
% |
|
|
13.3 |
% |
|
|
17.2 |
% |
|
|
|
|
|
Three Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate & Other |
|
Net Interest |
||||||||||||
|
$ |
892,997 |
|
|
|
$ |
389,188 |
|
|
$ |
323,980 |
|
|
$ |
179,829 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
84,298 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
25,751 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
110,049 |
|
|
|
|
108,113 |
|
|
|
17,415 |
|
|
|
11,647 |
|
|
|
(18,088 |
) |
|
|
(9,038 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
6,161 |
|
|
|
|
92 |
|
|
|
2,880 |
|
|
|
3,098 |
|
|
|
91 |
|
|
|
||
Net investment loss |
|
1,240 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,240 |
|
|
|
||
Realized gain on investments included in net investment loss above |
|
4,188 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,188 |
|
|
|
||
Adjusted earnings before income taxes |
|
121,638 |
|
|
|
|
108,205 |
|
|
|
20,295 |
|
|
|
14,745 |
|
|
|
(12,569 |
) |
|
|
(9,038 |
) |
Interest expense |
|
9,984 |
|
|
|
|
|
|
|
|
|
|
|
|
9,984 |
|
||||||||
Interest income |
|
(946 |
) |
|
|
|
|
|
|
|
|
|
|
|
(946 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
130,676 |
|
|
|
|
108,205 |
|
|
|
20,295 |
|
|
|
14,745 |
|
|
|
(12,569 |
) |
|
|
— |
|
Depreciation and amortization |
|
62,686 |
|
|
|
|
28,139 |
|
|
|
20,775 |
|
|
|
12,862 |
|
|
|
910 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
193,362 |
|
|
|
$ |
136,344 |
|
|
$ |
41,070 |
|
|
$ |
27,607 |
|
|
$ |
(11,659 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
21.7 |
% |
|
|
|
35.0 |
% |
|
|
12.7 |
% |
|
|
15.4 |
% |
|
|
|
|
|
||||||||||||||||||||||||
|
Nine Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate & Other |
|
Net Interest |
||||||||||||
|
$ |
2,734,802 |
|
|
|
$ |
1,242,420 |
|
|
$ |
951,666 |
|
|
$ |
540,716 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
273,313 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
80,382 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
353,695 |
|
|
|
|
335,409 |
|
|
|
57,808 |
|
|
|
42,883 |
|
|
|
(58,901 |
) |
|
|
(23,504 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
9,659 |
|
|
|
|
653 |
|
|
|
5,871 |
|
|
|
2,530 |
|
|
|
605 |
|
|
|
||
Curtailment gain related to restructuring initiatives |
|
(1,851 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
(1,851 |
) |
|
|
— |
|
|
|
||
Net investment gain |
|
(1,495 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,495 |
) |
|
|
||
Transaction costs related to acquisitions |
|
140 |
|
|
|
|
— |
|
|
|
140 |
|
|
|
— |
|
|
|
— |
|
|
|
||
Adjusted earnings before income taxes |
|
360,148 |
|
|
|
|
336,062 |
|
|
|
63,819 |
|
|
|
43,562 |
|
|
|
(59,791 |
) |
|
|
(23,504 |
) |
Interest expense |
|
32,526 |
|
|
|
|
|
|
|
|
|
|
|
|
32,526 |
|
||||||||
Interest income |
|
(9,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
(9,022 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
383,652 |
|
|
|
|
336,062 |
|
|
|
63,819 |
|
|
|
43,562 |
|
|
|
(59,791 |
) |
|
|
— |
|
Depreciation and amortization |
|
196,332 |
|
|
|
|
89,198 |
|
|
|
62,174 |
|
|
|
42,697 |
|
|
|
2,263 |
|
|
|
||
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
579,984 |
|
|
|
$ |
425,260 |
|
|
$ |
125,993 |
|
|
$ |
86,259 |
|
|
$ |
(57,528 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
21.2 |
% |
|
|
|
34.2 |
% |
|
|
13.2 |
% |
|
|
16.0 |
% |
|
|
|
|
|
Nine Months Ended
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
Consolidated |
|
|
Aptar Pharma |
|
Aptar Beauty |
|
Aptar Closures |
|
Corporate & Other |
|
Net Interest |
||||||||||||
|
$ |
2,648,970 |
|
|
|
$ |
1,135,934 |
|
|
$ |
979,956 |
|
|
$ |
533,080 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income |
$ |
221,931 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income taxes |
|
72,265 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported income before income taxes |
|
294,196 |
|
|
|
|
288,603 |
|
|
|
46,643 |
|
|
|
39,174 |
|
|
|
(52,590 |
) |
|
|
(27,634 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring initiatives |
|
19,628 |
|
|
|
|
1,657 |
|
|
|
12,650 |
|
|
|
4,060 |
|
|
|
1,261 |
|
|
|
||
Net investment gain |
|
(1,839 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,839 |
) |
|
|
||
Realized gain on investments included in net investment gain above |
|
4,188 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,188 |
|
|
|
||
Transaction costs related to acquisitions |
|
255 |
|
|
|
|
— |
|
|
|
199 |
|
|
|
56 |
|
|
|
— |
|
|
|
||
Adjusted earnings before income taxes |
|
316,428 |
|
|
|
|
290,260 |
|
|
|
59,492 |
|
|
|
43,290 |
|
|
|
(48,980 |
) |
|
|
(27,634 |
) |
Interest expense |
|
29,900 |
|
|
|
|
|
|
|
|
|
|
|
|
29,900 |
|
||||||||
Interest income |
|
(2,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
(2,266 |
) |
||||||||
Adjusted earnings before net interest and taxes (Adjusted EBIT) |
|
344,062 |
|
|
|
|
290,260 |
|
|
|
59,492 |
|
|
|
43,290 |
|
|
|
(48,980 |
) |
|
|
— |
|
Depreciation and amortization |
|
184,212 |
|
|
|
|
81,248 |
|
|
|
61,883 |
|
|
|
38,097 |
|
|
|
2,984 |
|
|
|
— |
|
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) |
$ |
528,274 |
|
|
|
$ |
371,508 |
|
|
$ |
121,375 |
|
|
$ |
81,387 |
|
|
$ |
(45,996 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reported net income margins (Reported net income / Reported |
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margins (Adjusted EBITDA / Reported |
|
19.9 |
% |
|
|
|
32.7 |
% |
|
|
12.4 |
% |
|
|
15.3 |
% |
|
|
|
|
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Income before Income Taxes |
$ |
131,131 |
|
|
$ |
110,049 |
|
|
$ |
353,695 |
|
|
$ |
294,196 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring initiatives |
|
3,864 |
|
|
|
6,161 |
|
|
|
9,659 |
|
|
|
19,628 |
|
Curtailment gain related to restructuring initiatives |
|
(1,851 |
) |
|
|
— |
|
|
|
(1,851 |
) |
|
|
— |
|
Net investment (gain) loss |
|
(1,043 |
) |
|
|
1,240 |
|
|
|
(1,495 |
) |
|
|
(1,839 |
) |
Realized gain on investments included in net investment (gain) loss above |
|
— |
|
|
|
4,188 |
|
|
|
— |
|
|
|
4,188 |
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
140 |
|
|
|
255 |
|
Foreign currency effects (1) |
|
|
|
1,261 |
|
|
|
|
|
1,491 |
|
||||
Adjusted Earnings before Income Taxes |
$ |
132,101 |
|
|
$ |
122,899 |
|
|
$ |
360,148 |
|
|
$ |
317,919 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for Income Taxes |
$ |
31,209 |
|
|
$ |
25,751 |
|
|
$ |
80,382 |
|
|
$ |
72,265 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring initiatives |
|
1,013 |
|
|
|
1,611 |
|
|
|
2,471 |
|
|
|
5,170 |
|
Curtailment gain related to restructuring initiatives |
|
(478 |
) |
|
|
— |
|
|
|
(478 |
) |
|
|
— |
|
Net investment (gain) loss |
|
(255 |
) |
|
|
304 |
|
|
|
(366 |
) |
|
|
(450 |
) |
Realized gain on investments included in net investment (gain) loss above |
|
— |
|
|
|
1,026 |
|
|
|
— |
|
|
|
1,026 |
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
65 |
|
Foreign currency effects (1) |
|
|
|
295 |
|
|
|
|
|
366 |
|
||||
Adjusted Provision for Income Taxes |
$ |
31,489 |
|
|
$ |
28,987 |
|
|
$ |
82,044 |
|
|
$ |
78,442 |
|
|
|
|
|
|
|
|
|
||||||||
Net Loss (Income) Attributable to Noncontrolling Interests |
$ |
117 |
|
|
$ |
(2 |
) |
|
$ |
284 |
|
|
$ |
201 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to |
$ |
100,039 |
|
|
$ |
84,296 |
|
|
$ |
273,597 |
|
|
$ |
222,132 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring initiatives |
|
2,851 |
|
|
|
4,550 |
|
|
|
7,188 |
|
|
|
14,458 |
|
Curtailment gain related to restructuring initiatives |
|
(1,373 |
) |
|
|
— |
|
|
|
(1,373 |
) |
|
|
— |
|
Net investment (gain) loss |
|
(788 |
) |
|
|
936 |
|
|
|
(1,129 |
) |
|
|
(1,389 |
) |
Realized gain on investments included in net investment (gain) loss above |
|
— |
|
|
|
3,162 |
|
|
|
— |
|
|
|
3,162 |
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
105 |
|
|
|
190 |
|
Foreign currency effects (1) |
|
|
|
966 |
|
|
|
|
|
1,125 |
|
||||
Adjusted Net Income Attributable to |
$ |
100,729 |
|
|
$ |
93,910 |
|
|
$ |
278,388 |
|
|
$ |
239,678 |
|
|
|
|
|
|
|
|
|
||||||||
Average Number of Diluted Shares Outstanding |
|
67,716 |
|
|
|
67,035 |
|
|
|
67,574 |
|
|
|
66,865 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to |
$ |
1.48 |
|
|
$ |
1.26 |
|
|
$ |
4.05 |
|
|
$ |
3.32 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring initiatives |
|
0.04 |
|
|
|
0.07 |
|
|
|
0.11 |
|
|
|
0.22 |
|
Curtailment gain related to restructuring initiatives |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Net investment (gain) loss |
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Realized gain on investments included in net investment (gain) loss above |
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
Transaction costs related to acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency effects (1) |
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
||||
Adjusted Net Income Attributable to |
$ |
1.49 |
|
|
$ |
1.40 |
|
|
$ |
4.12 |
|
|
$ |
3.58 |
|
(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. |
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net Cash Provided by Operations |
$ |
229,262 |
|
|
$ |
173,401 |
|
|
$ |
465,174 |
|
|
$ |
355,602 |
|
Capital Expenditures |
|
(66,550 |
) |
|
|
(76,187 |
) |
|
|
(210,416 |
) |
|
|
(231,199 |
) |
Free Cash Flow |
$ |
162,712 |
|
|
$ |
97,214 |
|
|
$ |
254,758 |
|
|
$ |
124,403 |
|
|
|||||
|
Three Months Ending
|
||||
|
Expected 2024 |
|
2023 |
||
|
|
|
|
||
Income before Income Taxes |
|
|
$ |
80,629 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
25,376 |
|
Net investment loss |
|
|
|
426 |
|
Transaction costs related to acquisitions |
|
|
|
225 |
|
Foreign currency effects (1) |
|
|
|
2,206 |
|
Adjusted Earnings before Income Taxes |
|
|
$ |
108,862 |
|
|
|
|
|
||
Provision for Income Taxes |
|
|
$ |
18,384 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
6,769 |
|
Net investment loss |
|
|
|
104 |
|
Transaction costs related to acquisitions |
|
|
|
56 |
|
Foreign currency effects (1) |
|
|
|
503 |
|
Adjusted Provision for Income Taxes |
|
|
$ |
25,816 |
|
|
|
|
|
||
Net Loss Attributable to Noncontrolling Interests |
|
|
$ |
110 |
|
|
|
|
|
||
Net Income Attributable to |
|
|
$ |
62,355 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
18,607 |
|
Net investment loss |
|
|
|
322 |
|
Transaction costs related to acquisitions |
|
|
|
169 |
|
Foreign currency effects (1) |
|
|
|
1,703 |
|
Adjusted Net Income Attributable to |
|
|
$ |
83,156 |
|
|
|
|
|
||
Average Number of Diluted Shares Outstanding |
|
|
|
67,131 |
|
|
|
|
|
||
Net Income Attributable to |
|
|
$ |
0.93 |
|
|
|
|
|
||
Adjustments: |
|
|
|
||
Restructuring initiatives |
|
|
|
0.28 |
|
Net investment loss |
|
|
|
— |
|
Transaction costs related to acquisitions |
|
|
|
— |
|
Foreign currency effects (1) |
|
|
|
0.03 |
|
Adjusted Net Income Attributable to |
|
|
$ |
1.24 |
|
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using spot rates as of |
|||||
(2) AptarGroup’s expected earnings per share range for the fourth 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 20% to 22%. This tax rate range compares to our fourth 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/20241024363414/en/
Investor Relations Contact:
mary.skafidas@aptar.com
815-479-5530
Media Contact:
katie.reardon@aptar.com
815-479-5671
Source: