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May 3, 2000 NYSE SYMBOL: ITP
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC. ANNOUNCES
MARCH 2000 FIRST QUARTER RESULTS
(stated in U.S. dollars)
(reported using Cdn GAAP other than noted)
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1ST QUARTER RESULTS
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<CAPTION>
2000 1999 % CHANGE
<S> <C> <C> <C>
SALES $169.3 million $121.5 million 39.3%
NET INCOME $ 10.7 million $ 8.2 million 30.5%
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Montreal, Quebec, Canada - May 3, 2000 - Intertape Polymer Group Inc. (NYSE &
TSE: ITP) today reported its financial results for the first quarter ended
March 31, 2000.
Sales in the period were US$169.3 million up from US$121.5 million in 1999,
representing an increase of US$47.8 million or 39.3%. "The increases that
were achieved during the first quarter were derived from a combination of
strong internal growth and the effect of the acquisition of Central Products
Corporation (CPC) which was completed during the third quarter of 1999. Sales
increased 10.1% or US$15.5 million from the fourth quarter of 1999 which is a
strong indication that the Company has recovered from the difficulties
experienced in the implementation of our new business systems in the fourth
quarter." stated Melbourne F. Yull, Chairman and Chief Executive Officer.
Gross margins for the first quarter of 2000 were 22.6%, which is a decrease
from 28.7% for the same period last year. Mr. Yull also noted: "The Company
is still being impacted by difficulties related to the integration of its
recent acquisitions. Improvements are expected to occur during the year and
will begin to approach IPG's historical levels."
Net income under both US and Canadian GAAP for the three month period ended
March 31, 2000 increased 30.5% or US$2.5 million to US$10.7 million from
US$8.2 million in the same period last year. Included in the current quarter
results is an unusual pretax gain of US$5.5 million as a result of the
Company's previously announced divestiture of its interest in IFCO, LLC.
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Under both US and Canadian GAAP, earnings per share (EPS) increased to
US$0.38 as compared to US$0.32 for the quarter ended March 1999. On a fully
diluted basis, EPS was US$0.36 under Canadian GAAP and US$0.37 under US GAAP.
The exchange rate at March 31, 2000 was Cdn. $1.4554 = U.S. $1.00.
Intertape Polymer Group Inc. develops, manufactures and markets a wide
variety of specialized polyolefin plastic and paper based packaging products
and systems for industrial uses. The Company is based in Montreal, Quebec and
Sarasota, Florida with manufacturing facilities in seventeen North American
and European locations.
THIS RELEASE CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF
THE SECURITIES EXCHANGE ACT OF 1934. FORWARD-LOOKING STATEMENTS INVOLVE KNOWN
AND UNKNOWN RISKS AND UNCERTAINTIES, WHICH MAY CAUSE THE COMPANY'S ACTUAL
RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM FORECASTED RESULTS OR
FORWARD-LOOKING STATEMENTS. THOSE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT
LIMITED TO:
- - RISKS ASSOCIATED WITH PRICING, VOLUME AND CONTINUED STRENGTH OF MARKETS
WHERE THE COMPANY'S PRODUCTS ARE SOLD.
- - ACTIONS OF COMPETITORS AS ARE DESCRIBED IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION (SEC) OVER THE LAST TWELVE MONTHS.
- - THE COMPANY'S ABILITY TO SUCCESSFULLY INTEGRATE THE OPERATIONS AND
INFORMATION SYSTEMS OF ACQUIRED COMPANIES WITH ITS EXISTING OPERATIONS, AND
INFORMATION SYSTEM, INCLUDING RISKS AND UNCERTAINTIES RELATING TO ITS ABILITY
TO ACHIEVE PROJECTED EARNINGS ESTIMATES, ACHIEVE ADMINISTRATIVE AND OPERATING
COST SAVINGS AND ANTICIPATE SYNERGIES.
- - THE EFFECT OF COMPETITION ON THE COMPANY'S ABILITY TO MAINTAIN MARGINS ON
EXISTING OR ACQUIRED OPERATIONS.
THE COMPANY DOES NOT UNDERTAKE TO PUBLICLY UPDATE OR REVISE ITS
FORWARD-LOOKING STATEMENTS EVEN IF EXPERIENCE OR FUTURE CHANGES MAKE IT CLEAR
THAT ANY PROJECTED RESULTS EXPRESSED OR IMPLIED THEREIN WILL NOT BE REALIZED.
FOR FURTHER INFORMATION: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel: (514) 731-0731
e-mail: [email protected]
Web: www.intertapepolymer.com
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INTERTAPE POLYMER GROUP INC.
CONSOLIDATED EARNINGS
For the period ended March 31st
(Unaudited)
(Stated in U.S. dollars)
(Reported using Cdn GAAP other than noted)
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<CAPTION>
2000 1999
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<S> <C> <C>
Sales 169.3 121.5
Cost of sales 131.1 86.6
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Gross profit 38.2 34.9
Gross margin 22.6% 28.7%
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Selling, general and administrative expenses 20.0 16.1
Research and development 1.3 0.8
Amortization of goodwill 1.6 1.2
Financial expenses 6.0 5.3
Gain on sale of interest in joint venture (5.5) -
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23.4 23.4
Earnings before income taxes 14.8 11.5
Income taxes 4.1 3.3
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Net earnings for the period 10.7 8.2
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Earnings per share - Cdn GAAP $0.38 $0.32
Earnings per share - Cdn GAAP Fully diluted $0.36 $0.30
Earnings per share - U.S. GAAP $0.38 $0.32
Earnings per share - US GAAP Fully diluted $0.37 $0.30
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AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD
Canadian GAAP 28,300,781 25,836,000
Canadian GAAP - Fully diluted 30,962,000 28,167,000
U.S. GAAP 28,300,781 25,836,000
U.S. GAAP - Fully diluted 28,880,000 26,769,000
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