-----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, DEcGufG9Ghj0Oe0X+DcMuC6wiLXRAwlSuGyYG69tCXbhcQeVPcTFWVxKpNlORajV ln17PPmQfpDPD519ejJMgQ== 0000912057-00-025654.txt : 20000522 0000912057-00-025654.hdr.sgml : 20000522 ACCESSION NUMBER: 0000912057-00-025654 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000519 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: 640317 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 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 May, 2000 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 over Form 20-F or Form 40-F. Form 20-F X Form 40-F --- --- [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- ------- SIGNATURE 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, hereunto duly authorized. INTERTAPE POLYMER GROUP INC. May 19,2000 By: /s/ Andrew M. Archibald ---------------------------------- Andrew M. Archibald C.A. Chief Financial Officer, Secretary, Treasurer, & Vice President Administration INTERTAPE POLYMER GROUP INC. 2000 FIRST QUARTERLY REPORT MESSAGE TO SHAREHOLDERS Dear Shareholders, In the fourth quarter of 1999, IPG experienced Management Information System (MIS) difficulties, which impacted customer service, warehousing and some aspects of order fulfillment. These problems are now corrected. I am confident in the accuracy of unit-of measure and pricing, and therefore the validity of IPG's inventory valuations and accounts receivable. I am pleased that the Company produced record-breaking revenue performance during the first quarter 2000 despite these challenging conditions. Sales increased to $169.3 million which is a 39.3% increase over the same period last year. Internal growth was 13-15%, which is a true indication of the strength of both IPG's product line and its improving customer communications. Our recently consolidated Customer Service Centers have become significantly more client-friendly, providing prompt and accurate answers. Continued training programs and improved procedures should assist us in reaching even better performance levels during the second quarter. Gross margins were below IPG's historic levels, which was the result of difficulties in output and material usage experienced at the former Anchor facility in Columbia, South Carolina. To correct the situation, we have implemented aggressive training, process and mechanical improvement programs. Operating margins will further expand, when we realize synergistic savings from the Central Products Company (Central) and Spinnaker Electrical Tape Company (SETco) acquisitions. With the combination of these, we expect to gradually approach our historic gross margins later this year. During the quarter, Intertape began a rollout of technically advanced new products, which are beginning to be successfully commercialized. Of particular note was the introduction in March of Exlfilmplus-TM- LTF, a new soft shrink film. This film, along with the recent introduction of Exlfilmplus-TM- LTG, a unique light gauge shrink film, has positioned our brand as the leading high-performance shrink product. Additionally, we launched StretchFlex-TM- 5L, a new line of 5-Layer stretch films which has enabled IPG to substantially lower our manufacturing costs, dramatically improve performance, increase value to our customers and improve profitability. Continuing technological advancements in our Nova-Thene-Registered Trademark- products have allowed the Company to make additional inroads as an alternative to PVC in the fabric market. These recently patented products provide superior performance, lighter weight and a lower end-user cost. The introduction of these products has been well received to date and we anticipate increased sales as the product launch moves forward. Also introduced, were a variety of new pressure-sensitive tapes with emphasis on Performance Products-TM-, which the Company has developed for specific customer applications. These niche products have high gross margins and will enhance IPG's bottom line. New products, along with new technology developments and new processes, remain the focus of our R&D efforts. We remain dedicated to ongoing R&D programs which will result in additional organic growth. In the first quarter, Intertape also completed the sale of its interest in IFCO, LLC which I feel was a timely divestiture. Approximately $40.0 million has been received to date and has been used to reduce the use of IPG's revolving credit facilities. This transaction has generated a pre-tax gain of $5.5 million in this quarter. After the purchase of Central and SETco, the Company initiated a fresh look at its Supply Chain strategy. We have engaged the premier consultants in this arena to manage the process and guide the Company to reduce our costs, formulate a strategy, train personnel, eliminate inefficiencies and further enhance the ability to service our customers. Due to the complexity of this analysis, we anticipate a slight delay in the implementation of two regional distribution centers until the end of this year, and the additional centers operating by the middle of 2001. Due to the effort in correcting the fourth quarters' unit-of-measure and selling prices inaccuracies, the reduction in days outstanding of accounts receivable was not obtained. I do expect improvements during the next quarter as IPG continues to focus on several key areas to improve efficiencies and enhance our bottom line. First, our selling prices have increased in most cases, keeping pace as raw material costs continue to escalate. Additionally, our finished goods inventory was reduced by over 12% during the period due to the improvements in our MIS systems and controls. The results of the first quarter confirm our belief that our markets are growing... our technology and products are first-class and we are poised to take advantage of our expertise and unique market position. While continuing to take advantage of growth opportunities, we remain committed to reducing costs in every aspect of the Company's operations. Melbourne F. Yull Chairman and Chief Executive Officer May 3, 2000 CONSOLIDATED EARNINGS In thousands of U.S. dollars, except per share amounts. (Unaudited) / Using Canadian GAAP - --------------------------------------------------------------------------------- For the three months ended March 31, 2000 1999 - --------------------------------------------------------------------------------- SALES $169,358 $121,471 Cost of sales 131,117 86,593 - --------------------------------------------------------------------------------- GROSS PROFIT $ 38,241 $ 34,878 - --------------------------------------------------------------------------------- Selling, general and administrative expenses 20,032 16,098 Research and development 1,325 ,813 Amortization of goodwill 1,550 1,224 Financial expenses 5,995 5,249 Gain on sale of interest in joint venture (5,500) -- - --------------------------------------------------------------------------------- $ 23,402 $ 23,384 - --------------------------------------------------------------------------------- Earnings before income taxes 14,839 11,494 Income taxes 4,155 3,333 - --------------------------------------------------------------------------------- NET EARNINGS FOR THE PERIOD $ 10,684 $ 8,161 - --------------------------------------------------------------------------------- Retained earnings -- beginning of period 88,422 88,318 Premium on purchase for cancellation of common shares (114) Dividend -- (2,993) - --------------------------------------------------------------------------------- RETAINED EARNINGS -- END OF PERIOD $ 98,992 $ 93,486 - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- Earnings Per Share 2000 1999 - --------------------------------------------------------------------------------- Cdn GAAP -- Basic -- US$ $ 0.38 $ 0.32 Cdn GAAP -- Fully diluted -- US$ $ 0.36 $ 0.30 U.S. GAAP -- Basic -- US$ $ 0.38 $ 0.32 U.S. GAAP -- Fully diluted -- US$ $ 0.37 $ 0.30 - --------------------------------------------------------------------------------- Cdn GAAP -- Basic -- CDN$ $ 0.55 $ 0.48 Cdn GAAP -- Fully diluted -- CDN$ $ 0.52 $ 0.45 - --------------------------------------------------------------------------------- Earnings Per Share 2000 1999 - --------------------------------------------------------------------------------- Earnings Before Interest and Taxes (EBIT) $ 0.74 $ 0.65 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) $ 1.00 $ 0.93 - ---------------------------------------------------------------------------------
This release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 or forward-looking statements. Those risks and uncertainties include, but are not limited to: - risks associated with pricing, volume and continued strength of markets where the Company's products are sold, and the timing and acceptance of new product offerings. - actions of competitors as are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months. - the Company's ability to successfully integrate the operations and information systems of acquired companies with its existing operations, and information system, including risks and uncertainties relating to its ability to achieve projected earnings estimates, achieve administrative and operating cost savings and anticipate synergies. - the effect of competition and raw material pricing on the Company's ability to maintain margins on existing or acquired operations. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. FIRST QUARTER HIGHLIGHTS Sales In millions of US $ 19.1 20.1 25.3 35.7 36.7 53.3 80.4 121.5 169.3 3 months ended March 1992 1993 1994 1995 1996 1997 1998 1999 2000 Gross Profit In millions of US $ 4.7 5.6 6.9 10.1 11.7 14.1 22.8 34.9 38.2 3 months ended March 1992 1993 1994 1995 1996 1997 1998 1999 2000 Gross Margin As a percentage of sales 24.7% 27.8% 27.4% 28.1% 31.8% 26.5% 28.3% 28.7% 22.6% 3 months ended March 1992 1993 1994 1995 1996 1997 1998 1999 2000 Net Earnings (CDN GAAP) In millions of US $ 0.5 1.3 1.6 3.1 4.2 4.6 6.4 8.2 10.7 3 months ended March 1992 1993 1994 1995 1996 1997 1998 1999 2000 Earnings per share (CDN GAAP) In US dollars 0.03 0.07 0.08 0.16 0.18 0.19 0.26 0.32 0.38 3 months ended March 1992 1993 1994 1995 1996 1997 1998 1999 2000 Book value per share In US dollars 3.16 2.89 3.20 3.71 5.48 6.35 6.66 9.85 10.34 For the period ending March 1992 1993 1994 1995 1996 1997 1998 1999 2000
CONSOLIDATED CASH FLOWS In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP - --------------------------------------------------------------------------------- For the three months ended March 31, 2000 1999 - --------------------------------------------------------------------------------- OPERATING ACTIVITIES Net earnings for the period $ 10,684 $ 8,161 Non-cash items Depreciation and amortization 7,515 7,268 Deferred income taxes 3,070 -- Write-off of capital assets 1,600 -- Cash from operations before funding of changes in non-cash working capital items 22,869 15,429 Changes in non-cash working capital items (18,093) 6,270 - --------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES $ 4,776 $ 21,699 - --------------------------------------------------------------------------------- FINANCING ACTIVITIES Net change in bank indebtedness (21,558) (23,353) Repayment of long-term debt (837) (34,384) Issue of common shares 82 77,434 Common shares purchased for cancellation (254) -- Dividend paid -- (2,993) - --------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES $(22,567) $ 16,704 - --------------------------------------------------------------------------------- INVESTING ACTIVITIES Capital assets (7,870) (15,447) Proceeds on sale of capital assets 4,254 -- Other assets 21,138 (5,343) - --------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES $ 17,522 $(20,790) - --------------------------------------------------------------------------------- INCREASE (DECREASE) IN CASH DURING THE PERIOD (269) 17,613 Effect of foreign currency translation adjustments 269 (946) Cash, beginning of period -- -- - --------------------------------------------------------------------------------- CASH POSITION, END OF PERIOD $ -- $ 16,667 - ---------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP - ----------------------------------------------------------------------------------------- As at March 31, 2000 1999 - ----------------------------------------------------------------------------------------- ASSETS Current assets Cash & short-term investments, at cost $ -- $ 16,667 Receivable 108,888 73,102 Other receivable 11,767 11,275 Inventories 86,300 71,643 Parts & Supplies 9,100 7,624 Prepaids 5,705 4,129 Future income tax assets 11,349 7,896 - ----------------------------------------------------------------------------------------- 233,109 192,336 Fixed assets 348,089 268,197 Other, at amortized cost 10,353 25,751 Goodwill, at amortized cost 216,279 172,838 - ----------------------------------------------------------------------------------------- TOTAL ASSETS $ 807,830 $ 659,122 - ----------------------------------------------------------------------------------------- LIABILITIES Current liabilities Bank indebtedness $ 32,308 100,000 Accounts payable and accrued liabilities 90,338 68,816 Installments on long-term debt 2,075 2,021 - ----------------------------------------------------------------------------------------- 124,722 170,837 Long-term debt 335,180 173,148 Other liabilities 14,487 26,017 Future income tax liabilities 40,764 10,096 - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 515,152 $ 380,098 - ----------------------------------------------------------------------------------------- SHAREHOLDER'S EQUITY Capital Stock $ 185,039 182,328 Retained earnings 98,992 93,486 Accumulated foreign currency translation 8,647 3,210 - ----------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY $ 292,678 $ 279,024 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 807,830 $ 659,122 - ----------------------------------------------------------------------------------------- COMMON SHARES - ----------------------------------------------------------------------------------------- 3 MONTHS 3 Months ENDED Ended MARCH 31, March Average number of shares outstanding 2000 31,1999 - ----------------------------------------------------------------------------------------- Canadian GAAP -- Basic 28,300,781 25,836,000 Canadian GAAP -- Fully diluted 30,962,000 28,167,000 U.S. GAAP -- Basic 28,300,781 25,836,000 U.S. GAAP -- Fully diluted 28,879,770 26,769,000 - -----------------------------------------------------------------------------------------
INFORMATION REQUEST FORM Please check one: I would like to [ ] receive or [ ] continue receiving financial information on the Company. Name: Title: Firm: Address: Province/State: Postal Code/Zip: Telephone: Fax: E-mail: Please send me now and on a regular basis (Please indicate number of copies requested): [ ] Annual & Quarterly Reports # [ ] Fax Updates (Press Releases only) # Please indicate your occupation: [ ] Investment Dealer [ ] Analyst [ ] Institution/Corporation [ ] Journalist [ ] Institutional Broker [ ] Retail Broker [ ] Institutional Investor [ ] Shareholder [ ] Investment Banker [ ] Other Please fax a copy of this page to: The Secretary-Treasurer Intertape Polymer Group Inc. (514) 731-5477 or write to us at: 110E Montee de Liesse, Montreal, Quebec, Canada H4T 1N4 or contact us via the internet: Web: www.intertapepolymer.com ------------------------ E-mail: itp$info@intertapeipg.com -----END PRIVACY-ENHANCED MESSAGE-----