6-K 1 m06684ae6-k.txt FORM 6-K 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 December 2001 Annual 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. March 8, 2002 By: /s/ Andrew Archibald ----------------------------------- Andrew Archibald Chief Financial Officer Intertape Polymer Group Inc. MARCH 8, 2002 NYSE SYMBOL: ITP TSE SYMBOL: ITP INTERTAPE POLYMER GROUP INC. ANNOUNCES DECEMBER 2001 ANNUAL RESULTS (stated in U.S. dollars) (reported using Cdn GAAP other than as noted) Montreal, Quebec, Canada - March 8, 2002 - Intertape Polymer Group Inc. (IPG), a leader in the packaging industry, announced today the results for its fiscal year ending December 31, 2001. Details of the annual results are as follows: Revenue for the fourth quarter of 2001 was $146.2 million as compared to $151.0 million for the same period of 2000. For the full year, revenue was $594.9 million compared to $654.0 million for 2000. Lower sales volumes reflected a decline in consumption of packaging materials in general and an average of approximately 3% reduction in selling prices. Export sales were approximately $15 million less than the previous year as the Company exited certain unprofitable markets. Melbourne F. Yull, Chairman and CEO stated ''Despite some early indications of improvement in North America's economic environment, we remain cautious about the rate of recovery in our business volumes. We do expect to see benefits from our continuing programs of reducing debt and lowering costs as well as from new product sales and our distribution strategy.'' The Company recorded a net loss of $1.0 million ($6.5 million before income taxes) for the fourth quarter of 2001 as compared to net earnings of $3.6 million ($4.5 million loss before income taxes) for the same period of 2000. The drop in revenue resulted in a decline in gross profit of $2.4 million. Interest costs were $2.3 million higher for the fourth quarter of 2001 as compared to that of 2000. These items were partially offset by lower selling, general and administrative and other costs of $2.7 million. The Company recorded a net loss of $12.2 million ($22.6 million before income taxes) for the year 2001, as compared to net earnings of $33.4 million ($36.9 million before income taxes) for the year 2000. The drop in revenue resulted in a decline in gross profit of $27.9 million. In addition, $6.7 million of non-recurring charges were recorded during the first three quarters related to the establishment of Regional Distribution Centers, severance and inventory write downs. Selling, general and administrative costs increased $8.2 million which included the effect of non-recurring charges amounting to $10.0 million recorded in the nine month period ended September 2001 relating to additional bad debt reserves and severance reserves. Interest costs for 2001 increased by $11.7 million as compared to 2000, primarily as a result of a $6.7 million charge relating to the Company's recently completed debt refinancing. Earnings Per Share (EPS) for the three month period ending December 2001, both basic and fully diluted under both US and Canadian GAAP, were a loss of $0.03 as compared to a profit of $0.13 for the same period ending 2000. For the twelve-month period ending December 2001, under both US and Canadian GAAP, EPS was a loss of $0.43 as compared to a profit of $1.18 for the same period ending 2000. On a fully diluted basis, EPS under Cdn and US GAAP were a loss of US$ 0.43 compared to a profit of $1.16 for both Cdn and US GAAP in the same period last year. The Company completed the issue of 5.1 million common shares on March 1st, generating net proceeds of US$47.2 million. These proceeds were used to reduce debt. It is expected that the stock offering will not be dilutive for 2002. The Company will hold a Conference Call on Monday, March 11, 2002 at 10:00 a.m. EST to discuss its business performance. The Conference Call can be accessed by dialing 1-888-273-9890. The International dial in number is 612-332-1020. A replay of the call will be available until Monday, March 18 2001 at 11:59 p.m. EST. To access the playback, dial 1-800-475-6701 for North America domestic or 1-320-365-3844. Mention access code 630032. 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. 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 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: (941) 7237-5788 E-mail: itp$info@intertapeipg.com Web: www.intertapepolymer.com INTERTAPE POLYMER GROUP INC. CONSOLIDATED EARNINGS For the period ended December 31, (In thousands of US dollars, except per share amounts)
Three Months Twelve Months 2001 2000 2001 2000 ------- ------- -------- ------- $ $ $ $ Sales 146,175 150,970 594,905 653,915 Cost of sales 118,906 121,305 476,089 500,547 ------- ------- -------- ------- Gross profit 27,269 29,665 118,816 153,368 ------- ------- -------- ------- Selling, general and administrative expenses 21,558 23,863 91,343 83,092 Amortization of goodwill 1,717 1,805 7,014 6,540 Research and development 932 1,302 4,182 5,109 Financial expenses 9,527 7,213 38,911 27,205 Gain on sale of interest in joint venture (5,500) ------- ------- -------- ------- 33,734 34,183 141,450 116,446 ------- ------- -------- ------- Earnings (loss) before income taxes (6,465) (4,518) (22,634) 36,922 Income taxes (5,455) (8,103) (10,392) 3,500 ------- ------- -------- ------- Net earnings (loss) (1,010) 3,585 (12,242) 33,422 ======= ======= ======== ======= Earnings (Loss) Per Share - Basic (0.03) 0.13 (0.43) 1.18 ======= ======= ======== ======= Earnings (Loss) Per Share - Diluted (0.03) 0.13 (0.43) 1.16 ======= ======= ======== =======
INTERTAPE POLYMER GROUP INC. CONSOLIDATED BALANCE SHEETS December 31, (In thousands of US dollars)
2001 2000 ------- ------- $ $ ASSETS Current assets Trade receivables (net of allowance for doubtful accounts of $6,670; $10,300 in 2000) 86,529 97,478 Other receivables 13,654 11,659 Inventories 70,688 89,264 Parts and supplies 11,592 10,069 Prepaid expenses 9,450 6,114 Future income tax assets 4,025 10,810 ------- ------- 195,938 225,394 Capital assets 366,567 374,753 Other assets 11,680 10,636 Goodwill, at amortized cost 227,804 234,257 ------- ------- 801,989 845,040 ======= ======= LIABILITIES Current liabilities Bank indebtedness 28,046 127,333 Accounts payable and accrued liabilities 91,507 79,811 Instalments on long-term debt 8,310 9,532 ------- ------- 127,863 216,676 Future income taxes 21,588 37,538 Long-term debt 354,663 276,684 Other liabilities 3,785 4,500 ------- ------- 507,899 535,398 ------- ------- SHAREHOLDERS' EQUITY Capital stock and share purchase warrants 189,496 186,908 Retained earnings 104,567 116,966 Accumulated foreign currency translation adjustments 27 5,768 ------- ------- 294,090 309,642 ------- ------- 801,989 845,040 ======= =======
INTERTAPE POLYMER GROUP INC. CONSOLIDATED CASH FLOWS For the period ended December 31, (In thousands of US dollars)
2001 2000 ------- ------- $ $ OPERATING ACTIVITIES Net earnings (loss) (12,242) 33,422 Non-cash items Depreciation and amortization 33,831 27,934 Future income taxes (9,165) 482 Write-off of debt issue expenses 2,165 Write-off of capital assets 1,594 Other non-cash items (715) (5,500) ------- ------- Cash from operations before changes in non-cash working capital items 13,874 57,932 ------- ------- Changes in non-cash working capital items Trade receivables 10,337 (6,897) Other receivables (1,287) 3,003 Inventories 17,690 3,318 Parts and supplies (1,626) 175 Prepaid expenses (3,341) (1,809) Accounts payable and accrued liabilities 12,431 (15,697) ------- ------- 34,204 (17,907) ------- ------- Cash flows from operating activities 48,078 40,025 ------- ------- INVESTING ACTIVITIES Acquisitions of businesses (28,195) Capital assets, net of investment tax credits (25,942) (48,142) Proceeds on sale of capital assets 8,000 4,239 Other assets (8,592) 17,637 ------- ------- Cash flows from investing activities (26,534) (54,461) ------- ------- FINANCING ACTIVITIES Net change in bank indebtedness (99,261) 26,468 Issue of long-term debt 86,400 Repayment of long-term debt (9,634) (2,249) Issue of common shares 3,379 176 Common shares purchased for cancellation (922) (4,194) Dividends paid (3,006) ------- ------- Cash flows from financing activities (20,038) 17,195 ------- ------- Net increase in cash position 1,506 2,759 Effect of foreign currency translation adjustments (1,506) (2,759) ------- ------- Cash position, beginning and end of year -- -- ======= =======