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, 2004
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 information 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: April 26, 2004 By: /s/Andrew M. Archibald
Chief Financial Officer,
Secretary, Vice President,
Administration
NYSE SYMBOL: ITP
TSX SYMBOL: ITP
Intertape Polymer Group Inc. Announces Solid First Quarter Sales
Montreal & Bradenton, Florida--April 26, 2004--Intertape Polymer Group Inc.
(NYSE, TSX:ITP) today released results for the first quarter ended March
31, 2004. "While we experienced solid sales growth, we encountered
difficulties in passing along rapidly increasing raw material prices, as
well as incurring increases in manufacturing costs," said Intertape Polymer
Group Inc. (IPG) Chairman and Chief Executive Officer, Melbourne F. Yull.
Operating Results
First quarter net income was $2.3 million, or $0.06 per share (basic and
diluted), compared to $2.9 million or $0.09 per share (basic and diluted)
for the first quarter of 2003. The decrease in net income was primarily
attributable to higher cost of sales, as reflected in this quarter's
lower gross margin.
Sales for the first quarter were $162.1 million, up 5.5% compared to the
corresponding quarter last year. "We are encouraged by the success of our
marketing and sales initiatives and, with the momentum that was building
up in the latter part of the first quarter, we believe that our annual
revenue growth target of 10% remains achievable," said Mr. Yull.
Gross margin for the first quarter decreased to 19.8% from 22.0% in the
corresponding quarter last year due to several factors, including delays
in passing through some raw material cost increases related to
polypropylene and natural rubber, changes in product mix, production
problems in the Truro plant, and unanticipated integration costs at the
Columbia plant relating to the acquisition of assets from tesa tape, inc.
Mr. Yull remarked, "We are currently achieving some price increases and
should see the impact of these in our second quarter results."
Selling, general and administrative expenses were $22.4 million in the
first quarter of 2004, compared to $22.0 for the first quarter of 2003.
"New expenses related to stock-based compensation and the acquisition
of our partner's 50% interest in Fibope in mid-2003 were offset by cost
reductions in other areas," noted IPG's Chief Financial Officer, Andrew
M. Archibald, C.A. "The first quarter was at the lower end of our
expected run rate for SG&A expenses of $22.5 million to $23.5 million
per quarter for 2004."
Financial expenses in the first quarter were $6.8 million, compared to
$7.7 million for the first quarter last year. The lower financial expenses
reflect primarily the impact of debt reduction since the end of the first
quarter of 2003, more specifically, $59.0 million of debt reduction over
the latter three quarters of 2003. In addition, the Company was able to
obtain a reduction in its Facility A interest rate of 100 basis points
late last year that also contributed to lower interest costs during the
quarter.
Mr. Archibald commented, "Our expenses below the gross profit line were
down 1.5% compared to the same period last year, and below the fourth
quarter 2003 total, even if we exclude the one-time charges of $3.0
million relating to the closure of the Green Bay plant."
For the first quarter the Company recorded a net deferred income tax
benefit of $0.3 million, compared to income tax expense of $0.3 million
in the first quarter of 2003.
Liquidity and Capital Resources
Cash flows from operating activities were $6.3 million for the first
quarter 2004, compared to $0.2 million for the first quarter 2003, mainly
as a result of improvements in working capital management.
Cash used for investing activities was $11.9 million for the first quarter
2004, compared to $4.4 million for the first quarter 2003, the difference
being attributable primarily to the acquisition of assets from, and
finalization of the supply agreements with, tesa tape, inc. during the
quarter.
Cash used for investing activities exceeded cash flows from operating
activities by $5.6 million in the quarter. This cash shortfall was funded
by an increase of $5.7 million in debt during the quarter. Compared to
last year, total debt was down $46.0 million reflecting the debt
reductions that occurred during the latter three quarters of 2003.
"Although an increase in debt was anticipated in our plans for 2004,
our cash flow from operating activities was lower than expected," said
Mr. Archibald.
Mr. Archibald also noted, "The Company reached an agreement with its
Noteholders to amend the fixed charge coverage covenant to reduce the
required ratio during 2004 and the first two quarters of 2005, and
with the amendment the Company is in compliance with all of its
financial covenants for the first quarter of 2004."
(All figures in U.S. dollars, unless otherwise stated; March 31, 2004,
exchange rate: Cdn $1.3079 equals U.S.$1.00)
Conference Call
A conference call to discuss IPG's first quarter results will be held
Tuesday, April 27, 2004 at 10:00 A.M. Eastern Daylight Time.
Participants may dial 1-888-423-3276 (U.S. and Canada) and 1-612-332-0345
(International). The conference call will also be simultaneously
webcast on the Company's website at www.intertapepolymer.com.
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
729159. The recording will be available from Tuesday, April 27, 2004
at 5:00 P.M. until Tuesday, May 4, 2004 at 11:59 P.M, Eastern Daylight
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 16 locations, including 12 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.
Selected Financial Information
Intertape Polymer Group Inc.
Consolidated Earnings
Three month periods ended
(In thousands of US dollars, except per share amounts)
(Unaudited)
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March 31,
---------------------------------------------------------------------
2004 2003
---------------------------------------------------------------------
$ $
Sales 162,100 153,592
Cost of sales 129,986 119,793
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Gross profit 32,114 33,799
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Selling, general and administrative expenses 22,377 21,982
Research and development 962 894
Financial expenses 6,768 7,700
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30,107 30,576
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Earnings before income taxes 2,007 3,223
Income taxes (recovery) (284) 322
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Net earnings 2,291 2,901
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Earnings per share
Basic 0.06 0.09
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Diluted 0.06 0.09
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Consolidated Retained Earnings
Three month periods ended
(In thousands of US dollars)
(Unaudited)
---------------------------------------------------------------------
March 31,
---------------------------------------------------------------------
2004 2003
---------------------------------------------------------------------
$ $
Balance, beginning of year 68,291 50,113
Net earnings 2,291 2,901
---------------------------------------------------------------------
Balance, end of period 70,582 53,014
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Common shares
Average number of shares outstanding
CDN GAAP - Basic 40,971,739 33,821,074
CDN GAAP - Diluted 41,528,581 33,821,497
U.S. GAAP - Basic 40,971,739 33,821,074
U.S. GAAP - Diluted 41,528,581 33,821,497
Intertape Polymer Group Inc.
Consolidated Balance Sheets
As at
(In thousands of US dollars)
March 31, March 31, December 31,
2004 2003 2003
(Unaudited) (Unaudited) (Audited)
---------------------------------------------------------------------
$ $ $
ASSETS
Current assets
Trade receivables,
net of allowance for
doubtful accounts of $4,102,
($3,475 in March 2003,
$3,911 in December 2003) 99,320 93,221 89,297
Other receivables 11,364 10,554 11,852
Inventories 70,383 65,732 69,956
Parts and supplies 13,344 12,422 13,153
Prepaid expenses 6,820 6,784 7,924
Future income tax assets 2,682 2,397 2,682
---------------------------------------------------------------------
203,913 191,110 194,864
Property, plant and equipment 362,066 350,955 354,627
Other assets 12,928 14,518 12,886
Future income taxes 4,700 3,812
Goodwill 176,953 160,248 173,056
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760,560 716,831 739,245
LIABILITIES
Current liabilities
Bank indebtedness 18,922 17,405 13,944
Accounts payable and
accrued liabilities 102,072 81,271 95,270
Instalments on long-term debt 34,036 28,600 16,925
---------------------------------------------------------------------
155,030 127,276 126,139
Long-term debt 225,936 278,902 235,066
Other liabilities 530 3,530 530
Future income taxes 3,654
---------------------------------------------------------------------
381,496 413,362 361,735
SHAREHOLDERS' EQUITY
Capital stock and share
purchase warrants 287,811 239,185 286,841
Contributed surplus 3,220 3,150
Retained earnings 70,582 53,014 68,291
Accumulated currency
translation adjustments 17,451 11,270 19,228
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379,064 303,469 377,510
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760,560 716,831 739,245
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Intertape Polymer Group Inc.
Consolidated Cash Flows
Three months ended
(In thousands of US dollars)
(Unaudited)
March 31, 2004 March 31, 2003
---------------------------------------------------------------------
$ $
OPERATING ACTIVITIES
Net earnings 2,291 2,901
Non-cash items
Depreciation and amortization 7,123 6,639
Stock-based compensation expense 70
Future income taxes (896) 322
---------------------------------------------------------------------
Cash flows from operations
before changes in non-cash
working capital items 8,588 9,862
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Changes in non-cash working capital items
Trade receivables (10,085) (6,371)
Other receivables 487 (218)
Inventories (512) (3,847)
Parts and supplies (191) 100
Prepaid expenses 1,101 1,147
Accounts payable and accrued liabilities 6,938 (522)
---------------------------------------------------------------------
(2,262) (9,711)
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Cash flows from operating activities 6,326 151
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INVESTING ACTIVITIES
Property, plant and equipment (5,820) (2,451)
Business acquisition (5,500)
Other assets (563) (1,953)
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Cash flows from investing activities (11,883) (4,404)
---------------------------------------------------------------------
FINANCING ACTIVITIES
Net change in bank indebtedness 4,933 8,832
Issue of long-term debt 787
Repayment of long-term debt (5,265)
Issue of common shares 970
---------------------------------------------------------------------
Cash flows from financing activities 6,690 3,567
---------------------------------------------------------------------
Net increase (decrease) in cash position 1,133 (686)
Effect of currency translation adjustments (1,133) 686
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Cash position, beginning and end of year - -
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Contact:
Intertape Polymer Group Inc.
Melbourne F. Yull
Chairman and Chief Executive Officer
(866) 202-4713
itp$info@intertapeipg.com
www.intertapepolymer.com