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[LOGO - Intertape Polymer Group]
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
"Third Quarterly Report 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 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.
November 15, 2000 By: /s/ Angela Massaro-Fain
-----------------------------------
Angela Massaro-Fain
Advertising and Investor Relations Manager
Intertape Polymer Group Inc.
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INTERTAPE POLYMER
GROUP INC.
-------------------------
2000
THIRD QUARTERLY REPORT
Graph ITP
Intertape Polymer Group LOGO
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THIRD QUARTERLY REPORT
MESSAGE TO SHAREHOLDERS
Dear Shareholders,
Total revenue for the third quarter showed an increase compared to that of the
previous year. The increase from $161.5 million to $166.4 million over the same
period last year, was due to a record month for IPG during September, which made
up for an extremely soft July. I expect that trend to continue into the fourth
quarter.
A combination of current market slowdowns and customer reductions of high cost
inventory as industry prices declined, impacted IPG's third quarter sales
results. Reduced sales from the Woven Product line matched the slowdowns in the
housing industry. Gross margins continue to improve, with our third quarter
increasing to 26.9%. Raw material prices in general remain stable with an
indication of price reductions during the coming months.
Sales of Intertape(R) pressure-sensitive tape and Exlfilm(R) shrink film from
our Distribution Products line continue to increase. Both products remain strong
performers. Progress continues with IPG's proprietary Flame-Retardant/Ultra
Violet (FR/UV) woven-coated fabrics and new shelter products as they are
introduced into the industry. Intertape Polymer Group is the first manufacturer
to achieve both FR and UV regulated approvals for human occupancy, with shelters
made from these patented-coated fabrics. This opens up the product line to a
variety of new end-uses, as it will replace higher cost structure materials.
Coupled with IPG's new woven-coated fabric targeted to the housing and steel
industry, I expect to see more positive results in 2001. Additionally, we have
recently expanded our shrink film product line. We are the only manufacturer
with its entire line available in 45 gauge. This gives us a unique performance
advantage over all competitors in this arena. These products are 25% thinner,
providing dramatic savings for the end user, while offering excellent clarity,
product protection and application speeds. A variety of new higher value-added
stretch films will become commercial during the fourth quarter, which should
grow sales and increase our gross margins.
I am pleased to announce that the Company finalized the acquisition of Olympian
Tape Sales, Inc.,/United Tape Company during the quarter. This was a good
acquisition for IPG. It provides us with a broader access to the office-products
and hardware markets, as well as discount stores. This will expand volume for
our tape operations. We have already made positive gains which I feel will
contribute to our internal organic growth.
It has been an extremely active quarter with improvements in a variety of
service levels to our customers. Two of the Regional Distribution Centers will
be opening in Los Angeles, California and Montreal, Quebec during early
December. I expect both the South East and Mid West RDC's to open during the
first quarter 2001, providing expanded customer service and additional cost
reductions. Targeted for January 2001 is the launch of Intertape Polymer Group's
"B-to-B" Beta sites. Named "lntertape On-line", this new web based Customer
Center will allow IPG customers to actively track their order status live; a
service that has been anxiously anticipated by our customers, and to-date, well
received in all field tests/trials. This launch becomes the foundation for an
expanded E-Business platform, which will result in reduced transaction costs for
both IPG and our Distributors. Ultimately, this will help grow the bottom line,
as well as increase market share throughout our product range.
With the fourth quarter already in progress, I realize that the success of our
Company is based on a number of key variables, including the strength of our
operations, the strength of our systems and the strength of our employees to
deliver superior products and service... and I am satisfied with the course the
Company is taking.
/s/ Melbourne F. Yull
Melbourne F. Yull
Chairman and Chief Executive Officer
November 6, 2000
Intertape Polymer group LOGO
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THIRD QUARTERLY REPORT
CONSOLIDATED EARNINGS
In thousands of U.S. dollars, except per share amounts.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
Three Months Nine Months
-------------------- ---------------------
For the period ended September 30, 2000 1999 2000 1999
---------------------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
SALES $166,356 $161,470 $502,945 $416,174
Cost of sales 121,612 118,893 379,242 302,197
-------- -------- -------- --------
GROSS PROFIT $ 44,744 $ 42,577 $123,703 $113,977
-------- -------- -------- --------
Selling, general and administrative expenses 21,306 19,918 59,229 51,975
Research and development 1,073 1,003 3,807 2,582
Amortization of goodwill 1,663 1,436 4,735 3,916
Financial expenses 7,345 5,806 19,992 15,956
Gain on sale of interest in joint venture -- -- (5,500) --
-------- -------- -------- --------
$ 31,387 $ 28,163 $ 82,263 $ 74,429
-------- -------- -------- --------
Earnings before income taxes 13,357 14,414 41,440 39,548
Income taxes 3,741 4,180 11,603 11,469
-------- -------- -------- --------
NET EARNINGS FOR THE PERIOD $ 9,616 $ 10,234 $ 29,837 $ 28,079
-------- -------- -------- --------
Retained earnings - beginning of period 105,523 103,170 88,422 88,318
Premium on purchase for cancellation
of common shares (589) -- (703) --
Dividend -- -- (3,006) (2,993)
-------- -------- -------- --------
RETAINED EARNINGS - END OF PERIOD $114,550 $113,404 $114,550 $113,404
-------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
Three Months Nine Months
-------------------- ---------------------
Earnings per Share 2000 1999 2000 1999
------------------ ---- ---- ---- ----
<S> <C> <C> <C> <C>
Cdn GAAP - Basic - US$ $ 0.34 $ 0.36 $ 1.05 $ 1.02
Cdn GAAP - Fully diluted - US$* $ 0.32 $ 0.35 $ 1.00 $ 0.98
U.S. GAAP - Basic - US$ $ 0.34 $ 0.36 $ 1.05 $ 1.02
U.S. GAAP - Fully diluted - US$ $ 0.33 $ 0.35 $ 1.03 $ 0.99
========= ======== ======== ========
Cdn GAAP - Basic - CDN$ $ 0.50 $ 0.53 $ 1.55 $ 1.52
Cdn GAAP - Fully diluted - CDN$* $ 0.47 $ 0.51 $ 1.47 $ 1.45
========= ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Three Months Nine Months
-------------------- ---------------------
Other data per Share 2000 1999 2000 1999
-------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Earnings Before Interest and Taxes (EBIT) $ 0.73 $ 0.71 $ 2.17 $ 2.02
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) $ 1.01 $ 1.03 $ 2.98 $ 2.88
========= ======== ======== ========
</TABLE>
[FN]
------------
* In the fourth quarter of 2000, Canadian GAAP will be equivalent to
U.S. GAAP for the definition of fully diluted Earnings per Share.
</FN>
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:
o 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.
o actions of competitors as are described in the Company's filings with the
Securities and Exchange Commission (SEC) over the last twelve months.
o 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.
o 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.
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THIRD QUARTER REPORT
THIRD QUARTER HIGHLIGHTS
Sales graph Net Earnings (CDN GAAP) graph
Gross Profit graph Earnings per Share (CDN GAAP) graph
Gross Margin graph Book Value per Share graph
intertape polymer group LOGO
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THIRD QUARTERLY REPORT
CONSOLIDATED CASH FLOWS
In thousands of U.S. dollars.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 1999 2000 1999
------------------- -----------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net earnings for the period $ 9,616 $ 10,234 $ 29,837 $ 28,079
Non-cash items
Depreciation and amortization 7,736 9,089 22,805 23,775
Deferred income taxes 2,737 2,926 8,514 5,826
Write-off of capital assets -- -- 1,594 --
--------- --------- --------- ---------
Cash from operations before funding of changes
in non-cash working capital items 20,089 22,249 62,750 57,680
Changes in non-cash working capital items (4,407) (2,650) (40,908) (19,647)
--------- --------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES $ 15,682 $ 19,599 $ 21,842 $ 38,033
--------- --------- --------- ---------
FINANCING ACTIVITIES
Net change in bank indebtedness 39,971 (46,757) 38,433 (72,692)
Issue of long-term debt -- 181,980 -- 181,980
Repayment of long-term debt (1,226) (24,459) (2,012) (59,324)
Issue of common shares 53 218 176 79,021
Common shares purchased for cancellation (990) -- (1,243) --
Dividend paid -- -- (3,006) (2,993)
--------- --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES $ 37,808 $ 110,982 $ 32,348 $ 125,992
--------- --------- --------- ---------
INVESTING ACTIVITIES
Business acquisitions (28,195) (110,242) (28,195) (110,242)
Capital assets (& construction in progress) (15,601) (18,227) (36,017) (45,758)
Proceeds on sale of capital assets (15) -- 4,239 --
Other assets (1,291) (6,800) 18,981 (16,871)
--------- --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES $ (45,102) $(135,269) $ (40,992) $(172,871)
--------- --------- --------- ---------
INCREASE (DECREASE) IN CASH DURING THE PERIOD 8,388 (4,688) 13,198 (8,846)
Effect of foreign currency translation adjustments (2,813) 4,202 (3,774) 8,360
Cash (bank indebtedness) assumed on
business acquisitions (9,424) 486 (9,424) 486
Cash position, beginning of period 3,849 -- -- --
--------- --------- --------- ---------
CASH POSITION, END OF PERIOD $ -- -- -- --
--------- --------- --------- ---------
</TABLE>
intertape polymer group LOGO
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THIRD QUARTERLY REPORT
CONSOLIDATED BALANCE SHEET
In thousands of U.S. dollars.
(Unaudited) / Using Canadian GAAP
<TABLE>
<CAPTION>
AS AT SEPTEMBER 30, 2000 1999
------------------- --------- ---------
<S> <C> <C>
ASSETS
Current assets
Receivables $122,725 $104,681
Other receivables 15,282 10,292
Inventories 98,151 86,204
Parts & Supplies 9,768 8,561
Prepaids 5,274 4,656
Future income tax assets 10,907 8,230
-------- --------
262,107 222,624
Capital assets (& construction in progress) 362,843 358,372
Other, at amortized cost 11,615 32,891
Goodwill, at amortized cost 232,525 222,031
-------- --------
TOTAL ASSETS $869,090 $835,918
-------- --------
LIABILITIES
Current liabilities
Bank indebtedness $129,487 $ 53,673
Accounts payable and accrued liabilities 85,093 94,612
Installments on long-term debt 10,014 2,057
-------- --------
224,594 150,342
Long-term debt 276,442 336,354
Other liabilities 14,000 10,456
Future income tax liabilities 45,200 34,404
-------- --------
TOTAL LIABILITIES $560,236 $531,556
-------- --------
SHAREHOLDERS' EQUITY
Capital stock $188,784 $186,075
Retained earnings 114,550 113,404
Accumulated foreign currency translation 5,520 4,883
-------- --------
TOTAL SHAREHOLDERS' EQUITY $308,854 $304,362
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $869,090 $835,918
======== ========
</TABLE>
COMMON SHARES
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
----------------------- -----------------------
AVERAGE NUMBER OF SHARES OUTSTANDING 2000 1999 2000 1999
------------------------------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Canadian GAAP - Basic 28,342,803 28,531,518 28,310,698 27,510,433
Canadian GAAP - Fully diluted 31,274,460 30,938,028 31,068,289 29,823,446
U.S. GAAP - Basic 28,342,803 28,531,518 28,310,698 27,510,433
U.S. GAAP - Fully diluted 28,763,582 29,560,516 28,783,774 28,454,004
</TABLE>
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INFORMATION REQUEST FORM
Please check one:
I WOULD LIKE TO RECEIVE OR CONTINUE RECEIVING FINANCIAL INFORMATION ON THE
COMPANY.
Name:______________________________________________________________________
Title:_____________________________________________________________________
Firm:______________________________________________________________________
Address:___________________________________________________________________
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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]
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Printed in Canada 11-00-8M
