Intertape Polymer Group Inc. (TSX:ITP) ("Intertape" or the
"Company") today released results for the second quarter ended June
30, 2013. All amounts are denominated in US dollars unless
otherwise indicated and all percentages are calculated on unrounded
numbers.
Second Quarter 2013 Highlights:
-- Gross margin increased to 21.8% from 18.3% in the second quarter of 2012
-- Adjusted EBITDA of $28.3 million increased 30.6% over the second quarter
of 2012
-- Cash flows from operating activities before changes in working capital
were $25.8 million
-- Adjusted fully diluted EPS of $0.30 compared to $0.15 in the second
quarter of 2012
-- Redeemed $20.0 million of Senior Subordinated Notes ("Notes") in June
Other Announcements:
-- Dividend policy amended from semi-annual to quarterly payments and
dividend of US$0.08 per common share declared, which is double the
previous annualized amount
-- Notice of Redemption issued for the remaining $18.7 million of Notes to
occur in August 2013
-- Completed purchase of real estate in Blythewood, South Carolina to be
utilized as the new South Carolina facility
"We are extremely pleased with gross margin of 21.8%, which
exceeded our expectation for the second quarter. The increase in
gross margin reflects the combination of manufacturing cost
reductions, an improvement in the spread between selling prices and
raw material costs, and a more favorable product mix. We are now
raising our gross margin goal from the previous 18%-20% to 20%-22%
for the third and fourth quarters of 2013," stated Intertape
President and Chief Executive Officer, Greg Yull.
"The decrease in revenue and sales volume reflects the progress
made in reducing sales of low-margin products, particularly in the
second half of 2012. We are also observing some positive signs in
our core business as tape sold through the industrial channel
posted sales volume growth of approximately 3% year-to-date
contributing to approximately 2% of total Company sales volume
growth for the same period.
"The Board's recent dividend declaration, which is double the
previous annualized amount, and its decision to redeem the
remaining Notes are supported by the Company's continued financial
improvements and positive outlook," concluded Mr. Yull.
On August 14, 2013, the Board of Directors amended the dividend
policy to increase the frequency of the dividend from a semi-annual
payment to a quarterly payment and concurrently declared a dividend
of US$0.08 per common share payable on September 30, 2013 to
shareholders of record at the close of business September 16, 2013.
These dividends will be designated by the Company as "eligible
dividends" as defined in Subsection 89(1) of the Income Tax Act
(Canada).
Revenue for the second quarter of 2013 was $193.5 million, a
2.2% decrease compared to $197.8 million for the second quarter of
2012 and a 1.6% sequential decrease compared to $196.7 million for
the first quarter of 2013.
Revenue was lower in the second quarter of 2013 compared to both
the second quarter of 2012 and the first quarter of 2013 due to a
decrease in sales volume partially offset by an increase in selling
prices including the impact of product mix.
The decrease in sales volume of approximately 4% when compared
to the second quarter of 2012 was primarily due to the progress
made in reducing sales of low-margin products in the second half of
2012. The Company believes that a portion of the sequential decline
in sales volume of approximately 5% was due to customers pre-buying
during the first quarter of 2013 in advance of price increases
effective late in the first quarter of 2013.
Selling prices, including the impact of product mix, increased
approximately 2% in the second quarter of 2013 compared to the
second quarter of 2012. Selling prices, including the impact of
product mix, increased approximately 4% in the second quarter of
2013 compared to the first quarter of 2013. The increase in both
periods was primarily due to higher selling prices and a shift in
the mix of products sold.
Gross profit totalled $42.3 million in the second quarter of
2013, an increase of 17.0% from $36.1 million in the second quarter
of 2012 and an increase of 10.3% from $38.3 million in the first
quarter of 2013. Gross margin was 21.8%, 18.3% and 19.5% in the
second quarter of 2013, in the second quarter of 2012 and in the
first quarter of 2013, respectively.
When compared to the second quarter of 2012, gross profit and
gross margin increased primarily due to the impact of manufacturing
cost reductions, an improvement in the spread between selling
prices and raw material costs and improved product mix. When
compared to the first quarter of 2013, the increase in gross profit
and gross margin was primarily due to cost reductions within
manufacturing overhead. The spread between selling prices and raw
material costs remained relatively stable in the first and second
quarter of 2013.
Selling, general and administrative expenses ("SG&A")
totalled $20.2 million for the second quarter of 2013 compared to
$20.7 million in the second quarter of 2012 and $23.0 million in
first quarter of 2013. As a percentage of revenue, SG&A was
10.4%, 10.4% and 11.7% for the second quarter of 2013, the second
quarter of 2012 and the first quarter of 2013, respectively.
SG&A was $0.4 million lower in the second quarter of 2013
compared to the second quarter of 2012 primarily due to the timing
of recording certain variable compensation expenses partially
offset by an increase in stock-based compensation expense. When
compared to the first quarter of 2013, SG&A decreased by $2.8
million primarily due to the non-recurrence of a provision with
respect to the resolution of a contingent liability recorded in the
first quarter of 2013 and a decrease in stock-based compensation
expense related to Stock Appreciation Rights ("SAR") expense.
Adjusted EBITDA was $28.3 million for the second quarter of
2013, $21.7 million for the second quarter of 2012 and $24.0
million for the first quarter of 2013. The increase in adjusted
EBITDA in the second quarter of 2013 compared to both the second
quarter of 2012 and the first quarter of 2013 is primarily due to
higher gross profit, as discussed above.
Net earnings for the second quarter of 2013 totalled $15.1
million compared to a net loss of $3.9 million for the second
quarter of 2012, and a net loss of $15.8 million for the first
quarter of 2013. The increase in net earnings for the second
quarter of 2013 compared to both the second quarter of 2012 and the
first quarter of 2013 was primarily due to reduced manufacturing
facility closures, restructuring and other related charges and an
increase in gross profit.
Adjusted net earnings amounted to $18.3 million for the second
quarter of 2013 compared to $9.4 million for the second quarter of
2012, an increase of $8.9 million primarily due to higher gross
profit and lower interest costs. Adjusted net earnings were $3.3
million higher for the second quarter of 2013 compared to $15.0
million for the first quarter of 2013 primarily due to higher gross
profit.
Adjusted fully diluted earnings per share for the second quarter
of 2013 was $0.30 per share ($0.25 unadjusted), $0.15 per share
($0.07 loss unadjusted) for the second quarter of 2012 and $0.24
per share ($0.26 loss unadjusted) for the first quarter of
2013.
For a reconciliation of non-generally accepted accounting
principles ("GAAP") financial measures to their most directly
comparable GAAP financial measures, see the Non-GAAP Financial
Measures section below.
Cash flows from operations before changes in working capital
items increased in the second quarter of 2013 by $7.8 million to
$25.8 million from $18.0 million in the second quarter of 2012 and
increased $6.7 million compared to the first quarter of 2013. The
increase in cash flows from operations before changes in working
capital for the second quarter of 2013 compared to both the first
quarter of 2013 and the second quarter of 2012 is primarily due to
higher gross margin.
The Company had total cash and loan availability of $51.6
million as of June 30, 2013, $69.7 million as of March 31, 2013 and
$93.9 million as of June 30, 2012. The decrease of $18.1 million in
total cash and loan availability between March 31, 2013 and June
30, 2013 was due to a $23.2 million increase in the total draw
under the ABL, offset by an increase in cash of $4.0 million and an
increase of $1.1 million in the borrowing base. The decrease of
$42.3 million in total cash and loan availability between June 30,
2012 and June 30, 2013 was primarily due to the redemption of
$100.0 million aggregate principal amount of Notes that occurred
during the twelve month period ended June 30, 2013, partially
offset by cash flows from operations during the same period. The
Company had cash and loan availability under its ABL facility
exceeding $53 million as of August 13, 2013.
Total debt as of June 30, 2013 was $157.3 million, a decrease of
$31.2 million from June 30, 2012. The debt to trailing twelve month
adjusted EBITDA ratio was 1.6 as of June 30, 2013 compared to 2.5
as of June 30, 2012.
Outlook
The Company intends to continue to focus on developing and
selling higher margin products, reducing variable manufacturing
costs, executing on the previously announced manufacturing plant
initiatives and optimizing its debt structure. As a result, the
Company anticipates the following:
-- Revenue for the third quarter of 2013 is expected to be slightly higher
than the second quarter of 2013;
-- Gross margin for the third and fourth quarters of 2013 is expected to be
between 20% and 22%. It is anticipated that the third quarter of 2013
will include higher manufacturing overhead primarily related to planned
annual manufacturing maintenance;
-- Adjusted EBITDA for the third quarter of 2013 is expected to be slightly
lower than the second quarter of 2013;
-- Capital expenditures:
-- Expenditures for the third quarter of 2013 are expected to be $12 to
$15 million;
-- Expenditures for 2013 are expected to total $48 to $54 million,
including $24.0 million that was paid during the first half of 2013;
-- Expenditures for 2014 are expected to total $21 to $25 million; and
-- Purchases of equipment and real estate related to the relocation and
modernization of the Columbia, South Carolina manufacturing
operation are expected to total $40 to $45 million of which $2.7
million was spent in 2012 with the remainder expected to be spent in
2013 and 2014. These amounts are included in the estimates above;
-- Total debt at September 30, 2013 is expected to remain approximately the
same compared to June 30, 2013;
-- The Company ceased production at its Richmond, Kentucky manufacturing
facility in the fourth quarter of 2012 as well as shrink film production
at its Truro, Nova Scotia facility in the first quarter of 2013. Cash
savings related to these projects are expected to total approximately $3
to $4 million in 2013 and approximately $6 million annually in future
years. The Company has started the process to relocate and modernize its
Columbia, South Carolina manufacturing operation with state-of-the-art
equipment in a new facility with the purchase of real estate in
Blythewood, South Carolina ("South Carolina Project"). The Company
anticipates total annual cash savings in excess of $13 million starting
in the first half of 2015 with the first full year effects in 2016; and
-- With respect to the manufacturing rationalization projects announced to
date:
-- Charges for the third quarter of 2013 related to equipment moves and
workforce retention costs are expected to be $1 to $2 million;
-- Charges for the full year of 2013 related to equipment moves,
workforce retention costs and environmental costs are expected to be
$6 to $8 million. Cash outflows expected in 2013 are estimated to
total $3 to $5 million, primarily related to equipment moves; and
-- Charges after 2013 related to equipment moves and workforce
retention costs are estimated to be $5 to $7 million, primarily
related to the South Carolina Project. Cash outflows expected after
2013 for equipment moves, workforce retention costs and
environmental are estimated to be $8 to $11 million.
Non-GAAP Financial Measures
EBITDA, adjusted EBITDA, free cash flows, adjusted net earnings
(loss) and adjusted earnings (loss) per share are not GAAP
measures. Whenever Intertape uses such non-GAAP measures, it will
provide a reconciliation of non-GAAP financial measures to the most
closely applicable GAAP financial measure. Investors and other
readers are encouraged to review the related GAAP financial
measures and the reconciliation of non-GAAP measures to their most
closely applicable GAAP measure set forth below and should consider
non-GAAP measures only as a supplement to, not as a substitute for
or as a superior measure to, measures of financial performance
prepared in accordance with GAAP.
EBITDA
A reconciliation of the Company's EBITDA, a non-GAAP financial
measure, to GAAP net earnings (loss) is set out in the EBITDA
reconciliation table below. EBITDA should not be construed as
earnings (loss) before income taxes, net earnings (loss) or cash
flows from operating activities as determined by GAAP. The Company
defines EBITDA as net earnings (loss) before (i) interest and other
(income) expense; (ii) income tax expense (benefit); (iii)
refinancing expense, net of amortization; (iv) amortization of debt
issue costs; (v) amortization of intangible assets; and (vi)
depreciation of property, plant and equipment. Adjusted EBITDA is
defined as EBITDA before (i) manufacturing facility closures,
restructuring and other related charges; (ii) stock-based
compensation expense; (iii) impairment of goodwill; (iv) impairment
of long-lived assets and other assets; (v) write-down on assets
classified as held-for-sale; and (vi) other items as disclosed. The
terms "EBITDA" and "adjusted EBITDA" do not have any standardized
meanings prescribed by GAAP and are therefore unlikely to be
comparable to similar measures presented by other issuers. EBITDA
and adjusted EBITDA are not measurements of financial performance
under GAAP and should not be considered as alternatives to cash
flows from operating activities or as alternatives to net earnings
(loss) as indicators of the Company's operating performance or any
other measures of performance derived in accordance with GAAP. The
Company has included these non-GAAP financial measures because it
believes that it permits investors to make a more meaningful
comparison of the Company's performance between periods presented.
In addition, EBITDA and adjusted EBITDA are used by Management and
the Company's lenders in evaluating the Company's performance.
EBITDA AND ADJUSTED EBITDA RECONCILIATION TO NET EARNINGS (LOSS)
(in millions of US dollars)
(Unaudited)
Three months ended Six months ended
---------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
2013 2013 2012 2013 2012
---------------------------------------------------
$ $ $ $ $
Net earnings (loss) 15.1 (15.8) (3.9) (0.7) 3.8
Add back:
Interest and other
(income) expense 2.3 1.9 4.1 4.2 7.9
Income tax expense
(benefit) 2.1 0.4 (0.5) 2.6 (0.1)
Depreciation and
amortization 6.8 7.1 7.6 13.9 15.2
---------------------------------------------------
EBITDA 26.4 (6.4) 7.3 20.0 26.9
Manufacturing facility
closures, restructuring
and other related
charges 0.9 27.2 14.2 28.1 14.7
Stock-based compensation
expense 0.9 1.8 0.2 2.7 0.4
Provision related to
resolution of a
contingent liability - 1.3 - 1.3 -
Impairment of long-lived
assets and other assets 0.2 - - 0.2 -
---------------------------------------------------
Adjusted EBITDA 28.3 24.0 21.7 52.3 41.9
---------------------------------------------------
Adjusted Net Earnings (Loss)
A reconciliation of the Company's adjusted net earnings (loss),
a non-GAAP financial measure, to GAAP net earnings (loss) is set
out in the adjusted net earnings (loss) reconciliation table below.
Adjusted net earnings (loss) should not be construed as net
earnings (loss) as determined by GAAP. The Company defines adjusted
net earnings (loss) as net earnings (loss) before (i) manufacturing
facility closures, restructuring, and other related charges; (ii)
stock-based compensation expense; (iii) impairment of goodwill;
(iv) impairment of long-lived assets and other assets; (v)
write-down on assets classified as held-for-sale; (vi) other items
as disclosed; and (vii) income tax effect of these items. The term
"adjusted net earnings (loss)" does not have any standardized
meaning prescribed by GAAP and is therefore unlikely to be
comparable to similar measures presented by other issuers. Adjusted
net earnings (loss) is not a measurement of financial performance
under GAAP and should not be considered as an alternative to net
earnings (loss) as an indicator of the Company's operating
performance or any other measures of performance derived in
accordance with GAAP. The Company has included this non-GAAP
financial measure because it believes that it permits investors to
make a more meaningful comparison of the Company's performance
between periods presented. In addition, adjusted net earnings
(loss) is used by Management in evaluating the Company's
performance because it believes it provides a more accurate
indicator of the Company's performance.
Adjusted earnings (loss) per share is also presented in the
following table and is a non-GAAP financial measure. Adjusted
earnings (loss) per share should not be construed as earnings
(loss) per share as determined by GAAP. The Company defines
adjusted earnings (loss) per share as adjusted net earnings (loss)
divided by the weighted average number of common shares
outstanding, both basic and diluted. The term "adjusted earnings
(loss) per share" does not have any standardized meaning prescribed
by GAAP and is therefore unlikely to be comparable to similar
measures presented by other issuers. Adjusted earnings (loss) per
share is not a measurement of financial performance under GAAP and
should not be considered as an alternative to earnings (loss) per
share as an indicator of the Company's operating performance or any
other measures of performance derived in accordance with GAAP. The
Company has included this non-GAAP financial measure because it
believes that it permits investors to make a more meaningful
comparison of the Company's performance between periods presented.
In addition, adjusted earnings (loss) per share is used by
Management in evaluating the Company's performance because it
believes it provides a more accurate indicator of the Company's
performance.
ADJUSTED NET EARNINGS RECONCILIATION TO NET EARNINGS (LOSS)
(in millions of US dollars except per share amounts and share numbers)
(Unaudited)
Three months ended
------------------------------------
June 30, March 31, June 30,
2013 2013 2012
------------------------------------
$ $ $
Net earnings (loss) 15.1 (15.8) (3.9)
Add back:
Manufacturing facility closures,
restructuring and other related charges 0.9 27.2 14.2
Stock-based compensation expense 0.9 1.8 0.2
Provision related to resolution of a
contingent liability - 1.3 -
Impairment of long-lived assets and
other assets 0.2 - -
Income tax effect of these items 1.2 0.5 (1.1)
------------------------------------
Adjusted net earnings 18.3 15.0 9.4
------------------------------------
------------------------------------
Earnings (loss) per share
Basic 0.25 (0.26) (0.07)
Diluted 0.25 (0.26) (0.07)
Adjusted earnings per share
Basic 0.30 0.25 0.16
Diluted 0.30 0.24 0.15
Weighted average number of common shares
outstanding for adjusted net earnings
per share calculation
Basic 60,288,991 59,692,751 58,981,435
Diluted 61,584,732 61,394,227 60,916,227
Six months ended
------------------------
June 30, June 30,
2013 2012
------------------------
$ $
Net earnings (loss) (0.7) 3.8
Add back:
Manufacturing facility closures,
restructuring and other related charges 28.1 14.7
Stock-based compensation expense 2.7 0.4
Provision related to resolution of a
contingent liability 1.3 -
Impairment of long-lived assets and
other assets 0.2 -
Income tax effect of these items 1.7 (1.1)
------------------------
Adjusted net earnings 33.3 17.8
------------------------
------------------------
Earnings (loss) per share
Basic (0.01) 0.06
Diluted (0.01) 0.06
Adjusted earnings per share
Basic 0.56 0.30
Diluted 0.54 0.29
Weighted average number of common shares
outstanding for adjusted net earnings
per share calculation
Basic 60,005,104 58,971,242
Diluted 61,271,620 60,592,910
FREE CASH FLOWS RECONCILIATION
(in millions of US dollars)
(Unaudited)
Three months ended Six months ended
--------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
2013 2013 2012 2013 2012
--------------------------------------------------
$ $ $ $ $
Cash flows from operating
activities 19.1 7.1 16.6 26.2 23.4
Less purchases of
property, plant and
equipment and other
assets (18.2) (5.8) (3.8) (24.0) (8.5)
--------------------------------------------------
Free cash flows 0.9 1.3 12.9 2.2 14.9
--------------------------------------------------
--------------------------------------------------
New or Amended Accounting Standards
As noted in the March 31, 2013 Interim Condensed Consolidated
Financial Statements, the Company adopted Amended IAS 19 - Employee
Benefits, on January 1, 2013 requiring retrospective application to
operating results for fiscal years 2012 and 2011. As such, the
unaudited interim condensed consolidated financial statements for
the three and six months ended June 30, 2013 reflect the Company's
adoption of this guidance and include corresponding comparative
information for 2012. See the Section entitled "Pension and Other
Post-Retirement Benefit Plans" of the Management's Discussion and
Analysis and Note 3 - Pension and Other Post-Retirement Benefit
Plans of the unaudited interim condensed consolidated financial
statements for the three and six months ended June 30, 2013 for a
summary of the impact of the adoption of this guidance on the
Company's financial results.
Conference Call
A conference call to discuss Intertape's 2013 second quarter
results will be held Thursday, August 15, 2013, at 10 A.M. Eastern
Time. Participants may dial 800-736-4594 (U.S. and Canada) and 1-
212-231-2907 (International).
You may access a replay of the call by dialing 800-633-8284
(U.S. and Canada) or 1-402-977-9140 (International) and entering
the Access Code 21669097. The recording will be available from
August 15, 2013 at 12:00 P.M. until September 14, 2013 at 11:59
P.M. Eastern Time.
About Intertape Polymer Group Inc.
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,
specialized polyolefin films, woven fabrics and complementary
packaging systems for industrial and retail use. Headquartered in
Montreal, Quebec and Bradenton, Florida, the Company employs
approximately 1,800 employees with operations in 16 locations,
including 10 manufacturing facilities in North America and one in
Europe.
Safe Harbor Statement
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of United States
federal securities legislation (collectively, "forward-looking
statements"). All statements other than statements of historical
facts included in this press release, including statements
regarding the Company's industry, prospects, plans, financial
position and business strategy, may constitute forward-looking
statements. These forward-looking statements are based on current
expectations, estimates, forecasts and projections about the
industries in which the Company operates as well as beliefs and
assumptions made by the Company's management. Words such as "may,"
"will," "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: the Company's anticipated business
strategies; anticipated savings from the Company's manufacturing
plant rationalization initiatives; anticipated trends in the
Company's business; anticipated cash flows from the Company's
operations; availability of funds under the Company's Asset-Based
Loan facility; and the Company's ability to continue to control
costs. The Company can give no assurance that these estimates 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" in the
Company's annual report on Form 20-F for the year ended December
31, 2012 and the other factors contained in the Company's filings
with the Canadian securities regulators and the US Securities and
Exchange Commission. Each of these forward-looking statements
speaks only as of the date of this press release. The Company will
not update these statements unless applicable securities laws
require it to do so.
Intertape Polymer Group Inc.
Consolidated Earnings (Loss)
Periods ended June 30,
(In thousands of US dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
--------------------------------------------
2013 2012 2013 2012
--------------------------------------------
$ $ $ $
Revenue 193,462 197,751 390,157 396,663
Cost of sales 151,202 161,629 309,591 328,134
--------------------------------------------
Gross profit 42,260 36,122 80,566 68,529
--------------------------------------------
Selling, general and
administrative expenses 20,208 20,653 43,167 39,026
Research expenses 1,589 1,650 3,191 3,169
--------------------------------------------
21,797 22,303 46,358 42,195
--------------------------------------------
Operating profit before
manufacturing facility
closures, restructuring and
other related charges 20,463 13,819 34,208 26,334
Manufacturing facility closures,
restructuring and other related
charges 924 14,152 28,125 14,698
--------------------------------------------
Operating profit (loss) 19,539 (333) 6,083 11,636
Finance costs
Interest 1,846 3,384 3,599 6,739
Other expense 437 667 597 1,140
--------------------------------------------
2,283 4,051 4,196 7,879
.
Earnings (loss) before income
tax expense (benefit) 17,256 (4,384) 1,887 3,757
Income tax expense (benefit)
Current 1,909 353 2,660 846
Deferred 226 (848) (86) (909)
--------------------------------------------
2,135 (495) 2,574 (63)
--------------------------------------------
Net earnings (loss) 15,121 (3,889) (687) 3,820
--------------------------------------------
--------------------------------------------
Earnings (loss) per share
Basic 0.25 (0.07) (0.01) 0.06
Diluted 0.25 (0.07) (0.01) 0.06
Intertape Polymer Group Inc.
Consolidated Comprehensive Income (Loss)
Periods ended June 30,
(In thousands of US dollars)
Three months ended Six months ended
June 30, June 30,
----------------------------------------
2013 2012 2013 2012
----------------------------------------
$ $ $ $
Net earnings (loss) 15,121 (3,889) (687) 3,820
----------------------------------------
Other comprehensive income (loss)
Changes in fair value of forward
foreign exchange rate
contracts, designated as cash
flow hedges (net of deferred
income tax expense, nil in
2012) - (112) - 226
Settlements of forward foreign
exchange rate contracts,
transferred to earnings (net of
income tax expense, nil in
2012) - (394) - (195)
Change in cumulative translation
adjustments (2,272) (2,487) (4,266) (649)
----------------------------------------
Items that will be reclassified
subsequently to net earnings
(loss) (2,272) (2,993) (4,266) (618)
----------------------------------------
Other comprehensive loss (2,272) (2,993) (4,266) (618)
----------------------------------------
Comprehensive income (loss) for the
period 12,849 (6,882) (4,953) 3,202
----------------------------------------
----------------------------------------
Intertape Polymer Group Inc.
Consolidated Cash Flows
Periods ended June 30,
(In thousands of US dollars)
Three months ended Six months ended
June 30, June 30,
----------------------------------------
2013 2012 2013 2012
----------------------------------------
$ $ $ $
OPERATING ACTIVITIES
Net earnings (loss) 15,121 (3,889) (687) 3,820
Adjustments to net earnings (loss)
Depreciation and amortization 6,816 7,637 13,909 15,225
Income tax expense (benefit) 2,135 (495) 2,574 (63)
Interest expense 1,846 3,384 3,599 6,739
Charges in connection with
manufacturing facility closures,
restructuring and other related
charges 24 13,042 23,319 13,428
Reversal of write-down of
inventories, net - (57) - (31)
Stock-based compensation expense 880 231 2,720 374
Pension and other post-retirement
benefits expense 758 755 1,519 1,511
(Gain) loss on foreign exchange 120 (128) 20 104
Other adjustments for non-cash
items 53 159 (61) 359
Income taxes paid, net (544) (653) (70) (654)
Contributions to defined benefit
plans (1,459) (2,010) (2,033) (2,781)
----------------------------------------
Cash flows from operating activities
before changes in working capital
items 25,750 17,976 44,809 38,031
----------------------------------------
Changes in working capital items
Trade receivables 2,222 1,570 (9,764) (9,039)
Inventories (6,711) (3,424) (9,414) (7,570)
Parts and supplies (266) (310) (415) (615)
Other current assets (2,790) (2,599) 278 (136)
Accounts payable and accrued
liabilities 1,957 2,560 (1,834) 2,343
Provisions (1,053) 864 2,573 405
----------------------------------------
(6,641) (1,339) (18,576) (14,612)
----------------------------------------
Cash flows from operating activities 19,109 16,637 26,233 23,419
----------------------------------------
INVESTING ACTIVITIES
Proceeds on the settlements of
forward foreign exchange rate
contracts - 300 - 100
Purchase of property, plant and
equipment (18,176) (3,777) (24,001) (8,509)
Proceeds from disposals of property,
plant and equipment and other
assets - - 1,645 20
Restricted cash and other assets 363 311 427 283
Purchase of intangible assets (71) (20) (71) (27)
----------------------------------------
Cash flows from investing activities (17,884) (3,186) (22,000) (8,133)
----------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt 40,233 5,720 51,320 26,346
Repayment of long-term debt (33,338) (16,623) (46,169) (31,228)
Payments of debt issue costs (88) (12) (102) (1,459)
Interest paid (1,475) (654) (4,008) (6,331)
Dividends paid (4,799) - (4,799) -
Proceeds from exercise of stock
options 2,377 123 3,662 123
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Cash flows from financing activities 2,910 (11,446) (96) (12,549)
----------------------------------------
Net increase in cash 4,135 2,005 4,137 2,737
Effect of foreign exchange
differences on cash (112) (294) (209) (183)
Cash, beginning of period 5,796 5,188 5,891 4,345
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Cash, end of period 9,819 6,899 9,819 6,899
----------------------------------------
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Intertape Polymer Group Inc.
Consolidated Balance Sheets
As of
(In thousands of US dollars)
June 30, December 31,
2013 2012
(Unaudited) (Audited)
--------------------------------
$ $
ASSETS
Current assets
Cash 9,819 5,891
Trade receivables 85,150 75,860
Other receivables 4,502 5,163
Inventories 100,075 91,910
Parts and supplies 13,469 14,442
Prepaid expenses 5,934 5,701
--------------------------------
218,949 198,967
Property, plant and equipment 169,835 185,592
Other assets 3,414 3,597
Intangible assets 1,670 1,980
Deferred tax assets 34,181 36,016
--------------------------------
Total assets 428,049 426,152
--------------------------------
--------------------------------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 74,752 76,005
Provisions 2,709 1,526
Installments on long-term debt 11,506 9,688
--------------------------------
88,967 87,219
Long-term debt 145,814 141,611
Pension and other post-retirement benefits 39,919 40,972
Provisions 3,166 1,891
Other liabilities 205 625
--------------------------------
278,071 272,318
--------------------------------
SHAREHOLDERS' EQUITY
Capital stock 358,759 351,702
Contributed surplus 15,225 16,386
Deficit (222,948) (217,462)
Accumulated other comprehensive income
(loss) (1,058) 3,208
--------------------------------
149,978 153,834
--------------------------------
Total liabilities and shareholders' equity 428,049 426,152
--------------------------------
--------------------------------
Contacts: MaisonBrison Communications Rick Leckner/Pierre
Boucher 514-731-0000
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