AptarGroup(ATR) - 2020 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including statements of income, comprehensive income, balance sheets, changes in equity, and cash flows, along with detailed notes on significant accounting policies, revenue, goodwill, debt, leases, and recent acquisitions Condensed Consolidated Statements of Income Three Months Ended June 30: | Metric | 2020 ($) | 2019 ($) | Change (%) | | :----- | :------- | :------- | :--------- | | Net Sales | 699,305 | 742,661 | -5.84% | | Operating Income | 70,478 | 109,864 | -35.85% | | Net Income | 41,860 | 73,921 | -43.37% | | Basic EPS | 0.65 | 1.16 | -44.00% | | Diluted EPS | 0.63 | 1.12 | -43.75% | | Dividends per Common Share | 0.36 | 0.36 | 0.00% | Six Months Ended June 30: | Metric | 2020 ($) | 2019 ($) | Change (%) | | :----- | :------- | :------- | :--------- | | Net Sales | 1,420,858 | 1,487,121 | -4.45% | | Operating Income | 158,938 | 206,958 | -23.20% | | Net Income | 97,110 | 136,920 | -29.08% | | Basic EPS | 1.51 | 2.17 | -30.41% | | Diluted EPS | 1.47 | 2.08 | -29.47% | | Dividends per Common Share | 0.72 | 0.70 | 2.86% | Condensed Consolidated Statements of Comprehensive Income Three Months Ended June 30: | Metric | 2020 ($) | 2019 ($) | Change (%) | | :----- | :------- | :------- | :--------- | | Net Income | 41,860 | 73,921 | -43.37% | | Foreign currency translation adjustments | 19,096 | 9,414 | 102.85% | | Total other comprehensive income (loss) | 19,803 | 9,651 | 105.19% | | Comprehensive Income | 61,663 | 83,572 | -26.22% | Six Months Ended June 30: | Metric | 2020 ($) | 2019 ($) | Change (%) | | :----- | :------- | :------- | :--------- | | Net Income | 97,110 | 136,920 | -29.08% | | Foreign currency translation adjustments | (23,133) | (197) | -11642.64% | | Total other comprehensive income (loss) | (19,307) | 368 | -5345.92% | | Comprehensive Income | 77,803 | 137,288 | -43.33% | Condensed Consolidated Balance Sheets Assets (June 30, 2020 vs. December 31, 2019): | Asset Category | June 30, 2020 ($) | December 31, 2019 ($) | Change ($) | Change (%) | | :------------- | :---------------- | :-------------------- | :--------- | :--------- | | Cash and equivalents | 247,656 | 241,970 | 5,686 | 2.35% | | Accounts and notes receivable, net | 575,655 | 558,428 | 17,227 | 3.08% | | Inventories | 381,939 | 375,795 | 6,144 | 1.64% | | Total Current Assets | 1,343,571 | 1,291,241 | 52,330 | 4.05% | | Property, Plant and Equipment, net | 1,097,920 | 1,087,678 | 10,242 | 0.94% | | Investments in equity securities | 44,193 | 8,396 | 35,797 | 426.35% | | Goodwill | 861,928 | 763,461 | 98,467 | 12.90% | | Intangible assets, net | 352,740 | 291,084 | 61,656 | 21.18% | | Total Assets | 3,814,016 | 3,562,119 | 251,897 | 7.07% | Liabilities and Stockholders' Equity (June 30, 2020 vs. December 31, 2019): | Liability/Equity Category | June 30, 2020 ($) | December 31, 2019 ($) | Change ($) | Change (%) | | :------------------------ | :---------------- | :-------------------- | :--------- | :--------- | | Notes payable, revolving credit facility and overdrafts | 150,831 | 44,259 | 106,572 | 240.79% | | Current maturities of long-term obligations | 66,248 | 65,988 | 260 | 0.39% | | Accounts payable, accrued and other liabilities | 612,688 | 573,028 | 39,660 | 6.92% | | Total Current Liabilities | 829,767 | 683,275 | 146,492 | 21.44% | | Long-Term Obligations, net | 1,082,742 | 1,085,453 | -2,711 | -0.25% | | Total Liabilities | 2,168,030 | 1,989,867 | 178,163 | 8.95% | | Total Stockholders' Equity | 1,645,986 | 1,572,252 | 73,734 | 4.69% | | Total Liabilities and Stockholders' Equity | 3,814,016 | 3,562,119 | 251,897 | 7.07% | Condensed Consolidated Statements of Changes in Equity Changes in Equity (Six Months Ended June 30, 2020): | Item | Amount ($) | | :--- | :--------- | | Balance - December 31, 2019 | 1,572,252 | | Net income | 97,092 | | Adoption of CECL standard | (1,377) | | Foreign currency translation adjustments | (23,134) | | Changes in unrecognized pension gains (losses) and related amortization, net of tax | 3,076 | | Changes in derivative gains (losses), net of tax | 750 | | Stock awards and option exercises | 43,451 | | Cash dividends declared on common stock | (46,143) | | Balance - June 30, 2020 | 1,645,986 | Condensed Consolidated Statements of Cash Flows Six Months Ended June 30: | Cash Flow Category | 2020 ($) | 2019 ($) | Change ($) | Change (%) | | :----------------- | :------- | :------- | :--------- | :--------- | | Net Cash Provided by Operations | 227,686 | 221,140 | 6,546 | 2.96% | | Net Cash Used by Investing Activities | (317,127) | (157,158) | -159,969 | -101.79% | | Net Cash Provided (Used) by Financing Activities | 91,340 | (31,775) | 123,115 | 387.46% | | Effect of Exchange Rate Changes on Cash | 8,522 | 3,920 | 4,602 | 117.40% | | Net Increase in Cash and Equivalents and Restricted Cash | 10,421 | 36,127 | -25,706 | -71.16% | | Cash and Equivalents and Restricted Cash at End of Period | 257,394 | 302,950 | -45,556 | -15.04% | - Key Investing Activities (2020): * Capital expenditures: $(122,986) (vs. $(124,774) in 2019) * Acquisition of business, net of cash acquired: $(159,570) (vs. $(49,131) in 2019)