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 the month of April, 2003
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 annual reports under cover of Form 20-F or Form 40-F.]
Form 20-F Form 40-F X
[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):
82-______
SIGNATURES
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, thereunto duly authorized.
INTERTAPE POLYMER GROUP INC.
Date: April 28, 2003 By: /s/ Melbourne F. Yull
Melbourne F. Yull, Chairman
of the Board And Chief
Executive Officer
Intertape Polymer Group Inc. Initiatives Positively Impact
Results for First Quarter 2003
Revenues up 4.7%; unit volume up 8.2%
Earnings per share $0.09
Cost reduction benefits being realized
Bradenton, Florida, U.S.A. - April 24, 2003 - Intertape Polymer Group Inc.
NYSE, TSX: ITP) today said that first quarter results are starting to reflect
the benefits of our cost reduction initiatives undertaken in 2002 and earlier,
together with revenue growth. Intertape Polymer Group (IPG) Chairman and Chief
Executive Officer, Melbourne F. Yull noted that while the economy is still
challenging, our business is improving.
First Quarter 2003 vs Fourth Quarter 2002
Sales for the first quarter of 2003 were $153.6 million compared to $151.3
million for the fourth quarter of 2002. The sales improvement reflects IPG's
strong non-retail unit sales, which were up 7.0% over the fourth quarter of
2002, negligible price reductions, offset by a decline in retail sector
volumes which are in line with seasonal trends.
First quarter 2003 pre-tax income was $3.2 million compared to a pre-tax loss
of $2.1 million in the fourth quarter of 2002 (excluding the net impact of the
goodwill impairment charge of $70 million less related income taxes). The
Company believes these adjusted results provide a more meaningful comparison
of its ongoing operational results. First quarter 2003 net income was $2.9
million, compared to a net loss in the fourth quarter of 2002 of $58.8 million.
First quarter 2003 value-added approached traditional levels and the gross
margin in first quarter 2003 increased by 2.5 percentage points, compared
to the fourth quarter of 2002. Value-added is defined as the difference
between material costs and selling prices, expressed as a percentage of sales.
More specifically, IPG's Chief Financial Officer, Andrew M. Archibald, C.A.,
stated that: "Initiatives such as waste reduction programs in all facilities,
as well as changes to certain blending formulae, and improved efficiencies,
contributed to reduced costs this quarter. Margins also benefited from an
improvement in sales mix between the various product sub classes, as well
as from maintaining manufacturing overhead and labour costs at fourth
quarter levels."
Selling, general and administrative expenses were $22.0 million in the first
quarter of 2003 compared to $23.5 million in the fourth quarter of 2002, a
decrease of 6.4%, resulting from the implementation of cost reduction
initiatives announced during the second half last year, as well as the normal
seasonal decline relating to the retail sector.
Financial expenses in the first quarter were $7.7 million, down slightly from
the fourth quarter.
Pre-Tax Cost Reductions Update
Previously announced cost reduction initiatives of $17.5 million continue
to proceed as planned. In the fourth quarter of 2002 the Company eliminated
$3.0 million annually as a result of the Flexible Intermediate Bulk Container
(FIBC) consolidation and $2.5 million annually in SG&A expenses. Of the
remaining $12.0 million in announced reductions, $6.0 million should be
accomplished during fiscal 2003, with the full impact of the $12.0 million
anticipated in fiscal 2004.
First Quarter 2003 vs First Quarter 2002
Sales for the first quarter were $153.6 million compared to $146.7 million
for the first quarter last year, an increase of 4.7%. The increase in sales
reflects an 8.2% increase in unit sales, offset by a 3.5% decline in selling
prices.
First quarter net income was $2.9 million, or $0.09 per share (basic and
diluted), compared to net income of $2.8 million, or $0.09 per share a
year ago.
Despite rising raw material costs over the period, value-added approached
traditional levels in first quarter 2003, as a result of the various cost
reduction initiatives implemented and, more recently, the ability to reflect
raw material cost increases in selling prices.
Financial expenses in the first quarter were $7.7 million compared to $9.0
million in the first quarter last year. The reduction of financial expenses
reflects the $70.0 million reduction of debt made last year, as well as
reduced interest rates on some of the existing outstanding debt.
Liquidity
Working capital requirements increased in the first quarter, mainly due to
increased receivables outstanding at the end of the quarter resulting from a
strong sales month in March and seasonally higher inventory levels as the
Company prepares for annual plant shutdowns. Debt, as anticipated, increased
by $3.6 million in the quarter, bringing total debt outstanding to $324.9
million as at March 31, 2003, compared to $353.6 million a year ago and
$321.3 million as of December 31, 2002. Long-term debt was reduced by $5.3
million during the first quarter of 2003.
Conclusion
Mr. Yull stated that: "We are pleased that the concerted efforts we have
made across all of IPG's operations have started to show results. Our
performance was in line with our business plan. These results reflect the
success we have had in responding to the economic environment challenges
which prevailed through much of last year and continues. Revenue growth,
and ongoing cost and debt reductions remain keys to our success."
(all figures in U.S. dollars; March 31, 2003, exchange rate:
Cdn $1.4678=U.S.$1.00)
Conference Call
A conference call to discuss IPG's first quarter results will be held Friday,
April 25, 2003 at 10:00 A.M. Eastern Standard Time. Participants may dial
1-800-230-1092 (U.S. and Canada) and 1-612-288-0337 (International). The
conference call will also be simultaneously webcast on the Company's website
at http://www.intertapepolymer.com. (Go to Financial Information, Conference
Call Access for live Webcast).
You may access a replay of the call by dialing 1-800-475-6701 (U.S. and
Canada); 1-320-365-3844 (International) and entering the passcode 682793.
The recording will be available from Friday, April 25, 2003 at 5 P.M. until
Friday, May 2, 2003 at 11:59 P.M, Eastern Standard Time.
About Intertape Polymer Group
Intertape Polymer Group is a recognized leader in the development and
manufacture of specialized polyolefin plastic and paper based packaging
products and complementary packaging systems for industrial and retail use.
Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the
Company employs approximately 2,600 employees with operations in 19
locations, including 13 manufacturing facilities in North America and one
in Europe.
Safe Harbor Statement
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Additional
discussion of factors that could cause actual results to differ materially
from management's projections, estimates and expectations is contained in
the Company's SEC filings. The Company undertakes no duty to update its
forward-looking statements, including its earnings outlook.
FOR INFORMATION CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel.: 866-202-4713
E-mail:itp$info@intertapeipg.com
Web: www.intertapepolymer.com
Intertape Polymer Group Inc.
Consolidated Cash Flows
Three months ended
(In thousands of US dollars)
March 31, 2003 Dec. 31, 2002 March 31, 2002
$ $ $
OPERATING ACTIVITIES
Net (loss) earnings 2,901 (58,774) 2,819
Non-cash items
Depreciation and amortization 6,639 7,647 6,618
Loss on disposal of property,
plant and equipment 30
Impairment of goodwill 70,000
Future income taxes (recovery 322 (15,723) 348
_____ ________ ______
Cash flows from operations before
changes in non-cash working
capital items 9,862 3,180 9,785
Changes in non-cash working
capital items
Trade receivables (6,371) 8,825 (2,527)
Other receivables (218) 2,531 3,087
Inventories (3,847) 10,666 953
Parts and supplies 100 (112) (315)
Prepaid expenses 1,147 (3,177) 1,051
Accounts payable and accrued
liabilities (522) 6,922 (16,425)
_______ ______ ________
(9,711) 25,655 (14,176)
Cash flows from operating
activities 151 28,835 (4,391)
INVESTING ACTIVITIES
Property, plant and equipment (2,451) (2,130) (2,842)
Other assets (1,953) (1,619) (2,514)
_______ _______ _______
Cash flows from investing
activities (4,404) (3,749) (5,356)
FINANCING ACTIVITIES
Net change in bank indebtedness 8,832 (17,419) (4,717)
Issue of long-term debt (32,727)
Repayment of long-term debt (5,265) (8,885) 47,376
Issue of Common Shares 647
_______ ________ ________
Cash flows from financing
activities 3,567 (25,657) 9,932
_______ ________ ________
Net increase (decrease) in cash
position (686) (571) 185
Effect of currency translation
adjustments 686 571 (185)
Cash position, beginning and
end of year -- -- --
Intertape Polymer Group Inc.
Consolidated Balance Sheets
As at
(In thousands of US dollars)
March 31, 2003 Dec. 31, 2002 March 31, 2002
$ $ $
ASSETS
Current assets
Trade receivables (net of
allowance for doubtful
accounts of $3,475,($3,844
in December, 2002, $6,069
in March, 2002) 93,221 86,169 89,033
Other receivables 10,554 10,201 10,549
Inventories 65,732 60,969 69,705
Parts and supplies 12,422 12,377 11,902
Prepaid expenses 6,784 7,884 8,399
Future income tax assets 2,397 2,397 3,995
_______ _______ _______
191,110 179,997 193,583
Property, plant and equipment 350,955 351,530 363,039
Other assets 14,518 13,178 13,680
Goodwill 160,248 158,639 227,859
_______ _______ _______
716,831 703,344 798,161
LIABILITIES
Current liabilities
Bank indebtedness 17,405 8,573 23,313
Accounts payable and accrued
liabilities 81,271 80,916 75,058
Instalments on long-term debt 28,600 29,268 7,560
_______ _______ _______
127,276 118,757 105,931
Long-term debt 278,902 283,498 322,687
Other liabilities 3,530 3,550 3,785
Future income taxes 3,654 4,446 21,878
_______ _______ _______
413,362 410,251 454,281
SHAREHOLDERS' EQUITY
Capital stock and share purchase
warrants 239,186 239,185 236,872
Retained earnings 53,014 50,113 107,386
Accumulated currency translation
adjustments 11,269 3,795 (378)
_______ _______ _______
303,469 293,093 343,880
_______ _______ _______
716,831 703,344 798,161
Intertape Polymer Group Inc.
Consolidated Earnings
Three months ended
(In thousands of US dollars,
except per share amounts)
March 31, 2003 Dec. 31, 2002 March 31, 2002
$ $ $
Sales 153,592 151,261 146,737
Cost of sales 119,793 121,764 113,321
_______ _______ _______
Gross profit 33,799 29,497 33,416
22.0% 19.5% 22.8%
Selling, general and
administrative expenses 21,982 23,462 20,299
Impairment of goodwill 70,000
Research and development 894 480 967
Financial expenses 7,700 7,621 8,983
_______ _______ _______
30,576 101,563 30,249
Earnings (loss) before income
taxes 3,223 (72,066) 3,167
Income taxes (recovery) 322 (13,292) 348
_______ _______ _______
Net earnings (loss) for
the period 2,901 (58,774) 2,819
Earnings (loss) per share
Basic 0.09 (1.79) 0.09
Diluted 0.09 (1.79) 0.09
Consolidated Retained Earnings
Three months ended
(In thousands of US dollars)
March 31, 2003 Dec. 31, 2002 March 31, 2002
$ $ $
Balance, beginning of period 50,113 108,887 104,567
Net (loss) earnings 2,901 (58,774) 2,819
______ ________ _______
Balance, end of period 53,014 50,113 107,386
Common shares
Average number of shares outstanding
Three months ended
March 31, 2003 Dec. 31, 2002 March 31, 2002
CDN GAAP - Basic 33,821,074 32,829,013 30,155,360
CDN GAAP - Diluted 33,821,497 32,829,013 30,505,692
U.S. GAAP - Basic 33,821,074 32,829,013 30,155,360
U.S. GAAP - Diluted 33,821,497 32,829,013 30,505,692