Business Wire | Jul 30, 2020 05:00PM EDT

Aptar Reports Second Quarter 2020 Results

Jul. 30, 2020

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--Jul. 30, 2020--AptarGroup, Inc. (NYSE:ATR) today reported second quarter results for 2020 and provided an update related to COVID-19 including the Company's ability to supply essential products for critical industries and continued health and safety measures being implemented across its global facilities.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200730006019/en/

Photo: Aptar's Corporate Headquarters in Crystal Lake, IL

Second Quarter 2020 Summary

* Reported sales and core sales decreased 6% primarily due to the negative effects of COVID-19 on the beauty and beverage markets as well as passing on lower resin costs; negative currency effects were offset by contributions coming from acquisitions * Reported sales growth of 7% and core sales growth of 6% in our Pharma segment was offset by decreases in reported sales and core sales in our Beauty + Home and Food + Beverage segments * "Thank You Award" costs of $3.6 million (pretax) were included in second quarter reported and adjusted earnings; this one-time Award was granted to employees who made it possible for Aptar to continue to supply critical infrastructure industries during the initial phases of the COVID-19 crisis * Reported earnings per share totaled $0.63 (a decrease of 44% compared to the prior year) * Adjusted earnings per share totaled $0.80 (a decrease of 30% compared to the prior year) * Reported net income totaled $42 million (a decrease of 43% compared to the prior year) * Adjusted EBITDA totaled $137 million (a decrease of 15% compared to the prior year) * Cash flow from operations was $228 million in the first half of 2020 (an increase of 3% compared to the prior year) * Free cash flow was $105 million in the first half of 2020 (an increase of 9% compared to the prior year) * Declared quarterly dividend of $0.36 per share * Subsequent to the end of the quarter, Kimberly Y. Chainey joined Aptar as EVP General Counsel and is a member of the Executive Committee

COVID-19 Update

"We are proud to live up to our purpose and responsibility to society. Most of the products and solutions we make at Aptar play an important role in everyday life, maybe now more than ever," said Stephan Tanda, Aptar President and CEO. "We all have these products in our homes, dispensing the medicines we take, the food we consume, and the beauty, personal care and household products we count on to get us through the day."

Aptar is an essential supply chain partner, supporting industries such as pharmaceuticals and consumer products in the 20 countries in which we operate. Aptar's facilities remain open and operating, albeit some at reduced capacity. "Our people have shown extreme perseverance and commitment to deliver our critical solutions to our customers during this time," stated Tanda. "We are working very closely with our customers and remain flexible to meet their changing needs while maintaining execution capabilities for the upturn. We have received numerous expressions of appreciation from customers, thanking our people for rising to this challenge, and we will continue to do so while we focus on health and safety as our number one priority."

Aptar continues to take strong health and safety measures across its global operations. The Company is providing masks to all employees working in its facilities and has escalated cleaning and sanitizing procedures. All employees are invited to a regular cadence of COVID-19 Town Hall calls and Aptar has issued a new remote and flexible work arrangement policy to ensure a minimum number of employees working in the office during this time.

Aptar is closely monitoring the changing dynamics around the world as countries continue to reopen their economies. The initial re-openings in many regions resulted in improved demand for some of Aptar's products toward the end of the second quarter. While there has been positive recovery momentum in many countries, the recent rise in confirmed cases of COVID-19, especially in the U.S., has caused several local governments to reinstitute confinement protocols and this could impact the pace of economic recovery in the U.S. and elsewhere.

Second Quarter Results

For the quarter ended June 30, 2020, reported sales decreased 6% to $699 million compared to $743 million in the prior year. The headwinds from changes in currency rates were completely offset by revenue generated by recent acquisitions and therefore core sales also declined 6%.

Second Quarter Segment Sales Analysis(Change Over Prior Year) Beauty + Pharma Food + Beverage Total Home AptarGroup

Core Sales Growth (13%) 6% (15%) (6%)

Acquisitions 4% 2% 0% 3%

Currency Effects ^(1) (3%) (1%) (2%) (3%)

Total Reported Sales Growth (12%) 7% (17%) (6%)

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

Commenting on the quarter, Tanda said, "Our Pharma segment had another strong quarter, which partially offset declines in our Beauty + Home and Food + Beverage segments. Demand for our drug delivery and active packaging solutions rose across a variety of non-COVID-19 applications, further underscoring the long-term stability of our Pharma segment. Although demand increased for sanitizer dispensers, the beauty and the on-the-go beverage markets continued to be under significant pressure due to negative effects of COVID-19. Cost containment efforts contributed to our bottom line but were not enough to offset the negative effects from lower volumes caused by COVID-19."

In the Pharma segment, sales increased to customers in the injectables, consumer health care and active packaging markets and offset declines in the prescription market, which faced challenging comparisons to the very strong prior year. In the Beauty + Home segment, the significant negative effects of COVID-19 on the beauty market were partially offset by an increase in sales to the personal care market related to hand sanitizers and liquid soaps. As retailers began to reopen in June, sales increased toward the end of the quarter to certain Beauty + Home customers. In the Food + Beverage segment, weak demand for single-serve premium bottled water and on-the-go functional drink products, due to COVID-19, resulted in significant sales declines in the beverage market. Also, lower custom tooling sales and the effects of passing through lower resin prices to customers also impacted the segment's overall growth.

Aptar reported second quarter earnings per share of $0.63 compared to $1.12 during the same period a year ago. Current year adjusted earnings per share, excluding restructuring expenses and acquisition-related costs, were $0.80 and down 30% from the prior year adjusted earnings per share, including comparable exchange rates, of $1.14. Aptar recorded $3.6 million of pretax expense related to a one-time Thank You Award for our employees who contributed to our ability to supply critical solutions during the initial phases of the COVID-19 pandemic.

Year-to-Date Results

For the six months ended June 30, 2020, reported sales decreased approximately 4% to $1.42 billion from $1.49 billion a year ago. The headwinds from changes in currency rates were completely offset by revenue generated by recent acquisitions and therefore core sales also declined 4%.

Six Months Year-to-Date Segment Sales Analysis(Change Over Prior Year) Beauty + Pharma Food + Beverage Total Home AptarGroup

Core Sales Growth (11%) 6% (9%) (4%)

Acquisitions 2% 3% 0% 2%

Currency Effects ^(1) (3%) (1%) (2%) (2%)

Total Reported Sales Growth (12%) 8% (11%) (4%)

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

Tanda commented on the year-to-date results, "Our Pharma segment continued to report strong year-over-year core sales growth. Our Beauty + Home and Food + Beverage segments experienced a more difficult first half of the year primarily due to the impacts of COVID-19, however we saw progressive signs of improvement for Beauty + Home since the low point in April. Beauty + Home was negatively impacted by reduced orders due to lower prestige beauty sales. Food + Beverage experienced a decline due to lower on-the-go beverage and food service sales due to many people dining at home and the passing through of lower resin costs to customers."

For the six months year-to-date, Aptar's reported earnings per share were $1.47, and down 29%, compared to $2.08 reported a year ago. Current year adjusted earnings per share, which exclude restructuring costs and acquisition-related expenses, were $1.72 and down 21% from prior year adjusted earnings per share, including comparable exchange rates, of $2.18.

Strong Cash Flow

The Company generated $228 million of cash flow from operations in the first half of the year, an increase of 3% over $221 million in the prior year. The company generated $105 million of free cash flow (cash flow from operations less capital expenditures) for the first half of 2020, an increase of 9% over $96 million in the prior year, primarily due to a focus on working capital management. Tanda commented, "Despite lower net income, we were able to increase cash flow over the prior year. We continue to invest in our business for the long-term and our balance sheet remains strong."

Outlook

"There is economic uncertainty in some of our markets, driven in part by the recent spike in COVID-19 cases in many regions of the world. We expect to see gradual improvement in the second half of the year although this will be heavily dependent on the pace and breadth of the resumption of travel activity, the reopening of retail stores and general consumer spending confidence," said Tanda.

Aptar expects earnings per share for the third quarter of 2020, excluding any restructuring expenses and acquisition-related costs, to be in the range of $0.80 to $0.88. This guidance is based on an effective tax rate range of 28% to 30%.

Cash Dividend

As previously announced, the Board declared a quarterly cash dividend of $0.36 per share. The payment date is August 19, 2020, to stockholders of record as of July 29, 2020.

Open Conference Call

There will be a conference call on Friday, July 31, 2020 at 8:00 a.m. Central Time to discuss the Company's second quarter results for 2020. 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.

About Aptar

Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active packaging solutions. Aptar uses insights, design, engineering and science to create dosing, dispensing and protective packaging technologies for the world's leading brands, in turn making a meaningful difference in the lives, looks, health and homes of millions of people around the world. Aptar's innovative solutions and services serve a variety of end markets including pharmaceutical, beauty, personal care, home, food and beverage. Aptar is headquartered in Crystal Lake, Illinois and has 14,000 dedicated employees in 20 countries. For more information, visit www.aptar.com.

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 business transformation charges (restructuring initiatives), acquisition-related expenses and certain purchase accounting adjustments related to acquisitions and investments. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. 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. 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 measure 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, 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 and statements regarding the anticipated impact of the COVID-19 pandemic. 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 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: outbreaks of pandemics, including the impact of the COVID-19 pandemic on our global supply chain and our global customers and operations; the successful integration of acquisitions and the achievement of the expected benefits of acquisitions and investments; the impact of tax reform legislation including changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; the execution of the business transformation plan; economic conditions worldwide including potential deflationary or inflationary conditions or economic downturn or uncertainty in regions we rely on for growth as a result of the COVID-19 pandemic or otherwise; political conditions worldwide; significant fluctuations in foreign currency exchange rates; 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; direct or indirect consequences of acts of war or terrorism; and work stoppages due to labor disputes. 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-K and Form 10-Qs. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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,

2020 2019 2020 2019

Net Sales $ 699,305 $ 742,661 $ 1,420,858 $ 1,487,121

Cost of Sales(exclusive of 441,702 469,441 892,958 938,573 depreciation andamortization shownbelow)Selling, Research & 123,365 113,752 249,557 234,967 Development andAdministrativeDepreciation and 56,429 47,867 107,235 95,356 AmortizationRestructuring 7,331 1,737 12,170 11,267 InitiativesOperating Income 70,478 109,864 158,938 206,958

Other Income/(Expense):Interest Expense (8,734 ) (8,756 ) (17,122 ) (17,970 )

Interest Income 175 1,033 350 2,781

Equity in Results of (328 ) 9 (1,127 ) (86 )AffiliatesMiscellaneous, net (923 ) (49 ) (2,335 ) 417

Income before Income 60,668 102,101 138,704 192,100 TaxesProvision for Income 18,808 28,180 41,594 55,180 TaxesNet Income $ 41,860 $ 73,921 $ 97,110 $ 136,920

Net IncomeAttributable to (21 ) (6 ) (18 ) (1 )NoncontrollingInterestsNet Income $ 41,839 $ 73,915 $ 97,092 $ 136,919 Attributable toAptarGroup, Inc.Net IncomeAttributable toAptarGroup, Inc. perCommon Share:Basic $ 0.65 $ 1.16 $ 1.51 $ 2.17

Diluted $ 0.63 $ 1.12 $ 1.47 $ 2.08

Average Numbers ofShares Outstanding:Basic 64,262 63,471 64,135 63,219

Diluted 66,384 66,232 66,246 65,842

AptarGroup, Inc.Condensed Consolidated Financial Statements (Unaudited)(continued)($ In Thousands)Consolidated Balance Sheets June 30, December 31, 2019 2020ASSETS Cash and Equivalents $ 247,656 $ 241,970

Receivables, net 575,655 558,428

Inventories 381,939 375,795

Other Current Assets 138,321 115,048

Total Current Assets 1,343,571 1,291,241

Net Property, Plant and Equipment 1,097,920 1,087,678

Goodwill 861,928 763,461

Other Assets 510,597 419,739

Total Assets $ 3,814,016 $ 3,562,119

LIABILITIES AND EQUITY Short-Term Obligations $ 217,079 $ 110,247

Accounts Payable, Accrued and Other 612,688 573,028LiabilitiesTotal Current Liabilities 829,767 683,275

Long-Term Obligations 1,082,742 1,085,453

Deferred Liabilities 255,521 221,139

Total Liabilities 2,168,030 1,989,867

AptarGroup, Inc. Stockholders' Equity 1,645,631 1,571,916

Noncontrolling Interests in Subsidiaries 355 336

Total Equity 1,645,986 1,572,252

Total Liabilities and Equity $ 3,814,016 $ 3,562,119

AptarGroup, Inc.

Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)($ In Thousands) Three Months Ended

June 30, 2020



Consolidated Beauty + Pharma Food + Corporate & Net Home Beverage Other Interest

Net Sales $ 699,305 299,786 301,259 98,260 - -

Reported net $ 41,860 incomeReported 18,808 income taxesReported 60,668 (12,755 ) 85,467 8,519 (12,004 ) (8,559 )income beforeincome taxesAdjustments:Restructuring 7,331 7,324 (111 ) 75 43 initiativesTransactioncosts related 3,207 3,207 toacquisitionsPurchaseaccountingadjustments 3,252 2,959 293 related toacquisitionsandinvestmentsAdjustedearnings 74,458 735 85,649 8,594 (11,961 ) (8,559 )before incometaxesInterest 8,734 8,734 expenseInterest (175 ) (175 )incomeAdjustedearningsbefore net 83,017 735 85,649 8,594 (11,961 ) - interest andtaxes(AdjustedEBIT)Depreciation 56,429 25,939 18,617 9,191 2,682 - andamortizationPurchaseaccountingadjustmentsincluded in (2,867 ) (2,700 ) (167 )DepreciationandamortizationaboveAdjustedearningsbefore netinterest,taxes, $ 136,579 $ 23,974 $ 104,099 $ 17,785 $ (9,279 ) $ - depreciationandamortization(AdjustedEBITDA) AdjustedEBITDAmargins 19.5 % 8.0 % 34.6 % 18.1 %(AdjustedEBITDA /Reported NetSales) Three Months Ended

June 30, 2019



Consolidated Beauty + Pharma Food + Corporate & Net Home Beverage Other Interest

Net Sales $ 742,661 342,080 281,939 118,642 - -

Reported net $ 73,921 incomeReported 28,180 income taxesReported 102,101 26,813 84,425 12,195 (13,609 ) (7,723 )income beforeincome taxesAdjustments:Restructuring 1,737 1,259 (113 ) 112 479 initiativesTransactioncosts related 1,059 1,059 toacquisitionsPurchaseaccountingadjustments 222 222 related toacquisitionsandinvestmentsAdjustedearnings 105,119 28,072 85,593 12,307 (13,130 ) (7,723 )before incometaxesInterest 8,756 8,756 expenseInterest (1,033 ) (1,033 )incomeAdjustedearningsbefore net 112,842 28,072 85,593 12,307 (13,130 ) - interest andtaxes(AdjustedEBIT)Depreciation 47,867 20,673 16,057 8,637 2,500 - andamortizationPurchaseaccountingadjustmentsincluded in (222 ) (222 )DepreciationandamortizationaboveAdjustedearningsbefore netinterest,taxes, $ 160,487 $ 48,745 $ 101,428 $ 20,944 $ (10,630 ) $ - depreciationandamortization(AdjustedEBITDA) AdjustedEBITDAmargins 21.6 % 14.2 % 36.0 % 17.7 %(AdjustedEBITDA /Reported NetSales)

AptarGroup, Inc.Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)($ In Thousands) Six Months Ended June 30, 2020 Consolidated Beauty + Pharma Food + Corporate & Net Home Beverage Other InterestNet Sales $ 1,420,858 624,346 598,455 198,057 - -

Reported net $ 97,110 incomeReported 41,594 income taxesReported 138,704 (5,647 ) 175,321 14,481 (28,679 ) (16,772 )income beforeincome taxesAdjustments:Restructuring 12,170 12,231 (142 ) 178 (97 )initiativesTransactioncosts related 4,591 4,591 toacquisitionsPurchaseaccountingadjustments 4,642 3,221 1,421 related toacquisitionsandinvestmentsAdjustedearnings 160,107 14,396 176,600 14,659 (28,776 ) (16,772 )before incometaxesInterest 17,122 17,122 expenseInterest (350 ) (350 )incomeAdjustedearningsbefore net 176,879 14,396 176,600 14,659 (28,776 ) - interest andtaxes(AdjustedEBIT)Depreciation 107,235 46,525 36,508 18,533 5,669 - andamortizationPurchaseaccountingadjustmentsincluded in (3,367 ) (2,700 ) (667 )DepreciationandamortizationaboveAdjustedearningsbefore netinterest,taxes, $ 280,747 $ 58,221 $ 212,441 $ 33,192 $ (23,107 ) $ - depreciationandamortization(AdjustedEBITDA) AdjustedEBITDAmargins 19.8 % 9.3 % 35.5 % 16.8 %(AdjustedEBITDA /Reported NetSales) Six Months Ended June 30, 2019 Consolidated Beauty + Pharma Food + Corporate & Net Home Beverage Other InterestNet Sales $ 1,487,121 709,739 554,640 222,742 - -

Reported net $ 136,920 incomeReported 55,180 income taxesReported 192,100 50,994 165,683 19,911 (29,299 ) (15,189 )income beforeincome taxesAdjustments:Restructuring 11,267 9,528 213 622 904 initiativesTransactioncosts related 1,059 1,059 toacquisitionsPurchaseaccountingadjustments 222 222 related toacquisitionsandinvestmentsAdjustedearnings 204,648 60,522 167,177 20,533 (28,395 ) (15,189 )before incometaxesInterest 17,970 17,970 expenseInterest (2,781 ) (2,781 )incomeAdjustedearningsbefore net 219,837 60,522 167,177 20,533 (28,395 ) - interest andtaxes(AdjustedEBIT)Depreciation 95,356 41,414 31,830 17,102 5,010 - andamortizationPurchaseaccountingadjustmentsincluded in (222 ) (222 )DepreciationandamortizationaboveAdjustedearningsbefore netinterest,taxes, $ 314,971 $ 101,936 $ 198,785 $ 37,635 $ (23,385 ) $ - depreciationandamortization(AdjustedEBITDA) AdjustedEBITDAmargins 21.2 % 14.4 % 35.8 % 16.9 %(AdjustedEBITDA /Reported NetSales)

AptarGroup, Inc.Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)(In Thousands, Except Per Share Data) Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

Income before Income $ 60,668 $ 102,101 $ 138,704 $ 192,100 Taxes Adjustments:Restructuring initiatives 7,331 1,737 12,170 11,267

Transaction costs related 3,207 1,059 4,591 1,059 to acquisitionsPurchase accountingadjustments related to 3,252 222 4,642 222 acquisitions andinvestmentsForeign currency effects (1,136 ) (3,348 )(1)Adjusted Earnings before $ 74,458 $ 103,983 $ 160,107 $ 201,300 Income Taxes Provision for Income $ 18,808 $ 28,180 $ 41,594 $ 55,180 Taxes Adjustments:Restructuring initiatives 1,503 488 2,702 3,166

Transaction costs related 481 53 689 53 to acquisitionsPurchase accountingadjustments related to 727 42 1,026 42 acquisitions andinvestmentsForeign currency effects (314 ) (962 )(1)Adjusted Provision for $ 21,519 $ 28,449 $ 46,011 $ 57,479 Income Taxes Net Income Attributable $ (21 ) $ (6 ) $ (18 ) $ (1 )to NoncontrollingInterests Net Income Attributable $ 41,839 $ 73,915 $ 97,092 $ 136,919 to AptarGroup, Inc. Adjustments:Restructuring initiatives 5,828 1,249 9,468 8,101

Transaction costs related 2,726 1,006 3,902 1,006 to acquisitionsPurchase accountingadjustments related to 2,525 180 3,616 180 acquisitions andinvestmentsForeign currency effects (822 ) (2,386 )(1)Adjusted Net Income $ 52,918 $ 75,528 $ 114,078 $ 143,820 Attributable toAptarGroup, Inc. Average Number of Diluted 66,384 66,232 66,246 65,842 Shares Outstanding Net Income Attributable $ 0.63 $ 1.12 $ 1.47 $ 2.08 to AptarGroup, Inc. PerDiluted Share Adjustments:Restructuring initiatives 0.09 0.02 0.14 0.12

Transaction costs related 0.04 0.01 0.06 0.02 to acquisitionsPurchase accountingadjustments related to 0.04 - 0.05 - acquisitions andinvestmentsForeign currency effects (0.01 ) (0.04 )(1)Adjusted Net IncomeAttributable to $ 0.80 $ 1.14 $ 1.72 $ 2.18 AptarGroup, Inc. PerDiluted Share (1) Foreign currency effects are approximations of the adjustment necessary tostate the prior year earnings and earnings per share using current periodforeign currency exchange rates.

AptarGroup, Inc.Reconciliation of Free Cash Flow to Net Cash Provided by Operations (Unaudited)(In Thousands) Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

Net Cash Provided by Operations $ 142,653 $ 143,504 $ 227,686 $ 221,140

Less:Capital Expenditures $ 61,361 $ 73,032 $ 122,986 $ 124,774

Free Cash Flow $ 81,292 $ 70,472 $ 104,700 $ 96,366

AptarGroup, Inc.Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)(In Thousands, Except Per Share Data) Three Months Ending September 30, Expected 2019 2020 Income before Income Taxes $ 82,273

Adjustments:Restructuring initiatives 6,019

Transaction costs related to acquisitions 708

Purchase accounting adjustments related to acquisitions 647 and investmentsForeign currency effects (1) 2,225

Adjusted Earnings before Income Taxes $ 91,872

Provision for Income Taxes $ 25,504

Adjustments:Restructuring initiatives 1,691

Transaction costs related to acquisitions 101

Purchase accounting adjustments related to acquisitions 123 and investmentsForeign currency effects (1) 690

Adjusted Provision for Income Taxes $ 28,109

Net Income Attributable to Noncontrolling Interests $ (19 )

Net Income Attributable to AptarGroup, Inc. $ 56,750

Adjustments:Restructuring initiatives 4,328

Transaction costs related to acquisitions 607

Purchase accounting adjustments related to acquisitions 524 and investmentsForeign currency effects (1) 1,535

Adjusted Net Income Attributable to AptarGroup, Inc. $ 63,744

Average Number of Diluted Shares Outstanding 66,702

Net Income Attributable to AptarGroup, Inc. Per Diluted $ 0.85 Share (2) Adjustments:Restructuring initiatives 0.06

Transaction costs related to acquisitions 0.01

Purchase accounting adjustments related to acquisitions 0.01 and investmentsForeign currency effects (1) 0.02

Adjusted Net Income Attributable to AptarGroup, Inc. Per $0.80 - $ 0.95 Diluted Share (2) $0.88 (1) Foreign currency effects are approximations of the adjustment necessary tostate the prior year earnings per share using foreigncurrency exchange rates as of June 30, 2020, with the exception of the euro forwhich a 1.15 rate was used.(2) AptarGroup's expected earnings per share range for the third quarter of2020 is based on an effective tax rate range of 28% to 30%.This tax rate range compares to our third quarter of 2019 effective tax rate of31% on reported and adjusted earnings per share.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200730006019/en/

CONTACT: Investor Relations Contact: Matt DellaMaria matt.dellamaria@aptar.com 815-479-5530

CONTACT: Media Contact: Katie Reardon katie.reardon@aptar.com 815-479-5671