-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S+T2Nd8FnEZjtaJ8cp/XOGeDIkjxHhhuvC0/ydY0Mne/G0Nhf4al99UbZsdy2NGc s70ED+CnVcjChWAdge0RPw== 0000880224-03-000037.txt : 20031104 0000880224-03-000037.hdr.sgml : 20031104 20031104123802 ACCESSION NUMBER: 0000880224-03-000037 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20031104 FILED AS OF DATE: 20031104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERTAPE POLYMER GROUP INC CENTRAL INDEX KEY: 0000880224 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 000000000 STATE OF INCORPORATION: A8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10928 FILM NUMBER: 03975261 BUSINESS ADDRESS: STREET 1: 110E MONTEE DE LIESSE STREET 2: ST LAURENT CITY: QUEBEC H4T 1N4 CANAD STATE: A8 BUSINESS PHONE: 5147310731 MAIL ADDRESS: STREET 1: 110 E MONTEE LIESSE CITY: ST LAURENT STATE: A8 ZIP: 00000 6-K 1 ipgthirdquarter2003.txt 2003 THIRD QUARTER RESULTS THE INFORMATION IN THIS FORM 6-K IS IDENTICAL TO THE 6-K FILED EARLIER TODAY. THE SOLE PURPOSE FOR FILING THIS FORM 6-K IS TO CORRECT THE TYPOGRAPHICAL ERROR IN THE HEADER TAGS. ____________________________________________________________ FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 For the month of November, 2003 Intertape Polymer Group Inc. 110E Montee de Liesse St. Laurent, Quebec, Canada, H4T 1N4 [Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.] Form 20-F Form 40-F X [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No X [If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______] The Iinformation contained in this Report is incorporated by reference into Registration Statement No. 333-109944. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTERTAPE POLYMER GROUP INC. Date: November 4, 2003 By: /s/Andrew M. Archibald Chief Financial Officer, Secretary, Vice President, Administration November 3, 2003 NYSE SYMBOL: ITP TSX SYMBOL: ITP Intertape Polymer Group Inc. Reports Earnings Improvement and Debt Repayment for Third Quarter 2003 - Quarterly revenue growth of 6.6% - Quarterly net income increase of $9.0 million - $9.4 million of available cash used to repay debt - Total debt reduction of $50.2 million in quarter Bradenton, Florida - November 3, 2003 - Intertape Polymer Group Inc. (NYSE, TSX: ITP) today released results for the third quarter ended September 30, 2003. "We have made great strides in a number of key areas over the past few quarters, which have not only yielded improved financial results, but also enabled us to strengthen our balance sheet," said Intertape Polymer Group Inc. (IPG) Chairman and Chief Executive Officer, Melbourne F. Yull. "We posted good revenue growth and solid earnings this quarter, notwithstanding disruptions to a number of our operations because of hurricanes and power failures. Additionally, we were able to do an equity issue at the end of September for gross cash proceeds of $42.5 million (Cdn$57.5 million) and net cash proceeds of $40.8 million (Cdn$55.2 million)." The common shares were issued at $7.39 per share (Cdn$10.00 per share) and the proceeds of the issue were used to repay debt. Third Quarter 2003 Third quarter net income was $6.2 million, or $0.18 per share (basic and diluted), compared to a net loss of $2.8 million, or $0.08 per share (basic and diluted) a year ago, and up 59.0% compared to net income of $3.9 million in the preceding quarter of this year. The increase in net income was driven by revenue growth and improved gross margins. Sales for the third quarter were $159.8 million, up 6.6% compared to the corresponding quarter last year, and 6.4% compared to the preceding quarter this year. "We were pleased to see sales were up across all product lines this quarter," said Mr. Yull. "Our revenue growth, in what was a weak economic environment for the packaging sector, reflects the success of our efforts over the past several quarters to introduce new products to meet customer needs and to strengthen relationships with our product distributors." Gross margin for the third quarter increased to 22.7% from 18.9% (21.3% excluding one-time charges) in the corresponding quarter last year, resulting from selling price increases, waste reduction programs implemented earlier this year, and the use of lower cost inputs for certain products. Selling, general and administrative expenses were $22.3 million in the third quarter of 2003, compared to $22.3 million ($21.0 million excluding one-time charges) for the third quarter of 2002. IPG's Chief Financial Officer, Andrew M. Archibald, C.A. noted that SG&A expenses were up as a result of higher selling costs related to increased sales in certain distribution channels and the effect of consolidating the additional 50% interest in Fibope recently acquired. Financial expenses in the third quarter were $7.4 million compared to $8.3 million in the third quarter last year, reflecting lower debt levels compared to the same period last year. The common share issue completed at the end of September had no impact on the reduction of financial expenses. Income tax expense reported for the first half of the year was based on the Company's historical current income tax expense rate. In recent years, current taxes have been offset by deferred income tax benefits. The Company has taken a conservative approach to recognizing these deferred income tax benefits, wanting to make sure that the benefits are not recognized prematurely. With nine months of the year's operating results now available, the Company believes it has sufficient information to recognize deferred income tax benefits in the amount of $1.9 million for the third quarter. Spending on property, plant and equipment was $4.6 million in the third quarter of 2003, compared to $3.1 million for the same quarter in 2002, reflecting the Company's continuing policy of tight controls on capital investment. Cash flows from operating activities less cash used for investing activities was $9.2 million for the third quarter 2003, compared to a net utilization of cash of $8.3 million for the third quarter 2002. The excess cash generated in the quarter was used to repay debt. First Nine Months of 2003 First nine months net income was $13.0 million, or $0.38 per share (basic and diluted), compared to net income of $4.3 million, or $0.13 per share (basic and diluted) a year ago. Sales for the first nine months of 2003 were $463.6 million compared to $450.3 million for the first nine months last year, an increase of 3.0%, which should be sustainable for the balance of the year. Gross margin for the first nine months of 2003 was 22.5% compared to 21.3% (22.0% excluding one-time charges) for the first nine months of 2002. Selling, general and administrative expenses for the nine months were $65.1 million, compared to $63.1 million ($61.8 million excluding one-time charges) a year ago, due to higher selling costs related to increased sales, particularly in certain distribution channels, and the effect of consolidating the recently acquired additional 50% interest in Fibope. Financial expenses in the first nine months were $22.9 million compared to $25.2 million in the first nine months of last year. The lower financial expenses reflect primarily the impact of debt reduction since the end of the third quarter of 2002. Spending on property, plant and equipment was $9.7 million in the first nine months of 2003, compared to $9.6 million for the corresponding period last year. Cash flows from operating activities less cash used for investing activities was $14.6 million for the first nine months of 2003, compared to a net utilization of cash of $6.8 million for the same period last year. The excess cash generated during the period was used to repay debt. "The Company would have generated $21.9 million in excess cash so far this year if it were not for payments of $7.3 million made to settle an outstanding lawsuit of $6.0 million and reduce the actuarial deficit of one of the Company's pension plans by $1.3 million," remarked Mr. Archibald. "As a result of these payments, the outlook for excess cash in 2003 is reduced from $29.0 million to approximately $22.0 million." Balance Sheet Improvements "We have made a significant reduction in our debt and interest expense this year," noted Mr. Archibald. Total debt decreased by $50.2 million in the third quarter, bringing total debt outstanding to $269.6 million as at September 30, 2003, compared to $321.3 million as at December 31, 2002 and $347.6 million a year ago. The debt was repaid with the $40.8 million of net proceeds from the common share issue and $9.4 million of available cash flow. As part of the reductions, the remaining amount outstanding on the Facility C bank loan was totally repaid, two years prior to maturity, enabling the Company to secure a Facility A interest rate reduction of 100 basis points. Of the $16.9 million current portion of long-term debt, $16.0 million is due only in September 2004, as the first of the scheduled Note repayments. As of September 30, 2003, borrowings under Facility A, less cash, were $18.4 million. Facility A is the Company's $50.0 million committed two-year revolving bank credit facility. Conclusion "The third quarter numbers reflect the results of our increased focus in four key areas: new products, relationships with our product distributors, cost reductions, and debt reductions," said Mr. Yull. "With each passing quarter, we are seeing good progress on all fronts, and we intend to continue on this path. All-in-all, I believe we should be able to continue increasing our overall profitability in the years ahead and are well-positioned to benefit from economic recovery as it occurs." (All figures in U.S. dollars, unless otherwise stated; September 30, 2003, exchange rate: Cdn $1.3546=U.S.$1.00) Conference Call A conference call to discuss IPG's third quarter results will be held Tuesday, November 4, 2003 at 10:00 A.M. Eastern Standard Time. Participants may dial 1-888-428-4472 (U.S. and Canada) and 1-651-291-0900 (International). The conference call will also be simultaneously webcast on the Company's website at http://www.intertapepolymer.com. (Go to Financial Information, Conference Call Access for live Webcast). You may access a replay of the call by dialing 1-800-475-6701 (U.S. and Canada); 1-320-365-3844 (International) and entering the passcode 703112. The recording will be available from Tuesday, November 4, 2003 at 5:00 P.M. until Tuesday, November 11, 2003 at 11:59 P.M, Eastern Standard Time. About Intertape Polymer Group Intertape Polymer Group is a recognized leader in the development and manufacture of specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the Company employs approximately 2,600 employees with operations in 19 locations, including 14 manufacturing facilities in North America and one in Europe. Safe Harbor Statement Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company undertakes no duty to update its forward- looking statements, including its earnings outlook. FOR INFORMATION CONTACT: Melbourne F. Yull Chairman and Chief Executive Officer Intertape Polymer Group Inc. Tel.: 866-202-4713 E-mail:itp$info@intertapeipg.com Web: www.intertapepolymer.com Selected Financial Information Intertape Polymer Group Inc. Consolidated Earnings Periods ended September 30, (In thousands of US dollars, except per share amounts) _______________________________________________________________________________ Three months Nine months ________________________________________________ 2003 2002 2003 2002 $ $ $ $ Sales 159,798 149,920 463,639 450,314 Cost of sales 123,489 121,532 359,448 354,566 _______ _______ _______ _______ Gross profit 36,309 28,388 104,191 95,748 _______ _______ _______ _______ Selling, general and administrative expenses 22,264 22,309 65,076 63,062 Research and development 1,080 926 3,060 2,689 Financial expenses 7,409 8,297 22,934 25,152 _______ _______ _______ _______ 30,753 31,532 91,070 90,903 _______ _______ _______ _______ Earnings before income taxes 5,556 (3,144) 13,121 4,845 Future income taxes (recovery) (643) (357) 118 525 _______ _______ _______ _______ Net earnings 6,199 (2,787) 13,003 4,320 _______ _______ _______ _______ Earnings per share Basic 0.18 (0.08) 0.38 0.13 Diluted 0.18 (0.08) 0.38 0.13 Consolidated Retained Earnings Periods ended (In thousands of US dollars) _______________________________________________________________________________ Three months Nine months ________________________________________________ 2003 2002 2003 2002 $ $ $ $ Balance, beginning of period 56,918 111,674 50,114 104,567 Net earnings 6,199 (2,787) 13,003 4,320 _______ _______ _______ _______ Balance, end of period 63,117 108,887 63,117 108,887 _______ _______ _______ _______ Common shares Average number of shares outstanding CDN GAAP - Basic 35,302,174 33,701,307 34,318,592 32,469,521 CDN GAAP - Diluted 35,397,800 33,701,307 34,409,403 32,900,516 U.S. GAAP - Basic 35,302,174 33,701,307 34,318,592 32,469,521 U.S. GAAP - Diluted 35,397,800 33,701,307 34,409,403 32,900,516 Intertape Polymer Group Inc. Consolidated Balance Sheets As at (In thousands of US dollars)
September 30, 2003 September 30, 2002 December 31, 2002 $ $ $ ASSETS Current assets Trade receivables (net of allowance for doubtful accounts of $3,274 ($3,552 in September 2002, $3,844 in December 2002) 97,034 94,996 86,169 Other receivables 10,155 11,137 10,201 Inventories 67,128 71,637 60,969 Parts and supplies 13,046 12,566 12,377 Prepaid expenses 5,917 4,711 7,884 Future income tax assets 2,397 4,025 2,397 _______ _______ _______ 195,677 199,072 179,997 Property, plant and equipment 355,297 357,041 351,530 Other assets 12,137 12,508 13,178 Goodwill 172,007 228,525 158,639 _______ _______ _______ 735,118 797,146 703,344 _______ _______ _______
LIABILITIES Current liabilities Bank indebtedness 18,376 25,992 8,573 Accounts payable and accrued liabilities 92,739 73,433 80,916 Instalments on long-term debt 16,886 9,929 29,268 _______ _______ _______ 128,001 109,354 118,757 Long-term debt 234,353 311,722 283,498 Other liabilities 3,530 3,785 3,550 Future income taxes 2,623 22,112 4,446 _______ _______ _______ 368,507 446,973 410,251 _______ _______ _______
SHAREHOLDERS' EQUITY Capital stock and share purchase warrants 289,367 238,538 239,185 Retained earnings 63,117 108,887 50,113 Accumulated currency translation adjustments 14,127 2,748 3,795 _______ _______ _______ 366,611 350,173 293,093 _______ _______ _______ 735,118 797,146 703,344 _______ _______ _______
Intertape Polymer Group Inc. Consolidated Cash Flows Periods ended September 30, (In thousands of US dollars)
Three months Nine months _______________________________ _____________________________ 2003 2002 2003 2002 ______________ ____________ ______________ ____________ $ $ $ $ OPERATING ACTIVITIES Net earnings 6,199 (2,787) 13,003 4,320 Non-cash items Depreciation and amortization 8,226 7,342 21,589 21,006 Loss on disposal of property, plant and equipment 1,250 1,250 Future income taxes (1,926) (357) (1,166) 525 _____________ ___________ ______________ ____________ Cash from operations before changes in non-cash working capital items 12,499 5,448 33,426 27,101 _____________ ___________ ______________ ____________
Changes in non-cash working capital items Trade receivables (6,635) (5,237) (9,357) (8,350) Other receivables (70) 1,877 46 2,655 Inventories 5,029 4,713 (3,118) (815) Parts and supplies (545) (122) (669) (655) Prepaid expenses 212 1,423 2,057 4,744 Accounts payable and accrued liabilities 9,667 (11,981) 8,859 (18,283) _____________ ___________ ______________ ____________ 7,658 (9,327) (2,182) (20,704) _____________ ___________ ______________ ____________ Cash flows from operating activities 20,157 (3,879) 31,244 6,397 _____________ ___________ ______________ ____________ INVESTING ACTIVITIES Property, plant and equipment (4,620) (3,119) (9,700) (9,586) Goodwill (6,217) (6,217) Other assets (75) (1,323) (683) (3,594) _____________ ___________ ______________ ____________ Cash flows from investing activities (10,912) (4,442) (16,600) (13,180) _____________ ___________ ______________ ____________ FINANCING ACTIVITIES Net change in bank indebtedness (5,762) 6,269 9,413 (2,106) Repayment of long-term debt (43,212) (3,635) (64,329) (41,324) Issue of common shares 42,457 1,716 42,457 49,042 _____________ ___________ ______________ ____________ Cash flows from financing activities (6,517) 4,350 (12,459) 5,612 _____________ ___________ ______________ ____________ Net increase (decrease) in cash position 2,728 (3,971) 2,185 (1,171) Effect of foreign currency translation adjustments (2,728) 3,971 (2,185) 1,171 _____________ ___________ ______________ ____________ Cash position, beginning and end of year - - - - _____________ ___________ ______________ ____________
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