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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
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-----------------------------------------
SECOND QUARTERLY REPORT
-----------------------------------------
1997
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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
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CONSOLIDATED EARNINGS
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED JUNE 30,
-----------------------------------------
THREE MONTHS SIX MONTHS
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
(Unaudited)
In thousands of Canadian dollars,
using Canadian GAAP
<S> <C> <C> <C> <C>
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
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
EARNINGS PER SHARE
FOR THE PERIOD ENDED JUNE 30,
THREE MONTHS SIX MONTHS
----------------- -----------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
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
======= ======= ======= =======
</TABLE>
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.
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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 $
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CONSOLIDATED CHANGES
IN CASH RESOURCES
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED JUNE 30,
-----------------------------------------
THREE MONTHS SIX MONTHS
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
(Unaudited)
In thousands of Canadian dollars,
using Canadian GAAP
<S> <C> <C> <C> <C>
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
========= ========= ========= =========
</TABLE>
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CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
AS AT JUNE 30,
-------------------
1997 1996
-------- --------
(Unaudited)
In thousands of
Canadian dollars,
using Canadian GAAP
<S> <C> <C>
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
======== ========
</TABLE>
COMMON SHARES
<TABLE>
<CAPTION>
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE
PERIOD ENDED
-----------------------------------------------
THREE MONTHS SIX MONTHS
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
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
</TABLE>
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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:
<TABLE>
<S> <C>
[ ] Investment Dealer [ ] Analyst
[ ] Institution/Corporation [ ] Journalist
[ ] Institutional Broker [ ] Retail Broker
[ ] Institutional Investor [ ] Shareholder
[ ] Investment Banker [ ] Other
</TABLE>
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: [email protected]
Printed In Canada
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