EX-99.1 3 m202286kex99-1.txt PRESS RELEASE [LOGO - intertape polymer group] November 12, 2001 NYSE SYMBOL: ITP TSE SYMBOL: ITP INTERTAPE POLYMER GROUP INC. ANNOUNCES SEPTEMBER 2001 THIRD QUARTER RESULTS (stated in U.S. dollars) Montreal, Quebec, Canada - November 12, 2001 - Intertape Polymer Group Inc. (NYSE & TSE: ITP), today reported its operating results for the third quarter ended September 30, 2001. Sales for the quarter were $148.6 million, a reduction of 10.7% over the same period last year; and were $448.7 million for the nine months ended September 2001 which is a reduction of 10.6% from last year's results. Order entry was fairly consistent and at anticipated levels during the third quarter. After September 11th, a general and in particular cross-border transportation slowdown was experienced, affecting both shipments of product to customers and raw material receipts. Melbourne F. Yull, Intertape Polymer Group's Chairman and Chief Executive Officer stated, "Even with shipping difficulties and a troubled economy, the operations of the Company were profitable before the decision to record a number of unusual charges." The Company has completed its Regional Distribution Centers (RDCs) strategy, as all five are now open and fully functional. As a result, the Company has been able to close the approximately 25 leased warehouse facilities during the year and has consolidated shipments through the five RDCs. The relocation of inventory to these centers plus the necessary product brand changes related to the acquisition of United Tape has resulted in a reduction in finished goods inventory value of $3.2 million related to obsolete product. This reduction has been included in cost of goods sold during the third quarter. The uncertain economy and the events of September 11th have negatively affected several segments of our customer base (steel, lumber, export etc.) As a result, we have increased our reserves for bad debts by $4.0 million. In addition, bad debt reserves set up during the fourth quarter of 2000 against accounts receivable have proven to have been insufficient as a result of the migration of Central Products during the second quarter and a further $3.0 million has been recorded in the third quarter of 2001. Total charges for the quarter are $7.0 million and have been recorded in selling, general and administrative expenses. During the course of 2001, we have successfully resolved our long-term financing needs. Final closing is expected to take place by November 30th or sooner. In this regard, $6.7 million in related financing costs have been accrued and expensed in the third quarter. These costs have been recorded in financial expenses. While IPG's order entry has remained relatively steady since September 11th, we determined further staff cuts were necessary to insure we are prepared for any further erosion in the economy. During the third quarter, $1.5 million in additional severance related charges were recorded. These unusual charges have been recorded in cost of goods sold and selling, general and administrative expenses. 1 The above noted exceptional charges have negatively impacted the Company's third quarter earnings by $18.4 million before tax, or $13.5 million after tax. "Current order entry appears to be stable and barring any further disruptions in the economy, we seemed to have bottomed out," stated Mr. Yull, "and given a reasonable economic environment our overall strategy should provide growth in 2002". 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. Certain statements and information set forth in this release, as well as other written or oral statements made from time to time by the Company or by its authorized executive officers on its 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 of the Private Securities Litigation Reform Act of 1995. 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 the Company undertakes no duty or obligation to update or revise its forward-looking statements. 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 expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that the Company's stockholders and prospective investors should consider include, but are not limited to, the following: risks associated with pricing, volume and continued strength of markets where the Company's products are sold; delays and disruptions associated with terrorist attacks and reprisals, political instability, heightened security and war in countries of the world that affect the Company's business; the Company's ability to successfully complete negotiations with its lenders; the effect of competition on the Company's ability to maintain margins on existing or acquired operations; and other risk factors listed from time to time in the Company's reports (including its Annual Report on Form 40-F) filed with the U.S. Securities and Exchange Commission. 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 ------------------------ 2 2001 THIRD QUARTERLY REPORT CONSOLIDATED EARNINGS AND RETAINED EARNINGS (Unaudited/Using Canadian GAAP CONSOLIDATED EARNINGS (In thousands of U.S. dollars; except per share amounts)
FOR THE PERIOD ENDED SEPTEMBER 30, THREE MONTHS NINE MONTHS ---------------------------------- ----------------------- ------------------------ 2001 2000 2001 2000 ---------- ---------- ---------- ---------- $ $ $ $ SALES 148,602 166,356 448,730 502,945 Cost of sales (Note 4) 122,544 121,612 357,183 379,242 ---------- ---------- ---------- ---------- GROSS PROFIT 26,058 44,744 91,547 123,703 ---------- ---------- ---------- ---------- 17.5% 26.9% 20.4% 24.6% ---------- ---------- ---------- ---------- Selling, general and administrative expenses (Note 4) 27,837 21,306 69,785 59,229 Amortization of goodwill 1,757 1,663 5,297 4,735 Research and development 884 1,073 3,250 3,807 Financial expenses (Note 4) 13,212 7,345 29,384 19,992 ---------- ---------- ---------- ---------- 43,690 31,387 107,716 87,763 Gain on sale of interest in joint venture -- -- -- (5,500) ---------- ---------- ---------- ---------- 43,690 31,387 107,716 82,263 ---------- ---------- ---------- ---------- Earnings (loss) before income taxes (17,632) 13,357 (16,169) 41,440 Income taxes (recovery) (4,937) 3,741 (4,937) 11,603 ---------- ---------- ---------- ---------- NET EARNINGS (LOSS) FOR THE PERIOD (12,695) 9,616 (11,232) 29,837 ========== ========== ========== ========== EARNINGS (LOSS) PER SHARE Basic (0.45) 0.34 (0.40) 1.05 Diluted (Note 2) (0.45) 0.33 (0.40) 1.03 ---------- ---------- ---------- ---------- COMMON SHARES Average number of shares outstanding Basic 28,346,102 28,342,803 28,188,650 28,310,698 Diluted (Note 2) 28,346,102 28,763,582 28,188,650 28,783,774 ---------- ---------- ---------- ----------
CONSOLIDATED RETAINED EARNINGS (In thousands of U.S. dollars)
FOR THE PERIOD ENDED SEPTEMBER 30, THREE MONTHS NINE MONTHS ---------------------------------- ----------------------- ------------------------ 2001 2000 2001 2000 ---------- ---------- ---------- ---------- $ $ $ $ Retained earnings -- beginning of period 118,272 105,523 116,966 88,422 Net earnings (loss) for the period (12,695) 9,616 (11,232) 29,837 Premium on purchase for cancellation of common shares -- (589) (157) (703) Dividends paid -- -- -- (3,006) ---------- ---------- ---------- ---------- RETAINED EARNINGS -- END OF PERIOD 105,577 114,550 105,577 114,550 ========== ========== ========== ==========
INTERTAPE POLYMER GROUP(TM) 2001 THIRD QUARTERLY REPORT CONSOLIDATED CASH FLOWS In thousands of U.S. dollars (unaudited / Using Canadian GAAP
FOR THE PERIOD ENDED SEPTEMBER 30, THREE MONTHS NINE MONTHS ---------------------------------- --------------------- --------------------- 2001 2000 2001 2000 ------- ------- ------- ------- $ $ $ $ OPERATING ACTIVITIES Net earnings (loss) for the period (12,695) 9,616 (11,232) 29,837 Non-cash items Depreciation and amortization 8,065 7,736 24,622 22,805 Future income taxes (recovery) (658) 2,737 (658) 8,514 Write-off of capital assets -- -- -- 1,594 ------- ------- ------- ------- CASH FROM OPERATIONS BEFORE FUNDING OF CHANGES IN NON-CASH WORKING CAPITAL ITEMS (5,288) 20,089 12,732 62,750 ------- ------- ------- ------- Changes in non-cash working capital items Trade and other receivables (1,062) (8,094) (2,989) (29,558) Inventories and parts and supplies 11,951 (6,524) 16,404 (4,967) Prepaid expenses (68) (1,183) 939 (960) Accounts payable and accrued liabilities 2,345 11,394 8,845 (5,423) 13,166 (4,407) 23,199 (40,908) ------- ------- ------- ------- CASH FLOWS FROM OPERATING ACTIVITIES 7,878 15,682 35,931 21,842 ======= ======= ======= ======= INVESTING ACTIVITIES Business acquisitions -- (28,195) -- (28,195) Capital assets (3,202) (15,601) (20,939) (36,017) Proceeds on sale of capital assets -- (15) 8,000 4,239 Other assets (2,192) (1,291) (4,172) 18,981 ------- ------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES (5,394) (45,102) (17,111) (40,992) ======= ======= ======= ======= FINANCING ACTIVITIES Net change in bank indebtedness (2,356) 39,971 (8,572) 38,433 Repayment of long-term debt (402) (1,226) (9,374) (2,012) Issue of common shares 2,533 53 3,387 176 Common shares purchased for cancellation -- (990) (923) (1,243) Dividends paid -- -- -- (3,006) ------- ------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES (225) 37,808 (15,482) 32,348 ======= ======= ======= ======= NET INCREASE IN CASH DURING THE PERIOD 2,259 8,388 3,338 13,198 Effect of foreign currency translation adjustments (2,259) (2,813) (3,338) (3,774) Bank indebtedness assumed on business acquisitions -- (9,424) -- (9,424) ------- ------- ------- ------- CASH POSITION, BEGINNING OF PERIOD -- 3,849 -- -- ======= ======= ======= ======= CASH POSITION, END OF PERIOD -- -- -- -- ======= ======= ======= =======
INTERTAPE POLYMER GROUP (TM) 2001 THIRD QUARTERLY REPORT CONSOLIDATED BALANCE SHEET In thousands of U.S. dollars (unaudited / Using Canadian GAAP
AS AT SEPTEMBER 30, AS AT DECEMBER 31, --------------------- ------------------ 2001 2000 2000 -------- -------- ------------------ $ $ $ ASSETS Current assets Trade receivables 95,348 122,725 97,478 Other receivables 16,530 15,282 11,659 Inventories 70,786 98,151 89,264 Parts and supplies 11,390 9,768 10,069 Prepaid expenses 5,180 5,274 6,114 Future income tax assets 10,585 10,907 10,810 ------- ------- ------- 209,819 262,107 225,394 Capital assets 368,985 362,843 374,753 Other assets 10,502 11,615 10,636 Goodwill, at amortized cost 229,192 232,525 234,257 ------- ------- ------- TOTAL ASSETS 818,498 869,090 845,040 ======= ======= ======= LIABILITIES Current liabilities Bank indebtedness (including checks in circulation of $7.9M) 118,786 129,487 127,333 Accounts payable and accrued liabilities 88,226 85,093 79,811 Installments on long-term debt 1,324 10,014 9,532 ------- ------- ------- 208,336 224,594 216,676 Long-term debt 275,510 276,442 276,684 Other liabilities 4,500 14,000 4,500 Future income tax liabilities 36,078 45,200 37,538 ------- ------- ------- TOTAL LIABILITIES 524,424 560,236 535,398 ======= ======= ======= SHAREHOLDERS' EQUITY Capital stock and share purchase warrants 189,523 188,784 186,908 Retained earnings 105,577 114,550 116,966 Accumulated foreign currency translation adjustments (1,026) 5,520 5,768 ------- ------- ------- TOTAL SHAREHOLDERS' EQUITY 294,074 308,854 309,642 ------- ------- ------- TOTAL LIABILITY AND SHAREHOLDERS' EQUITY 818,498 869,090 845,040 ======= ======= =======
[INTERTAPE POLYMER GROUP(TM)]