-----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, T/GZGmq4gJRbH95UUjwrrJMh4GhA3Vv3Dnl5IjZP4X1y8wuMaE4hJVL3w0KKotNx lMO/LLZfNRDnyBLbzi1U3g== 0001047469-97-004768.txt : 19971117 0001047469-97-004768.hdr.sgml : 19971117 ACCESSION NUMBER: 0001047469-97-004768 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971113 FILED AS OF DATE: 19971114 SROS: AMEX 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: 97719097 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 THIRD QUARTERLY REPORT ---------------------- THIRD QUARTERLY REPORT ---------------------- 1997 [LOGO] 2 3 MESSAGE TO SHAREHOLDERS - ------------------------------------------------------------------------------- Once again, we are pleased to report a continuance of our increase in sales. This quarter boasts an increase of 23% over last year, representing an additional $ 16.4 million in sales. Other related increases include: - Gross profits: Up 18%, or $ 3.8MM - Net earnings: Up 12%, or $ 0.9MM - Earnings per share: Up 10%, or $ 0.03 to $ 0.33 under Canadian GAAP Although we had projected a larger increase for our distribution products, sales were affected by unpredictable factors: The prolonged UPS strike; and a decrease in the cost of raw materials, which led customers to lower their historic inventory levels in anticipation of lower costs. Tape and stretch sales took the brunt of this impact, while our other products continued to perform impressively, adding to our top line with consistent growth. As part of our strategy to broaden our product offering, we signed a definitive agreement to purchase the shares of American Tape Company from STC Corporation of Korea. American Tape is a premier manufacturer of a variety of high- performance pressure-sensitive tapes, as well as a number of general purpose products. The addition of these products to our line puts us in a unique position to provide a superior value-added service to our customers. This gives us an advantage over our competitors, by being the only company to provide this complete range of products. This acquisition will also allow us to benefit from considerable cost savings in raw materials, manufacturing costs, sales, administration and logistics. It is an important acquisition on many levels. Research and development have not been left behind - in the first quarter of next year we will be introducing two new shrink films that will essentially complete our line, enabling us to cover the entire market instead of our previous 60% holding. The solid growth already established for shrink films will be significantly boosted with these new products. Our vinyl fabrics replacement program continues to show promise in a $ 300 million U.S. market. There are a large number of customers to reach; however the many advantages of our new fabrics are easy to communicate and we expect steady sales growth throughout 1998. Last but not least, the Tremonton, Utah plant construction is right on schedule, with a goal to being fully operational by the year's end. Looking ahead, we have great expectations for the fourth quarter, and, of course, for the year 1998. /s/ Melbourne F. Yull Melbourne F. Yull Chairman and Chief Executive Officer November 5, 1997 4 5 CONSOLIDATED EARNINGS - ------------------------------------------------------------------------------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP THREE MONTHS NINE MONTHS FOR THE PERIOD ENDED SEPTEMBER 30, 1997 1996 1997 1996 SALES $89,201 $72,790 $258,220 $193,758 Cost of sales 64,517 51,857 187,239 135,743 - -------------------------------------------------------------------------------- GROSS PROFIT $24,684 $20,933 $ 70,981 $ 58,015 - -------------------------------------------------------------------------------- Selling, general and administrative expenses 10,551 8,823 30,951 23,976 Research and development 518 462 1,429 1,148 Amortization of goodwill 590 445 1,770 1,335 Financial expenses 953 433 2,975 950 - -------------------------------------------------------------------------------- $12,612 $10,163 $37,125 $ 27,409 - -------------------------------------------------------------------------------- Earnings before income taxes 12,072 10,770 33,856 30,606 Income taxes 3,800 3,415 10,450 9,715 - -------------------------------------------------------------------------------- NET EARNINGS FOR THE PERIOD $ 8,272 $ 7,355 $23,406 $ 20,891 - -------------------------------------------------------------------------------- Retained earnings - beginning of period 91,167 63,446 78,506 51,953 Dividend - - (2,473) (2,043) - -------------------------------------------------------------------------------- RETAINED EARNINGS - END OF PERIOD $99,439 $70,801 $99,439 $ 70,801 - -------------------------------------------------------------------------------- EARNINGS PER SHARE FOR THE PERIOD ENDED THREE MONTHS NINE MONTHS SEPTEMBER 30, 1997 1996 1997 1996 Cdn GAAP $ 0.33 $ 0.30 $ 0.95 $ 0.86 Cdn GAAP Fully diluted $ 0.32 $ 0.29 $ 0.91 $ 0.83 U.S. GAAP - Cdn$ $ 0.32 $ 0.29 $ 0.92 $ 0.84 U.S. GAAP - US$ $ 0.23 $ 0.22 $ 0.67 $ 0.61 - ------------------------------------------------------------------------------- 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. 6 7 3RD QUARTER HIGHLIGHTS - ------------------------------------------------------------------------------- Sales - In millions of CDN $ ---------------------------- 9 Months 3 MONTHS Ended September ENDED SEPTEMBER --------------- --------------- 1992 86.5 27.4 1993 98.0 34.2 1994 126.7 44.9 1995 167.5 56.9 1996 193.8 72.8 1997 258.2 89.2 Gross Profit - In millions of CDN $ ----------------------------------- 9 Months 3 MONTHS Ended September ENDED SEPTEMBER --------------- --------------- 1992 22.4 7.1 1993 26.7 9.5 1994 36.1 13.1 1995 48.6 17.0 1996 58.0 21.0 1997 71.0 24.7 Gross Margin - As a % of Sales ------------------------------ 9 Months 3 MONTHS Ended September ENDED SEPTEMBER --------------- --------------- 1992 25.8 25.8 1993 27.2 27.7 1994 28.5 29.1 1995 29.0 29.9 1996 29.9 28.8 1997 27.5 27.7 Working Capital - In millions of CDN $ -------------------------------------- For the period ending September --------- 1992 19.4 1993 28.1 1994 44.1 1995 35.1 1996 90.5 1997 74.0 Net Earnings (CDN GAAP) - In millions of CDN $ ---------------------------------------------- 9 Months 3 MONTHS Ended September ENDED SEPTEMBER --------------- --------------- 1992* 4.2 1.4 1993 6.8 2.7 1994 10.0 3.9 1995 15.5 5.5 1996 20.9 7.4 1997 23.4 8.3 Earnings Per Share (CDN GAAP) - In CDN $ ---------------------------------------- 9 Months 3 MONTHS Ended September ENDED SEPTEMBER --------------- --------------- 1992* .22 .07 1993 .34 .14 1994 .49 .19 1995 .76 .27 1996 .86 .30 1997 .95 .33 * BEFORE EXTRAORDINARY ITEM. 8 9 CONSOLIDATED CHANGES IN CASH RESOURCES - -------------------------------------------------------------------------------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP THREE MONTHS NINE MONTHS FOR THE PERIOD ENDED SEPTEMBER 30, 1997 1996 1997 1996 OPERATIONS Net earnings for the period $ 8,272 $ 7,355 $ 23,406 $ 20,891 Non-cash items Depreciation and amortization 4,465 3,326 14,024 9,601 Deferred income taxes 33 66 433 300 - -------------------------------------------------------------------------------- 12,770 10,747 37,863 30,792 Changes in non-cash working capital items 11,825 (13,719) (13,590) (42,111) - -------------------------------------------------------------------------------- SOURCE (USE) OF CASH DURING THE PERIOD $ 24,595 $ (2,972) $ 24,273 $ (11,319) - -------------------------------------------------------------------------------- FINANCING Issue of long-term debt 3,101 - 3,101 46,957 Repayment of long-term debt (1,199) (430) (7,661) (45,111) Issue of common shares 1,453 113 4,427 974 Dividend paid - - (2,473) (2,043) Other (1,700) - (1,700) - - -------------------------------------------------------------------------------- SOURCE (USE) OF CASH DURING THE PERIOD $ 1,655 $ (317) $ (4,306) $ 777 - -------------------------------------------------------------------------------- INVESTMENT Additions to fixed assets (18,380) (8,352) (36,338) (30,805) Acquisitions of business - (5,060) - (5,060) Increase in other assets (1,885) - (4,507) (65) - -------------------------------------------------------------------------------- USE OF CASH DURING THE PERIOD $(20,265) $(13,412) $(40,845) $(35,930) - -------------------------------------------------------------------------------- INCREASE (DECREASE) IN CASH DURING THE PERIOD 5,985 (16,701) (20,878) (46,472) Effect of foreign currency translation adjustments (1,548) (113) (1,309) (345) Cash (Bank Indebtedness), beginning of period (22,944) 20,636 3,680 50,639 - -------------------------------------------------------------------------------- CASH (BANK INDEBTEDNESS), END OF PERIOD $(18,507) $ 3,822 $(18,507) $ 3,822 - -------------------------------------------------------------------------------- 10 11 CONSOLIDATED BALANCE SHEET - -------------------------------------------------------------------------------- (Unaudited) In thousands of Canadian dollars, using Canadian GAAP AS AT SEPTEMBER 30, 1997 1996 ASSETS Current assets $ 131,261 $ 125,098 Fixed assets 180,315 135,149 Goodwill and other, at amortized cost 76,300 58,994 - -------------------------------------------------------------------------------- TOTAL ASSETS $ 387,876 $ 319,241 - -------------------------------------------------------------------------------- LIABILITIES Current liabilities $ 57,284 $ 34,580 Long-term debt and other 73,192 67,376 - -------------------------------------------------------------------------------- TOTAL LIABILITIES $ 130,476 $ 101,956 - -------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY 257,400 217,285 - -------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 387,876 $ 319,241 - -------------------------------------------------------------------------------- COMMON SHARES - -------------------------------------------------------------------------------- AVERAGE NUMBER OF SHARES OUTSTANDING THREE MONTHS NINE MONTHS DURING THE PERIOD ENDED 1997 1996 1997 1996 Canadian GAAP 24,898,000 24,206,000 24,749,000 24,158,000 Canadian GAAP - Fully diluted 26,557,600 25,997,000 26,381,900 25,930,000 U.S. GAAP 25,701,250 25,261,000 25,654,650 25,206,000 - -------------------------------------------------------------------------------- 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. 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 -----END PRIVACY-ENHANCED MESSAGE-----