Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper and film based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin films, woven coated fabrics and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, the Company employs approximately 1,950 employees with operations in 16 locations, including 11 manufacturing facilities in North America and one in Europe.
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Second Quarter 2015 Highlights (as compared to first quarter 2015)
- Revenue increased 4.0% to $196.6 million in line with expectations
- Includes 5% increase in sales volume due to stronger demand
- Better Packages acquired for approximately $16.0 million on April 7, 2015
- Acquired operations generated revenue of $4.3 million
- Gross margin increased to 21.6% from 19.6% with the largest factor being an increase in the spread between selling prices and lower raw material costs.
- Net earnings decreased less than $0.1 million to $11.7 million.
- Adjusted EBITDA* increased 15.1% to $27.1 million.
- Cash flows from operating activities were $25.7 million
- Free cash flows* were $19.6 million
- The Company experienced production yield and operating inefficiencies related to the ramp-up of the South Carolina Project duct tape production resulting in a net negative impact on gross profit and adjusted EBITDA* of $1.3 million.
- The Company still expects to realize approximately $13 million of cost savings at the completion of the South Carolina Project, but has revised its guidance to reflect a more gradual ramp-up.
* Non-GAAP financial measure. As required by applicable securities legislation, the Company has provided definitions of these non-GAAP measures, as well as a reconciliation of each of them to the most directly comparable GAAP measure, on this website under “Investor Relations” and “Events and Presentations” and “Investor Presentations”.
- On June 4, 2015, the Board of Directors appointed Mr. George J. Bunze as the new Chairman of the Board following the retirement of the former Chairman, Mr. Eric E. Baker.
- From the inception of its normal course issuer bid (“NCIB”) through June 30, 2015, the Company repurchased 1,564,588 common shares for a total purchase price of $21.3 million.
- The Company announced the renewal of its NCIB effective July 10, 2015 under which the Company will be entitled to repurchase for cancellation up to 2,000,000 common shares in the twelve-month period ending July 9, 2016.
- On August 12, 2015, the Board of Directors amended the Company’s quarterly dividend policy to increase the annualized dividend by 8% from $0.48 to $0.52 per common share.
Safe Harbor Statement
Certain statements and information included on this website constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, "forward-looking statements"), which are made in reliance upon the protections provided by such legislation for forward-looking statements. All statements other than statements of historical facts included on this website, including statements regarding the Company’s industry and the Company’s outlook, prospects, plans, financial position, future sales and financial results, availability of credit, level of indebtedness, payment of dividends, fluctuations in raw material costs, capital and other significant expenditures, liquidity, judgments, estimates, assumptions, litigation and business strategy, may constitute forward-looking statements. These forward-looking statements are based on current beliefs, assumptions, expectations, estimates, forecasts and projections made by the Company’s management. Words such as "may," "will," "should," "expect," "continue," "intend," "estimate," "anticipate," "plan," "foresee," "believe" or "seek" or the negatives of these terms or variations of them or similar terminology are intended to identify such forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such statements are also subject to assumptions concerning, among other things: business conditions and growth or declines in the Company’s industry, the Company’s customers’ industries and the general economy; the anticipated benefits from the Company’s manufacturing facility closures and other restructuring efforts; the quality, and market reception, of the Company’s products; the Company’s anticipated business strategies; risks and costs inherent in litigation; the Company’s ability to maintain and improve quality and customer service; anticipated trends in the Company’s business; anticipated cash flows from the Company’s operations; availability of funds under the Company’s Revolving Credit Facility; and the Company’s ability to continue to control costs. The Company can give no assurance that these statements and expectations will prove to have been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be material. Readers are cautioned not to place undue reliance on any forward-looking statement. For additional information regarding some important factors that could cause actual results to differ materially from those expressed in these forward-looking statements and other risks and uncertainties, and the assumptions underlying the forward-looking statements, you are encouraged to read "Item 3. Key Information - Risk Factors,” “Item 5 Operating and Financial Review and Prospects (Management’s Discussion & Analysis)” and statements located elsewhere in the Company’s annual report on Form 20-F for the year ended December 31, 2014 and the other statements and factors contained in the Company’s filings with the Canadian securities regulators and the US Securities and Exchange Commission. Each of the forward-looking statements speaks only as of the date of the issuance of such report. The Company will not update these statements unless applicable securities laws require it to do so.