-----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, ImF+zSFys3cdh6Meo975LIMCIoMo/YokWZaDv79Fb2Jvz7T0rmYF3U33u4t2S5/f /NRJZRsuu3D545IxY0cVaw== 0000912057-00-000638.txt : 20000202 0000912057-00-000638.hdr.sgml : 20000202 ACCESSION NUMBER: 0000912057-00-000638 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 20000110 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: SEC FILE NUMBER: 001-10928 FILM NUMBER: 503895 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 FORM 6-K INTERTAPE POLYMER GROUP INC. 1999 3RD QUARTERLY REPORT MESSAGE TO SHAREHOLDERS Dear Shareholders, Intertape's third quarter produced yet another record performance, with significant growth in revenue during the period. Contributing to this were both increased sales throughout all product lines, as well as the sales resulting from the finalization of the recent acquisitions. The achievements of IPG's third quarter confirm the continued strength of the Company. They are as follows: - Sales: Increased 72.7% to $ 161.5 MM - Gross Margins: Were 26.4% - Net Earnings: Up 36.0% to $10.2MM - Earnings Per Share: Increased by 20.0% to $0.36 In the beginning of the quarter, Intertape completed the acquisitions of both Central Products Company (CPC) and the purchase of all the assets of Spinnaker Electrical Tape Company (SETco). The addition of the CPC and SETco product lines of industrial and specialty tapes, will further allow IPG to enhance its existing product lines, and realize potential in exciting new businesses, while strengthening Intertape's presence in the packaging market. While continuing to trade on the Toronto Stock Exchange (TSE), the Company de-listed its shares on the American Stock Exchange (AMEX) on August 16th, and began trading on the New York Stock Exchange (NYSE). The move is part of the Company's strategic plan to expand IPG's worldwide presence, and gain a higher profile within the financial community. Further enhancing the shareholders' value though these many avenues of growth is a major focus for IPG. A second major focus is to achieve a true operating excellence in all of our facilities. The Company recently implemented a previously announced $17 million plan to provide additional plant improvements in Truro, Nova Scotia. Our timing to considerably increase capacity by 30% at the Truro plant has proven to be impeccable. Sales of Woven Coated Products have never been at such a strong level. The same can be said for Stretch Wrap and Shrink Films. In both cases we brought 25% more manufacturing capabilities on stream, which will take care of our customers' increased needs throughout 2000. This years capital investments have increased capacity and improved service levels, which assure that IPG remains the industry low cost producer. This is critical as our "Basket-of-Products" Program expands during 2000. We are in excellent shape in this regard and I expect our capital expenditure requirements to be substantially reduced from this year. Selling, General & Administrative (SG&A) costs have risen slightly to approximately 12.3% of sales, as a result of the combination of multiple acquisitions plus continued internal growth. Beginning with the completion of our IS systems, we fully expect to reduce SG&A costs in the upcoming months. Our two-year target is 10% of sales. Plastic raw material costs have increased steadily. However, the combination of cost reduction programs in operations and higher selling prices, will enable the Company to maintain its strong gross margins as a percent of sales. In conclusion, Intertape's record performance over the last nine years has been accomplished by being in key markets, with a clear and focused strategy, and sound execution. We intend to remain on that course. As always, your confidence and continued support as an Intertape shareholder is instrumental to our success. Melbourne F. Yull Chairman and Chief Executive Officer November 1, 1999 CONSOLIDATED EARNINGS (Unaudited) In thousands of U.S. dollars, except per share amounts, Using Canadian GAAP (Note 1)
- ------------------------------------------------------------------------------------------------------------------------ For the Period ended September 30, Three Months Nine Months 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------ SALES $ 161, 470 $ 93, 447 $ 416,174 $ 256,433 Cost of sales 118,893 67,228 302,197 183,631 - ------------------------------------------------------------------------------------------------------------------------ GROSS PROFIT $ 42,577 $ 26,219 $ 113,977 $ 72,802 - ------------------------------------------------------------------------------------------------------------------------ Selling, general and administrative expenses 19,918 11,007 51,975 31,270 Amortization of goodwill 1,436 727 3,916 2,181 Research and development 1,003 730 2,582 2,189 Financial expenses 5,806 3,128 15,956 7,875 - ------------------------------------------------------------------------------------------------------------------------ $ 28,163 $ 15,592 $ 74,429 $ 43,515 - ------------------------------------------------------------------------------------------------------------------------ Earnings before income taxes 14,414 10,627 39,548 29,287 Income taxes 4,180 3,087 11,469 8,465 - ------------------------------------------------------------------------------------------------------------------------ NET EARNINGS FOR THE PERIOD $ 10,234 $ 7,540 $ 28,079 $ 20,822 - ------------------------------------------------------------------------------------------------------------------------ Retained earnings - beginning of period 103,170 69,715 88,318 58,563 Dividend - - (2,993) (2,130) - ------------------------------------------------------------------------------------------------------------------------ RETAINED EARNINGS - END OF PERIOD $ 113,404 $ 77,255 $ 113,404 $ 77,255 - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Earnings per Share Three Months Nine Months 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------ Cdn GAAP - US $ $ 0.36 $ 0.30 $ 1.02 $ 0.83 Cdn GAAP - Fully diluted - US $ $ 0.35 $ 0.29 $ 0.98 $ 0.80 U.S. GAAP - US $ $ 0.36 $ 0.30 $ 1.02 $ 0.83 U.S. GAAP - Fully diluted - US $ $ 0.35 $ 0.29 $ 0.99 $ 0.80 - ---------------------------------------------------------------------------------------------------------------------- Cdn GAAP - CDN $ $ 0.53 $ 0.46 $ 1.52 $ 1.27 Cdn GAAP - Fully diluted - CDN $ $ 0.51 $ 0.44 $ 1.45 $ 1.22 - ----------------------------------------------------------------------------------------------------------------------
Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months, copies of which are available from the SEC or may be obtained upon request from the Company. NOTE 1. CHANGE OF REPORTING CURRENCY The financial statements of the Company were presented in Canadian dollars up to December 31, 1998. As a result of its increasing U.S. activities, the Company adopted the U.S. dollar as its reporting currency commencing January 1, 1999. The Canadian self-sustained operations of the Company have been translated using the current rate method. The prior years' financial statements have been converted in accordance with the Translation of Convenience Method using the closing exchange rate at December 31, 1998 of Cdn$1.5305 for US$1.00. THIRD QUARTER HIGHLIGHTS Sales In millions of US $ 56.5 64.0 82.8 109.4 126.6 168.7 256.5 416.2 9 months ended September 17.9 22.4 29.3 37.2 47.6 58.3 93.4 161.5 3 months ended September 1992 1993 1994 1995 1996 1997 1998 1999
Gross Profit In millions of US $ 14.6 17.4 23.6 31.8 37.9 46.4 72.8 114 9 months ended September 4.6 6.2 8.6 11.1 13.7 16.1 26.2 42.6 3 months ended September 1992 1993 1994 1995 1996 1997 1998 1999
Gross Margin As a percentage of sales 25.8% 27.2% 28.5% 29.0% 29.9% 27.5% 28.4% 27.4% 9 months ended September 25.8% 27.7% 29.1% 29.9% 28.8% 27.7% 28.0% 26.4% 3 months ended September 1992 1993 1994 1995 1996 1997 1998 1999
Net Earnings (CDN GAAP) In millions of US $ 2.7 4.4 6.5 10.1 13.7 15.3 20.8 28.1 9 months ended September 0.9 1.8 2.5 3.6 4.8 5.4 7.5 10.2 3 months ended September 1992 1993 1994 1995 1996 1997 1998 1999
Earnings per share (CDN GAAP) In US dollars 0.14 0.22 0.32 0.50 0.56 0.62 0.83 1.02 9 months ended September 0.05 0.09 0.12 0.18 0.20 0.22 0.30 0.36 3 months ended September 1992 1993 1994 1995 1996 1997 1998 1999
Book value per share In US dollars 3.0 3.1 3.5 4.0 5.9 6.7 7.3 10.7 For the period ending September 1992 1993 1994 1995 1996 1997 1998 1999
CONSOLIDATED CHANGES IN CASH RESOURCES (Unaudited) In thousands of U.S. dollars, Using Canadian GAAP (Note 1)
- ------------------------------------------------------------------------------------------------------------------------ For the Period ended September 30, Three Months Nine Months 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net earnings for the period $ 10,234 $ 7,540 $ 28,079 $ 20,822 Non-cash items Depreciation and amortization 9,089 5,156 23,775 13,839 Deferred income taxes 2,926 - 5,826 - - ------------------------------------------------------------------------------------------------------------------------ Cash from operations before funding of changes in non-cash working capital items 22,249 12,696 57,680 34,661 Changes in non-cash working capital items (2,650) 3,366 (19,647) (25,257) - ------------------------------------------------------------------------------------------------------------------------ SOURCE OF CASH DURING THE PERIOD $ 19,599 $ 16,062 $ 38,033 $ 9,404 - ------------------------------------------------------------------------------------------------------------------------ FINANCING Net change in bank indebtedness (46,757) 109,537 (72,692) 127,240 Issue of long-term debt 181,980 1,288 181,980 131,038 Repayment of long-term debt (24,459) (2,045) (59,324) (116,675) Issue of common shares 218 169 79,021 913 Dividend - - (2,993) (2,130) - ------------------------------------------------------------------------------------------------------------------------ SOURCE OF CASH DURING THE PERIOD $ 110,982 $ 108,949 $ 125,992 $ 140,386 - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT Business acquisitions (110,242) (105,110) (110,242) (105,110) Capital assets (18,227) (10,753) (45,758) (32,396) Other assets (6,800) (2,455) (16,871) (6,237) - ------------------------------------------------------------------------------------------------------------------------ USE OF CASH DURING THE PERIOD $ (135,269) $ (118,318) $ (172,871) $ (143,743) - ------------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN CASH DURING THE PERIOD (4,688) 6,693 (8,846) 6,047 Effect of foreign currency translation adjustments 4,202 (6,495) 8,360 (5,849) Cash (bank indebtedness) assumed on business acquisitions 486 (198) 486 (198) Cash, beginning of period - - - - - ------------------------------------------------------------------------------------------------------------------------ CASH, END OF PERIOD $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (Unaudited) In thousands of U.S. dollars, Using Canadian GAAP (Note 1)
- ------------------------------------------------------------------------------------------------------------------------ As at September 30, 1999 1998 - ------------------------------------------------------------------------------------------------------------------------ ASSETS Current assets $ 222,624 $ 154,811 Capital assets 358,372 245,761 Goodwill and other assets, at amortized cost 254,922 183,945 - ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ 835,918 $ 584,517 - ------------------------------------------------------------------------------------------------------------------------ LIABILITES Current liabilities $ 150,342 $ 216,794 Long-term debt and other 381,214 184,444 - ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $ 531,556 $ 401,238 - ------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 304,362 183,279 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $ 835,918 $ 584,517 - ------------------------------------------------------------------------------------------------------------------------
COMMON SHARES
- ------------------------------------------------------------------------------------------------------------------------ Average number of shares outstanding 3 Months Ended 9 Months Ended 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------ Canadian GAAP 28,531,518 25,155,000 27,510,433 25,106,400 Canadian GAAP - Fully diluted 30,938,028 27,170,820 29,823,446 27,122,220 U.S. GAAP 28,531,518 25,155,000 27,510,433 25,106,400 U.S. GAAP - Fully diluted 29,560,516 26,243,032 28,454,004 26,153,892 - ------------------------------------------------------------------------------------------------------------------------
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