THE INFORMATION IN THIS FORM 6-K IS IDENTICAL TO
THE 6-K FILED EARLIER TODAY. THE SOLE PURPOSE FOR
FILING THIS FORM 6-K IS TO CORRECT THE TYPOGRAPHICAL
ERROR IN THE HEADER TAGS.
____________________________________________________________
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 November, 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-______]
The Iinformation contained in this Report is incorporated by
reference into Registration Statement No. 333-109944.
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: November 4, 2003 By: /s/Andrew M. Archibald
Chief Financial Officer,
Secretary, Vice President,
Administration
November 3, 2003 NYSE SYMBOL: ITP
TSX SYMBOL: ITP
Intertape Polymer Group Inc. Reports
Earnings Improvement and Debt Repayment for Third Quarter 2003
- Quarterly revenue growth of 6.6%
- Quarterly net income increase of $9.0 million
- $9.4 million of available cash used to repay debt
- Total debt reduction of $50.2 million in quarter
Bradenton, Florida - November 3, 2003 - Intertape Polymer Group Inc. (NYSE,
TSX: ITP) today released results for the third quarter ended September 30,
2003. "We have made great strides in a number of key areas over the past few
quarters, which have not only yielded improved financial results, but also
enabled us to strengthen our balance sheet," said Intertape Polymer Group Inc.
(IPG) Chairman and Chief Executive Officer, Melbourne F. Yull. "We posted good
revenue growth and solid earnings this quarter, notwithstanding disruptions to
a number of our operations because of hurricanes and power failures.
Additionally, we were able to do an equity issue at the end of September for
gross cash proceeds of $42.5 million (Cdn$57.5 million) and net cash proceeds
of $40.8 million (Cdn$55.2 million)." The common shares were issued at $7.39
per share (Cdn$10.00 per share) and the proceeds of the issue were used to
repay debt.
Third Quarter 2003
Third quarter net income was $6.2 million, or $0.18 per share (basic and
diluted), compared to a net loss of $2.8 million, or $0.08 per share (basic
and diluted) a year ago, and up 59.0% compared to net income of $3.9 million
in the preceding quarter of this year. The increase in net income was driven
by revenue growth and improved gross margins.
Sales for the third quarter were $159.8 million, up 6.6% compared to the
corresponding quarter last year, and 6.4% compared to the preceding quarter
this year. "We were pleased to see sales were up across all product lines
this quarter," said Mr. Yull. "Our revenue growth, in what was a weak economic
environment for the packaging sector, reflects the success of our efforts
over the past several quarters to introduce new products to meet customer needs
and to strengthen relationships with our product distributors."
Gross margin for the third quarter increased to 22.7% from 18.9% (21.3%
excluding one-time charges) in the corresponding quarter last year, resulting
from selling price increases, waste reduction programs implemented earlier
this year, and the use of lower cost inputs for certain products.
Selling, general and administrative expenses were $22.3 million in the third
quarter of 2003, compared to $22.3 million ($21.0 million excluding one-time
charges) for the third quarter of 2002. IPG's Chief Financial Officer,
Andrew M. Archibald, C.A. noted that SG&A expenses were up as a result of
higher selling costs related to increased sales in certain distribution
channels and the effect of consolidating the additional 50% interest in Fibope
recently acquired.
Financial expenses in the third quarter were $7.4 million compared to $8.3
million in the third quarter last year, reflecting lower debt levels compared
to the same period last year. The common share issue completed at the end of
September had no impact on the reduction of financial expenses.
Income tax expense reported for the first half of the year was based on the
Company's historical current income tax expense rate. In recent years,
current taxes have been offset by deferred income tax benefits. The Company
has taken a conservative approach to recognizing these deferred income tax
benefits, wanting to make sure that the benefits are not recognized
prematurely. With nine months of the year's operating results now available,
the Company believes it has sufficient information to recognize deferred
income tax benefits in the amount of $1.9 million for the third quarter.
Spending on property, plant and equipment was $4.6 million in the third
quarter of 2003, compared to $3.1 million for the same quarter in 2002,
reflecting the Company's continuing policy of tight controls on capital
investment.
Cash flows from operating activities less cash used for investing activities
was $9.2 million for the third quarter 2003, compared to a net utilization of
cash of $8.3 million for the third quarter 2002. The excess cash generated
in the quarter was used to repay debt.
First Nine Months of 2003
First nine months net income was $13.0 million, or $0.38 per share (basic and
diluted), compared to net income of $4.3 million, or $0.13 per share (basic
and diluted) a year ago.
Sales for the first nine months of 2003 were $463.6 million compared to $450.3
million for the first nine months last year, an increase of 3.0%, which
should be sustainable for the balance of the year.
Gross margin for the first nine months of 2003 was 22.5% compared to 21.3%
(22.0% excluding one-time charges) for the first nine months of 2002.
Selling, general and administrative expenses for the nine months were $65.1
million, compared to $63.1 million ($61.8 million excluding one-time charges)
a year ago, due to higher selling costs related to increased sales,
particularly in certain distribution channels, and the effect of consolidating
the recently acquired additional 50% interest in Fibope.
Financial expenses in the first nine months were $22.9 million compared to
$25.2 million in the first nine months of last year. The lower financial
expenses reflect primarily the impact of debt reduction since the end of the
third quarter of 2002.
Spending on property, plant and equipment was $9.7 million in the first nine
months of 2003, compared to $9.6 million for the corresponding period last
year.
Cash flows from operating activities less cash used for investing activities
was $14.6 million for the first nine months of 2003, compared to a net
utilization of cash of $6.8 million for the same period last year. The excess
cash generated during the period was used to repay debt. "The Company would
have generated $21.9 million in excess cash so far this year if it were not
for payments of $7.3 million made to settle an outstanding lawsuit of $6.0
million and reduce the actuarial deficit of one of the Company's pension plans
by $1.3 million," remarked Mr. Archibald. "As a result of these payments, the
outlook for excess cash in 2003 is reduced from $29.0 million to approximately
$22.0 million."
Balance Sheet Improvements
"We have made a significant reduction in our debt and interest expense this
year," noted Mr. Archibald. Total debt decreased by $50.2 million in the third
quarter, bringing total debt outstanding to $269.6 million as at September
30, 2003, compared to $321.3 million as at December 31, 2002 and $347.6
million a year ago. The debt was repaid with the $40.8 million of net proceeds
from the common share issue and $9.4 million of available cash flow. As part
of the reductions, the remaining amount outstanding on the Facility C bank
loan was totally repaid, two years prior to maturity, enabling the Company to
secure a Facility A interest rate reduction of 100 basis points. Of the $16.9
million current portion of long-term debt, $16.0 million is due only in
September 2004, as the first of the scheduled Note repayments. As of September
30, 2003, borrowings under Facility A, less cash, were $18.4 million.
Facility A is the Company's $50.0 million committed two-year revolving bank
credit facility.
Conclusion
"The third quarter numbers reflect the results of our increased focus in four
key areas: new products, relationships with our product distributors, cost
reductions, and debt reductions," said Mr. Yull. "With each passing quarter,
we are seeing good progress on all fronts, and we intend to continue on this
path. All-in-all, I believe we should be able to continue increasing our
overall profitability in the years ahead and are well-positioned to benefit
from economic recovery as it occurs."
(All figures in U.S. dollars, unless otherwise stated; September 30, 2003,
exchange rate: Cdn $1.3546=U.S.$1.00)
Conference Call
A conference call to discuss IPG's third quarter results will be held Tuesday,
November 4, 2003 at 10:00 A.M. Eastern Standard Time. Participants may dial
1-888-428-4472 (U.S. and Canada) and 1-651-291-0900 (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 703112. The recording
will be available from Tuesday, November 4, 2003 at 5:00 P.M. until Tuesday,
November 11, 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 14 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
Selected Financial Information
Intertape Polymer Group Inc.
Consolidated Earnings
Periods ended September 30,
(In thousands of US dollars, except per share amounts)
_______________________________________________________________________________
Three months Nine months
________________________________________________
2003 2002 2003 2002
$ $ $ $
Sales 159,798 149,920 463,639 450,314
Cost of sales 123,489 121,532 359,448 354,566
_______ _______ _______ _______
Gross profit 36,309 28,388 104,191 95,748
_______ _______ _______ _______
Selling, general and
administrative expenses 22,264 22,309 65,076 63,062
Research and development 1,080 926 3,060 2,689
Financial expenses 7,409 8,297 22,934 25,152
_______ _______ _______ _______
30,753 31,532 91,070 90,903
_______ _______ _______ _______
Earnings before income taxes 5,556 (3,144) 13,121 4,845
Future income taxes (recovery) (643) (357) 118 525
_______ _______ _______ _______
Net earnings 6,199 (2,787) 13,003 4,320
_______ _______ _______ _______
Earnings per share
Basic 0.18 (0.08) 0.38 0.13
Diluted 0.18 (0.08) 0.38 0.13
Consolidated Retained Earnings
Periods ended
(In thousands of US dollars)
_______________________________________________________________________________
Three months Nine months
________________________________________________
2003 2002 2003 2002
$ $ $ $
Balance, beginning of period 56,918 111,674 50,114 104,567
Net earnings 6,199 (2,787) 13,003 4,320
_______ _______ _______ _______
Balance, end of period 63,117 108,887 63,117 108,887
_______ _______ _______ _______
Common shares
Average number of shares outstanding
CDN GAAP - Basic 35,302,174 33,701,307 34,318,592 32,469,521
CDN GAAP - Diluted 35,397,800 33,701,307 34,409,403 32,900,516
U.S. GAAP - Basic 35,302,174 33,701,307 34,318,592 32,469,521
U.S. GAAP - Diluted 35,397,800 33,701,307 34,409,403 32,900,516
Intertape Polymer Group Inc.
Consolidated Balance Sheets
As at
(In thousands of US dollars)
September 30, 2003 September 30, 2002 December 31, 2002
$ $ $
ASSETS
Current assets
Trade receivables (net of
allowance for doubtful
accounts of $3,274 ($3,552
in September 2002, $3,844
in December 2002) 97,034 94,996 86,169
Other receivables 10,155 11,137 10,201
Inventories 67,128 71,637 60,969
Parts and supplies 13,046 12,566 12,377
Prepaid expenses 5,917 4,711 7,884
Future income tax assets 2,397 4,025 2,397
_______ _______ _______
195,677 199,072 179,997
Property, plant and equipment 355,297 357,041 351,530
Other assets 12,137 12,508 13,178
Goodwill 172,007 228,525 158,639
_______ _______ _______
735,118 797,146 703,344
_______ _______ _______
LIABILITIES
Current liabilities
Bank indebtedness 18,376 25,992 8,573
Accounts payable and accrued
liabilities 92,739 73,433 80,916
Instalments on long-term debt 16,886 9,929 29,268
_______ _______ _______
128,001 109,354 118,757
Long-term debt 234,353 311,722 283,498
Other liabilities 3,530 3,785 3,550
Future income taxes 2,623 22,112 4,446
_______ _______ _______
368,507 446,973 410,251
_______ _______ _______
SHAREHOLDERS' EQUITY
Capital stock and share purchase
warrants 289,367 238,538 239,185
Retained earnings 63,117 108,887 50,113
Accumulated currency translation
adjustments 14,127 2,748 3,795
_______ _______ _______
366,611 350,173 293,093
_______ _______ _______
735,118 797,146 703,344
_______ _______ _______
Intertape Polymer Group Inc.
Consolidated Cash Flows
Periods ended September 30,
(In thousands of US dollars)
Three months Nine months
_______________________________ _____________________________
2003 2002 2003 2002
______________ ____________ ______________ ____________
$ $ $ $
OPERATING ACTIVITIES
Net earnings 6,199 (2,787) 13,003 4,320
Non-cash items
Depreciation and amortization 8,226 7,342 21,589 21,006
Loss on disposal of property,
plant and equipment 1,250 1,250
Future income taxes (1,926) (357) (1,166) 525
_____________ ___________ ______________ ____________
Cash from operations before changes in
non-cash working capital items 12,499 5,448 33,426 27,101
_____________ ___________ ______________ ____________
Changes in non-cash working capital items
Trade receivables (6,635) (5,237) (9,357) (8,350)
Other receivables (70) 1,877 46 2,655
Inventories 5,029 4,713 (3,118) (815)
Parts and supplies (545) (122) (669) (655)
Prepaid expenses 212 1,423 2,057 4,744
Accounts payable and accrued liabilities 9,667 (11,981) 8,859 (18,283)
_____________ ___________ ______________ ____________
7,658 (9,327) (2,182) (20,704)
_____________ ___________ ______________ ____________
Cash flows from operating activities 20,157 (3,879) 31,244 6,397
_____________ ___________ ______________ ____________
INVESTING ACTIVITIES
Property, plant and equipment (4,620) (3,119) (9,700) (9,586)
Goodwill (6,217) (6,217)
Other assets (75) (1,323) (683) (3,594)
_____________ ___________ ______________ ____________
Cash flows from investing activities (10,912) (4,442) (16,600) (13,180)
_____________ ___________ ______________ ____________
FINANCING ACTIVITIES
Net change in bank indebtedness (5,762) 6,269 9,413 (2,106)
Repayment of long-term debt (43,212) (3,635) (64,329) (41,324)
Issue of common shares 42,457 1,716 42,457 49,042
_____________ ___________ ______________ ____________
Cash flows from financing activities (6,517) 4,350 (12,459) 5,612
_____________ ___________ ______________ ____________
Net increase (decrease) in cash position 2,728 (3,971) 2,185 (1,171)
Effect of foreign currency translation
adjustments (2,728) 3,971 (2,185) 1,171
_____________ ___________ ______________ ____________
Cash position, beginning and end of year - - - -
_____________ ___________ ______________ ____________