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[INTERTAPE POLYMER GROUP INC. - LETTERHEAD]
August 3, 2000 NYSE SYMBOL: ITP
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC. ANNOUNCES
June 2000 SECOND QUARTER RESULTS
(stated in U.S. dollars)
(reported using Canadian GAAP other than noted)
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2nd Quarter Results
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<TABLE>
<CAPTION>
2000 1999 % Change
--------------- --------------- --------
<S> <C> <C> <C>
Sales $ 167.2 million $ 133.2 million 25.5%
Net Income $ 9.5 million $ 9.7 million (2.1%)
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Montreal, Quebec, Canada - August 3, 2000 - Intertape Polymer Group Inc. (NYSE &
TSE: ITP), today reported its financial results for the second quarter
ended June 30, 2000.
Sales in the period were $167.2 million, up from $133.2 million for the same
period in 1999, representing an increase of $34.0 million or 25.5%. For the six
month period, sales were $336.6 million, an increase of $81.9 million or 32.2%
from 1999 of $254.7 million. Melbourne F. Yull, Intertape's Chairman and Chief
Executive Officer stated "The increase in sales reflects additional synergies
gained from the acquisitions of Central Products Corporation and Spinnaker
Electrical Tape, as well as the continued progress IPG is making in implementing
new and improved systems to better service our customers."
Gross margins for the second quarter of 2000 were 24.3%, compared to 27.4% for
the same period last year; and six months were 23.5% compared to 28.0% last
year. Andrew M. Archibald, Chief Financial Officer noted "Margins are
progressively returning to historical levels, with the increase to 24.3% from
22.6% in the first quarter 2000 reflecting the implementation of price increases
in several product categories, reduced costs and improved operating
efficiencies."
Net income under US and Canadian GAAP for the three months ended June, 2000
decreased 2.1%, or $0.2 million from the same period last year. Net income for
this period was $9.5 million in 2000 down from $9.7 million in 1999.
Net income under US and Canadian GAAP for the six month period ended June, 2000
increased 13.5% or $2.4 million from the same period last year. Net income for
the six-month period was $20.2 million in 2000 up from $17.8 million for 1999.
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[INTERTAPE POLYMER GROUP INC. - LETTERHEAD]
Under both US and Canadian GAAP, June 2000 earnings per share (EPS) remained
stable at US$0.34 as compared to US$0.34 for the quarter ended June 1999. On a
fully diluted basis, EPS was US$0.33 and US$0.32 under both US and Canadian GAAP
respectively, as compared to US$0.34 and US$0.33 for the same period last year.
EPS for the six-month period ending June 2000, under both US and Canadian GAAP,
increased to US$0.72 as compared to US$0.66 for the same period ending 1999. On
a fully diluted basis, EPS under US GAAP was US$0.70 and under Canadian GAAP was
US$0.68 compared to US$0.64 and US$0.63 for both US and Canadian GAAP
respectively in the same period last year.
The exchange rate at June 30, 2000 was Cdn. $1.4835 = 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 fifteen 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:
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.
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
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INTERTAPE POLYMER GROUP INC.
CONSOLIDATED EARNINGS
(Unaudited)
In thousands of US Dollars (except per share amounts)
<TABLE>
<CAPTION>
For the three months ended For the period ended
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June 30, June 30,
2000 1999 2000 1999
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<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 40,719 36,523 78,959 71,401
Selling, general and administrative expenses 17,892 15,959 37,923 32,057
Research and development 1,408 766 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 0 0 (5,500) 0
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27,473 22,882 50,875 46,266
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Earnings before income taxes 13,245 13,641 28,084 25,135
Income taxes 3,709 3,956 7,864 7,289
Net earnings for the period 9,537 9,685 20,221 17,846
Retained earnings - beginning of period 98,992 93,486 88,422 88,318
Dividend (3,006) 0 (3,006) (2,993)
Premium on purchase for cancellation of common shares 0 0 (115) 0
Retained earnings - end of period 105,522 103,171 105,522 103,171
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Earnings per share - Cdn GAAP $0.34 $0.34 $0.72 $0.66
Earnings per share - Cdn GAAP Fully diluted $0.32 $0.33 $0.68 $0.63
Earnings per share - U.S. GAAP $0.34 $0.34 $0.72 $0.66
Earnings per share - US GAAP Fully diluted $0.33 $0.34 $0.70 $0.64
EBIT per share $0.70 $0.66 $1.44 $1.31
EBITDA per share $0.97 $0.92 $1.97 $1.85
Average number of shares outstanding during the period
Canadian GAAP 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 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
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