-----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, UXBtCGyr828U2Xf6GkdNbARjb8o9lfERggrWkJIfEv+R0g1NoWNK/KJf9cjZEqz1 cXtY6kY9GwFwAO9NGPxeZg== 0000950123-01-502539.txt : 20010516 0000950123-01-502539.hdr.sgml : 20010516 ACCESSION NUMBER: 0000950123-01-502539 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010514 FILED AS OF DATE: 20010515 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: 1637250 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 m10041e6-k.txt INTERTAPE POLYMER 1 LOGO 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 Intertape Polymer Group Inc. Announces March 2001 First Quarter Results 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. May 14, 2001 By:/s/Angela Massaro-Fain ------------------------------------------ Angela Massaro-Fain Advertising and Investor Relations Manager Intertape Polymer Group Inc. 2 LOGO May 14, 2001 NYSE SYMBOL: ITP TSE SYMBOL: ITP INTERTAPE POLYMER GROUP INC. ANNOUNCES MARCH 2001 FIRST QUARTER RESULTS (stated in U.S. dollars) (reported using Canadian GAAP other than noted) Montreal, Quebec, Canada - May 14, 2001 - Intertape Polymer Group Inc. (NYSE & TSE: ITP), today reported its first quarter operating results which are within the range of its recently announced outlook. Earnings for the quarter were reduced by a one-time charge of $0.7 million or $0.02 per share for severance. As a result, the basic and diluted earnings per share for the first quarter of 2001 were $0.15. Melbourne F. Yull, Intertape Polymer Group's Chairman and Chief Executive Officer stated, "Revenues were affected by a weak economy during the first quarter. To minimize the impact of lower sales we aggressively reduced costs throughout our organization". Highlights for the First Quarter of 2001 include: Net sales decreased 6.2% or $10.5 million compared to the first quarter of 2000. The first quarter of 2000 included revenue of approximately $3.5 million from IFCO, the Company that was sold March 31, 2000. The acquisition of United Tape Company (UTC) during the third quarter of 2000, resulted in lost sales to a competitor in the retail market of approximately $6.0 million compared to last year. Sales in the first quarter of 2001 include a net gain of approximately $10.0 million derived by UTC. Revenue declined approximately $11.0 million quarter over quarter when adjusted for above. This decline in sales is related to the slowness of the economy in general in North America and the erosion of export markets due to the strength of the US dollar. o Gross profits were $38.8 million or 24.4% of sales as compared to $38.2 million or 22.6% of sales for the first quarter of 2000. o Operating profit was $17.6 million or 11.1% of sales as compared to $18.2 million or 10.8% of sales for the first quarter of 2000. o Earnings before interest, taxes and depreciation and amortization (EBITDA) were $22.0 million for the first quarter of 2001. After adjusting for severance 3 LOGO costs, EBITDA was $22.7 million or 14.3% of sales. This compares to $22.9 million or 13.5% of sales for the first quarter of 2000. o Earnings before income taxes were $5.6 million as compared to $9.3 million for the first quarter of 2000 excluding the gain on sale of the Company's interest in IFCO. The decrease of $3.7 million is attributable to an increase in financial costs of $2.4 million; severance costs of $0.7 and the effect of lower sales. The increase in financial costs is related to the $30.0 million of new financing during the third quarter of 2000 for the UTC acquisition and an increase in borrowings of $16.0 million. o Earnings per share (eps) were $0.17 less the impact of the severance costs for a reported eps of $0.15. This compares to the reported eps $0.38 less the impact of the gain on the sale of IFCO of $0.14 for an adjusted eps of $0.24 for the first quarter of 2000. Specific actions plans have and should further reduce costs. They are: o Organizational structures and business processes have been reviewed to ensure that the Company will maximize the service level to its customers and attain the long-term sales growth objective. o Tight controls have been enacted over selling, general and administration costs. o A review of all employment positions has already resulted in a reduction in the overall number of employees of approximately 10% by the end of the first quarter. o A plan to reduce working capital with an emphasis on both raw material and finished goods has been implemented. In summary, Mr. Yull concluded, "I am confident that the opening of our Distribution Centers will provide a steady increase in sales volume over the rest of the year. I am also excited about the potential of a wide variety of new products currently being introduced. The exchange rate at March 31, 2001 was Cdn. $1.5722 = U.S. $1.00. 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 is based in Montreal, Quebec and Sarasota, Florida with twenty six facilities in North America and one European location. 4 LOGO The business, financial condition, results of operations, cash flows and prospects, and the prevailing market price and performance of the Company's common stock, may be adversely affected by a number of factors, including the matters discussed below. Certain statements and information set forth in this media release as well as other written or oral statements made from time to time by the Company or by our authorized executive officers on our behalf, constitute "forward-looking statements" within the meaning of the United States Federal Private Securities Litigation Reform Act of 1995. The Company intends for its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the United States Federal Private Securities Litigation Reform Act of 1995, and it sets forth this statement and these risk factors in order to comply with such safe harbor provisions. The reader should note that the Company's forward-looking statements speak only as of the date of this media release or when made and IPG undertakes no duty or obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. Although Management believes that the expectations, plans, intentions and projections reflected in its forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risk, uncertainties and other factors that IPG's stockholders and prospective investors should consider include, but are not limited to, the following: the packaging industry is cyclical and is sensitive to changing economic conditions; the Company is in the midst of an industry and general economic slowdown that could materially adversely impact the Company's business; risks associated with pricing, volume and continued strength of markets where the Company's products are sold; 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 anticipated synergies; and the effect of competition on the Company's ability to maintain margins on existing or acquired operations. 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 5 LOGO INTERTAPE POLYMER GROUP INC. CONSOLIDATED EARNINGS (Unaudited) In thousands of US Dollars
For the period ended March 31, ------------------------------- 2001 2000 ---------- ---------- Sales 158,863 169,358 Cost of sales 120,089 131,117 ---------- ---------- Gross profit 38,773 38,241 ---------- ---------- 24.41% 22.58% ---------- ---------- Selling, general and administrative expenses 21,168 20,032 Severances 690 0 Research and development 1,168 1,325 Amortization of goodwill 1,743 1,550 Financial expenses 8,436 5,995 Gain on sale of interest in joint venture 0 (5,500) ---------- ---------- 33,205 23,402 ---------- ---------- Earnings before income taxes 5,568 14,839 Income taxes 1,392 4,155 ---------- ---------- Net earnings for the period 4,176 10,684 ---------- ---------- Earnings per share - Cdn GAAP $0.15 $0.38 Earnings per share - Cdn GAAP Diluted $0.15 $0.37 Earnings per share - U.S. GAAP $0.15 $0.38 Earnings per share - US GAAP Diluted $0.15 $0.37 Average number of shares outstanding during the period Canadian GAAP 27,983,417 28,300,781 Canadian GAAP - Diluted * 28,675,701 28,879,770 U.S. GAAP 27,983,417 28,300,781 U.S. GAAP - Diluted 28,675,701 28,879,770
CONSOLIDATED RETAINED EARNINGS (Unaudited) In thousands of US Dollars
For the period ended March 31, ------------------------------- 2001 2000 ---------- ---------- Retained earnings - beginning of period 116,966 88,422 Net earnings for the period 4,176 10,684 Premium on purchase for cancellation of common shares (157) (114) ---------- ---------- RETAINED EARNINGS - END OF PERIOD 120,985 98,992 ========== ==========
* In the 4th quarter of 2000, Canadian GAAP adopted the US GAAP definition of the diluted earnings per share retroactively. 6 LOGO INTERTAPE POLYMER GROUP INC. CONSOLIDATED BALANCE SHEET (Unaudited) In thousands of US Dollars
As at March 31, As at December 31, --------------------------- ------------------ 2001 2000 2000 ------ ------ ------ ASSETS Current Assets Trade Receivables 94,907 108,888 97,478 Other receivables 8,224 11,767 11,659 Inventories 87,278 86,300 89,264 Parts & Supplies 11,744 9,100 10,069 Prepaid Expenses 6,335 5,705 6,114 Future income tax asset 10,606 11,349 10,810 ------- ------- ------- 219,094 233,109 225,394 ------- ------- ------- Capital assets & construction in progress 378,956 348,089 374,753 Other Assets 11,005 10,353 10,636 Goodwill, at amortized cost 232,049 216,279 234,257 ------- ------- ------- Total Assets 841,103 807,830 845,040 ======= ======= ======= LIABILITIES Current liabilities Bank indebtedness 129,874 32,308 127,333 Accounts payable and accrued liabilities 75,001 90,338 79,811 Instalments on long-term debt 9,959 2,075 9,532 ------- ------- ------- 214,834 124,721 216,676 ------- ------- ------- Long-term debt 275,702 335,180 276,684 Other liabilities 4,500 14,487 4,500 Future income tax liabilities 37,020 40,764 37,538 ------- ------- ------- Total Liabilities 532,056 515,152 535,398 ------- ------- ------- SHAREHOLDERS' EQUITY Capital Stock & Share Purchase Warrants 186,143 185,039 186,908 Retained earnings 120,985 98,992 116,966 Accumulated foreign currency translation 1,919 8,647 5,768 ------- ------- ------- 309,047 292,678 309,642 ------- ------- ------- Total Liability and Shareholder's Equity 841,103 807,830 845,040 ======= ======= =======
7 LOGO INTERTAPE POLYMER GROUP INC. CONSOLIDATED CASH FLOWS (Unaudited) In thousands of US Dollars
For the period ended March 31, ------------------------- 2001 2000 ------ ------- OPERATING ACTIVITIES Net earnings for the period 4,176 10,684 Non-cash items Depreciation and amortization 8,040 7,515 Deferred income taxes 192 3,070 Write-off of capital assets 0 1,600 ------ ------ CASH FROM OPERATIONS BEFORE FUNDING OF CHANGES IN NON-CASH WORKING CAPITAL ITEMS 12,408 22,869 Changes in non-cash working capital items Trade and other receivables 5,933 (19,847) Inventories and parts and supplies (527) 1,672 Prepaid expenses (217) (1,500) Accounts payable and accrued liabilities (4,429) 1,582 ------ -------- 760 (18,093) ------ -------- Cash flows from operating activities 13,168 4,776 ------ -------- FINANCING ACTIVITIES Bank indebtedness 2,603 (21,558) Repayment of long-term debt (547) (837) Issue of common shares 14 82 Common shares purchased for cancellation (923) (254) ------ -------- Cash flows from financing activities 1,147 (22,567) ------ -------- INVESTING ACTIVITIES Additions to fixed assets & construction in progress (12,286) (7,870) Proceed on sale of fixed assets 0 4,254 Increase in other assets and deferred charges (1,230) 21,138 ------ -------- Cash flows from investing activities (13,516) 17,522 ------ -------- Increase (decrease) in cash during the period 799 (269) Effect of foreign currency translation adjustments (799) 269 Cash, beginning of period 0 0 ------ -------- Cash, end of period (0) 0 ====== ========
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