<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the quarter ending June 30, 2000
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 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.
----------------------------
(Registant)
August 15, 2000 By: /s/ Angela Massaro
------------------------------------------
Angela Massaro
Advertising and Investor Relations Manager
Intertape Polymer Group Inc.
<PAGE> 2
Intertape Polymer
Group inc.
2000
Second Quarterly Report
(Graph)
Intertape Polymer Group(TM)
<PAGE> 3
(GRAPH)
2
<PAGE> 4
Second Quarterly Report
MESSAGE TO SHAREHOLDERS
Intertape Polymer Group(TM)
Dear Shareholders,
Sales in the second quarter were $167.2 million, an increase of 25.5% over the
same period last year. Quarter over quarter, sales were up approximately 3%
after the elimination of the impact of the sale of IFCO. The combination of this
growth in revenue, reflects the Company's continued success in the improvement
of customer service, as well as solving the related IS issues which impacted
IPG's fourth quarter `99. Steady progress has been made in this area and we are
confident that the final segments will be in place during the third quarter.
I am pleased with the increase in gross margins from 22.6% in the first quarter
to 24.3% in the second quarter. The improvement is the effect of price increases
and efficiencies in our operations. Selling prices will continue to rise in
the third quarter and I expect additional productivity gains throughout the
organization. SG&A as a percentage of sales was 10.8%, in line with the
commitment made by Management.
The fourth quarter deficiencies with our enterprise system have since been
corrected. Unit-of-measure and pricing issues have been solved and we now have
accurate inventory values, accounts receivables and the correct SKUs in stock.
Reserves initially set up for these unforeseen errors are sufficient and no
further changes are anticipated.
IPG can now return to its normal course. Cash management will be a focus over
the next few months, with plans in place to reduce borrowings by a minimum of
approximately US $30.0MM by the end of the year. This should be accomplished by
further lowering our inventories and bringing our accounts receivables in-line
with industry standards.
During the period, the Company continued to make productivity gains in the
Columbia, South Carolina facility. Additional new equipment will be installed
and is expected to be completely operational by the end of the year. At that
point, the Columbia operation will be capable of increasing production and
decreasing waste.
Now the key is to "re-motivate" the sales force and regain the confidence of our
customers. Fortunately, we have made great strides in improving our service,
which helps in both areas. New products continue to be introduced. Combined with
our historic product strengths, this should bring us back to double-digit
organic growth. Currently, the capacity of our operations exceeds US $200MM per
quarter and I am confident the Company will reach these sales levels in a
relatively short time.
/s/ Melbourne F. Yull
Melbourne F. Yull
Chairman and Chief Executive Officer
August 3, 2000
3
<PAGE> 5
Second Quarterly Report
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Consolidated earnings
In thousands of U.S. dollars, except per share amounts.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
Three Months Six Months
For the period ended June 30, 2000 1999 2000 1999
<S> <C> <C> <C> <C>
Sales $167,231 $133,234 $336,589 $254,704
Cost of sales 126,513 96,711 257,630 183,304
-----------------------------------------------------------------------------------------------------
Gross profit $40,718 $36,523 $78,959 $71,400
-----------------------------------------------------------------------------------------------------
Selling, general and
administrative expenses 17,891 15,959 37,923 32,057
Research and development 1,409 766 2,734 1,579
Amortization of goodwill 1,522 1,256 3,072 2,480
Financial expenses 6,652 4,901 12,647 10,150
Gain on sale of interest in joint venture - - (5,500) -
-----------------------------------------------------------------------------------------------------
$27,474 $22,882 $50,876 $46,266
-----------------------------------------------------------------------------------------------------
Earnings before income taxes 13,244 13,641 28,083 25,134
Income taxes 3,707 3,957 7,862 7,289
-----------------------------------------------------------------------------------------------------
Net earnings for the period $9,537 $9,684 $20,221 $17,845
-----------------------------------------------------------------------------------------------------
Retained earnings
- beginning of period 98,992 93,486 88,422 88,318
Premium on purchase
for cancellation of common shares - - (114) -
Dividend (3,006) - (3,006) (2,993)
-----------------------------------------------------------------------------------------------------
Retained earnings - end of period $105,523 $103,170 $105,523 $103,170
----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>-
<CAPTION>
Three Months Six Months
Earnings per Share 2000 1999 2000 1999
<S> <C> <C> <C> <C>
Cdn GAAP-Basic - US$ $0.34 $0.34 $0.72 $0.66
Cdn GAAP-Fully diluted - US$ $0.32 $0.33 $0.68 $0.63
U.S. GAAP-Basic - US$ $0.34 $0.34 $0.72 $0.66
U.S. GAAP-Fully diluted - US$ $0.33 $0.34 $0.70 $0.64
-----------------------------------------------------------------------------------------------------
Cdn GAAP-Basic - CDN$ $0.51 $0.51 $1.06 $0.99
Cdn GAAP-Fully diluted - CDN$ $0.48 $0.49 $1.00 $0.94
-----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Three Months Six Months
Other data per Share 2000 1999 2000 1999
<S> <C> <C> <C> <C>
Earnings Before Interest
and Taxes (EBIT) $0.70 $0.66 $1.44 $1.31
Earnings Before Interest,
Taxes, Depreciation and
Amortization (EBITDA) $0.97 $0.92 $1.97 $1.85
-----------------------------------------------------------------------------------------------------
</TABLE>
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:
(bullet) risks associated with pricing, volume and continued strength of
markets where the Company's products are sold, and the timing and
acceptance of new product offerings.
(bullet) actions of competitors as are described in the Company's filings with
the Securities and Exchange Commission (SEC) over the last twelve
months.
(bullet) 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.
(bullet) the effect of competition and raw material pricing 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.
4 5
<PAGE> 6
Second Quarterly Report
--------------------------------------------------------------------------------
Second Quarter Highlights
(GRAPH) (GRAPH)
(GRAPH) (GRAPH)
(GRAPH) (GRAPH)
Intertape Polymer GroupTM
6 7
<PAGE> 7
Second Quarterly Report
-------------------------------------------------------------------------------
Consolidated cash flows
In thousands of U.S. dollars.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
Three Months Six Months
For the period ended June 30, 2000 1999 2000 1999
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net earnings for the period $9,537 $9,684 $20,221 $17,845
Non-cash items
Depreciation and amortization 7,554 7,418 15,069 14,686
Deferred income taxes 2,708 2,900 5,778 2,900
Write-off of capital assets - - 1,600 -
-------------------------------------------------------------------------------------------------------
Cash from operations before funding of changes
in non-cash working capital items 19,799 20,002 42,668 35,431
Changes in non-cash working capital items (18,414) (23,267) (36,507) (16,997)
-------------------------------------------------------------------------------------------------------
Cash flows from operating activities $1,385 $(3,265) $6,161 $18,434
-------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Net change in bank indebtedness 20,019 (2,582) (1,539) (25,935)
Repayment of long-term debt 50 (481) (787) (34,865)
Issue of common shares 43 1,369 125 78,803
Common shares purchased for cancellation - - (254) -
Dividend paid (3,006) - (3,006) (2,993)
-------------------------------------------------------------------------------------------------------
Cash flows from financing activities $17,106 $(1,694) $(5,461) $15,010
-------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital assets (& construction in progress) (12,546) (12,084) (20,416) (27,531)
Proceeds on sale of capital assets - - 4,254 -
Other assets (866) (4,728) 20,272 (10,071)
-------------------------------------------------------------------------------------------------------
Cash flows from investing activities $(13,412) $(16,812) $4,110 $(37,602)
-------------------------------------------------------------------------------------------------------
Increase (decrease) in cash during the period 5,079 (21,771) 4,810 (4,158)
Effect of foreign currency translation adjustments (1,230) 5,104 (961) 4,158
Cash position, beginning of period - 16,667 - -
-------------------------------------------------------------------------------------------------------
Cash position, end of period $3,849 $ - $3,849 $ -
-------------------------------------------------------------------------------------------------------
</TABLE>
Intertape Polymer Group(TM)
8 9
<PAGE> 8
Second Quarterly Report
--------------------------------------------------------------------------------
Consolidated Balance Sheet
In thousands of U.S. dollars.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
As at June 30, 2000 1999
<S> <C> <C>
Assets
Current assets
Cash & short-term investments, at cost $3,849 $ -
Receivables 106,949 84,112
Other receivables 15,055 13,045
Inventories 84,799 76,028
Parts & Supplies 10,301 6,584
Prepaids 3,987 3,273
Future income tax assets 11,085 8,198
-----------------------------------------------------------------------------------------------------
236,025 191,240
Capital assets (& construction in progress) 352,488 275,537
Other, at amortized cost 9,925 29,706
Goodwill, at amortized cost 215,066 173,141
-----------------------------------------------------------------------------------------------------
Total Assets $813,504 $669,624
-----------------------------------------------------------------------------------------------------
Liabilities
Current liabilities
Bank indebtedness $51,271 $100,862
Accounts payable and accrued liabilities 69,607 60,066
Installments on long-term debt 10,152 2,051
-----------------------------------------------------------------------------------------------------
131,030 162,979
Long-term debt 326,682 173,124
Other liabilities 14,697 10,417
Future income tax liabilities 42,903 29,612
-----------------------------------------------------------------------------------------------------
Total Liabilities $515,312 $376,132
-----------------------------------------------------------------------------------------------------
Shareholders' Equity
Capital Stock $185,145 $182,707
Retained earnings 105,523 103,170
Accumulated foreign currency translation 7,524 7,615
-----------------------------------------------------------------------------------------------------
Total Shareholders' Equity $298,192 $293,492
-----------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $813,504 $669,624
-----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION> Common Shares
Three Months Six Months
Average number of shares outstanding 2000 1999 2000 1999
<S> <C> <C> <C> <C>
Canadian GAAP - Basic 28,297,621 28,296,915 28,294,756 26,999,750
Canadian GAAP - Fully diluted 31,140,412 30,636,098 30,968,313 29,292,267
U.S. GAAP - Basic 28,297,621 28,296,915 28,294,756 26,999,750
U.S. GAAP - Fully diluted 28,716,590 29,262,328 28,785,865 27,917,560
</TABLE>
Intertape Polymer Group(TM)
10 11
<PAGE> 9
INFORMATION REQUEST FORM
Please check one:
I would like to __ receive or __ continue receiving financial information
on the Company.
Name:__________________________________________________________________________
Title:_________________________________________________________________________
Firm:__________________________________________________________________________
Address:_______________________________________________________________________
_______________________________________________________________________________
Province/State:________________________________________________________________
Postal Code/Zip:_______________________________________________________________
Telephone:_____________________________________________________________________
Fax:___________________________________________________________________________
E-mail:________________________________________________________________________
Please send me now and on a regular basis (Please indicate number of copies
requested):
__ Annual & Quarterly Reports ______#
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Please indicate your occupation:
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================================================================================
Please fax a copy of this page to:
The Secretary-Treasurer
Intertape Polymer Group Inc.
(514) 731-5477
or write to us at:
110E Montee de Liesse, Montreal,
Quebec, Canada H4T 1N4
or contact us via the internet:
Web: www.intertapepolymer.com
E-mail: [email protected]
Intertape Polymer GroupTM
Printed in Canada 8 - 00 - 8M
