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
Intertape Polymer Group Inc. Announces December 2001 Annual 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.
March 8, 2002 By: /s/ Andrew Archibald
-----------------------------------
Andrew Archibald
Chief Financial Officer
Intertape Polymer Group Inc.
MARCH 8, 2002 NYSE SYMBOL: ITP
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC.
ANNOUNCES DECEMBER 2001
ANNUAL RESULTS
(stated in U.S. dollars)
(reported using Cdn GAAP other than as noted)
Montreal, Quebec, Canada - March 8, 2002 - Intertape Polymer Group Inc. (IPG), a
leader in the packaging industry, announced today the results for its fiscal
year ending December 31, 2001. Details of the annual results are as follows:
Revenue for the fourth quarter of 2001 was $146.2 million as compared to $151.0
million for the same period of 2000. For the full year, revenue was $594.9
million compared to $654.0 million for 2000.
Lower sales volumes reflected a decline in consumption of packaging materials in
general and an average of approximately 3% reduction in selling prices. Export
sales were approximately $15 million less than the previous year as the Company
exited certain unprofitable markets.
Melbourne F. Yull, Chairman and CEO stated ''Despite some early indications of
improvement in North America's economic environment, we remain cautious about
the rate of recovery in our business volumes. We do expect to see benefits from
our continuing programs of reducing debt and lowering costs as well as from new
product sales and our distribution strategy.''
The Company recorded a net loss of $1.0 million ($6.5 million before income
taxes) for the fourth quarter of 2001 as compared to net earnings of $3.6
million ($4.5 million loss before income taxes) for the same period of 2000. The
drop in revenue resulted in a decline in gross profit of $2.4 million. Interest
costs were $2.3 million higher for the fourth quarter of 2001 as compared to
that of 2000. These items were partially offset by lower selling, general and
administrative and other costs of $2.7 million.
The Company recorded a net loss of $12.2 million ($22.6 million before income
taxes) for the year 2001, as compared to net earnings of $33.4 million ($36.9
million before income taxes) for the year 2000. The drop in revenue resulted in
a decline in gross profit of $27.9 million. In addition, $6.7 million of
non-recurring charges were recorded during the first three quarters related to
the establishment of Regional Distribution Centers, severance and inventory
write downs. Selling, general and administrative costs increased $8.2 million
which included the effect of non-recurring charges amounting to $10.0 million
recorded in the nine month period ended September 2001 relating to additional
bad debt reserves and severance reserves. Interest costs for 2001 increased by
$11.7 million as compared to 2000, primarily as a result of a $6.7 million
charge relating to the Company's recently completed debt refinancing.
Earnings Per Share (EPS) for the three month period ending December 2001, both
basic and fully diluted under both US and Canadian GAAP, were a loss of $0.03 as
compared to a profit of $0.13 for the same period ending 2000. For the
twelve-month period ending December 2001, under both US and Canadian GAAP, EPS
was a loss of $0.43 as compared to a profit of $1.18 for the same period ending
2000. On a fully diluted basis, EPS under Cdn and US GAAP were a loss of US$
0.43 compared to a profit of $1.16 for both Cdn and US GAAP in the same period
last year.
The Company completed the issue of 5.1 million common shares on March 1st,
generating net proceeds of US$47.2 million. These proceeds were used to reduce
debt. It is expected that the stock offering will not be dilutive for 2002.
The Company will hold a Conference Call on Monday, March 11, 2002 at 10:00 a.m.
EST to discuss its business performance. The Conference Call can be accessed by
dialing 1-888-273-9890. The International dial in number is 612-332-1020. A
replay of the call will be available until Monday, March 18 2001 at 11:59 p.m.
EST. To access the playback, dial 1-800-475-6701 for North America domestic or
1-320-365-3844. Mention access code 630032. The Company will simultaneously
Web Broadcast its Conference Call. Access the Web Cast via Intertape Polymer
Group's web site at:www.intertapepolymer.com/report.html
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 was founded in 1981 and is based in
Montreal, Quebec and Sarasota, Florida with manufacturing facilities in twenty
North American and European locations.
Certain statements and information set forth in this release, as well as other
written or oral statements made from time to time by the Company or by its
authorized executive officers on its behalf, constitute ''forward-looking
statements'' within the meaning of the United States Federal Private Securities
Litigation Reform Act of 1995. The Company intends for its forward-looking
statements to be covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
The reader should note that the Company's forward-looking statements speak only
as of the date of this media release or when made and the Company undertakes no
duty or obligation to update or revise its forward-looking statements. Although
management believes that the expectations, plans, intentions and projections
reflected in its forward-looking statements are reasonable, such statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the Company's actual results, performance or achievements expressed or
implied by the forward-looking statements.
The risks, uncertainties and other factors that the Company's stockholders and
prospective investors should consider include, but are not limited to, the
following: risks associated with pricing, volume and continued strength of
markets where the Company's products are sold; delays and disruptions associated
with terrorist attacks and reprisals, political instability, heightened security
and war in countries of the world that affect the Company's business; the effect
of competition on the Company's ability to maintain margins on existing or
acquired operations; and other risk factors listed from time to time in the
Company's reports (including its Annual Report on Form 40-F) filed with the U.S.
Securities and Exchange Commission.
FOR FURTHER INFORMATION CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel: (941) 7237-5788
E-mail: itp$info@intertapeipg.com
Web: www.intertapepolymer.com
INTERTAPE POLYMER GROUP INC.
CONSOLIDATED EARNINGS
For the period ended December 31,
(In thousands of US dollars, except per share amounts)
Three Months Twelve Months
2001 2000 2001 2000
------- ------- -------- -------
$ $ $ $
Sales 146,175 150,970 594,905 653,915
Cost of sales 118,906 121,305 476,089 500,547
------- ------- -------- -------
Gross profit 27,269 29,665 118,816 153,368
------- ------- -------- -------
Selling, general and administrative expenses 21,558 23,863 91,343 83,092
Amortization of goodwill 1,717 1,805 7,014 6,540
Research and development 932 1,302 4,182 5,109
Financial expenses 9,527 7,213 38,911 27,205
Gain on sale of interest in joint venture (5,500)
------- ------- -------- -------
33,734 34,183 141,450 116,446
------- ------- -------- -------
Earnings (loss) before income taxes (6,465) (4,518) (22,634) 36,922
Income taxes (5,455) (8,103) (10,392) 3,500
------- ------- -------- -------
Net earnings (loss) (1,010) 3,585 (12,242) 33,422
======= ======= ======== =======
Earnings (Loss) Per Share - Basic (0.03) 0.13 (0.43) 1.18
======= ======= ======== =======
Earnings (Loss) Per Share - Diluted (0.03) 0.13 (0.43) 1.16
======= ======= ======== =======
INTERTAPE POLYMER GROUP INC.
CONSOLIDATED BALANCE SHEETS
December 31,
(In thousands of US dollars)
2001 2000
------- -------
$ $
ASSETS
Current assets
Trade receivables (net of allowance for doubtful accounts of $6,670;
$10,300 in 2000) 86,529 97,478
Other receivables 13,654 11,659
Inventories 70,688 89,264
Parts and supplies 11,592 10,069
Prepaid expenses 9,450 6,114
Future income tax assets 4,025 10,810
------- -------
195,938 225,394
Capital assets 366,567 374,753
Other assets 11,680 10,636
Goodwill, at amortized cost 227,804 234,257
------- -------
801,989 845,040
======= =======
LIABILITIES
Current liabilities
Bank indebtedness 28,046 127,333
Accounts payable and accrued liabilities 91,507 79,811
Instalments on long-term debt 8,310 9,532
------- -------
127,863 216,676
Future income taxes 21,588 37,538
Long-term debt 354,663 276,684
Other liabilities 3,785 4,500
------- -------
507,899 535,398
------- -------
SHAREHOLDERS' EQUITY
Capital stock and share purchase warrants 189,496 186,908
Retained earnings 104,567 116,966
Accumulated foreign currency translation adjustments 27 5,768
------- -------
294,090 309,642
------- -------
801,989 845,040
======= =======
INTERTAPE POLYMER GROUP INC.
CONSOLIDATED CASH FLOWS
For the period ended December 31,
(In thousands of US dollars)
2001 2000
------- -------
$ $
OPERATING ACTIVITIES
Net earnings (loss) (12,242) 33,422
Non-cash items
Depreciation and amortization 33,831 27,934
Future income taxes (9,165) 482
Write-off of debt issue expenses 2,165
Write-off of capital assets 1,594
Other non-cash items (715) (5,500)
------- -------
Cash from operations before changes in non-cash
working capital items 13,874 57,932
------- -------
Changes in non-cash working capital items
Trade receivables 10,337 (6,897)
Other receivables (1,287) 3,003
Inventories 17,690 3,318
Parts and supplies (1,626) 175
Prepaid expenses (3,341) (1,809)
Accounts payable and accrued liabilities 12,431 (15,697)
------- -------
34,204 (17,907)
------- -------
Cash flows from operating activities 48,078 40,025
------- -------
INVESTING ACTIVITIES
Acquisitions of businesses (28,195)
Capital assets, net of investment tax credits (25,942) (48,142)
Proceeds on sale of capital assets 8,000 4,239
Other assets (8,592) 17,637
------- -------
Cash flows from investing activities (26,534) (54,461)
------- -------
FINANCING ACTIVITIES
Net change in bank indebtedness (99,261) 26,468
Issue of long-term debt 86,400
Repayment of long-term debt (9,634) (2,249)
Issue of common shares 3,379 176
Common shares purchased for cancellation (922) (4,194)
Dividends paid (3,006)
------- -------
Cash flows from financing activities (20,038) 17,195
------- -------
Net increase in cash position 1,506 2,759
Effect of foreign currency translation adjustments (1,506) (2,759)
------- -------
Cash position, beginning and end of year -- --
======= =======