FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of July, 2002
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
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[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
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[If "Yes" is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b):
82-______]
July 22, 2002 NYSE SYMBOL: ITP
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC. ANNOUNCES
JUNE 2002 SECOND QUARTER RESULTS
(stated in U.S. dollars)
Montreal, Quebec, Canada - July 22, 2002 - Intertape Polymer Group Inc. (NYSE &
TSE: ITP), today reported its operating results for the second quarter ended
June 30, 2002.
Sales for the period were $153.7 million, an increase of 8.7% or $12.4 million
from $141.3 million for the second quarter of 2001. For the six-month periods
ended June 30, 2002 and June 30, 2001, sales were $300.4 million and $300.1
million respectively. Sales increased by 4.8% or $7 million over the first
quarter of 2002. This increase in sales is the result of the combined effects of
new products, increases in unit selling prices, and the positive impact of the
Company's Regional Distribution Center (RDC) strategy.
Melbourne F. Yull, Intertape Polymer Group's Chairman and Chief Executive
Officer stated, "The strength of our overall strategy resulted in a healthy
sales increase over last year."
Gross profits and gross margins were $33.9 million and 22.1% for the current
period, compared to $26.7 million and 18.9% respectively for the second quarter
of 2001. Gross profits and gross margins for the six-month periods were $67.4
million and $65.5 million and 22.4% and 21.8% respectively.
Operating profit for the period was $13.5 million as compared to $6.6 million
for the same period in 2001. For the six month period ended June 30, 2002,
operating profit was $26.7 million compared to $23.5 million in 2001. Selling,
general and administrative expenses remain constant.
Melbourne F. Yull noted, "The sequential volume increase over last quarter
combined with ongoing cost reductions have improved our operating profits and
margins."
Net income for the three months ended June 2002 increased $7.0 million to $4.3
million from a loss of ($2.7 million) in the same period last year. Net income
for the six-month period was $7.1 million, an increase of $5.6 million from $1.5
million in the same period last year.
Basic and diluted EPS for the current quarter were $0.13 compared to a loss of
($0.10) after the effect of the non-recurring charges in 2001 and $0.00 before
the effect of these charges last year. For the six-month period, both basic and
diluted EPS were $0.22 compared to $0.15 before the effect of the non-recurring
charges and $0.05 after this effect.
Andrew M. Archibald, CFO stated, "The Company continues to manage cash
effectively. Cash derived from operations was $11.9 million this quarter
compared to $5.6 for the second quarter of 2001; and was $21.7 million compared
to $18.0 million for the six months ended June 2002 and 2001 respectively.
Investing in capital assets has decreased to $3.6 million in 2002 as compared to
$5.5 million for the second quarter of 2001; and was $6.5 million compared to
$17.7 million for the comparable six-month periods. The proceeds of $47.3
million from the issuance of 5.1 million common shares during the first quarter
of 2002 were used to reduce long-term debt by $37.7 million, reduce bank
indebtedness by $6.5 million and partially fund the investment in capital assets
of $6.5 million." The Company typically increases finished goods inventory
towards the end of the second quarter in order to have sufficient product to
sell during annual plant vacation shut downs. Consequently, further improvements
in working capital should continue through the balance of 2002 thus freeing
additional cash to further reduce borrowings or for investments.
The exchange rate at June 30, 2002 was Cdn. $1.5187 = U.S. $1.00.
Intertape Polymer Group Inc. develops, manufactures and markets a wide variety
of specialized polyolefin plastic and paper based packaging products and systems
for industrial and retail use. The Company is based in Montreal, Quebec and
Sarasota, Florida with twenty-six facilities in North America and one European
location.
The reader should note that the Company's forward-looking statements speak only
as of the date of this media release or when made and the Company undertakes no
duty or obligation to update or revise its forward-looking statements. Although
management believes that the expectations, plans, intentions and projections
reflected in its forward-looking statements are reasonable, such statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the Company's actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements.
The risks, uncertainties and other factors that the Company's stockholders and
prospective investors should consider include, but are not limited to, the
following: risks associated with pricing, volume and continued strength of
markets where the Company's products are sold; delays and disruptions associated
with terrorist attacks and reprisals, political instability, heightened security
and war in countries of the world that affect the Company's business; the effect
of competition on the Company's ability to maintain margins on existing or
acquired operations; and other risk factors listed from time to time in the
Company's reports (including its Annual Report on Form 40-F) filed with the U.S.
Securities and Exchange Commission.
FOR FURTHER INFORMATION CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel: 866-202-4713
E-mail: itp$info@intertapeipg.com
Web: www.intertapepolymer.com
[GRAPHIC OMITTED]
INTERTAPE POLYMER GROUP INC.
CONSOLIDATED EARNINGS
Periods ended June 30,
(In thousands of US dollars, except per share amounts)
THREE MONTHS SIX MONTHS
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2002 2001 2002 2001
--------------- -------------- --------------- --------------
$ $ $ $
Sales 153,657 141,265 300,394 300,128
Cost of sales 119,713 114,549 233,034 234,639
--------------- -------------- --------------- --------------
Gross profit 33,944 26,716 67,360 65,489
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Selling, general and administrative expenses 20,454 20,090 40,753 41,948
Amortization of goodwill 1,797 3,540
Research and development 796 1,198 1,763 2,366
Financial expenses 7,872 7,736 16,855 16,172
--------------- -------------- --------------- --------------
29,122 30,821 59,371 64,026
--------------- -------------- --------------- --------------
Earnings (loss) before income taxes 4,822 (4,105) 7,989 1,463
Income taxes 534 (1,392) 882
--------------- -------------- --------------- --------------
Net earnings (loss) 4,288 (2,713) 7,107 1,463
=============== ============== =============== ==============
Earnings per share (loss)
Basic 0.13 (0.10) 0.22 0.05
=============== ============== =============== ==============
Diluted 0.13 (0.10) 0.22 0.05
=============== ============== =============== ==============
CONSOLIDATED RETAINED EARNINGS
Periods ended June 30,
(In thousands of US dollars)
THREE MONTHS SIX MONTHS
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2002 2001 2002 2001
-------------- -------------- --------------- --------------
$ $ $ $
Balance, beginning of year 107,386 120,985 104,567 116,966
Net earnings (loss) 4,288 (2,713) 7,107 1,463
-------------- -------------- --------------- --------------
111,674 118,272 111,674 118,429
-------------- -------------- --------------- --------------
Premium on purchase for cancellation of common shares 157
-------------- -------------- --------------- --------------
157
-------------- -------------- --------------- --------------
Balance, end of year 111,674 118,272 111,674 118,272
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INTERTAPE POLYMER GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
--------------------------------------------------------------------------------
AS AT AS AT AS AT
JUNE 30 JUNE 30 DECEMBER 31
2002 2001 2001
------------------ ----------------- ------------------
$ $ $
ASSETS
Current assets
Trade receivables (net of allowance for doubtful accounts of
$4,804 ($592 in June 2001, $6,670 in December 2001) 93,104 101,479 86,529
Other receivables 12,152 9,425 13,654
Inventories 76,919 83,333 70,688
Parts and supplies 12,221 11,369 11,592
Prepaid expenses 6,154 5,114 9,450
Future income tax assets 4,025 10,776 4,025
------------------ ----------------- ------------------
204,575 221,496 195,938
Capital assets 363,665 373,287 366,567
Other assets 12,214 9,299 11,680
Goodwill, at amortized cost 229,299 231,651 227,804
------------------ ----------------- ------------------
809,753 835,733 801,989
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LIABILITIES
Current liabilities
Bank indebtedness 19,936 121,059 28,046
Accounts payable and accrued liabilities 85,880 86,262 91,507
Instalments on long-term debt 13,429 1,377 8,310
------------------ ----------------- ------------------
119,245 208,698 127,863
Long-term debt 311,859 275,865 354,663
Other liabilities 3,785 4,500 3,785
Future income tax liabilities 22,506 37,419 21,588
------------------ ----------------- ------------------
457,395 526,482 507,899
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SHAREHOLDERS' EQUITY
Capital stock and share purchase warrants 236,822 186,990 189,496
Retained earnings 111,674 118,272 104,567
Accumulated foreign currency translation adjustments 3,862 3,989 27
------------------ ----------------- ------------------
352,358 309,251 294,090
------------------ ----------------- ------------------
809,753 835,733 801,989
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INTERTAPE POLYMER GROUP INC.
Consolidated Cash Flows
Periods ended June 30,
(In thousands of US dollars)
THREE MONTHS SIX MONTHS
-------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
--------------- ------------- -------------- --------------
$ $ $ $
OPERATING ACTIVITIES
Net earnings (loss) 4,288 (2,713) 7,107 1,463
Non-cash items
Depreciation and amortization 7,046 8,516 13,664 16,556
Future income taxes 534 (192) 882
--------------- ------------- -------------- --------------
Cash from operations before funding
of changes in non-cash working
capital items 11,868 5,611 21,653 18,019
--------------- ------------- -------------- --------------
Changes in non-cash working capital items
Trade receivables (586) (4,226) (3,113) (1,638)
Other receivables (2,309) (3,634) 778 (289)
Inventories (6,481) 1,913 (5,528) 3,140
Parts and supplies (218) 3,067 (533) 1,313
Prepaid expenses 2,270 1,224 3,321 1,007
Accounts payable and accrued liabilities 10,123 10,928 (6,302) 6,499
--------------- ------------- -------------- --------------
2,799 9,272 (11,377) 10,032
--------------- ------------- -------------- --------------
Cash flows from operating activities 14,667 14,883 10,276 28,051
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INVESTING ACTIVITIES
Capital assets, net of investment tax credits (3,625) (5,450) (6,467) (17,736)
Proceed on sale of capital assets 8,000 8,000
Other assets 243 (750) (2,271) (1,980)
--------------- ------------- -------------- --------------
Cash flows from investing activities (3,382) 1,800 (8,738) (11,716)
--------------- ------------- -------------- --------------
FINANCING ACTIVITIES
Net change in bank indebtedness (3,658) (8,819) (8,375) (6,216)
Repayment of long-term debt (4,962) (8,425) (37,689) (8,972)
Issue of Common Shares (50) 839 47,326 853
Common Shares purchased for cancellation (923)
--------------- ------------- -------------- --------------
Cash flows from financing activities (8,670) (16,405) 1,262 (15,258)
--------------- ------------- -------------- --------------
Net increase in cash position 2,615 278 2,800 1,077
Effect of foreign currency translation adjustments (2,615) (278) (2,800) (1,077)
--------------- ------------- -------------- --------------
Cash position, beginning and end of year - - - -
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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, thereunto duly authorized.
INTERTAPE POLYMER GROUP INC.
Date: July 24, 2002 By: /s/ Salvatore Vitale
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Salvatore Vitale, Vice President Finance