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March 10, 2000 NYSE SYMBOL: ITP
T.S.E. SYMBOL: ITP
INTERTAPE POLYMER GROUP INC.
ISSUES AN EARNINGS WARNING
(stated in U.S. dollars)
(reported using Cdn GAAP other than as noted)
Montreal, Quebec, Canada, March 10, 2000 - Intertape Polymer Group Inc. (NYSE
and TSE: ITP) today announced that it expected to incur a loss for the fourth
quarter ended December 31, 1999. Melbourne F. Yull, Intertape's founder,
Chairman and Chief Executive Officer stated "Sales in the fourth quarter were
adversely affected by difficulties encountered in the implementation of our new
business systems which negatively impacted customer service, warehousing and
order fulfillment." The loss will include substantial charges related to
integration, transition and other costs in connection with business acquisitions
and to asset impairment and non-recurring expenses. As a result, it will miss on
the earnings per share expectations for the 1999 fiscal year.
Andrew M. Archibald, C.A., Chief Financial Officer noted that "Analysts'
consensus earnings per share for the fiscal year 2000 are still attainable
although earnings for the first six months of the year will be less than
expected. This will be due in part to revenue growth, a planned 10% reduction in
the number of employees and further cost reductions in the acquired businesses."
Intertape also announced today that it has closed the sale of its interest in
IFCO-U.S., L.L.C ("IFCO") as part of the recently announced "IFCO Systems"
merger between International Food Container Organization, based in Germany, and
PalEx, Inc., with a resulting pre-tax gain of approximately $5 million.
Mr. Yull stated that "The sale of Intertape's interest in IFCO will free up
capital resources previously committed to IFCO which can now be utilized in
other areas of Intertape's business that could provide higher rates of return."
Mr. Archibald added that "The sale of this investment provides Intertape with a
cash infusion of approximately $40 million. The funds will be used to reduce
revolving operating lines of credit."
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.
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FOR FURTHER INFORMATION CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel: (514) 731-0731
E-mail: [email protected]
Web: www.intertapepolymer.com
THIS RELEASE CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING THAT ARE MADE PURSUANT
TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. 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. THOSE RISKS INCLUDE, BUT ARE NOT
LIMITED TO, RISKS ASSOCIATED WITH PRICING, VOLUME AND CONTINUED STRENGTH OF
MARKETS WHERE THE COMPANY'S PRODUCTS ARE SOLD AND ACTIONS OF COMPETITORS AS ARE
DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION
(SEC) OVER THE LAST TWELVE MONTHS, AS WELL AS THE COMPANY'S ABILITY TO
SUCCESSFULLY INTEGRATE ITS ACQUIRED BUSINESSES AND INFORMATION SYSTEMS.
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.
