EX-99 2 m09464ex99.txt PRESS RELEASE RE: DECEMBER 2000 ANNUAL RESULTS 1 2 MARCH 26, 2001 NYSE SYMBOL: ITP TSE SYMBOL: ITP INTERTAPE POLYMER GROUP INC. ANNOUNCES DECEMBER 2000 ANNUAL RESULTS (stated in U.S. dollars) (reported using Cdn GAAP other than noted) 2000 ANNUAL RESULTS ------------------- 2000 1999 SALES $654.0 million $570.0 million NET INCOME $ 33.4 million $ 8.1 million Montreal, Quebec, Canada -- March 26, 2001 -- Intertape Polymer Group Inc. (IPG) a leader in the packaging industry, announced today the results for its fiscal year ending December 31, 2000. Details of the annual results are as follows: Revenue for the year 2000 was $654.0 million compared to $570.0 million for 1999, an increase of 14.7%. The increase in revenue was derived from a combination of organic growth and the acquisition of United Tape Company in the third quarter 2000. EPS for the twelve-month period ending December 2000, under both US and Canadian GAAP, was US$1.18 as compared to US$0.29 for the same period ending 1999. On a fully diluted basis, EPS under Cdn and US GAAP were US$1.16 compared to $0.28 for both Cdn and US GAAP in the same period last year. Melbourne F. Yull, Intertape's Chairman and Chief Executive Officer stated "The Company's overall results during the year 2000 were satisfactory. We grew our business and eliminated all the residual integration and systems issues related to 1999 and 2000. There was a distinct economic slowdown in December, and the current economy remains uncertain with inventory adjustments being made throughout our industry." For the year ended December 31, 1999 the Company had recorded reserves in the amount of $9.7 million for anticipated losses associated with the systems and other integration issues applicable to trade receivables and inventory. As previously disclosed, these problems continued to effect operations during the first three quarters of 2000. Consequently, during the fourth quarter of 2000 the Company recorded further net reserves of $9.5 million. In this regard, Management is fully confident that no further reserves for losses will be required in the future. Had these additional net reserves not been required, fourth quarter earnings before income taxes would have been $4.9 million and net earnings would have been $5.7 million or $0.20 basic earnings per share (EPS). 2 3 IPG also announced that it has reached an agreement in principle with The Toronto Dominion Bank and Comerica Bank on the terms of new financing of up to US $175 million. This new facility will be used to repay the Company's existing bank indebtedness of $127.3 million (as at December 31, 2000), to retire $8 million Series 3 Notes maturing June 1, 2001 and for general corporate purposes. The new credit facility will be syndicated. Commenting on this development, Mr. Yull added "The new credit facility will provide IPG with excellent financial flexibility and position the Company for future growth and expansion." Andrew M. Archibald, C.A., Chief Financial Officer, stated "We appreciate the continued support and confidence of our bankers. The Senior Unsecured Notes will represent 65% of the Company's total debt at fixed interest rates averaging 7.30%. The balance of IPG's interest bearing debt will be based on Libor at varying spreads. Management anticipates that the Company's total interest costs for the year 2001 will not exceed that of the year 2000 as borrowing requirements are reduced. The exchange rate at December 31, 2000 was Cdn. $1.5071 = U.S. $1.00. The Company will hold a Conference Call on Tuesday, March 27, 2001 at 10:30 a.m. EST to discuss its business performance. The Conference Call can be accessed by dialing 1-888-303-1861, mention access code 18309701. A replay of the call will be available until Tuesday, April 3, 2001 at 12:30 p.m. EST. To access the playback, dial 1-800-633-8284 for North America domestic or 858-812-6440. Mention access code 18309701. The Company will simultaneously Web Broadcast its Conference Call. Access the Web Cast via Intertape Polymer Group's web site at: www.intertapepolymer.com/report.html. Intertape Polymer Group Inc. develops, manufactures and markets a wide variety of specialized polyolefin plastic and paper based packaging products and systems for industrial and retail use. The Company was founded in 1981 and is based in Montreal, Quebec and Sarasota, Florida with manufacturing facilities in twenty North American and European locations. 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. (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 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. FOR FURTHER INFORMATION CONTACT: Melbourne F. Yull Chairman and Chief Executive Officer Intertape Polymer Group Inc. Tel: (514) 731-0731 E-mail: itp$info@intertapeipg.com Web: www.intertapepolymer.com 3 4 INTERTAPE POLYMER GROUP INC. CONSOLIDATED EARNINGS (Unaudited) in U.S. Dollars
For the three months For the period ended December 31, ended December 31, ----------------------- ------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Sales 150,970 153,773 653,915 569,947 Cost of sales 121,305 143,125 500,547 445,322 Gross profit 29,665 10,648 153,368 124,625 19.65% 6.92% 23.45% 21.87% Selling, general and administrative expenses 23,863 33,355 83,092 85,330 Amortization of goodwill 1,805 1,535 6,540 5,451 Research and development 1,302 1,319 5,109 3,901 Financial expenses 7,213 6,193 27,205 22,149 Gain on sale of interest in joint venture 0 0 (5,500) 0 34,183 42,402 116,446 116,831 Earnings before income taxes (4,518) (31,754) 36,922 7,794 Income taxes (8,103) (11,773) 3,500 (304) Net earnings for the period 3,585 (19,981) 33,422 8,098 Retained earnings -- beginning of period 114,550 110,270 88,422 85,184 Dividends 0 0 (3,006) (2,993) Premium on purchase for cancellation of common shares (1,169) (1,867) (1,872) (1,867) Retained earnings -- end of period 116,966 88,422 116,966 88,422 Earnings per share -- Cdn GAAP $0.13 (0.71) $ 1.18 $ 0.29 Earnings per share -- Cdn GAAP Fully diluted $0.13 (0.71) $ 1.16 $ 0.28 Earnings per share -- U.S. GAAP $0.13 (0.71) $ 1.18 $ 0.29 Earnings per share -- US GAAP Fully diluted $0.13 (0.71) $ 1.16 $ 0.28 Average number of shares outstanding during the period Canadian GAAP 28,380,530 28,356,241 28,328,114 27,679,385 Canadian GAAP -- Fully diluted 28,565,564 28,320,327 28,715,852 28,594,808 U.S. GAAP 28,380,530 28,356,241 28,328,114 27,679,385 U.S. GAAP -- Fully diluted 28,565,564 28,320,327 28,715,852 28,594,808
Note: In the 4th quarter of 2000, Canadian GAAP adopted the US GAAP definition of the fully diluted earnings per share retroactively 4 5 INTERTAPE POLYMER GROUP INC. CONSOLIDATED BALANCE SHEET (Unaudited) in U.S. Dollars
As at December 31, -------------------- 2000 1999 ---- ---- ASSETS Current Assets Trade receivables 97,478 83,120 Other receivables 11,659 17,712 Inventories 89,264 87,301 Parts & Supplies 10,069 9,813 Prepaid expenses 6,114 4,204 Future income tax assets 10,810 11,349 ------- ------- 225,394 213,499 ======= ======= Capital assets & construction in progress 374,753 351,722 Other assets 10,636 31,899 Goodwill, at amortized cost 234,257 217,886 ------- ------- 845,040 815,006 ======= ======= LIABILITIES Current liabilities Bank indebtedness 127,333 53,920 Accounts payable and accrued liabilities 79,811 88,563 Installments on long-term debt 9,532 2,079 ------- ------- 216,676 144,562 ======= ======= Long-term debt 276,684 336,015 Other liabilities 4,500 14,708 Future income tax liabilities 37,538 37,718 ------- ------- 535,398 533,003 ======= ======= SHAREHOLDERS' EQUITY Capital stock and share purchase warrants 186,908 185,091 Retained earnings 116,966 88,422 Accumulated foreign currency translation adjustments 5,768 8,490 ------- ------- 309,642 282,003 ------- ------- 845,040 815,006 ======= =======