-----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, WjbJKMod5eax/JOiv3RZ2bq3v+tTemR+GDrRdn0wlYrOON6PTrrro/OMd/pCpucs 4zi0HtMn1xEw155uXRjczA== 0000880224-04-000006.txt : 20040427 0000880224-04-000006.hdr.sgml : 20040427 20040427134434 ACCESSION NUMBER: 0000880224-04-000006 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040427 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: 04756359 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 pressreleaseapril2604.txt FIRST QUARTER 2004 PRESS RELEASE 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 April, 2004 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 information 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: April 26, 2004 By: /s/Andrew M. Archibald Chief Financial Officer, Secretary, Vice President, Administration NYSE SYMBOL: ITP TSX SYMBOL: ITP Intertape Polymer Group Inc. Announces Solid First Quarter Sales Montreal & Bradenton, Florida--April 26, 2004--Intertape Polymer Group Inc. (NYSE, TSX:ITP) today released results for the first quarter ended March 31, 2004. "While we experienced solid sales growth, we encountered difficulties in passing along rapidly increasing raw material prices, as well as incurring increases in manufacturing costs," said Intertape Polymer Group Inc. (IPG) Chairman and Chief Executive Officer, Melbourne F. Yull. Operating Results First quarter net income was $2.3 million, or $0.06 per share (basic and diluted), compared to $2.9 million or $0.09 per share (basic and diluted) for the first quarter of 2003. The decrease in net income was primarily attributable to higher cost of sales, as reflected in this quarter's lower gross margin. Sales for the first quarter were $162.1 million, up 5.5% compared to the corresponding quarter last year. "We are encouraged by the success of our marketing and sales initiatives and, with the momentum that was building up in the latter part of the first quarter, we believe that our annual revenue growth target of 10% remains achievable," said Mr. Yull. Gross margin for the first quarter decreased to 19.8% from 22.0% in the corresponding quarter last year due to several factors, including delays in passing through some raw material cost increases related to polypropylene and natural rubber, changes in product mix, production problems in the Truro plant, and unanticipated integration costs at the Columbia plant relating to the acquisition of assets from tesa tape, inc. Mr. Yull remarked, "We are currently achieving some price increases and should see the impact of these in our second quarter results." Selling, general and administrative expenses were $22.4 million in the first quarter of 2004, compared to $22.0 for the first quarter of 2003. "New expenses related to stock-based compensation and the acquisition of our partner's 50% interest in Fibope in mid-2003 were offset by cost reductions in other areas," noted IPG's Chief Financial Officer, Andrew M. Archibald, C.A. "The first quarter was at the lower end of our expected run rate for SG&A expenses of $22.5 million to $23.5 million per quarter for 2004." Financial expenses in the first quarter were $6.8 million, compared to $7.7 million for the first quarter last year. The lower financial expenses reflect primarily the impact of debt reduction since the end of the first quarter of 2003, more specifically, $59.0 million of debt reduction over the latter three quarters of 2003. In addition, the Company was able to obtain a reduction in its Facility A interest rate of 100 basis points late last year that also contributed to lower interest costs during the quarter. Mr. Archibald commented, "Our expenses below the gross profit line were down 1.5% compared to the same period last year, and below the fourth quarter 2003 total, even if we exclude the one-time charges of $3.0 million relating to the closure of the Green Bay plant." For the first quarter the Company recorded a net deferred income tax benefit of $0.3 million, compared to income tax expense of $0.3 million in the first quarter of 2003. Liquidity and Capital Resources Cash flows from operating activities were $6.3 million for the first quarter 2004, compared to $0.2 million for the first quarter 2003, mainly as a result of improvements in working capital management. Cash used for investing activities was $11.9 million for the first quarter 2004, compared to $4.4 million for the first quarter 2003, the difference being attributable primarily to the acquisition of assets from, and finalization of the supply agreements with, tesa tape, inc. during the quarter. Cash used for investing activities exceeded cash flows from operating activities by $5.6 million in the quarter. This cash shortfall was funded by an increase of $5.7 million in debt during the quarter. Compared to last year, total debt was down $46.0 million reflecting the debt reductions that occurred during the latter three quarters of 2003. "Although an increase in debt was anticipated in our plans for 2004, our cash flow from operating activities was lower than expected," said Mr. Archibald. Mr. Archibald also noted, "The Company reached an agreement with its Noteholders to amend the fixed charge coverage covenant to reduce the required ratio during 2004 and the first two quarters of 2005, and with the amendment the Company is in compliance with all of its financial covenants for the first quarter of 2004." (All figures in U.S. dollars, unless otherwise stated; March 31, 2004, exchange rate: Cdn $1.3079 equals U.S.$1.00) Conference Call A conference call to discuss IPG's first quarter results will be held Tuesday, April 27, 2004 at 10:00 A.M. Eastern Daylight Time. Participants may dial 1-888-423-3276 (U.S. and Canada) and 1-612-332-0345 (International). The conference call will also be simultaneously webcast on the Company's website at www.intertapepolymer.com. 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 729159. The recording will be available from Tuesday, April 27, 2004 at 5:00 P.M. until Tuesday, May 4, 2004 at 11:59 P.M, Eastern Daylight 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 16 locations, including 12 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. Selected Financial Information Intertape Polymer Group Inc. Consolidated Earnings Three month periods ended (In thousands of US dollars, except per share amounts) (Unaudited) - --------------------------------------------------------------------- March 31, - --------------------------------------------------------------------- 2004 2003 - --------------------------------------------------------------------- $ $ Sales 162,100 153,592 Cost of sales 129,986 119,793 - --------------------------------------------------------------------- Gross profit 32,114 33,799 - --------------------------------------------------------------------- Selling, general and administrative expenses 22,377 21,982 Research and development 962 894 Financial expenses 6,768 7,700 - --------------------------------------------------------------------- 30,107 30,576 - --------------------------------------------------------------------- Earnings before income taxes 2,007 3,223 Income taxes (recovery) (284) 322 - --------------------------------------------------------------------- Net earnings 2,291 2,901 - --------------------------------------------------------------------- - --------------------------------------------------------------------- Earnings per share Basic 0.06 0.09 - --------------------------------------------------------------------- - --------------------------------------------------------------------- Diluted 0.06 0.09 - --------------------------------------------------------------------- - --------------------------------------------------------------------- Consolidated Retained Earnings Three month periods ended (In thousands of US dollars) (Unaudited) - --------------------------------------------------------------------- March 31, - --------------------------------------------------------------------- 2004 2003 - --------------------------------------------------------------------- $ $ Balance, beginning of year 68,291 50,113 Net earnings 2,291 2,901 - --------------------------------------------------------------------- Balance, end of period 70,582 53,014 - --------------------------------------------------------------------- - --------------------------------------------------------------------- Common shares Average number of shares outstanding CDN GAAP - Basic 40,971,739 33,821,074 CDN GAAP - Diluted 41,528,581 33,821,497 U.S. GAAP - Basic 40,971,739 33,821,074 U.S. GAAP - Diluted 41,528,581 33,821,497 Intertape Polymer Group Inc. Consolidated Balance Sheets As at (In thousands of US dollars) March 31, March 31, December 31, 2004 2003 2003 (Unaudited) (Unaudited) (Audited) - --------------------------------------------------------------------- $ $ $ ASSETS Current assets Trade receivables, net of allowance for doubtful accounts of $4,102, ($3,475 in March 2003, $3,911 in December 2003) 99,320 93,221 89,297 Other receivables 11,364 10,554 11,852 Inventories 70,383 65,732 69,956 Parts and supplies 13,344 12,422 13,153 Prepaid expenses 6,820 6,784 7,924 Future income tax assets 2,682 2,397 2,682 - --------------------------------------------------------------------- 203,913 191,110 194,864 Property, plant and equipment 362,066 350,955 354,627 Other assets 12,928 14,518 12,886 Future income taxes 4,700 3,812 Goodwill 176,953 160,248 173,056 - --------------------------------------------------------------------- 760,560 716,831 739,245 LIABILITIES Current liabilities Bank indebtedness 18,922 17,405 13,944 Accounts payable and accrued liabilities 102,072 81,271 95,270 Instalments on long-term debt 34,036 28,600 16,925 - --------------------------------------------------------------------- 155,030 127,276 126,139 Long-term debt 225,936 278,902 235,066 Other liabilities 530 3,530 530 Future income taxes 3,654 - --------------------------------------------------------------------- 381,496 413,362 361,735 SHAREHOLDERS' EQUITY Capital stock and share purchase warrants 287,811 239,185 286,841 Contributed surplus 3,220 3,150 Retained earnings 70,582 53,014 68,291 Accumulated currency translation adjustments 17,451 11,270 19,228 - --------------------------------------------------------------------- 379,064 303,469 377,510 - --------------------------------------------------------------------- 760,560 716,831 739,245 - --------------------------------------------------------------------- - --------------------------------------------------------------------- Intertape Polymer Group Inc. Consolidated Cash Flows Three months ended (In thousands of US dollars) (Unaudited) March 31, 2004 March 31, 2003 - --------------------------------------------------------------------- $ $ OPERATING ACTIVITIES Net earnings 2,291 2,901 Non-cash items Depreciation and amortization 7,123 6,639 Stock-based compensation expense 70 Future income taxes (896) 322 - --------------------------------------------------------------------- Cash flows from operations before changes in non-cash working capital items 8,588 9,862 - --------------------------------------------------------------------- Changes in non-cash working capital items Trade receivables (10,085) (6,371) Other receivables 487 (218) Inventories (512) (3,847) Parts and supplies (191) 100 Prepaid expenses 1,101 1,147 Accounts payable and accrued liabilities 6,938 (522) - --------------------------------------------------------------------- (2,262) (9,711) - --------------------------------------------------------------------- Cash flows from operating activities 6,326 151 - --------------------------------------------------------------------- INVESTING ACTIVITIES Property, plant and equipment (5,820) (2,451) Business acquisition (5,500) Other assets (563) (1,953) - --------------------------------------------------------------------- Cash flows from investing activities (11,883) (4,404) - --------------------------------------------------------------------- FINANCING ACTIVITIES Net change in bank indebtedness 4,933 8,832 Issue of long-term debt 787 Repayment of long-term debt (5,265) Issue of common shares 970 - --------------------------------------------------------------------- Cash flows from financing activities 6,690 3,567 - --------------------------------------------------------------------- Net increase (decrease) in cash position 1,133 (686) Effect of currency translation adjustments (1,133) 686 - --------------------------------------------------------------------- Cash position, beginning and end of year - - - --------------------------------------------------------------------- - --------------------------------------------------------------------- - -------------------------------------------------------------------------------- Contact: Intertape Polymer Group Inc. Melbourne F. Yull Chairman and Chief Executive Officer (866) 202-4713 itp$info@intertapeipg.com www.intertapepolymer.com -----END PRIVACY-ENHANCED MESSAGE-----