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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
For "Intertape Polymer Group Inc. Announces
September 2000 Third Quarter Results"
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.
DATE: November 6, 2000 By: /s/ Angela Massaro-Fain
-----------------------------------
Angela Massaro-Fain
Advertising and Investor Relations Manager
Intertape Polymer Group Inc.
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[LOGO - Intertape Polymer Group]
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC. ANNOUNCES
SEPTEMBER 2000 THIRD QUARTER RESULTS
(stated in U.S. dollars)
(reported using Canadian GAAP other than noted)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3RD QUARTER RESULTS
-------------------
2000 1999 % CHANGE
--------------- --------------- ---------
<S> <C> <C> <C>
Sales $166.4 million $161.5 million 3.0%
Net Income $ 9.6 million $ 10.2 million (5.9%)
</TABLE>
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Montreal, Quebec, Canada - November 6, 2000 - Intertape Polymer Group Inc. (NYSE
& TSE: ITP), today reported its financial results for the third quarter ended
September 30, 2000.
Sales in the period were $166.4 million, up from $161.5 million for the same
period in 1999, representing an increase of $4.9 million or 3.0%. For the nine
month period, sales were $502.9 million, an increase of $86.7 million or 20.8%
for 1999 from $416.2 million.
Melbourne F. Yull, Intertape's Chairman and Chief Executive Officer stated "I am
satisfied with the course the Company is taking. As expected, we are gradually
improving in every area within the organization... we are on track. The results
of the third quarter are mostly due to current market conditions, which have
attributed to a slower growth rate than expected, while our customers are busy
depleting their higher cost inventory. September was a record month for IPG and
we expect that trend to continue into the fourth quarter. Margins remain
healthy."
Gross margins for the third quarter of 2000 increased to 26.9%, compared to
26.4% for the same period last year. The nine months were 24.6% compared to
27.4% last year.
Net income under US and Canadian GAAP for the three months ended September, 2000
decreased 5.9% or $0.6 million from the same period last year. Net income for
this period was $9.6 million in 2000 down from $10.2 million in 1999.
Net income under US and Canadian GAAP for the nine month period ended September,
2000 increased 6.0% or $1.7 million from the same period last year. Net income
for the nine month period was $29.8 million in 2000 up from $28.1 million for
1999.
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[LOGO - Intertape polymer group]
Under both US and Canadian GAAP, September 2000 earnings per share (EPS)
decreased to US$0.34 as compared to US$0.36 for the quarter ended September
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$0.35 for both US and Canadian GAAP
for the same period last year.
EPS for the nine month period ending September 2000, under both US and Canadian
GAAP, increased to US$1.05 as compared to US$1.02 for the same period ending
1999. On a fully diluted basis, EPS under US GAAP was US$1.03 and under Canadian
GAAP was US$1.00 increasing from US$0.99 and US$0.98 for both US and Canadian
GAAP respectively in the same period last year.
The exchange rate at September 30, 2000 was Cdn. $1.5030 = 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 and retail use. The Company is based in Montreal, Quebec and
Sarasota, Florida with facilities in twenty North American and one European
location.
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, and the timing and acceptance of new
product offerings.
-- 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 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 US $'000 (except per share amounts)
<TABLE>
<CAPTION>
For the three months ended For the period ended
September 30, 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 0 0 (5,500) 0
---------- ---------- ---------- ----------
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
Dividend (0) 0 (3,006) (2,993)
Premium on purchase for cancellation of common shares (589) 0 (703) 0
Retained earnings - end of period 114,550 113,404 114,550 113,404
========== ========== ========== ==========
Earnings per share - Cdn GAAP $0.34 $0.36 $1.05 $1.02
Earnings per share - Cdn GAAP Fully diluted $0.32 $0.35 $1.00 $0.98
Earnings per share - U.S. GAAP $0.34 $0.36 $1.05 $1.02
Earnings per share - US GAAP Fully diluted $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
Average number of shares outstanding during the period
Canadian GAAP 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 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>
Note: In the 4th quarter of 2000, Canadian GAAP will be equivalent to US GAAP
for the definition of fully diluted earnings per share
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INTERTAPE POLYMER GROUP INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
In US $ '000
<TABLE>
<CAPTION>
As at September 30,
-----------------------
2000 1999
------- -------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Receivable 122,725 104,681
Other receivable 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
------- -------
Fixed assets & construction in progress 362,843 358,372
Other, at amortized cost 11,615 32,891
Goodwill, at amortized cost 232,525 222,031
------- -------
869,090 835,918
======= =======
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness 129,487 53,673
Accounts payable and accrued liabilities 85,093 94,612
Instalments 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
------- -------
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
------- -------
308,854 304,362
------- -------
869,090 835,918
------- -------
</TABLE>
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INTERTAPE POLYMER GROUP INC.
CONSOLIDATED CHANGES IN CASH RESOURCES
(Unaudited)
In US $'000
<TABLE>
<CAPTION>
For the three months ended For the period ended
September 30, September 30,
-------------------------- -----------------------
2000 1999 2000 1999
------ ------- ------- --------
<S> <C> <C> <C> <C>
OPERATIONS
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 fixed assets 0 0 1,594 0
------ ------ ------ ------
20,089 22,249 62,750 57,680
Changes in non-cash working capital items (4,407) (2,650) (40,908) (19,647)
------ ------- ------ -------
SOURCE (USE) OF CASH DURING THE PERIOD 15,682 19,599 21,842 38,033
------ ------- ------ -------
FINANCING
Bank indebtedness 39,971 (46,757) 38,433 (72,692)
Issue of long-term debt 0 181,980 0 181,980
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) 0 (1,243) 0
Dividend paid (0) 0 (3,006) (2,993)
------ ------- ------ -------
SOURCE (USE) OF CASH DURING THE PERIOD 37,808 110,982 32,348 125,992
------ ------- ------ -------
INVESTMENT
Acquisition of business (28,195) (110,242) (28,195) (110,242)
Additions to fixed assets & construction in progress (15,601) (18,227) (36,017) (45,758)
Proceed on sale of fixed assets (15) 0 4,239 0
Increase in other assets and deferred charges (1,291) (6,800) 18,981 (16,871)
------ ------- ------ -------
SOURCE (USE) OF CASH DURING THE PERIOD (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 acquisition (9,424) 486 (9,424) 486
Cash, beginning of period 3,849 0 0 0
------ ------- ------ -------
CASH, END OF PERIOD (0) (0) (0) 0
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</TABLE>
