-----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, BlV1dSnzUaoQlkzlG4SH/Z/5QqoJbz7hqkriX+eHvsXL3IH3U7jdnl+4SOEi96bN 15k2UkQXJ9syeo6joxgxGw== 0000950123-97-007196.txt : 19970822 0000950123-97-007196.hdr.sgml : 19970822 ACCESSION NUMBER: 0000950123-97-007196 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970829 FILED AS OF DATE: 19970821 SROS: NONE 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: 1934 Act SEC FILE NUMBER: 001-10928 FILM NUMBER: 97667849 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 INTERTAPE POLYMER GROUP INC. 1 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 For the month of August 29, 1997 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 over 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): 82-_____ 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. - ---------------------------- August 29, 1997 BY: /s/ Andrew M. Archibald C.A. ------------------------------- Vice President, Finance & Chief Financial Officer 2 ----------------------------------------- SECOND QUARTERLY REPORT ----------------------------------------- 1997 [LOGO INTERTAPE] 2 3 MESSAGE TO SHAREHOLDERS It is encouraging to report that an all-time sales record was achieved in the second quarter. Comparisons to that of the previous year are as follows: - Sales increased by 35%, or $22.7 MM - Gross profits increased by 28.6%, or $5.5 MM - Net earnings increased by 14%, or $1 MM - Earnings per share increased by 13.8%, or $0.04 to $0.33 under Canadian GAAP After two moderately disappointing quarters, sales in the woven division have returned to historic levels. There is strong demand for this product line and the gains made during this quarter should continue for the remainder of the year. Related FIBC sales maintained their high levels, despite the fact that we discontinued some of the less profitable items within this product category. Distribution sales showed solid growth in all products with the single exception of hot melt tapes, whose sales were flat. Shrink and stretch films combined provided a growth in excess of 100% compared to last year. Between the two, stretch films showed the highest increase, while shrink films maintained their historic gain in market share. The acquisition of Tape, Inc. has proven to be a profitable and timely decision. Finally, I am glad to report that beverage container results were excellent. The improvement in gross margins over the first quarter was a direct result of higher sales and lower unit costs. We fully expect sales to continue to grow each successive remaining quarter of the year. Cost reduction remains a continuous process, particularly in our FIBC and Tape, Inc. operations. The initiatives undertaken at the beginning of the year continue to further reduce costs. While maintaining our focus on larger and traditional customers, the Company is gradually increasing the number of smaller accounts it services, which will further expand our margins. Fibope, our operation in Portugal, enjoyed record sales and profits this quarter as well. The expansion underway to double their capacity will be completed during the fourth quarter, and substantial grants from the European Community have been secured to finance this operation. The number of supermarkets using IFCO crates doubled during this quarter. We remain convinced that market demand will continue to increase as North America's grocery industry further realizes the potential for substantial savings by using our crates. We are confident that IFCO crates will become a significant part of our product offering in the future. The Company continues its efforts to locate appropriate acquisition candidates. Recently, these efforts have resulted in a number of initiatives and we are fairly confident that we could be in a position to report a successful conclusion sometime during the balance of the year. The outlook remains positive, with increasing sales and declining costs adding to our momentum. Melbourne F. Yull Chairman and Chief Executive Officer August 4, 1997 [LOGO INTERTAPE] 3 4 CONSOLIDATED EARNINGS
FOR THE PERIOD ENDED JUNE 30, ----------------------------------------- THREE MONTHS SIX MONTHS ------------------- ------------------- 1997 1996 1997 1996 -------- -------- -------- -------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP Sales................................................... $ 87,511 $ 64,783 $169,019 $120,968 Cost of sales........................................... 62,775 45,575 122,722 83,886 ------- ------- ------- ------- Gross profit............................................ $ 24,736 $ 19,208 $ 46,297 $ 37,082 ======= ======= ======= ======= Selling, general and administrative expenses............ 10,885 7,929 20,400 15,153 Research and development................................ 480 285 911 686 Amortization of goodwill................................ 590 445 1,180 890 Financial expenses...................................... 995 182 2,022 517 ------- ------- ------- ------- $ 12,950 $ 8,841 $ 24,513 $ 17,246 ======= ======= ======= ======= Earnings before income taxes............................ 11,786 10,367 21,784 19,836 Income taxes............................................ 3,650 3,300 6,650 6,300 ------- ------- ------- ------- Net earnings for the period............................. $ 8,136 $ 7,067 $ 15,134 $ 13,536 ======= ======= ======= ======= Retained earnings -- beginning of period................ 83,031 56,379 78,506 51,953 Dividend................................................ -- -- (2,473) (2,043) ------- ------- ------- ------- Retained earnings -- end of period...................... $ 91,167 $ 63,446 $ 91,167 $ 63,446 ======= ======= ======= =======
EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, THREE MONTHS SIX MONTHS ----------------- ----------------- 1997 1996 1997 1996 ------- ------- ------- ------- Cdn GAAP.................................................... $ 0.33 $ 0.29 $ 0.61 $ 0.56 Cdn GAAP Fully diluted...................................... $ 0.32 $ 0.28 $ 0.59 $ 0.54 U.S. GAAP -- Cdn$........................................... $ 0.32 $ 0.28 $ 0.59 $ 0.54 U.S. GAAP -- US$............................................ $ 0.23 $ 0.21 $ 0.43 $ 0.40 ======= ======= ======= =======
The Financial Accounting Standard Board (FASB) has issued Statement of Financial Accounting Standards (SFAS) 128, Earning per Share, which requires public companies to present basic earnings per share (EPS) and, if applicable, diluted earnings per share, instead of primary and fully diluted EPS. The Statement is effective for financial statements issued for periods ending after December 15, 1997, including interim periods. Early application is not permitted. Restatement of all prior period EPS data presented will be required in the fourth quarter. 4 5 GRAPH SALES -- IN MILLIONS OF CDN $ GRAPH GROSS PROFIT -- IN MILLIONS OF CDN $ GRAPH GROSS MARGIN -- AS A % OF SALES GRAPH WORKING CAPITAL -- IN MILLIONS OF CDN $ GRAPH NET EARNINGS (CDN GAAP) -- IN MILLIONS OF CDN $ GRAPH EARNINGS PER SHARE (CDN GAAP) -- IN CDN $ 5 6 CONSOLIDATED CHANGES IN CASH RESOURCES
FOR THE PERIOD ENDED JUNE 30, ----------------------------------------- THREE MONTHS SIX MONTHS ------------------- ------------------- 1997 1996 1997 1996 -------- -------- -------- -------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP OPERATIONS Net earnings for the period............................... $ 8,136 $ 7,067 $ 15,134 $ 13,536 Non-cash items Depreciation and amortization........................... 4,869 3,088 9,558 6,275 Deferred income taxes................................... 300 34 400 234 --------- --------- --------- --------- 13,305 10,189 25,092 20,045 Changes in non-cash working capital items................. (14,174) (10,421) (25,415) (28,392) --------- --------- --------- --------- Source (use) of cash during the period.................... $ (869) $ (232) $ (323) $ (8,347) ========= ========= ========= ========= FINANCING Issue of long-term debt................................... -- 1,676 -- 46,957 Repayment of long-term debt............................... (1,110) (347) (6,462) (44,681) Issue of common shares.................................... 182 75 2,974 861 Dividend paid............................................. -- -- (2,473) (2,043) --------- --------- --------- --------- Source (use) of cash during the period.................... $ (928) $ 1,404 $ (5,961) $ 1,094 ========= ========= ========= ========= INVESTMENT Additions to fixed assets................................. (9,929) (14,024) (17,958) (22,453) Decrease (increase) in other assets....................... (2,106) (124) (2,622) (65) --------- --------- --------- --------- Source (use) of cash during the period.................... $(12,035) $(14,148) $(20,580) $(22,518) ========= ========= ========= ========= Increase (decrease) in cash during the period............. (13,832) (12,976) (26,864) (29,771) Effect of foreign currency translation adjustments........ (203) (170) 240 (232) Cash (bank indebtedness), beginning of period............. (8,909) 33,782 3,680 50,639 --------- --------- --------- --------- Cash (bank indebtedness), end of period................... $(22,944) $ 20,636 $(22,944) $ 20,636 ========= ========= ========= =========
6 7 CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, ------------------- 1997 1996 -------- -------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP ASSETS Current assets............................................................. $131,193 $134,005 Fixed assets............................................................... 165,628 129,376 Goodwill and other, at amortized cost...................................... 73,600 54,433 -------- -------- Total assets............................................................... $370,422 $317,814 ======== ======== LIABILITIES Current liabilities........................................................ $ 50,781 $ 39,945 Long-term debt and other................................................... 70,194 67,775 -------- -------- Total liabilities.......................................................... $120,975 $107,720 ======== ======== SHAREHOLDERS' EQUITY....................................................... 249,446 210,094 -------- -------- Total liabilities and SHAREHOLDERS' equity................................. $370,422 $317,814 ======== ========
COMMON SHARES
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD ENDED ----------------------------------------------- THREE MONTHS SIX MONTHS 1997 1996 1997 1996 --------- --------- --------- --------- Canadian GAAP................................... 24,846,000 24,183,000 24,674,000 24,134,000 Canadian GAAP -- Fully diluted.................. 26,364,000 25,788,000 26,305,000 25,896,000 U.S. GAAP....................................... 25,609,000 25,233,000 25,616,000 25,179,000
[LOGO INTERTAPE] 7 8 INFORMATION REQUEST FORM I would like to receive or continue receiving financial information on the Company. Name: Title: Firm: Address: Province /State: Postal Code / Zip: Telephone: Fax: 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. 1-514-731-5477 or write to us at: 110 E Montee de Liesse, St-Laurent, Quebec, Canada H4T 1N4 or contact us via the Internet: Website: www.intertapepolymer.com E-Mail: aarchi609@aol.com Printed In Canada 8 -----END PRIVACY-ENHANCED MESSAGE-----