-----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, ITA2+33umoZkmw2K7pRCsWJ4xDUsRdlkPWJVMCUZ3DUgoNSjXzJw3Ib1zY+X/u4f qGl8COxnRM1kqUU5YgSRUA== /in/edgar/work/0000950123-00-010707/0000950123-00-010707.txt : 20001116 0000950123-00-010707.hdr.sgml : 20001116 ACCESSION NUMBER: 0000950123-00-010707 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERTAPE POLYMER GROUP INC CENTRAL INDEX KEY: 0000880224 STANDARD INDUSTRIAL CLASSIFICATION: [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: 770020 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 m07754e6-k.txt INTERTAPE POLYMER GROUP 1 [LOGO - Intertape Polymer Group] 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 "Third Quarterly Report 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 quarterly 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. November 15, 2000 By: /s/ Angela Massaro-Fain ----------------------------------- Angela Massaro-Fain Advertising and Investor Relations Manager Intertape Polymer Group Inc. 2 INTERTAPE POLYMER GROUP INC. ------------------------- 2000 THIRD QUARTERLY REPORT Graph ITP Intertape Polymer Group LOGO 3 THIRD QUARTERLY REPORT MESSAGE TO SHAREHOLDERS Dear Shareholders, Total revenue for the third quarter showed an increase compared to that of the previous year. The increase from $161.5 million to $166.4 million over the same period last year, was due to a record month for IPG during September, which made up for an extremely soft July. I expect that trend to continue into the fourth quarter. A combination of current market slowdowns and customer reductions of high cost inventory as industry prices declined, impacted IPG's third quarter sales results. Reduced sales from the Woven Product line matched the slowdowns in the housing industry. Gross margins continue to improve, with our third quarter increasing to 26.9%. Raw material prices in general remain stable with an indication of price reductions during the coming months. Sales of Intertape(R) pressure-sensitive tape and Exlfilm(R) shrink film from our Distribution Products line continue to increase. Both products remain strong performers. Progress continues with IPG's proprietary Flame-Retardant/Ultra Violet (FR/UV) woven-coated fabrics and new shelter products as they are introduced into the industry. Intertape Polymer Group is the first manufacturer to achieve both FR and UV regulated approvals for human occupancy, with shelters made from these patented-coated fabrics. This opens up the product line to a variety of new end-uses, as it will replace higher cost structure materials. Coupled with IPG's new woven-coated fabric targeted to the housing and steel industry, I expect to see more positive results in 2001. Additionally, we have recently expanded our shrink film product line. We are the only manufacturer with its entire line available in 45 gauge. This gives us a unique performance advantage over all competitors in this arena. These products are 25% thinner, providing dramatic savings for the end user, while offering excellent clarity, product protection and application speeds. A variety of new higher value-added stretch films will become commercial during the fourth quarter, which should grow sales and increase our gross margins. I am pleased to announce that the Company finalized the acquisition of Olympian Tape Sales, Inc.,/United Tape Company during the quarter. This was a good acquisition for IPG. It provides us with a broader access to the office-products and hardware markets, as well as discount stores. This will expand volume for our tape operations. We have already made positive gains which I feel will contribute to our internal organic growth. It has been an extremely active quarter with improvements in a variety of service levels to our customers. Two of the Regional Distribution Centers will be opening in Los Angeles, California and Montreal, Quebec during early December. I expect both the South East and Mid West RDC's to open during the first quarter 2001, providing expanded customer service and additional cost reductions. Targeted for January 2001 is the launch of Intertape Polymer Group's "B-to-B" Beta sites. Named "lntertape On-line", this new web based Customer Center will allow IPG customers to actively track their order status live; a service that has been anxiously anticipated by our customers, and to-date, well received in all field tests/trials. This launch becomes the foundation for an expanded E-Business platform, which will result in reduced transaction costs for both IPG and our Distributors. Ultimately, this will help grow the bottom line, as well as increase market share throughout our product range. With the fourth quarter already in progress, I realize that the success of our Company is based on a number of key variables, including the strength of our operations, the strength of our systems and the strength of our employees to deliver superior products and service... and I am satisfied with the course the Company is taking. /s/ Melbourne F. Yull Melbourne F. Yull Chairman and Chief Executive Officer November 6, 2000 Intertape Polymer group LOGO 2 3 4 THIRD QUARTERLY REPORT CONSOLIDATED EARNINGS In thousands of U.S. dollars, except per share amounts. (Unaudited) / Using Canadian GAAP
Three Months Nine Months -------------------- --------------------- For the period ended September 30, 2000 1999 2000 1999 - ---------------------------------- ---- ---- ---- ---- SALES $166,356 $161,470 $502,945 $416,174 Cost of sales 121,612 118,893 379,242 302,197 -------- -------- -------- -------- GROSS PROFIT $ 44,744 $ 42,577 $123,703 $113,977 -------- -------- -------- -------- Selling, general and administrative expenses 21,306 19,918 59,229 51,975 Research and development 1,073 1,003 3,807 2,582 Amortization of goodwill 1,663 1,436 4,735 3,916 Financial expenses 7,345 5,806 19,992 15,956 Gain on sale of interest in joint venture -- -- (5,500) -- -------- -------- -------- -------- $ 31,387 $ 28,163 $ 82,263 $ 74,429 -------- -------- -------- -------- Earnings before income taxes 13,357 14,414 41,440 39,548 Income taxes 3,741 4,180 11,603 11,469 -------- -------- -------- -------- NET EARNINGS FOR THE PERIOD $ 9,616 $ 10,234 $ 29,837 $ 28,079 -------- -------- -------- -------- Retained earnings - beginning of period 105,523 103,170 88,422 88,318 Premium on purchase for cancellation of common shares (589) -- (703) -- Dividend -- -- (3,006) (2,993) -------- -------- -------- -------- RETAINED EARNINGS - END OF PERIOD $114,550 $113,404 $114,550 $113,404 -------- -------- -------- --------
Three Months Nine Months -------------------- --------------------- Earnings per Share 2000 1999 2000 1999 - ------------------ ---- ---- ---- ---- Cdn GAAP - Basic - US$ $ 0.34 $ 0.36 $ 1.05 $ 1.02 Cdn GAAP - Fully diluted - US$* $ 0.32 $ 0.35 $ 1.00 $ 0.98 U.S. GAAP - Basic - US$ $ 0.34 $ 0.36 $ 1.05 $ 1.02 U.S. GAAP - Fully diluted - US$ $ 0.33 $ 0.35 $ 1.03 $ 0.99 ========= ======== ======== ======== Cdn GAAP - Basic - CDN$ $ 0.50 $ 0.53 $ 1.55 $ 1.52 Cdn GAAP - Fully diluted - CDN$* $ 0.47 $ 0.51 $ 1.47 $ 1.45 ========= ======== ======== ========
Three Months Nine Months -------------------- --------------------- Other data per Share 2000 1999 2000 1999 - -------------------- ---- ---- ---- ---- Earnings Before Interest and Taxes (EBIT) $ 0.73 $ 0.71 $ 2.17 $ 2.02 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) $ 1.01 $ 1.03 $ 2.98 $ 2.88 ========= ======== ======== ========
[FN] - ------------ * In the fourth quarter of 2000, Canadian GAAP will be equivalent to U.S. GAAP for the definition of fully diluted Earnings per Share. 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: o 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. o actions of competitors as are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months. o 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. o 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 5 THIRD QUARTER REPORT THIRD QUARTER HIGHLIGHTS Sales graph Net Earnings (CDN GAAP) graph Gross Profit graph Earnings per Share (CDN GAAP) graph Gross Margin graph Book Value per Share graph intertape polymer group LOGO 6 7 6 THIRD QUARTERLY REPORT CONSOLIDATED CASH FLOWS In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP
THREE MONTHS NINE MONTHS FOR THE PERIOD ENDED SEPTEMBER 30, 2000 1999 2000 1999 ------------------- ----------------- OPERATING ACTIVITIES Net earnings for the period $ 9,616 $ 10,234 $ 29,837 $ 28,079 Non-cash items Depreciation and amortization 7,736 9,089 22,805 23,775 Deferred income taxes 2,737 2,926 8,514 5,826 Write-off of capital assets -- -- 1,594 -- --------- --------- --------- --------- Cash from operations before funding of changes in non-cash working capital items 20,089 22,249 62,750 57,680 Changes in non-cash working capital items (4,407) (2,650) (40,908) (19,647) --------- --------- --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES $ 15,682 $ 19,599 $ 21,842 $ 38,033 --------- --------- --------- --------- FINANCING ACTIVITIES Net change in bank indebtedness 39,971 (46,757) 38,433 (72,692) Issue of long-term debt -- 181,980 -- 181,980 Repayment of long-term debt (1,226) (24,459) (2,012) (59,324) Issue of common shares 53 218 176 79,021 Common shares purchased for cancellation (990) -- (1,243) -- Dividend paid -- -- (3,006) (2,993) --------- --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES $ 37,808 $ 110,982 $ 32,348 $ 125,992 --------- --------- --------- --------- INVESTING ACTIVITIES Business acquisitions (28,195) (110,242) (28,195) (110,242) Capital assets (& construction in progress) (15,601) (18,227) (36,017) (45,758) Proceeds on sale of capital assets (15) -- 4,239 -- Other assets (1,291) (6,800) 18,981 (16,871) --------- --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES $ (45,102) $(135,269) $ (40,992) $(172,871) --------- --------- --------- --------- INCREASE (DECREASE) IN CASH DURING THE PERIOD 8,388 (4,688) 13,198 (8,846) Effect of foreign currency translation adjustments (2,813) 4,202 (3,774) 8,360 Cash (bank indebtedness) assumed on business acquisitions (9,424) 486 (9,424) 486 Cash position, beginning of period 3,849 -- -- -- --------- --------- --------- --------- CASH POSITION, END OF PERIOD $ -- -- -- -- --------- --------- --------- ---------
intertape polymer group LOGO 8 9 7 THIRD QUARTERLY REPORT CONSOLIDATED BALANCE SHEET In thousands of U.S. dollars. (Unaudited) / Using Canadian GAAP
AS AT SEPTEMBER 30, 2000 1999 - ------------------- --------- --------- ASSETS Current assets Receivables $122,725 $104,681 Other receivables 15,282 10,292 Inventories 98,151 86,204 Parts & Supplies 9,768 8,561 Prepaids 5,274 4,656 Future income tax assets 10,907 8,230 -------- -------- 262,107 222,624 Capital assets (& construction in progress) 362,843 358,372 Other, at amortized cost 11,615 32,891 Goodwill, at amortized cost 232,525 222,031 -------- -------- TOTAL ASSETS $869,090 $835,918 -------- -------- LIABILITIES Current liabilities Bank indebtedness $129,487 $ 53,673 Accounts payable and accrued liabilities 85,093 94,612 Installments on long-term debt 10,014 2,057 -------- -------- 224,594 150,342 Long-term debt 276,442 336,354 Other liabilities 14,000 10,456 Future income tax liabilities 45,200 34,404 -------- -------- TOTAL LIABILITIES $560,236 $531,556 -------- -------- SHAREHOLDERS' EQUITY Capital stock $188,784 $186,075 Retained earnings 114,550 113,404 Accumulated foreign currency translation 5,520 4,883 -------- -------- TOTAL SHAREHOLDERS' EQUITY $308,854 $304,362 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $869,090 $835,918 ======== ========
COMMON SHARES
THREE MONTHS NINE MONTHS ----------------------- ----------------------- AVERAGE NUMBER OF SHARES OUTSTANDING 2000 1999 2000 1999 - ------------------------------------- ---------- ---------- ---------- ----------- Canadian GAAP - Basic 28,342,803 28,531,518 28,310,698 27,510,433 Canadian GAAP - Fully diluted 31,274,460 30,938,028 31,068,289 29,823,446 U.S. GAAP - Basic 28,342,803 28,531,518 28,310,698 27,510,433 U.S. GAAP - Fully diluted 28,763,582 29,560,516 28,783,774 28,454,004
10 11 8 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 group LOGO Printed in Canada 11-00-8M -----END PRIVACY-ENHANCED MESSAGE-----