AptarGroup Reports Record Second Quarter Results; Declares Dividend

AptarGroup, Inc. (NYSE:ATR) today reported record second quarter results. The Company’s Board of Directors also declared a quarterly dividend. Second Quarter 2007 Highlights Earnings per share jumped 33% to a record $.52 per share Sales rose 19% to a record $472.9 million Solid growth reported across all business segments $25 million spent to repurchase 680,000 shares SECOND QUARTER RESULTS For the quarter ended June 30, 2007, sales increased 19% to a record $472.9 million from $398.6 million a year ago. Strong dispensing system sales accounted for 12% of the growth while changes in exchange rates contributed 6% and acquisitions added 1%. Commenting on the quarter, Carl Siebel, President and CEO, said, "I’m pleased to report that we had another strong quarter. All of our business segments reported increased sales and profits. Broad demand for our unique dispensing systems across our different end-markets and geographic areas increased over the prior year. Our commitment to developing the industry’s most innovative dispensing solutions continues to drive our growth.”   Second Quarter Segment Sales Analysis (Growth Over Prior Year)   Beauty &Home   Closures   Pharma   TotalAptarGroup Product and Custom Tooling Sales 14% 5% 18% 12% Currency Effects 6% 4% 6% 6% Sales from Acquired Companies 1%   2%   0%   1% Total Growth 21%   11%   24%   19%   Operating income increased to a record $57.5 million, up 31% from $43.8 million a year ago primarily due to increased dispensing system sales and ongoing cost containment efforts. Increased sales of fragrance/cosmetic pumps and sampling systems, and personal care pumps, aerosol valves, and accessories drove Beauty & Home segment income (income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items) to $26.4 million or an increase of 34%. Closures segment income rose 10% to $13.4 million primarily due to stronger sales to the food and beverage and personal care markets. Strong demand for our metered dose inhaler valves and nasal spray pumps pushed Pharma segment income to $26.4 million or an increase of 33%. Diluted earnings per share increased 33% to a record $.52 per share compared to $.39 per share in the prior year. Siebel added, "We continue to dedicate appropriate resources to the research and development of new dispensing technologies and manage our business with a focus on costs. In addition to these efforts, solid results in each of our business segments drove our earnings to record levels.” YEAR-TO-DATE RESULTS For the year-to-date, sales increased 19% to a record $922.7 million from $774.1 million a year ago. Dispensing system sales increased 12% while changes in exchange rates added 6% and acquisitions contributed 1% to AptarGroup’s top line. Operating income increased to a record $104.1 million, up 37% from $76.2 million a year ago. Diluted earnings per share increased 41% to $.93 per share compared to $.66 per share a year ago. OUTLOOK Siebel commented, "Strong demand across all of our business segments allowed us to achieve record first half results and we have a positive outlook on our third quarter at this time. We anticipate that demand for our dispensing systems will increase over prior year levels and as a result, profits are expected to exceed those recorded a year ago. We estimate that diluted earnings per share for the third quarter will be in the range of $.47 to $.50 per share, or an increase of 18% to 25%, compared to $.40 per share in the prior year.” CASH DIVIDEND AND SHARE REPURCHASE PROGRAM The Board of Directors declared a quarterly dividend of $.13 per share, payable August 21, 2007 to shareholders of record as of July 31, 2007. Also during the quarter, the Company repurchased approximately 680,000 shares of common stock for $25 million leaving approximately 3 million shares authorized for repurchase at the end of the second quarter. OPEN CONFERENCE CALL There will be a conference call on Thursday July 19, 2007 at 8:00 a.m. CDT to discuss the Company’s second quarter results for 2007. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site. AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia, and South America. For more information, visit the AptarGroup web site at www.aptargroup.com. This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, those related to overall business conditions in the various markets in which AptarGroup operates, the competitive marketplace, fiscal and monetary policy, changes in foreign exchange rates, direct or indirect consequences of acts of war or terrorism, labor relations and other risks and uncertainties discussed from time to time in AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements.     APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited)   (In Thousands, Except Per Share Data) CONSOLIDATED STATEMENTS OF INCOME   Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006   Net Sales $ 472,876 $ 398,625 $ 922,717 $ 774,093 Cost of Sales (exclusive of depreciation shown below) 318,595 268,518 618,855 522,304 Selling, Research & Development and Administrative 65,805 58,087 139,530 120,457 Depreciation and Other Amortization 30,944 28,250 60,181 55,163 Operating Income 57,532 43,770 104,151 76,169 Other Income/(Expense): Interest Expense (4,612) (3,897) (9,455) (7,707) Interest Income 1,756 830 3,378 1,741 Equity in Results of Affiliates 111 137 268 243 Minority Interests 1 (86) 18 (132) Miscellaneous, net (820) (422) (1,210) (935) Income before Income Taxes 53,968 40,332 97,150 69,379 Provision for Income Taxes 17,000 12,664 30,602 21,901 Net Income $ 36,968 $ 27,668 $ 66,548 $ 47,478   Net Income per Share - Basic(a) $ 0.54 $ 0.39 $ 0.96 $ 0.68 Net Income per Share - Diluted(a) $ 0.52 $ 0.39 $ 0.93 $ 0.66   Average Number of Shares – Basic(a) 69,037 70,078 69,113 70,114 Average Number of Shares - Diluted(a) 71,443 71,722 71,886 72,378   (a) Previously reported Net Income per Share and Average Number of Shares have been restated to reflect the two-for-one stock split on May 9, 2007.       APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) CONSOLIDATED BALANCE SHEETS   June 30, 2007 December 31, 2006 ASSETS   Cash and Equivalents $ 195,223 $ 170,576 Receivables, net 380,144 320,969 Inventories 258,464 226,455 Other Current Assets 60,500 44,820 Total Current Assets 894,331 762,820 Net Property, Plant and Equipment 602,639 591,077 Goodwill, net 214,059 207,882 Other Assets 26,288 30,233 Total Assets $ 1,737,317 $ 1,592,012   LIABILITIES AND STOCKHOLDERS' EQUITY   Short-Term Obligations $ 178,800 $ 127,424 Accounts Payable and Accrued Liabilities 318,962 272,761 Total Current Liabilities 497,762 400,185 Long-Term Obligations 146,479 168,877 Deferred Liabilities 85,069 76,550 Total Liabilities 729,310 645,612 Stockholders' Equity 1,008,007 946,400 Total Liabilities and Stockholders' Equity $ 1,737,317 $ 1,592,012         APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) SEGMENT INFORMATION   Three Months Ended Six Months Ended June 30, June 30,   2007 2006 2007 2006 NET SALES   Beauty & Home $ 250,186 $ 207,583 $ 492,144 $ 402,891 Closures 121,532 109,442 241,513 214,930 Pharma 101,157 81,461 189,058 156,075 Other 1 139 2 197 Total Net Sales $ 472,876 $ 398,625 $ 922,717 $ 774,093   SEGMENT INCOME (1)   Beauty & Home $ 26,443 $ 19,752 $ 52,575 $ 36,385 Closures 13,363 12,186 27,344 22,723 Pharma 26,356 19,848 49,038 36,911 Corporate Expenses and Other (9,338) (8,387) (25,730) (20,674) Total Income Before Interest and Taxes $ 56,824 $ 43,399 $ 103,227 $ 75,345 Less: Interest Expense, Net 2,856 3,067 6,077 5,966 Income before Income Taxes $ 53,968 $ 40,332 $ 97,150 $ 69,379   SEGMENT INCOME % Beauty & Home 10.6% 9.5% 10.7% 9.0% Closures 11.0% 11.1% 11.3% 10.6% Pharma 26.1% 24.4% 25.9% 23.6%   Income before Interest and Taxes 12.0% 10.9% 11.2% 9.7%   Notes to Condensed Consolidated Financial Statements: (1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items.