AptarGroup, Inc. (ATR) has reported a 14.27 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $49.58 million, or $0.77 a share in the quarter, compared with $43.39 million, or $0.68 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $44.24 million, or $0.69 a share compared with $41.91 million or $0.65 a share, a year ago.
Revenue during the quarter went down marginally by 1.45 percent to $538.87 million from $546.77 million in the previous year period. Total expenses were 87.88 percent of quarterly revenues, up from 87.75 percent for the same period last year. That has resulted in a contraction of 13 basis points in operating margin to 12.12 percent.
Operating income for the quarter was $65.33 million, compared with $66.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $107.96 million compared with $104.14 million in the prior year period. At the same time, adjusted EBITDA margin improved 99 basis points in the quarter to 20.03 percent from 19.05 percent in the last year period.
As previously reported, Stephan B. Tanda was appointed president and chief executive officer effective February 1, 2017, succeeding Stephen J. Hagge who had earlier announced his intention to retire after 35 years of distinguished service. Mr. Hagge will remain with AptarGroup until the end of March to facilitate a smooth transition and will continue to serve on AptarGroup’s Board of Directors.
For the first-quarter 2017, AptarGroup, Inc. projects diluted earnings per share to be in the range of $0.72 to $0.77. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.72 to $0.77.
Working capital declines
AptarGroup, Inc. has witnessed a decline in the working capital over the last year. It stood at $727.22 million as at Dec. 31, 2016, down 17.65 percent or $155.88 million from $883.09 million on Dec. 31, 2015. Current ratio was at 2.34 as on Dec. 31, 2016, down from 3.14 on Dec. 31, 2015.
Debt moves up
AptarGroup, Inc. has witnessed an increase in total debt over the last one year. It stood at $946.55 million as on Dec. 31, 2016, up 15.74 percent or $128.74 million from $817.82 million on Dec. 31, 2015. Total debt was 36.31 percent of total assets as on Dec. 31, 2016, compared with 33.53 percent on Dec. 31, 2015. Debt to equity ratio was at 0.81 as on Dec. 31, 2016, up from 0.71 as on Dec. 31, 2015. Interest coverage ratio improved to 7.52 for the quarter from 7.31 for the same period last year.
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