6-K 1 e6-k.txt INTERTAPE POLYMER GROUP INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K Report of Foreign Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 For the quarter ending June 30, 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 cover 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): 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. ---------------------------- (Registant) August 15, 2000 By: /s/ Angela Massaro ------------------------------------------ Angela Massaro Advertising and Investor Relations Manager Intertape Polymer Group Inc. 2 Intertape Polymer Group inc. 2000 Second Quarterly Report (Graph) Intertape Polymer Group(TM) 3 (GRAPH) 2 4 Second Quarterly Report MESSAGE TO SHAREHOLDERS Intertape Polymer Group(TM) Dear Shareholders, Sales in the second quarter were $167.2 million, an increase of 25.5% over the same period last year. Quarter over quarter, sales were up approximately 3% after the elimination of the impact of the sale of IFCO. The combination of this growth in revenue, reflects the Company's continued success in the improvement of customer service, as well as solving the related IS issues which impacted IPG's fourth quarter `99. Steady progress has been made in this area and we are confident that the final segments will be in place during the third quarter. I am pleased with the increase in gross margins from 22.6% in the first quarter to 24.3% in the second quarter. The improvement is the effect of price increases and efficiencies in our operations. Selling prices will continue to rise in the third quarter and I expect additional productivity gains throughout the organization. SG&A as a percentage of sales was 10.8%, in line with the commitment made by Management. The fourth quarter deficiencies with our enterprise system have since been corrected. Unit-of-measure and pricing issues have been solved and we now have accurate inventory values, accounts receivables and the correct SKUs in stock. Reserves initially set up for these unforeseen errors are sufficient and no further changes are anticipated. IPG can now return to its normal course. Cash management will be a focus over the next few months, with plans in place to reduce borrowings by a minimum of approximately US $30.0MM by the end of the year. This should be accomplished by further lowering our inventories and bringing our accounts receivables in-line with industry standards. During the period, the Company continued to make productivity gains in the Columbia, South Carolina facility. Additional new equipment will be installed and is expected to be completely operational by the end of the year. At that point, the Columbia operation will be capable of increasing production and decreasing waste. Now the key is to "re-motivate" the sales force and regain the confidence of our customers. Fortunately, we have made great strides in improving our service, which helps in both areas. New products continue to be introduced. Combined with our historic product strengths, this should bring us back to double-digit organic growth. Currently, the capacity of our operations exceeds US $200MM per quarter and I am confident the Company will reach these sales levels in a relatively short time. /s/ Melbourne F. Yull Melbourne F. Yull Chairman and Chief Executive Officer August 3, 2000 3 5 Second Quarterly Report ------------------------------------------------------------------------------ Consolidated earnings In thousands of U.S. dollars, except per share amounts. (Unaudited) / Using Canadian GAAP
Three Months Six Months For the period ended June 30, 2000 1999 2000 1999 Sales $167,231 $133,234 $336,589 $254,704 Cost of sales 126,513 96,711 257,630 183,304 ----------------------------------------------------------------------------------------------------- Gross profit $40,718 $36,523 $78,959 $71,400 ----------------------------------------------------------------------------------------------------- Selling, general and administrative expenses 17,891 15,959 37,923 32,057 Research and development 1,409 766 2,734 1,579 Amortization of goodwill 1,522 1,256 3,072 2,480 Financial expenses 6,652 4,901 12,647 10,150 Gain on sale of interest in joint venture - - (5,500) - ----------------------------------------------------------------------------------------------------- $27,474 $22,882 $50,876 $46,266 ----------------------------------------------------------------------------------------------------- Earnings before income taxes 13,244 13,641 28,083 25,134 Income taxes 3,707 3,957 7,862 7,289 ----------------------------------------------------------------------------------------------------- Net earnings for the period $9,537 $9,684 $20,221 $17,845 ----------------------------------------------------------------------------------------------------- Retained earnings - beginning of period 98,992 93,486 88,422 88,318 Premium on purchase for cancellation of common shares - - (114) - Dividend (3,006) - (3,006) (2,993) ----------------------------------------------------------------------------------------------------- Retained earnings - end of period $105,523 $103,170 $105,523 $103,170 ----------------------------------------------------------------------------------------------------
-
Three Months Six Months Earnings per Share 2000 1999 2000 1999 Cdn GAAP-Basic - US$ $0.34 $0.34 $0.72 $0.66 Cdn GAAP-Fully diluted - US$ $0.32 $0.33 $0.68 $0.63 U.S. GAAP-Basic - US$ $0.34 $0.34 $0.72 $0.66 U.S. GAAP-Fully diluted - US$ $0.33 $0.34 $0.70 $0.64 ----------------------------------------------------------------------------------------------------- Cdn GAAP-Basic - CDN$ $0.51 $0.51 $1.06 $0.99 Cdn GAAP-Fully diluted - CDN$ $0.48 $0.49 $1.00 $0.94 -----------------------------------------------------------------------------------------------------
Three Months Six Months Other data per Share 2000 1999 2000 1999 Earnings Before Interest and Taxes (EBIT) $0.70 $0.66 $1.44 $1.31 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) $0.97 $0.92 $1.97 $1.85 -----------------------------------------------------------------------------------------------------
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: (bullet) 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. (bullet) actions of competitors as are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months. (bullet) 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. (bullet) 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. 4 5 6 Second Quarterly Report -------------------------------------------------------------------------------- Second Quarter Highlights (GRAPH) (GRAPH) (GRAPH) (GRAPH) (GRAPH) (GRAPH) Intertape Polymer GroupTM 6 7 7 Second Quarterly Report ------------------------------------------------------------------------------- Consolidated cash flows In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP
Three Months Six Months For the period ended June 30, 2000 1999 2000 1999 OPERATING ACTIVITIES Net earnings for the period $9,537 $9,684 $20,221 $17,845 Non-cash items Depreciation and amortization 7,554 7,418 15,069 14,686 Deferred income taxes 2,708 2,900 5,778 2,900 Write-off of capital assets - - 1,600 - ------------------------------------------------------------------------------------------------------- Cash from operations before funding of changes in non-cash working capital items 19,799 20,002 42,668 35,431 Changes in non-cash working capital items (18,414) (23,267) (36,507) (16,997) ------------------------------------------------------------------------------------------------------- Cash flows from operating activities $1,385 $(3,265) $6,161 $18,434 ------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Net change in bank indebtedness 20,019 (2,582) (1,539) (25,935) Repayment of long-term debt 50 (481) (787) (34,865) Issue of common shares 43 1,369 125 78,803 Common shares purchased for cancellation - - (254) - Dividend paid (3,006) - (3,006) (2,993) ------------------------------------------------------------------------------------------------------- Cash flows from financing activities $17,106 $(1,694) $(5,461) $15,010 ------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Capital assets (& construction in progress) (12,546) (12,084) (20,416) (27,531) Proceeds on sale of capital assets - - 4,254 - Other assets (866) (4,728) 20,272 (10,071) ------------------------------------------------------------------------------------------------------- Cash flows from investing activities $(13,412) $(16,812) $4,110 $(37,602) ------------------------------------------------------------------------------------------------------- Increase (decrease) in cash during the period 5,079 (21,771) 4,810 (4,158) Effect of foreign currency translation adjustments (1,230) 5,104 (961) 4,158 Cash position, beginning of period - 16,667 - - ------------------------------------------------------------------------------------------------------- Cash position, end of period $3,849 $ - $3,849 $ - -------------------------------------------------------------------------------------------------------
Intertape Polymer Group(TM) 8 9 8 Second Quarterly Report -------------------------------------------------------------------------------- Consolidated Balance Sheet In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP
As at June 30, 2000 1999 Assets Current assets Cash & short-term investments, at cost $3,849 $ - Receivables 106,949 84,112 Other receivables 15,055 13,045 Inventories 84,799 76,028 Parts & Supplies 10,301 6,584 Prepaids 3,987 3,273 Future income tax assets 11,085 8,198 ----------------------------------------------------------------------------------------------------- 236,025 191,240 Capital assets (& construction in progress) 352,488 275,537 Other, at amortized cost 9,925 29,706 Goodwill, at amortized cost 215,066 173,141 ----------------------------------------------------------------------------------------------------- Total Assets $813,504 $669,624 ----------------------------------------------------------------------------------------------------- Liabilities Current liabilities Bank indebtedness $51,271 $100,862 Accounts payable and accrued liabilities 69,607 60,066 Installments on long-term debt 10,152 2,051 ----------------------------------------------------------------------------------------------------- 131,030 162,979 Long-term debt 326,682 173,124 Other liabilities 14,697 10,417 Future income tax liabilities 42,903 29,612 ----------------------------------------------------------------------------------------------------- Total Liabilities $515,312 $376,132 ----------------------------------------------------------------------------------------------------- Shareholders' Equity Capital Stock $185,145 $182,707 Retained earnings 105,523 103,170 Accumulated foreign currency translation 7,524 7,615 ----------------------------------------------------------------------------------------------------- Total Shareholders' Equity $298,192 $293,492 ----------------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $813,504 $669,624 -----------------------------------------------------------------------------------------------------
Common Shares Three Months Six Months Average number of shares outstanding 2000 1999 2000 1999 Canadian GAAP - Basic 28,297,621 28,296,915 28,294,756 26,999,750 Canadian GAAP - Fully diluted 31,140,412 30,636,098 30,968,313 29,292,267 U.S. GAAP - Basic 28,297,621 28,296,915 28,294,756 26,999,750 U.S. GAAP - Fully diluted 28,716,590 29,262,328 28,785,865 27,917,560
Intertape Polymer Group(TM) 10 11 9 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 Intertape Polymer GroupTM Printed in Canada 8 - 00 - 8M