-
Reconciliation of Non-GAAP Financial Measures
This presentation includes certain non-GAAP financial measures.
The calculation of these measures, and a reconciliation to
previously reported comparable measures calculated in accordance
with U.S. generally accepted accounting principles (GAAP) is shown
below. The Company believes that this information, when used in
conjunction with information presented in accordance with U.S.
GAAP, can facilitate a better understanding of the impact of
various factors and trends on the Company’s financial condition and
results of operations. The Company believes that this information
should be used in conjunction with the Company’s SEC filings.
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Reconciliation of Non-GAAP Measures
2
AptarGroup, Inc.Reconciliation of Adjusted EBIT and Adjusted
EBITDA to Net Income (Unaudited)
($ In Thousands)
Three Months EndedSeptember 30, 2019
Consolidated Beauty + Home PharmaFood +
BeverageCorporate &
Other Net InterestNet Sales $ 701,278 328,182 269,251 103,845 -
-
Reported net income $ 56,769 Reported income taxes 25,504
Reported income before income taxes 82,273 15,413 78,418 9,323
(12,940) (7,941)Adjustments:
Restructuring initiatives 6,019 5,341 168 204 306 Transaction
costs related to acquisitions 708 34 520 154 Purchase accounting
adjustments related to acquired companies' inventory and backlog
647 647
Adjusted earnings before income taxes 89,647 20,788 79,753 9,681
(12,634) (7,941)Interest expense 8,898 8,898 Interest income (957)
(957)Adjusted earnings before net interest and taxes (Adjusted
EBIT) 97,588 20,788 79,753 9,681 (12,634) -Depreciation and
amortization 49,218 20,687 16,793 9,047 2,691 -Adjusted earnings
before net interest, taxes, depreciation and amortization (Adjusted
EBITDA) $ 146,806 $ 41,475 $ 96,546 $ 18,728 $ (9,943) $ -
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
20.9% 12.6% 35.9% 18.0%
Three Months EndedSeptember 30, 2018
Consolidated Beauty + Home PharmaFood +
BeverageCorporate &
Other Net InterestNet Sales $ 665,775 341,760 227,515 96,500 -
-
Reported net income $ 39,022 Reported income taxes 11,920
Reported income before income taxes 50,942 3,471 67,016 5,481
(17,828) (7,198)Adjustments:
Restructuring initiatives 23,852 18,854 2,008 2,638 352
Transaction costs related to acquisitions 7,082 7,082 Purchase
accounting adjustments related to acquired companies' inventory
3,287 2,761 526
Adjusted earnings before income taxes 85,163 22,325 71,785 8,645
(10,394) (7,198)Interest expense 8,735 8,735 Interest income
(1,537) (1,537)Adjusted earnings before net interest and taxes
(Adjusted EBIT) 92,361 22,325 71,785 8,645 (10,394) -Depreciation
and amortization 41,857 19,849 12,731 6,837 2,440 -Adjusted
earnings before net interest, taxes, depreciation and amortization
(Adjusted EBITDA) $ 134,218 $ 42,174 $ 84,516 $ 15,482 $ (7,954) $
-
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
20.2% 12.3% 37.1% 16.0%
-
Reconciliation of Non-GAAP MeasuresAptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)($ In Thousands)
Nine Months EndedSeptember 30, 2019
ConsolidatedBeauty +
Home PharmaFood +
BeverageCorporate &
Other Net InterestNet Sales $ 2,188,399 1,037,921 823,891
326,587 - -
Reported net income $ 193,689 Reported income taxes 80,684
Reported income before income taxes 274,373 66,407 244,101 29,234
(42,239) (23,130)Adjustments:
Restructuring initiatives 17,286 14,869 381 826 1,210
Transaction costs related to acquisitions 1,767 34 1,579 154
Purchase accounting adjustments related to acquired companies'
inventory and backlog 869 869 Adjusted earnings before income taxes
294,295 81,310 246,930 30,214 (41,029) (23,130)Interest expense
26,868 26,868 Interest income (3,738) (3,738)Adjusted earnings
before net interest and taxes (Adjusted EBIT) 317,425 81,310
246,930 30,214 (41,029) -Depreciation and amortization 144,574
62,101 48,623 26,149 7,701 -Adjusted earnings before net interest,
taxes, depreciation and amortization (Adjusted EBITDA) $ 461,999 $
143,411 $ 295,553 $ 56,363 $ (33,328) $ -
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
21.1% 13.8% 35.9% 17.3%
Nine Months EndedSeptember 30, 2018
ConsolidatedBeauty +
Home PharmaFood +
BeverageCorporate &
Other Net InterestNet Sales $ 2,079,733 1,088,469 698,851
292,413 - -
Reported net income $ 154,091 Reported income taxes 52,966
Reported income before income taxes 207,057 40,688 208,915 21,736
(45,834) (18,448)Adjustments:
Restructuring initiatives 48,002 38,501 3,596 4,307 1,598
Transaction costs related to acquisitions 9,526 574 8,952 Purchase
accounting adjustments related to acquired companies' inventory
3,406 119 2,761 526
Adjusted earnings before income taxes 267,991 79,882 215,272
26,569 (35,284) (18,448)Interest expense 24,754 24,754 Interest
income (6,306) (6,306)Adjusted earnings before net interest and
taxes (Adjusted EBIT) 286,439 79,882 215,272 26,569 (35,284)
-Depreciation and amortization 123,133 61,273 35,437 19,715 6,708
-Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA) $ 409,572 $ 141,155 $ 250,709 $
46,284 $ (28,576) $ -
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
19.7% 13.0% 35.9% 15.8%
3
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Reconciliation of Non-GAAP Measures
4
AptarGroup, Inc.Reconciliation of Adjusted Earnings Per Diluted
Share (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended Nine Months EndedSeptember 30, September
30,
2019 2018 2019 2018
Income before Income Taxes $ 82,273 $ 50,942 $ 274,373 $
207,057
Adjustments:Restructuring initiatives 6,019 23,852 17,286 48,002
Transaction costs related to acquisitions 708 7,082 1,767 9,526
Purchase accounting adjustments related to acquired companies'
inventory 647 3,287 869 3,406 Foreign currency effects (1) (2,420)
(12,010)
Adjusted Income before Income Taxes $ 89,647 $ 82,743 $ 294,295
$ 255,981
Provision for Income Taxes $ 25,504 $ 11,920 $ 80,684 $
52,966
Adjustments:Restructuring initiatives 1,691 6,802 4,857 13,730
Transaction costs related to acquisitions 101 847 154 1,475
Purchase accounting adjustments related to acquired companies'
inventory 123 843 165 884 Foreign currency effects (1) (815)
(3,410)
Adjusted Provision for Income Taxes $ 27,419 $ 19,597 $ 85,860 $
65,645
Net Income Attributable to Noncontrolling Interests $ (19) $
(26) $ (20) $ (20)
Net Income Attributable to AptarGroup, Inc. $ 56,750 $ 38,996 $
193,669 $ 154,071
Adjustments:Restructuring initiatives 4,328 17,050 12,429 34,272
Transaction costs related to acquisitions 607 6,235 1,613 8,051
Purchase accounting adjustments related to acquired companies'
inventory 524 2,444 704 2,522 Foreign currency effects (1) (1,605)
(8,600)
Adjusted Net Income Attributable to AptarGroup, Inc. $ 62,209 $
63,120 $ 208,415 $ 190,316
Average Number of Diluted Shares Outstanding 66,702 65,129
66,163 64,822
Net Income Attributable to AptarGroup, Inc. Per Diluted Share $
0.85 $ 0.60 $ 2.93 $ 2.38
Adjustments:Restructuring initiatives 0.06 0.26 0.19 0.53
Transaction costs related to acquisitions 0.01 0.09 0.02 0.12
Purchase accounting adjustments related to acquired companies'
inventory 0.01 0.04 0.01 0.04 Foreign currency effects (1) (0.02)
(0.13)
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted
Share $ 0.93 $ 0.97 $ 3.15 $ 2.94
(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.
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Reconciliation of Non-GAAP MeasuresReconciliation of Adjusted
EBIT and Adjusted EBITDA to Net Income (Unaudited)
(In Thousands)2016 2017 2018
Reported Net Sales 2,330,934 2,469,283 2,764,761
Reported Net Income 205,604 220,029 194,766 Reported Income
Taxes 74,893 74,796 71,254 Reported Income before Income Taxes
280,497 294,825 266,020 Adjustments:Transaction costs related to
acquisitions 5,640 - 9,598 Purchase accounting adjustments related
to acquired companies' inventory 2,577 - 14,172 Gain on insurance
recovery - (10,648) -Restructuring initiatives - 2,208 63,829
Adjusted earnings before income taxes 288,714 286,385 353,619
Interest Expense 35,237 40,597 32,626 Interest Income (2,643)
(5,470) (7,056)Adjusted earnings before net interest and taxes
(Adjusted EBIT) 321,308 321,512 379,189 Depreciation and
Amortization 154,802 153,094 171,747 Adjusted earnings before net
interest, taxes, depreciation, amortization, and unusual items.
(Adjusted EBITDA) 476,110 474,606 550,936
Adjusted EBITDA / Sales % 20% 19% 20%
5
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Reconciliation of Non-GAAP Measures
AptarGroup, Inc.Reconciliation of Adjusted EBIT and Adjusted
EBITDA to Net Income (Unaudited)
($ In Thousands)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2018
Net Sales $ 1,601,385 $ 1,892,167 $ 2,071,685 $ 1,841,616 $
2,076,719 $ 2,337,183 $ 2,331,036 $ 2,520,013 $ 2,597,809 $
2,317,149 $ 2,330,934 $ 2,469,283 $ 2,764,761
Reported net income $ 102,896 $ 139,507 $ 153,501 $ 124,597 $
173,589 $ 183,630 $ 162,420 $ 171,926 $ 191,624 $ 199,295 $ 205,604
$ 220,029 $ 194,766 Reported income taxes 45,410 60,488 73,225
59,461 80,796 91,312 78,953 92,457 94,677 95,276 74,893 74,796
71,254 Reported income before income taxes 148,306 199,995 226,726
184,058 254,385 274,942 241,373 264,383 286,301 294,571 280,497
294,825 266,020 Adjustments:
Restructuring initiatives 2,232 7,563 93 (71) 4,678 14,525 2,208
63,829 Transaction costs related to acquisitions 5,381 1,892 5,640
9,598 Purchase accounting adjustments related to acquired
companies' inventory 4,305 2,577 14,172 Gain on insurance recovery
(2,900) (10,648)Change in inventory valuation method (7,427)
Adjusted earnings before income taxes 148,306 202,227 226,726
191,621 254,478 274,871 255,737 278,908 286,301 286,136 288,714
286,385 353,619 Interest expense 16,985 19,492 18,687 16,485 14,371
17,300 18,950 20,514 21,029 34,615 35,237 40,597 32,626 Interest
income (4,214) (8,918) (13,120) (3,333) (3,248) (5,722) (2,996)
(3,233) (4,797) (5,596) (2,643) (5,470) (7,056)Adjusted earnings
before net interest and taxes (Adjusted EBIT) 161,077 212,801
232,293 204,773 265,601 286,449 271,691 296,189 302,533 315,155
321,308 321,512 379,189 Depreciation and amortization 114,606
123,466 131,145 133,013 132,959 134,243 147,231 135,446 152,218
138,893 154,802 153,094 171,747
Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA) $ 275,683 $ 336,267 $ 363,438 $
337,786 $ 398,560 $ 420,692 $ 418,922 $ 431,635 $ 454,751 $ 454,048
$ 476,110 $ 474,606 $ 550,936
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
17.2% 17.8% 17.5% 18.3% 19.2% 18.0% 18.0% 17.1% 17.5% 19.6% 20.4%
19.2% 19.9%
6
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Reconciliation of Non-GAAP MeasuresAptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share
(Unaudited)(In Thousands, Except Per Share Data)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Income before Income Taxes $ 226,726 $ 184,058 $ 254,385 $
274,942 $ 241,373 $ 264,383 $ 286,301 $ 294,571 $ 280,497 $ 294,825
$ 266,020
Adjustments:
Restructuring initiatives 7,563 93 (71) 4,678 14,525 2,208
63,829
Transaction costs related to acquisitions 5,381 1,892 5,640
9,598
Purchase accounting adjustments related to acquired companies'
inventory 4,305 2,577 14,172
Gain on insurance recovery (2,900) (10,648)
Change in inventory valuation method (7,427)
Adjusted Income before Income Taxes $ 226,726 $ 191,621 $
254,478 $ 274,871 $ 255,737 $ 278,908 $ 286,301 $ 286,136 $ 288,714
$ 286,385 $ 353,619
Provision for Income Taxes $ 73,225 $ 59,461 $ 80,796 $ 91,312 $
78,953 $ 92,457 $ 94,677 $ 95,276 $ 74,893 $ 74,796 $ 71,254
Adjustments:
Net effect of items included in the Provision for Income Taxes
(6,821) 3,295 (7,900)
Restructuring initiatives 2,443 28 (26) 1,258 2,930 642
17,936
Transaction costs related to acquisitions 1,961 640 1,483
1,475
Purchase accounting adjustments related to acquired companies'
inventory 1,569 859 3,219
Gain on insurance recovery (1,022) (3,666)
Change in inventory valuation method (2,420)
Adjusted Provision for Income Taxes $ 73,225 $ 61,904 $ 80,824 $
91,286 $ 83,741 $ 88,566 $ 94,677 $ 92,474 $ 80,530 $ 63,872 $
93,884
Net Income Attributable to Noncontrolling Interests $ (6) $ 26 $
(108) $ 53 $ 192 $ 68 $ 34 $ 53 $ (14) $ 1 $ (21)
Net Income Attributable to AptarGroup, Inc. $ 153,495 $ 124,623
$ 173,481 $ 183,683 $ 162,612 $ 171,994 $ 191,658 $ 199,348 $
205,590 $ 220,030 $ 194,745
Adjustments:
Net effect of items included in the Provision for Income Taxes
6,821 (8,268) 7,900
Restructuring initiatives 5,120 65 (45) 3,420 11,595 1,566
45,893
Transaction costs related to acquisitions 3,420 1,252 4,157
8,123
Purchase accounting adjustments related to acquired companies'
inventory 2,736 1,718 10,953
Gain on insurance recovery (1,878) (6,982)
Change in inventory valuation method (5,007)
Adjusted Net Income Attributable to AptarGroup, Inc. $ 153,495 $
129,743 $ 173,546 $ 183,638 $ 172,187 $ 190,410 $ 191,658 $ 193,715
$ 203,197 $ 222,514 $ 259,714
Average Number of Diluted Shares Outstanding 70,518 69,785
69,815 69,274 68,395 68,208 65,009 62,585 64,849 64,596 64,958
Net Income Attributable to AptarGroup, Inc. Per Diluted Share $
2.18 $ 1.79 $ 2.48 $ 2.65 $ 2.38 $ 2.52 $ 2.85 $ 3.09 $ 3.17 $ 3.41
$ 3.00
Adjustments:
Net effect of items included in the Provision for Income Taxes
0.10 (0.13) 0.12 -
Restructuring initiatives 0.07 0.05 0.17 0.02 0.71
Transaction costs related to acquisitions 0.05 0.02 0.06
0.12
Purchase accounting adjustments related to acquired companies'
inventory 0.04 0.03 0.17
Gain on insurance recovery (0.03) (0.11)
Change in inventory valuation method (0.08)Foreign currency
effects (1)
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted
Share $ 2.18 $ 1.86 $ 2.48 $ 2.65 $ 2.52 $ 2.79 $ 2.85 $ 3.00 $
3.13 $ 3.44 $ 4.00
7
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Reconciliation of Non-GAAP Measures
2014 2015 2016 2017 2018
Reported Net Income 191,624 199,295 205,604 220,029 194,766
Reported Income Taxes 94,677 95,276 74,893 74,796 71,254 Reported
Income before Income Taxes 286,301 294,571 280,497 294,825 266,020
Adjustments:Change in inventory valuation methods (from LIFO to
FIFO) - (7,427) - - - Transaction costs related to acquisitions -
1,892 5,640 - 9,598 Purchase accounting adjustments related to
acquired companies' inventory - - 2,577 - 14,172 Gain on insurance
recovery - (2,900) - (10,648) - Restructuring initiatives - - -
2,208 63,829 Adjusted earnings before income taxes 286,301 286,136
288,714 286,385 353,619 Interest Expense 21,029 34,615 35,237
40,597 32,626 Interest Income (4,797) (5,596) (2,643) (5,470)
(7,056) Adjusted earnings before net interest and taxes (Adjusted
EBIT) 302,533 315,155 321,308 321,512 379,189 Effective income tax
rate (reported income taxes / reported income before taxes) 33.1%
32.3% 26.7% 25.4% 26.8%Taxes on Adjusted EBIT 100,138 101,795
85,789 81,664 101,623 Adjusted EBIT After Taxes 202,395 213,360
235,519 239,848 277,566
Reconciliation of Adjusted EBIT After Taxes to Net Income
(Unaudited)(In Thousands)
8
Adjusted EBIT and EBITDA
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
201320142015201620172018
Reported Net
Sales2,520,0132,597,8092,317,1492,330,9342,469,2832,764,761
Reported Net
Income171,926191,624199,295205,604220,029194,766
Reported Income Taxes92,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0-
0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 02,577- 014,172
Gain on insurance recovery- 0(2,900)- 0(10,648)- 0
Restructuring initiatives11,800- 0- 02,20863,829
Depreciation related to restructuring initiatives2,725- 0- 0
Adjusted earnings before income
taxes278,908286,301286,136288,714286,385353,619
Interest Expense20,51421,02934,61535,23740,59732,626
Interest Income(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)296,189302,533315,155321,308321,512379,189
Depreciation and
Amortization147,231152,218138,893154,802153,094171,747
Adjusted earnings before net interest, taxes, depreciation,
amortization, and unusual items. (Adjusted
EBITDA)443,420454,751454,048476,110474,606550,936
3YR AVG
Adjusted EBITDA / Sales %18%18%20%20%19%20%20%
*Depreciation and amortization as reported on AptarGroup's
Consolidated Statement of Income less depreciation related to
restructuring initiatives shown above of $2,725 in 2013.
Adjusted EBIT After Taxes
Reconciliation of Adjusted EBIT After Taxes to Net Income
(Unaudited)
(In Thousands)
20112012201320142015201620172018
Reported Net
Income183,630162,420171,926191,624199,295205,604220,029194,766
Reported Income
Taxes91,31278,95392,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes274,942241,373264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0- 0-
0- 0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 0- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0- 0- 02,577- 014,172
Costs associated with Stelmi acquisition- 09,684- 0- 0- 0- 0- 0-
0
Gain on insurance recovery- 0- 0- 0- 0(2,900)- 0(10,648)- 0
Restructuring initiatives- 03,10211,800- 0- 0- 02,20863,829
Depreciation related to restructuring initiatives- 01,5762,725-
0- 0- 0- 0- 0
Adjusted earnings before income
taxes274,942255,735278,908286,301286,136288,714286,385353,619
Interest
Expense17,30018,95020,51421,02934,61535,23740,59732,626
Interest
Income(5,722)(2,996)(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)286,520271,689296,189302,533315,155321,308321,512379,189
Effective income tax rate (reported income taxes / reported
income before taxes)33.2%32.7%35.0%33.1%32.3%26.7%25.4%26.8%
Taxes on Adjusted
EBIT95,12588,842103,666100,138101,79585,78981,664101,623
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
Reconciliation of Cap to Stock
Reconciliation of Capital to Stockholders' Equity
(Unaudited)
(In Thousands)
201020112012
HART, Robin: HART, Robin:2012 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data2013
HART, Robin: HART, Robin:2013 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data20142015201620172018
Total AptarGroup Inc Stockholders'
Equity1,278,9231,289,7761,379,8901,479,7571,103,4071,149,4111,173,9501,311,7381,422,556
Long-term
Obligations258,773254,910352,003354,076588,245760,848772,7371,191,1461,125,993
Notes
Payable45,440179,55245,166138,445233,2845,083169,2134,336101,293
Current Maturities of Long-Term
Obligagtions50,1264,11629,4881,32518,68151,8844,60361,83362,678
1,633,2621,728,3541,806,5471,973,6031,943,6171,967,2262,120,5032,569,0532,712,520
Less:
Cash and Equivalents and St
Investments376,427377,616229,755309,861399,762519,717466,287712,640261,823
Total
Capital1,256,8351,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average
Capital1,303,7871,463,7651,620,2671,603,7991,495,6821,550,8631,755,3152,153,555
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
ROIC (Adjusted EBIT After Taxes/Average
Capital)15%12%12%13%14%15%14%13%
Capital by Segment
Beauty +
Home900,136918,674974,435865,456769,797936,7871,015,823994,090
Pharma268,557441,839457,698400,492392,653624,066647,8301,129,657
Food +
Beverage156,789180,088192,694201,226205,209206,657229,012412,965
Corporate and
Other25,25636,19138,91576,68179,850(113,294)(36,252)(86,015)
Total
Capital1,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average Capital
Beauty +Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Inserted from PR
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
Year Ended
December 31, 2018
ConsolidatedBeauty + HomePharmaFood + BeverageCorporate &
OtherNet Interest
Net Sales$ 2,764,7611,426,382954,652383,727- 0- 0
Reported net income$ 194,766
Reported income taxes71,254
Reported income before income
taxes266,02049,443276,55023,956(58,359)(25,570)
Adjustments:
Restructuring initiatives63,82952,2443,5894,1853,811
Transaction costs related to acquisitions9,5985749,024
Purchase accounting adjustments related to acquired companies'
inventory14,17211912,0721,981
Adjusted earnings before income
taxes353,619102,380292,21130,122(45,524)(25,570)
Interest expense32,62632,626
Interest income(7,056)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)379,189102,380292,21130,122(45,524)- 0
Depreciation and amortization171,74783,54651,49527,4679,239-
0
Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA)$ 550,936$ 185,926$ 343,706$ 57,589$
(36,285)$ - 0
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net
Sales)19.9%13.0%36.0%15.0%
Segment EBITDA
Reconciliation of Adjusted Segment EBITDA to Segment Income
(Unaudited)
(In Thousands)
201320142015201620172018
Beauty + Home:Talk to Matt - He did not use this in Q4 2017
non-GAAP published slides.
Reported Segment
Sales1,488,1451,498,2971,272,9461,261,0861,313,7861,426,382Should
we delete in 2018?
Reported Income before Income Taxes (Segment
Income)109,27298,36898,707100,56993,27649,443
Adjustment:
Restructuring initiatives- 0- 0- 052952,244
Transaction costs related to acquisitions- 0- 0574
Purchase accounting adjustments related to acquired companies'
inventory- 02,151- 0119
Depreciation and
amortization83,32885,46975,28984,27379,42283,546
Adjusted Segment EBITDA
192,600183,837173,996186,993173,227185,926
Pharma:
Reported Segment
Sales708,774751,226712,220741,473805,880954,652
Reported Income before Income Taxes (Segment
Income)189,689204,698210,509219,039234,790276,550
Adjustment:
Restructuring initiatives- 0- 03,589
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0426- 012,072
Depreciation and
amortization39,81241,69036,00839,77641,14351,495
Adjusted Segment EBITDA
229,501246,388246,517259,241275,933343,706
Food + Beverage:
Reported Segment
Sales323,094348,286331,983328,375349,617383,727
Reported Income before Income Taxes (Segment
Income)35,18637,72842,73137,69736,50423,956
Adjustment:
Restructuring initiatives- 0- 01,6794,185
Purchase accounting adjustments related to acquired companies'
inventory- 0- 01,981
Depreciation and
amortization18,87120,17921,34723,89124,72027,467
Segment EBITDA 54,05757,90764,07861,58862,90357,589
Average Capital
Beauty + Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Segment Income / Average Capital %3YR AVG
Beauty + Home12%11%12%12%10%5%9%
Pharma42%48%53%43%37%31%37%
Food + Beverage19%19%21%18%17%7%14%
Adjusted Segment EBITDA(1) / Sales %3YR AVG
Beauty + Home13%12%14%15%13%13%14%
Pharma32%33%35%35%34%36%35%
Food + Beverage17%17%19%19%18%15%17%
Reconciliation of Free Cash
Reconciliation of Free Cash Flow to Net Cash Provided by
Operations (Unaudited)
(In Thousands)
20112012201320142015201620172018
Net Cash Provided by
Operations261,042313,892286,100316,329323,759325,299324,729313,628
Less:
Capital
Expenditures179,692174,053151,510161,940149,323128,986156,624211,252
Free Cash
Flow81,350139,839134,590154,389174,436196,313168,105102,376
Quarterly Components of Growth
Quarterly 2018 Components of Reported Sales Growth
(rounded to the nearest whole percent)
First Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth8%6%10%7%
Acquisitions--
Currency Effects(1)9%11%6%10%
Total Reported Sales Growth17%17%16%17%
Second Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth10%14%5%11%
Acquisitions1%------
Currency Effects(1)3%6%2%4%
Total Reported Sales Growth14%20%7%15%
Third Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth5%12%4%7%
Acquisitions1%5%4%3%
Currency Effects(1)(4%)(3%)(2%)(3%)
Total Reported Sales Growth2%14%6%7%
Fourth Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth4%15%--7%
Acquisitions1%12%13%6%
Currency Effects(1)(4%)(4%)(3%)(4%)
Total Reported Sales Growth1%23%10%9%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
Annual Components of Growth
Annual Components of Reported Sales Growth
(rounded to the nearest whole percent)
Beauty +Food +Total
2012HomePharmaBeverageAptarGroup
Cores Sales Growth2%1%11%3%
Currency Effect(6%)(5%)(3%)(5%)
Acquisition Effects0%10%0%2%
Reported Sales Growth(4%)6%8%0%
Beauty +Food +Total
2013HomePharmaBeverageAptarGroup
Core Sales Growth2%6%11%4%
Acquisitions--12%--3%
Currency Effects(1)--2%1%1%
Total Reported Sales Growth2%20%12%8%
Beauty +Food +Total
2014HomePharmaBeverageAptarGroup
Core Sales Growth3%7%9%5%
Acquisitions--------
Currency Effects(1)(2%)(1%)(1%)(2%)
Total Reported Sales Growth1%6%8%3%
Beauty +Food +Total
2015HomePharmaBeverageAptarGroup
Core Sales Growth(2%)8%2%1%
Acquisitions--------
Currency Effects(1)(13%)(13%)(7%)(12%)
Total Reported Sales Growth(15%)(5%)(5%)(11%)
Beauty +Food +Total
2016HomePharmaBeverageAptarGroup
Core Sales Growth(2%)5%1%--
Acquisitions4%1%--3%
Currency Effects(1)(3%)(2%)(2%)(2%)
Total Reported Sales Growth(1%)4%(1%)1%
Beauty +Food +Total
2017HomePharmaBeverageAptarGroup
Core Sales Growth2%8%6%4%
Acquisitions1%----1%
Currency Effects(1)1%1%--1%
Total Reported Sales Growth4%9%6%6%
Beauty +Food +Total
2018HomePharmaBeverageAptarGroup
Core Sales Growth7%12%5%8%
Acquisitions1%4%4%2%
Currency Effects(1)1%2%1%2%
Total Reported Sales Growth9%18%10%12%
3 Year Average PercentageBeauty +Food +Total
HomePharmaBeverageAptarGroup
Core Sales Growth2%8%4%4%
Acquisitions2%2%1%2%
Currency Effects(1)--------
Total Reported Sales Growth4%10%5%6%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
-
Reconciliation of Non-GAAP Measures
2014 2015 2016 2017 2018
Total AptarGroup Inc Stockholders' Equity 1,103,407 1,149,411
1,173,950 1,311,738 1,422,556 Long-term Obligations 588,245 760,848
772,737 1,191,146 1,125,993 Notes Payable 233,284 5,083 169,213
4,336 101,293 Current Maturities of Long-Term Obligagtions 18,681
51,884 4,603 61,833 62,678
1,943,617 1,967,226 2,120,503 2,569,053 2,712,520 Less:Cash and
Equivalents and St Investments 399,762 519,717 466,287 712,640
261,823 Total Capital 1,543,855 1,447,509 1,654,216 1,856,413
2,450,697
Average Capital 1,603,799 1,495,682 1,550,863 1,755,315
2,153,555 Adjusted EBIT After Taxes 202,395 213,360 235,519 239,848
277,566 ROIC (Adjusted EBIT After Taxes/Average Capital) 13% 14%
15% 14% 13%
Capital by SegmentBeauty + Home 865,456 769,797 936,787
1,015,823 994,090 Pharma 400,492 392,653 624,066 647,830 1,129,657
Food + Beverage 201,226 205,209 206,657 229,012 412,965 Corporate
and Other 76,681 79,850 (113,294) (36,252) (86,015) Total Capital
1,543,855 1,447,509 1,654,216 1,856,413 2,450,697
Reconciliation of Capital to Stockholders' Equity (Unaudited)
(In Thousands)
9
Adjusted EBIT and EBITDA
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
201320142015201620172018
Reported Net
Sales2,520,0132,597,8092,317,1492,330,9342,469,2832,764,761
Reported Net
Income171,926191,624199,295205,604220,029194,766
Reported Income Taxes92,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0-
0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 02,577- 014,172
Gain on insurance recovery- 0(2,900)- 0(10,648)- 0
Restructuring initiatives11,800- 0- 02,20863,829
Depreciation related to restructuring initiatives2,725- 0- 0
Adjusted earnings before income
taxes278,908286,301286,136288,714286,385353,619
Interest Expense20,51421,02934,61535,23740,59732,626
Interest Income(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)296,189302,533315,155321,308321,512379,189
Depreciation and
Amortization147,231152,218138,893154,802153,094171,747
Adjusted earnings before net interest, taxes, depreciation,
amortization, and unusual items. (Adjusted
EBITDA)443,420454,751454,048476,110474,606550,936
3YR AVG
Adjusted EBITDA / Sales %18%18%20%20%19%20%20%
*Depreciation and amortization as reported on AptarGroup's
Consolidated Statement of Income less depreciation related to
restructuring initiatives shown above of $2,725 in 2013.
Adjusted EBIT After Taxes
Reconciliation of Adjusted EBIT After Taxes to Net Income
(Unaudited)
(In Thousands)
20112012201320142015201620172018
Reported Net
Income183,630162,420171,926191,624199,295205,604220,029194,766
Reported Income
Taxes91,31278,95392,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes274,942241,373264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0- 0-
0- 0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 0- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0- 0- 02,577- 014,172
Costs associated with Stelmi acquisition- 09,684- 0- 0- 0- 0- 0-
0
Gain on insurance recovery- 0- 0- 0- 0(2,900)- 0(10,648)- 0
Restructuring initiatives- 03,10211,800- 0- 0- 02,20863,829
Depreciation related to restructuring initiatives- 01,5762,725-
0- 0- 0- 0- 0
Adjusted earnings before income
taxes274,942255,735278,908286,301286,136288,714286,385353,619
Interest
Expense17,30018,95020,51421,02934,61535,23740,59732,626
Interest
Income(5,722)(2,996)(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)286,520271,689296,189302,533315,155321,308321,512379,189
Effective income tax rate (reported income taxes / reported
income before taxes)33.2%32.7%35.0%33.1%32.3%26.7%25.4%26.8%
Taxes on Adjusted
EBIT95,12588,842103,666100,138101,79585,78981,664101,623
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
Reconciliation of Cap to Stock
Reconciliation of Capital to Stockholders' Equity
(Unaudited)
(In Thousands)
201020112012
HART, Robin: HART, Robin:2012 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data2013
HART, Robin: HART, Robin:2013 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data20142015201620172018
Total AptarGroup Inc Stockholders'
Equity1,278,9231,289,7761,379,8901,479,7571,103,4071,149,4111,173,9501,311,7381,422,556
Long-term
Obligations258,773254,910352,003354,076588,245760,848772,7371,191,1461,125,993
Notes
Payable45,440179,55245,166138,445233,2845,083169,2134,336101,293
Current Maturities of Long-Term
Obligagtions50,1264,11629,4881,32518,68151,8844,60361,83362,678
1,633,2621,728,3541,806,5471,973,6031,943,6171,967,2262,120,5032,569,0532,712,520
Less:
Cash and Equivalents and St
Investments376,427377,616229,755309,861399,762519,717466,287712,640261,823
Total
Capital1,256,8351,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average
Capital1,303,7871,463,7651,620,2671,603,7991,495,6821,550,8631,755,3152,153,555
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
ROIC (Adjusted EBIT After Taxes/Average
Capital)15%12%12%13%14%15%14%13%
Capital by Segment
Beauty +
Home900,136918,674974,435865,456769,797936,7871,015,823994,090
Pharma268,557441,839457,698400,492392,653624,066647,8301,129,657
Food +
Beverage156,789180,088192,694201,226205,209206,657229,012412,965
Corporate and
Other25,25636,19138,91576,68179,850(113,294)(36,252)(86,015)
Total
Capital1,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average Capital
Beauty +Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Inserted from PR
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
Year Ended
December 31, 2018
ConsolidatedBeauty + HomePharmaFood + BeverageCorporate &
OtherNet Interest
Net Sales$ 2,764,7611,426,382954,652383,727- 0- 0
Reported net income$ 194,766
Reported income taxes71,254
Reported income before income
taxes266,02049,443276,55023,956(58,359)(25,570)
Adjustments:
Restructuring initiatives63,82952,2443,5894,1853,811
Transaction costs related to acquisitions9,5985749,024
Purchase accounting adjustments related to acquired companies'
inventory14,17211912,0721,981
Adjusted earnings before income
taxes353,619102,380292,21130,122(45,524)(25,570)
Interest expense32,62632,626
Interest income(7,056)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)379,189102,380292,21130,122(45,524)- 0
Depreciation and amortization171,74783,54651,49527,4679,239-
0
Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA)$ 550,936$ 185,926$ 343,706$ 57,589$
(36,285)$ - 0
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net
Sales)19.9%13.0%36.0%15.0%
Segment EBITDA
Reconciliation of Adjusted Segment EBITDA to Segment Income
(Unaudited)
(In Thousands)
201320142015201620172018
Beauty + Home:Talk to Matt - He did not use this in Q4 2017
non-GAAP published slides.
Reported Segment
Sales1,488,1451,498,2971,272,9461,261,0861,313,7861,426,382Should
we delete in 2018?
Reported Income before Income Taxes (Segment
Income)109,27298,36898,707100,56993,27649,443
Adjustment:
Restructuring initiatives- 0- 0- 052952,244
Transaction costs related to acquisitions- 0- 0574
Purchase accounting adjustments related to acquired companies'
inventory- 02,151- 0119
Depreciation and
amortization83,32885,46975,28984,27379,42283,546
Adjusted Segment EBITDA
192,600183,837173,996186,993173,227185,926
Pharma:
Reported Segment
Sales708,774751,226712,220741,473805,880954,652
Reported Income before Income Taxes (Segment
Income)189,689204,698210,509219,039234,790276,550
Adjustment:
Restructuring initiatives- 0- 03,589
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0426- 012,072
Depreciation and
amortization39,81241,69036,00839,77641,14351,495
Adjusted Segment EBITDA
229,501246,388246,517259,241275,933343,706
Food + Beverage:
Reported Segment
Sales323,094348,286331,983328,375349,617383,727
Reported Income before Income Taxes (Segment
Income)35,18637,72842,73137,69736,50423,956
Adjustment:
Restructuring initiatives- 0- 01,6794,185
Purchase accounting adjustments related to acquired companies'
inventory- 0- 01,981
Depreciation and
amortization18,87120,17921,34723,89124,72027,467
Segment EBITDA 54,05757,90764,07861,58862,90357,589
Average Capital
Beauty + Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Segment Income / Average Capital %3YR AVG
Beauty + Home12%11%12%12%10%5%9%
Pharma42%48%53%43%37%31%37%
Food + Beverage19%19%21%18%17%7%14%
Adjusted Segment EBITDA(1) / Sales %3YR AVG
Beauty + Home13%12%14%15%13%13%14%
Pharma32%33%35%35%34%36%35%
Food + Beverage17%17%19%19%18%15%17%
Reconciliation of Free Cash
Reconciliation of Free Cash Flow to Net Cash Provided by
Operations (Unaudited)
(In Thousands)
20112012201320142015201620172018
Net Cash Provided by
Operations261,042313,892286,100316,329323,759325,299324,729313,628
Less:
Capital
Expenditures179,692174,053151,510161,940149,323128,986156,624211,252
Free Cash
Flow81,350139,839134,590154,389174,436196,313168,105102,376
Quarterly Components of Growth
Quarterly 2018 Components of Reported Sales Growth
(rounded to the nearest whole percent)
First Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth8%6%10%7%
Acquisitions--
Currency Effects(1)9%11%6%10%
Total Reported Sales Growth17%17%16%17%
Second Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth10%14%5%11%
Acquisitions1%------
Currency Effects(1)3%6%2%4%
Total Reported Sales Growth14%20%7%15%
Third Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth5%12%4%7%
Acquisitions1%5%4%3%
Currency Effects(1)(4%)(3%)(2%)(3%)
Total Reported Sales Growth2%14%6%7%
Fourth Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth4%15%--7%
Acquisitions1%12%13%6%
Currency Effects(1)(4%)(4%)(3%)(4%)
Total Reported Sales Growth1%23%10%9%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
Annual Components of Growth
Annual Components of Reported Sales Growth
(rounded to the nearest whole percent)
Beauty +Food +Total
2012HomePharmaBeverageAptarGroup
Cores Sales Growth2%1%11%3%
Currency Effect(6%)(5%)(3%)(5%)
Acquisition Effects0%10%0%2%
Reported Sales Growth(4%)6%8%0%
Beauty +Food +Total
2013HomePharmaBeverageAptarGroup
Core Sales Growth2%6%11%4%
Acquisitions--12%--3%
Currency Effects(1)--2%1%1%
Total Reported Sales Growth2%20%12%8%
Beauty +Food +Total
2014HomePharmaBeverageAptarGroup
Core Sales Growth3%7%9%5%
Acquisitions--------
Currency Effects(1)(2%)(1%)(1%)(2%)
Total Reported Sales Growth1%6%8%3%
Beauty +Food +Total
2015HomePharmaBeverageAptarGroup
Core Sales Growth(2%)8%2%1%
Acquisitions--------
Currency Effects(1)(13%)(13%)(7%)(12%)
Total Reported Sales Growth(15%)(5%)(5%)(11%)
Beauty +Food +Total
2016HomePharmaBeverageAptarGroup
Core Sales Growth(2%)5%1%--
Acquisitions4%1%--3%
Currency Effects(1)(3%)(2%)(2%)(2%)
Total Reported Sales Growth(1%)4%(1%)1%
Beauty +Food +Total
2017HomePharmaBeverageAptarGroup
Core Sales Growth2%8%6%4%
Acquisitions1%----1%
Currency Effects(1)1%1%--1%
Total Reported Sales Growth4%9%6%6%
Beauty +Food +Total
2018HomePharmaBeverageAptarGroup
Core Sales Growth7%12%5%8%
Acquisitions1%4%4%2%
Currency Effects(1)1%2%1%2%
Total Reported Sales Growth9%18%10%12%
3 Year Average PercentageBeauty +Food +Total
HomePharmaBeverageAptarGroup
Core Sales Growth2%8%4%4%
Acquisitions2%2%1%2%
Currency Effects(1)--------
Total Reported Sales Growth4%10%5%6%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
-
Reconciliation of Non-GAAP Measures
2014 2015 2016 2017 2018
Net Cash Provided by Operations 316,329 323,759 325,299 324,729
313,628
Less:Capital Expenditures 161,940 149,323 128,986 156,624
211,252 Free Cash Flow 154,389 174,436 196,313 168,105 102,376
Reconciliation of Free Cash Flow to Net Cash Provided by
Operations (Unaudited)(In Thousands)
10
Adjusted EBIT and EBITDA
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
201320142015201620172018
Reported Net
Sales2,520,0132,597,8092,317,1492,330,9342,469,2832,764,761
Reported Net
Income171,926191,624199,295205,604220,029194,766
Reported Income Taxes92,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0-
0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 02,577- 014,172
Gain on insurance recovery- 0(2,900)- 0(10,648)- 0
Restructuring initiatives11,800- 0- 02,20863,829
Depreciation related to restructuring initiatives2,725- 0- 0
Adjusted earnings before income
taxes278,908286,301286,136288,714286,385353,619
Interest Expense20,51421,02934,61535,23740,59732,626
Interest Income(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)296,189302,533315,155321,308321,512379,189
Depreciation and
Amortization147,231152,218138,893154,802153,094171,747
Adjusted earnings before net interest, taxes, depreciation,
amortization, and unusual items. (Adjusted
EBITDA)443,420454,751454,048476,110474,606550,936
3YR AVG
Adjusted EBITDA / Sales %18%18%20%20%19%20%20%
*Depreciation and amortization as reported on AptarGroup's
Consolidated Statement of Income less depreciation related to
restructuring initiatives shown above of $2,725 in 2013.
Adjusted EBIT After Taxes
Reconciliation of Adjusted EBIT After Taxes to Net Income
(Unaudited)
(In Thousands)
20112012201320142015201620172018
Reported Net
Income183,630162,420171,926191,624199,295205,604220,029194,766
Reported Income
Taxes91,31278,95392,45794,67795,27674,89374,79671,254
Reported Income before Income
Taxes274,942241,373264,383286,301294,571280,497294,825266,020
Adjustments:
Change in inventory valuation methods (from LIFO to FIFO)- 0- 0-
0- 0(7,427)- 0- 0- 0
Transaction costs related to acquisitions- 0- 0- 0- 01,8925,640-
09,598
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0- 0- 02,577- 014,172
Costs associated with Stelmi acquisition- 09,684- 0- 0- 0- 0- 0-
0
Gain on insurance recovery- 0- 0- 0- 0(2,900)- 0(10,648)- 0
Restructuring initiatives- 03,10211,800- 0- 0- 02,20863,829
Depreciation related to restructuring initiatives- 01,5762,725-
0- 0- 0- 0- 0
Adjusted earnings before income
taxes274,942255,735278,908286,301286,136288,714286,385353,619
Interest
Expense17,30018,95020,51421,02934,61535,23740,59732,626
Interest
Income(5,722)(2,996)(3,233)(4,797)(5,596)(2,643)(5,470)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)286,520271,689296,189302,533315,155321,308321,512379,189
Effective income tax rate (reported income taxes / reported
income before taxes)33.2%32.7%35.0%33.1%32.3%26.7%25.4%26.8%
Taxes on Adjusted
EBIT95,12588,842103,666100,138101,79585,78981,664101,623
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
Reconciliation of Cap to Stock
Reconciliation of Capital to Stockholders' Equity
(Unaudited)
(In Thousands)
201020112012
HART, Robin: HART, Robin:2012 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data2013
HART, Robin: HART, Robin:2013 numbers updated for the debt ASU
adopted and filed in 2016 10K Item 6 Selected Financial
Data20142015201620172018
Total AptarGroup Inc Stockholders'
Equity1,278,9231,289,7761,379,8901,479,7571,103,4071,149,4111,173,9501,311,7381,422,556
Long-term
Obligations258,773254,910352,003354,076588,245760,848772,7371,191,1461,125,993
Notes
Payable45,440179,55245,166138,445233,2845,083169,2134,336101,293
Current Maturities of Long-Term
Obligagtions50,1264,11629,4881,32518,68151,8844,60361,83362,678
1,633,2621,728,3541,806,5471,973,6031,943,6171,967,2262,120,5032,569,0532,712,520
Less:
Cash and Equivalents and St
Investments376,427377,616229,755309,861399,762519,717466,287712,640261,823
Total
Capital1,256,8351,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average
Capital1,303,7871,463,7651,620,2671,603,7991,495,6821,550,8631,755,3152,153,555
Adjusted EBIT After
Taxes191,395182,847192,523202,395213,360235,519239,848277,566
ROIC (Adjusted EBIT After Taxes/Average
Capital)15%12%12%13%14%15%14%13%
Capital by Segment
Beauty +
Home900,136918,674974,435865,456769,797936,7871,015,823994,090
Pharma268,557441,839457,698400,492392,653624,066647,8301,129,657
Food +
Beverage156,789180,088192,694201,226205,209206,657229,012412,965
Corporate and
Other25,25636,19138,91576,68179,850(113,294)(36,252)(86,015)
Total
Capital1,350,7381,576,7921,663,7421,543,8551,447,5091,654,2161,856,4132,450,697
Average Capital
Beauty +Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Inserted from PR
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net
Income (Unaudited)
(In Thousands)
Year Ended
December 31, 2018
ConsolidatedBeauty + HomePharmaFood + BeverageCorporate &
OtherNet Interest
Net Sales$ 2,764,7611,426,382954,652383,727- 0- 0
Reported net income$ 194,766
Reported income taxes71,254
Reported income before income
taxes266,02049,443276,55023,956(58,359)(25,570)
Adjustments:
Restructuring initiatives63,82952,2443,5894,1853,811
Transaction costs related to acquisitions9,5985749,024
Purchase accounting adjustments related to acquired companies'
inventory14,17211912,0721,981
Adjusted earnings before income
taxes353,619102,380292,21130,122(45,524)(25,570)
Interest expense32,62632,626
Interest income(7,056)(7,056)
Adjusted earnings before net interest and taxes (Adjusted
EBIT)379,189102,380292,21130,122(45,524)- 0
Depreciation and amortization171,74783,54651,49527,4679,239-
0
Adjusted earnings before net interest, taxes, depreciation and
amortization (Adjusted EBITDA)$ 550,936$ 185,926$ 343,706$ 57,589$
(36,285)$ - 0
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net
Sales)19.9%13.0%36.0%15.0%
Segment EBITDA
Reconciliation of Adjusted Segment EBITDA to Segment Income
(Unaudited)
(In Thousands)
201320142015201620172018
Beauty + Home:Talk to Matt - He did not use this in Q4 2017
non-GAAP published slides.
Reported Segment
Sales1,488,1451,498,2971,272,9461,261,0861,313,7861,426,382Should
we delete in 2018?
Reported Income before Income Taxes (Segment
Income)109,27298,36898,707100,56993,27649,443
Adjustment:
Restructuring initiatives- 0- 0- 052952,244
Transaction costs related to acquisitions- 0- 0574
Purchase accounting adjustments related to acquired companies'
inventory- 02,151- 0119
Depreciation and
amortization83,32885,46975,28984,27379,42283,546
Adjusted Segment EBITDA
192,600183,837173,996186,993173,227185,926
Pharma:
Reported Segment
Sales708,774751,226712,220741,473805,880954,652
Reported Income before Income Taxes (Segment
Income)189,689204,698210,509219,039234,790276,550
Adjustment:
Restructuring initiatives- 0- 03,589
Purchase accounting adjustments related to acquired companies'
inventory- 0- 0426- 012,072
Depreciation and
amortization39,81241,69036,00839,77641,14351,495
Adjusted Segment EBITDA
229,501246,388246,517259,241275,933343,706
Food + Beverage:
Reported Segment
Sales323,094348,286331,983328,375349,617383,727
Reported Income before Income Taxes (Segment
Income)35,18637,72842,73137,69736,50423,956
Adjustment:
Restructuring initiatives- 0- 01,6794,185
Purchase accounting adjustments related to acquired companies'
inventory- 0- 01,981
Depreciation and
amortization18,87120,17921,34723,89124,72027,467
Segment EBITDA 54,05757,90764,07861,58862,90357,589
Average Capital
Beauty + Home946,555919,946817,627853,292976,3051,004,957
Pharma449,769429,095396,573508,360635,948888,744
Food + Beverage186,391196,960203,218205,933217,835320,989
Segment Income / Average Capital %3YR AVG
Beauty + Home12%11%12%12%10%5%9%
Pharma42%48%53%43%37%31%37%
Food + Beverage19%19%21%18%17%7%14%
Adjusted Segment EBITDA(1) / Sales %3YR AVG
Beauty + Home13%12%14%15%13%13%14%
Pharma32%33%35%35%34%36%35%
Food + Beverage17%17%19%19%18%15%17%
Reconciliation of Free Cash
Reconciliation of Free Cash Flow to Net Cash Provided by
Operations (Unaudited)
(In Thousands)
20112012201320142015201620172018
Net Cash Provided by
Operations261,042313,892286,100316,329323,759325,299324,729313,628
Less:
Capital
Expenditures179,692174,053151,510161,940149,323128,986156,624211,252
Free Cash
Flow81,350139,839134,590154,389174,436196,313168,105102,376
Quarterly Components of Growth
Quarterly 2018 Components of Reported Sales Growth
(rounded to the nearest whole percent)
First Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth8%6%10%7%
Acquisitions--
Currency Effects(1)9%11%6%10%
Total Reported Sales Growth17%17%16%17%
Second Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth10%14%5%11%
Acquisitions1%------
Currency Effects(1)3%6%2%4%
Total Reported Sales Growth14%20%7%15%
Third Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth5%12%4%7%
Acquisitions1%5%4%3%
Currency Effects(1)(4%)(3%)(2%)(3%)
Total Reported Sales Growth2%14%6%7%
Fourth Quarter Segment Sales AnalysisBeauty +Food +Total
(Change over Prior Year)HomePharmaBeverageAptarGroup
Core Sales Growth4%15%--7%
Acquisitions1%12%13%6%
Currency Effects(1)(4%)(4%)(3%)(4%)
Total Reported Sales Growth1%23%10%9%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
Annual Components of Growth
Annual Components of Reported Sales Growth
(rounded to the nearest whole percent)
Beauty +Food +Total
2012HomePharmaBeverageAptarGroup
Cores Sales Growth2%1%11%3%
Currency Effect(6%)(5%)(3%)(5%)
Acquisition Effects0%10%0%2%
Reported Sales Growth(4%)6%8%0%
Beauty +Food +Total
2013HomePharmaBeverageAptarGroup
Core Sales Growth2%6%11%4%
Acquisitions--12%--3%
Currency Effects(1)--2%1%1%
Total Reported Sales Growth2%20%12%8%
Beauty +Food +Total
2014HomePharmaBeverageAptarGroup
Core Sales Growth3%7%9%5%
Acquisitions--------
Currency Effects(1)(2%)(1%)(1%)(2%)
Total Reported Sales Growth1%6%8%3%
Beauty +Food +Total
2015HomePharmaBeverageAptarGroup
Core Sales Growth(2%)8%2%1%
Acquisitions--------
Currency Effects(1)(13%)(13%)(7%)(12%)
Total Reported Sales Growth(15%)(5%)(5%)(11%)
Beauty +Food +Total
2016HomePharmaBeverageAptarGroup
Core Sales Growth(2%)5%1%--
Acquisitions4%1%--3%
Currency Effects(1)(3%)(2%)(2%)(2%)
Total Reported Sales Growth(1%)4%(1%)1%
Beauty +Food +Total
2017HomePharmaBeverageAptarGroup
Core Sales Growth2%8%6%4%
Acquisitions1%----1%
Currency Effects(1)1%1%--1%
Total Reported Sales Growth4%9%6%6%
Beauty +Food +Total
2018HomePharmaBeverageAptarGroup
Core Sales Growth7%12%5%8%
Acquisitions1%4%4%2%
Currency Effects(1)1%2%1%2%
Total Reported Sales Growth9%18%10%12%
3 Year Average PercentageBeauty +Food +Total
HomePharmaBeverageAptarGroup
Core Sales Growth2%8%4%4%
Acquisitions2%2%1%2%
Currency Effects(1)--------
Total Reported Sales Growth4%10%5%6%
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
-
Reconciliation of Non-GAAP Measures
AptarGroup, Inc.Reconciliation of Free Cash Flow to Net Cash
Provided by Operations (Unaudited)
(In Thousands)
Three Months Ended Nine Months EndedSeptember 30, September
30,
2019 2018 2019 2018
Net Cash Provided by Operations $ 159,241 $ 55,076 $ 380,381 $
209,585
Less:Capital Expenditures $ 62,067 $ 53,568 $ 186,841 $ 145,321
Free Cash Flow $ 97,174 $ 1,508 $ 193,540 $ 64,264
11
-
Supplemental Information
Beauty + Food + Total2016 Home Pharma Beverage AptarGroup
Core Sales Growth (2%) 5% 1% --Acquisitions 4% 1% -- 3%Currency
Effects(1) (3%) (2%) (2%) (2%)Total Reported Sales Growth (1%) 4%
(1%) 1%
Beauty + Food + Total2017 Home Pharma Beverage AptarGroup
Core Sales Growth 2% 8% 6% 4%Acquisitions 1% -- -- 1%Currency
Effects(1) 1% 1% -- 1%Total Reported Sales Growth 4% 9% 6% 6%
Beauty + Food + Total2018 Home Pharma Beverage AptarGroup
Core Sales Growth 7% 12% 5% 8%Acquisitions 1% 4% 4% 2%Currency
Effects(1) 1% 2% 1% 2%Total Reported Sales Growth 9% 18% 10%
12%
3 Year Average Percentage Beauty + Food + TotalHome Pharma
Beverage AptarGroup
Core Sales Growth 2% 8% 4% 4%Acquisitions 2% 2% 1% 2%Currency
Effects(1) -- -- -- --Total Reported Sales Growth 4% 10% 5% 6%
(rounded to the nearest whole percent)
(1) - Currency effects are approximated by translating last
year's amounts at this year's foreign exchange rates.
Annual Components of Reported Sales Growth
12
Reconciliation of Non-GAAP Financial MeasuresReconciliation of
Non-GAAP MeasuresReconciliation of Non-GAAP MeasuresReconciliation
of Non-GAAP MeasuresReconciliation of Non-GAAP
MeasuresReconciliation of Non-GAAP MeasuresReconciliation of
Non-GAAP MeasuresReconciliation of Non-GAAP MeasuresReconciliation
of Non-GAAP MeasuresReconciliation of Non-GAAP
MeasuresReconciliation of Non-GAAP MeasuresSupplemental
Information