Intertape Polymer Group Reports Improved 2013 Fourth Quarter and
Annual Results
Adjusted EBITDA of $103.1 million for 2013 increased 20.4% over
last year
MONTREAL, QUEBEC and SARASOTA, FLORIDA--(Marketwired - Mar 12,
2014) - Intertape Polymer Group Inc. (TSX:ITP) ("Intertape" or the
"Company") today released results for the fourth quarter and year
ended December 31, 2013. All amounts are denominated in US dollars
unless otherwise indicated and all percentages are calculated on
unrounded numbers.
Fiscal Year 2013 Highlights:
- Gross margin increased to 20.3% from 17.7% last year
- Adjusted EBITDA increased 20.4% to $103.1 million
- Cash flows from operating activities before changes in working
capital were $90.8 million compared to $78.7 million last year
- Redeemed remaining $38.7 million of Senior Subordinated Notes
("Notes")
- Total debt reduced by $21.5 million
- Adjusted fully diluted EPS of $1.68 (includes $0.62 per share
of positive impact from the recognition of deferred tax assets -
more details below) compared to $0.65 last year
Other Announcements:
- On February 6, 2014, the Board of Directors declared a
quarterly dividend of $0.08 per common share
"Despite a slow economic recovery in North America, we achieved
adjusted EBITDA of $103.1 million for 2013, which marks the third
year of improving performance for the Company. Our success in
improving our mix of products and executing our manufacturing cost
reduction initiatives is well reflected in our gross margin of
20.3% for 2013 compared to 17.7% last year," stated Intertape
President and Chief Executive Officer, Greg Yull.
"We achieved manufacturing cost reductions of approximately $14
million during the year, of which approximately $3.2 million was
related to the Richmond facility closure and the consolidation of
shrink film in Tremonton. We continue to focus a significant amount
of resources on executing the South Carolina Project which remains
on target for completion in the first half of 2015.
"Our operating cash flows allowed us to commit significant
investments in capital projects, to redeem the remaining 8.5% Notes
and to pay dividends, all of which we believe are important to the
future of the Company and its stakeholders," concluded Mr.
Yull.
On February 6, 2014 the Board of Directors declared a dividend
of $0.08 per common share payable on March 31, 2014 to shareholders
of record at the close of business March 19, 2014. 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 year ending December 31, 2013 was $781.5
million, a decrease of 0.4% compared to $784.4 million for 2012.
For 2013, selling prices, including the impact of product mix,
increased approximately 2% and sales volume decreased approximately
3%. Revenue for the fourth quarter of 2013 was $191.5 million, an
increase of 1.2% compared to $189.3 million for the fourth quarter
of 2012. For the fourth quarter of 2013, selling prices, including
the impact of product mix, increased approximately 5% and sales
volume decreased approximately 4%. In both periods, we believe the
Company benefited from a favourable pricing environment and
continued to improve its product mix by de-emphasizing the sales of
lower margin products.
When compared to the third quarter of 2013, revenue for the
fourth quarter of 2013 decreased 4.2% from $199.9 million to $191.5
million. Sales volume decreased approximately 4% primarily due to
normal seasonality.
Gross profit for the year ended December 31, 2013 totalled
$158.5 million, a 14.2% increase from $138.7 million in 2012. Gross
margin was 20.3% and 17.7% in 2013 and 2012, respectively. Gross
profit totalled $37.9 million in the fourth quarter of 2013, a 7.7%
increase from $35.2 million in 2012. Gross margin was 19.8% in the
fourth quarter of 2013 and 18.6%, in the fourth quarter of 2012. In
both periods, we believe, the improvement was due to a favourable
pricing environment and product mix, combined with the Company's
continued success in executing manufacturing cost reduction
initiatives.
Gross profit totalled $37.9 million in the fourth quarter of
2013, a decrease of 5.1% from $40.0 million in the third quarter of
2013. Gross margin was 20.0% for the third quarter of 2013. Gross
profit primarily decreased due to lower sales volume.
Selling, general and administrative expenses ("SG&A") for
the year ended December 31, 2013 totalled $82.7 million, a 4.5%
increase from $79.1 million in 2012. As a percentage of revenue,
SG&A increased slightly from 10.1% in 2012 to 10.6% in 2013
primarily due to an increase in Stock Appreciation Rights ("SAR")
expense related to the impact of award vesting and an increase in
the Company's share price.
SG&A totalled $19.0 million for the fourth quarter of 2013
compared to $20.8 million in the fourth quarter of 2012 and $20.5
million in the third quarter of 2013. As a percentage of revenue,
SG&A was 9.9%, 11.0% and 10.3% for the fourth quarter of 2013,
the fourth quarter of 2012 and the third quarter of 2013,
respectively. When compared to the fourth quarter of 2012, SG&A
decreased primarily due to lower SAR and variable compensation
expense. When compared to the third quarter of 2013, SG&A
decreased primarily due to lower SAR expense.
Adjusted EBITDA for the year ended December 31, 2013 totalled
$103.1 million, a 20.4% increase from $85.6 million in 2012.
Adjusted EBITDA for the fourth quarter of 2013 totalled $24.0
million, a 12.3% increase from $21.4 million for the fourth quarter
of 2012 and a 10.4% decrease from $26.8 million for the third
quarter of 2013. These changes in adjusted EBITDA were primarily
due to the changes in gross profit.
During the fourth quarter of 2013, the Company recognized $47.8
million of its US deferred tax assets, all of which was previously
derecognized as of December 31, 2010. Of this $47.8 million, $43.0
million impacted net earnings while the remaining impacted
shareholders' equity. This increase in net earnings of $43.0
million was partially offset by the derecognition of $4.6 million
of deferred tax assets in the Canadian jurisdiction, resulting in a
net positive impact to net earnings of $38.4 million ("impact from
the recognition of deferred tax assets").
Net earnings for the year ended December 31, 2013 totalled $67.4
million or $1.09 per share fully diluted, a 231% increase from
$20.4 million or $0.34 per share fully diluted in 2012.
Net earnings for the fourth quarter of 2013 totalled $53.6
million or $0.86 per share fully diluted compared to $5.7 million
or $0.09 per share for the fourth quarter of 2012 and $14.4 million
or $0.23 per share fully diluted for the third quarter of 2013.
Adjusted net earnings for the year ended December 31, 2013
totalled $103.3 million or $1.68 per share fully diluted, a 161%
increase from $39.6 million or $0.65 per share fully diluted in
2012. Adjusted net earnings totalled $52.5 million or $0.84 per
share fully diluted for the fourth quarter of 2013 compared to
$10.0 million or $0.16 per share fully diluted for the fourth
quarter of 2012 and $17.5 million or $0.28 per share fully diluted
for the third quarter of 2013.
For a reconciliation of non-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 for the year ended December 31, 2013 increased 15.4% to $90.8
million from $78.7 million in 2012. The increase was primarily due
to higher gross profit partially offset by an increase in cash
costs related to manufacturing facility closures, restructuring and
other related charges.
Cash flows from operations before changes in working capital
items in the fourth quarter of 2013 increased 8.0% to $21.0 million
from $19.4 million in the fourth quarter of 2012 and decreased
16.0% from $25.0 million in the third quarter of 2013. When
compared to the fourth quarter of 2012, the increase was primarily
due to an increase in adjusted EBITDA partially offset by income
taxes paid.
The Company had total cash and loan availability of $50.3
million as of December 31, 2013, $44.5 million as of September 30,
2013 and $54.7 million as of December 31, 2012. The Company had
cash and loan availability under its ABL facility exceeding $57
million as of March 11, 2014.
Total debt as of December 31, 2013 was $129.8 million, a
decrease of $21.5 million from December 31, 2012. The debt to
trailing twelve month adjusted EBITDA ratio was 1.3 as of December
31, 2013.
Outlook
For 2014, the Company anticipates moderate revenue growth
similar to the forecasted North American economic growth, while
continuing to improve product mix. The Company will continue to
focus on executing on the previously announced relocation and
modernization of its Columbia, South Carolina manufacturing
operation to a new facility in Blythewood, South Carolina ("South
Carolina Project") and on reducing variable manufacturing
costs.
The Company's financial projections include the following:
- Revenue for the first quarter of 2014 is expected to be greater
than the fourth quarter of 2013, which is reflective of normal
seasonality. Revenue is expected to be approximately the same or
slightly higher than the first quarter of 2013;
- Gross margin for 2014, as well as for the first quarter of 2014
is expected to be in the range of 20% to 22%;
- After the South Carolina Project has been completed and
start-up inefficiencies have been resolved, the Company expects
overall gross margin to be between 22% and 24%;
- Adjusted EBITDA for the first quarter of 2014 is expected to be
slightly higher compared to both the fourth quarter of 2013 and the
first quarter of 2013;
- Cash flows from operations in the first quarter of 2014 are
expected to be lower than the fourth quarter of 2013 primarily due
to seasonal first quarter working capital requirements and is also
expected to be lower than the first quarter of 2013;
- Cash income taxes paid in 2014 are expected to be less than $5
million and the effective income tax rate is expected to be
approximately 40%;
- Capital expenditures are expected to be $10 to $14 million and
$31 to $35 million in the first quarter and full year 2014,
respectively;
- Manufacturing cost reductions are expected to total $16 to $20
million in 2014, which includes an incremental $3 million as
compared to 2013 for expected savings relating to the Kentucky
Plant Closure and the Shrink Film Consolidation; and
- The South Carolina Project is expected to result in 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 total
charges of $5 to $7 million between 2014 and 2015.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures
as defined under applicable securities legislation, including
EBITDA, adjusted EBITDA, adjusted net earnings, adjusted earnings
per share and free cash flows. The Company believes such non-GAAP
financial measures improve the period-to-period comparability of
the Company's results by providing more insight into the
performance of ongoing core business operations. As required by
applicable securities legislation, the Company has provided
reconciliations of those measures to the most directly comparable
GAAP measures. Investors and other readers are encouraged to review
the related GAAP financial measures and the reconciliation of
non-GAAP measures to their most directly comparable GAAP measures
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 net earnings, the most directly comparable GAAP
measure, is set out in the EBITDA reconciliation table below.
EBITDA should not be construed as earnings before income taxes, net
earnings or cash flows from operating activities as determined by
GAAP. The Company defines EBITDA as net earnings 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
discrete items as shown in the table below. 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 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 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 |
(In millions of US dollars) |
(Unaudited) |
|
Three months ended |
|
Year ended |
December 31, |
|
December 31, |
2013 |
|
|
2012 |
|
2013 |
|
|
2012 |
|
2011 |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
$ |
Net earnings |
53.6 |
|
|
5.7 |
|
67.4 |
|
|
20.4 |
|
7.4 |
Add back: Interest and other expense |
1.0 |
|
|
3.5 |
|
6.7 |
|
|
14.5 |
|
17.5 |
Income tax expense (benefit) |
(39.3 |
) |
|
0.5 |
|
(35.8 |
) |
|
0.2 |
|
1.8 |
Depreciation and amortization |
6.9 |
|
|
7.6 |
|
27.7 |
|
|
30.4 |
|
30.9 |
EBITDA |
22.2 |
|
|
17.3 |
|
66.0 |
|
|
65.5 |
|
57.6 |
Manufacturing facility closures, restructuring and other related
charges |
1.6 |
|
|
3.2 |
|
30.7 |
|
|
18.3 |
|
2.9 |
Stock-based compensation expense |
0.1 |
|
|
0.9 |
|
4.9 |
|
|
1.8 |
|
0.8 |
Impairment of long-lived assets and other assets |
0.0 |
|
|
- |
|
0.2 |
|
|
- |
|
- |
Other Item: Provision related to the resolution of a contingent
liability |
- |
|
|
- |
|
1.3 |
|
|
- |
|
1.0 |
Adjusted EBITDA |
24.0 |
|
|
21.4 |
|
103.1 |
|
|
85.6 |
|
62.2 |
Adjusted Net Earnings
A reconciliation of the Company's adjusted net earnings, a
non-GAAP financial measure, to net earnings, the most directly
comparable GAAP measure, is set out in the adjusted net earnings
reconciliation table below. Adjusted net earnings should not be
construed as net earnings as determined by GAAP. The Company
defines adjusted net earnings as net earnings 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
discrete items as shown in the table below; and (vii) income tax
effect of these items. The term "adjusted net earnings" 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 is not a measurement of financial
performance under GAAP and should not be considered as an
alternative to net earnings 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 meaningful comparison of the Company's performance between
periods presented. In addition, adjusted net earnings is used by
Management in evaluating the Company's performance because it
believes it provides an indicator of the Company's performance that
is often more accurate than GAAP financial measures.
Adjusted earnings per share is also presented in the following
table and is a non-GAAP financial measure. Adjusted earnings per
share should not be construed as earnings per share as determined
by GAAP. The Company defines adjusted earnings per share as
adjusted net earnings divided by the weighted average number of
common shares outstanding, both basic and diluted. The term
"adjusted earnings 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 per share is not a measurement of financial performance
under GAAP and should not be considered as an alternative to
earnings 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 meaningful comparison of the Company's performance between
periods presented. In addition, adjusted earnings per share is used
by Management in evaluating the Company's performance because it
believes it provides an indicator of the Company's performance that
is often more accurate than GAAP financial measures.
Adjusted Net Earnings Reconciliation To Net
Earnings |
(In millions of US dollars, except per share amounts
and share numbers) |
(Unaudited) |
|
Three months ended |
|
Year ended |
December 31, |
|
December 31, |
2013 |
|
|
2012 |
|
2013 |
|
|
2012 |
|
|
2011 |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
|
$ |
Net earnings |
53.6 |
|
|
5.7 |
|
67.4 |
|
|
20.4 |
|
|
7.4 |
Add back: Manufacturing facility closures,
restructuring and other related charges |
1.6 |
|
|
3.2 |
|
30.7 |
|
|
18.3 |
|
|
2.9 |
Stock-based compensation expense |
0.1 |
|
|
0.9 |
|
4.9 |
|
|
1.8 |
|
|
0.8 |
Impairment of long-lived assets and other assets |
- |
|
|
- |
|
0.2 |
|
|
- |
|
|
- |
Other Item: Provision related to the resolution of a
contingent liability |
- |
|
|
- |
|
1.3 |
|
|
- |
|
|
1.0 |
Income tax effect of these items |
(2.9 |
) |
|
0.2 |
|
(1.1 |
) |
|
(0.9 |
) |
|
- |
Adjusted net earnings |
52.5 |
|
|
10.0 |
|
103.3 |
|
|
39.6 |
|
|
12.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.88 |
|
|
0.10 |
|
1.12 |
|
|
0.35 |
|
|
0.13 |
|
Diluted |
0.86 |
|
|
0.09 |
|
1.09 |
|
|
0.34 |
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.86 |
|
|
0.17 |
|
1.71 |
|
|
0.67 |
|
|
0.20 |
|
Diluted |
0.84 |
|
|
0.16 |
|
1.68 |
|
|
0.65 |
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
60,776,649 |
|
|
59,316,858 |
|
60,379,533 |
|
|
59,072,407 |
|
|
58,961,050 |
|
Diluted |
62,170,733 |
|
|
61,036,145 |
|
61,632,652 |
|
|
60,629,136 |
|
|
59,099,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flows
The Company is including free cash flows, a non-GAAP financial
measure, because it is used by Management and investors in
evaluating the Company's performance and liquidity. Free cash flows
does not have any standardized meaning prescribed by GAAP and is
therefore unlikely to be comparable to similar measures presented
by other issuers. Free cash flows should not be interpreted to
represent residual cash flow available for discretionary purposes,
as it excludes other mandatory expenditures such as debt
service.
Free Cash Flows Reconciliation |
|
(In millions of US dollars) |
|
(Unaudited) |
|
|
Three months ended |
|
|
Year ended |
|
|
December 31, |
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Cash flows from operating activities |
22.9 |
|
|
31.8 |
|
|
82.2 |
|
|
84.5 |
|
|
48.8 |
|
Less purchases of property, plant and equipment and other
assets |
(12.3 |
) |
|
(9.2 |
) |
|
(46.8 |
) |
|
(21.6 |
) |
|
(14.0 |
) |
Free cash flows |
10.6 |
|
|
22.6 |
|
|
35.3 |
|
|
62.9 |
|
|
34.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New or Amended Accounting Standards
As noted in the March 31, 2013 unaudited 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 December 31, 2013 annual consolidated
financial statements reflect the Company's adoption of this
guidance and include corresponding comparative information for 2012
and 2011 which resulted in the Company's net earnings to be lower
than originally reported. See the Section entitled "Pension and
Other Post-Retirement Benefit Plans" of the Management's Discussion
and Analysis and Note 2 - Changes in Accounting Policies of the
December 31, 2013 consolidated financial statements, 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 fourth quarter and
annual results will be held Wednesday, March 12, 2014, at 10 A.M.
Eastern Time. Participants may dial 877-223-4471 (USA & Canada)
and 647-788-4922 (International).
You may access a replay of the call by dialing 800-585-8367 (USA
& Canada) or 416-621-4642 (International) and entering the
Access Code 63095699. The recording will be available from March
12, 2014 at 1:00 P.M. until April 11, 2014 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, 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 1,800 employees with operations in 16
locations, including 10 manufacturing facilities in North America
and one in Europe.
Forward-Looking Statements
This press release contains "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") and are made in reliance upon the
protections provided by such legislation for forward-looking
statements. All statements other than statements of historical
facts included in this press release, including statements
regarding the importance of our capital projects, the redemption of
the remaining 8.5% Notes and the payment of dividends to the future
of the Company and its stakeholders, and the Company's financial
projections for 2014, 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. Such statements include, in particular,
statements about the Company's plans, prospects, financial position
and business strategies. 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; customer
demand; general economic conditions; risks and costs inherent in
litigation; the Company's ability to maintain and improve quality
and customer service; anticipated savings from the Company's
manufacturing plant rationalization initiatives; anticipated trends
in the Company's business; competition; 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 |
|
Periods ended December 31, |
|
(In thousands of US dollars, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
|
Twelve Months |
|
|
(Unaudited) |
|
|
(Audited) |
|
|
2013 |
|
|
2012 (1) |
|
|
2013 |
|
|
2012 (1) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Revenue |
191,490 |
|
|
189,291 |
|
|
781,500 |
|
|
784,430 |
|
Cost of sales |
153,543 |
|
|
154,048 |
|
|
623,006 |
|
|
645,681 |
|
Gross profit |
37,947 |
|
|
35,243 |
|
|
158,494 |
|
|
138,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
18,968 |
|
|
20,849 |
|
|
82,682 |
|
|
79,135 |
|
Research expenses |
2,008 |
|
|
1,528 |
|
|
6,900 |
|
|
6,227 |
|
|
20,976 |
|
|
22,377 |
|
|
89,582 |
|
|
85,362 |
|
Operating profit before manufacturing facility
closures, restructuring and other related charges |
16,971 |
|
|
12,866 |
|
|
68,912 |
|
|
53,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing facility closures, restructuring and
other related charges |
1,647 |
|
|
3,172 |
|
|
30,706 |
|
|
18,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
15,324 |
|
|
9,694 |
|
|
38,206 |
|
|
35,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
847 |
|
|
3,147 |
|
|
5,707 |
|
|
13,233 |
|
|
Other expense |
159 |
|
|
355 |
|
|
946 |
|
|
1,303 |
|
|
1,006 |
|
|
3,502 |
|
|
6,653 |
|
|
14,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax expense (benefit) |
14,318 |
|
|
6,192 |
|
|
31,553 |
|
|
20,594 |
|
Income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
233 |
|
|
969 |
|
|
3,622 |
|
|
927 |
|
|
Deferred |
(39,540 |
) |
|
(464 |
) |
|
(39,426 |
) |
|
(714 |
) |
|
(39,307 |
) |
|
505 |
|
|
(35,804 |
) |
|
213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
53,625 |
|
|
5,687 |
|
|
67,357 |
|
|
20,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.88 |
|
|
0.10 |
|
|
1.12 |
|
|
0.35 |
|
|
Diluted |
0.86 |
|
|
0.09 |
|
|
1.09 |
|
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intertape Polymer Group Inc. |
|
Consolidated Comprehensive Income |
|
Periods ended December 31, |
|
(In thousands of US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
|
Twelve Months |
|
|
(Unaudited) |
|
|
(Audited) |
|
|
2013 |
|
|
2012 (1) |
|
|
2013 |
|
|
2012 (1) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Net earnings |
53,625 |
|
|
5,687 |
|
|
67,357 |
|
|
20,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
of nil in 2012 and 2011) |
- |
|
|
- |
|
|
- |
|
|
227 |
|
|
|
Settlements of forward foreign exchange rate contracts, transferred
to earnings (net of income tax expense of nil in 2012 and
2011) |
- |
|
|
- |
|
|
- |
|
|
(214 |
) |
|
|
Change in cumulative translation adjustments |
(1,890 |
) |
|
(446 |
) |
|
(3,978 |
) |
|
2,002 |
|
|
Items that will be reclassified subsequently to net
earnings |
(1,890 |
) |
|
(446 |
) |
|
(3,978 |
) |
|
2,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit liability (net of income tax
(expense) benefit of ($6,160), $1,047 in 2012 and $1,277 in
2011) |
11,501 |
|
|
(3,656 |
) |
|
11,501 |
|
|
(4,310 |
) |
|
|
Deferred tax benefit due to the recognition of US deferred tax
assets |
4,671 |
|
|
- |
|
|
4,671 |
|
|
- |
|
|
Items that will not be reclassified subsequently to net
earnings |
16,172 |
|
|
(3,656 |
) |
|
16,172 |
|
|
(4,310 |
) |
Other comprehensive income (loss) |
14,282 |
|
|
(4,102 |
) |
|
12,194 |
|
|
(2,295 |
) |
Comprehensive income for the period |
67,907 |
|
|
1,585 |
|
|
79,551 |
|
|
18,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intertape Polymer Group Inc. |
|
Consolidated Cash Flows |
|
Periods ended December 31, |
|
(In thousands of US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
|
Twelve Months |
|
|
(Unaudited) |
|
|
(Audited) |
|
|
2013 |
|
|
2012 (1) |
|
|
2013 |
|
|
2012 (1) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
53,625 |
|
|
5,687 |
|
|
67,357 |
|
|
20,381 |
|
Adjustments to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
6,905 |
|
|
7,603 |
|
|
27,746 |
|
|
30,397 |
|
|
Income tax expense (benefit) |
(39,307 |
) |
|
505 |
|
|
(35,804 |
) |
|
213 |
|
|
Interest expense |
847 |
|
|
3,147 |
|
|
5,707 |
|
|
13,233 |
|
|
Charges in connection with manufacturing facility
closures, restructuring and other related charges |
394 |
|
|
1,345 |
|
|
23,863 |
|
|
14,958 |
|
|
Reversal of write-down of inventories, net |
- |
|
|
- |
|
|
- |
|
|
(31 |
) |
|
Stock-based compensation expense |
112 |
|
|
892 |
|
|
4,937 |
|
|
1,832 |
|
|
Pension and other post-retirement benefits expense |
800 |
|
|
756 |
|
|
3,077 |
|
|
3,702 |
|
|
(Gain) loss on foreign exchange |
46 |
|
|
15 |
|
|
(100 |
) |
|
(56 |
) |
|
Other adjustments for non cash items |
(142 |
) |
|
264 |
|
|
(386 |
) |
|
(77 |
) |
|
Income taxes (paid) refunded, net |
(877 |
) |
|
388 |
|
|
(1,371 |
) |
|
(291 |
) |
|
Contributions to defined benefit plans |
(1,399 |
) |
|
(1,158 |
) |
|
(4,222 |
) |
|
(5,562 |
) |
Cash flows from operating activities before changes in
working capital items |
21,004 |
|
|
19,444 |
|
|
90,804 |
|
|
78,699 |
|
|
Changes in working capital items |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
8,537 |
|
|
18,078 |
|
|
(2,778 |
) |
|
6,269 |
|
|
|
Inventories |
(366 |
) |
|
(3,874 |
) |
|
(3,492 |
) |
|
(1,500 |
) |
|
|
Parts and supplies |
(114 |
) |
|
(81 |
) |
|
(570 |
) |
|
(967 |
) |
|
|
Other current assets |
(2,537 |
) |
|
(1,857 |
) |
|
(2,402 |
) |
|
(104 |
) |
|
|
Accounts payable and accrued liabilities |
(3,648 |
) |
|
484 |
|
|
(1,865 |
) |
|
2,646 |
|
|
|
Provisions |
29 |
|
|
(349 |
) |
|
2,463 |
|
|
(570 |
) |
|
1,901 |
|
|
12,401 |
|
|
(8,644 |
) |
|
5,774 |
|
Cash flows from operating activities |
22,905 |
|
|
31,845 |
|
|
82,160 |
|
|
84,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Proceeds on the settlements of forward foreign exchange
rate contracts |
- |
|
|
- |
|
|
- |
|
|
198 |
|
Purchases of property, plant and equipment |
(12,302 |
) |
|
(9,211 |
) |
|
(46,818 |
) |
|
(21,552 |
) |
Proceeds from disposals of property, plant and
equipment and other assets |
203 |
|
|
5 |
|
|
1,849 |
|
|
35 |
|
Restricted cash and other assets |
(143 |
) |
|
10 |
|
|
416 |
|
|
305 |
|
Purchase of intangible assets |
(168 |
) |
|
(35 |
) |
|
(339 |
) |
|
(64 |
) |
Cash flows from investing activities |
(12,410 |
) |
|
(9,231 |
) |
|
(44,892 |
) |
|
(21,078 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt |
35,739 |
|
|
77,582 |
|
|
111,799 |
|
|
135,333 |
|
Repayment of long-term debt |
(43,754 |
) |
|
(93,371 |
) |
|
(134,671 |
) |
|
(178,168 |
) |
Payments of debt issue costs |
- |
|
|
(818 |
) |
|
(139 |
) |
|
(2,281 |
) |
Interest paid |
(889 |
) |
|
(2,173 |
) |
|
(6,692 |
) |
|
(14,190 |
) |
Proceeds from exercise of stock options |
(11 |
) |
|
1,529 |
|
|
3,760 |
|
|
2,046 |
|
Dividends Paid |
(4,862 |
) |
|
(4,759 |
) |
|
(14,520 |
) |
|
(4,759 |
) |
Cash flows from financing activities |
(13,777 |
) |
|
(22,010 |
) |
|
(40,463 |
) |
|
(62,019 |
) |
Net increase (decrease) in cash |
(3,282 |
) |
|
604 |
|
|
(3,195 |
) |
|
1,376 |
|
Effect of foreign exchange differences on cash |
(169 |
) |
|
105 |
|
|
(196 |
) |
|
170 |
|
Cash, beginning of year |
5,951 |
|
|
5,182 |
|
|
5,891 |
|
|
4,345 |
|
Cash, end of year |
2,500 |
|
|
5,891 |
|
|
2,500 |
|
|
5,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intertape Polymer Group Inc. |
|
Consolidated Balance Sheets |
|
As of |
|
(In thousands of US dollars) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
$ |
|
|
$ |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
2,500 |
|
|
5,891 |
|
|
Trade receivables |
78,543 |
|
|
75,860 |
|
|
Other receivables |
6,552 |
|
|
5,163 |
|
|
Inventories |
94,319 |
|
|
91,910 |
|
|
Parts and supplies |
13,574 |
|
|
14,442 |
|
|
Prepaid expenses |
6,533 |
|
|
5,701 |
|
|
202,021 |
|
|
198,967 |
|
Property, plant and equipment |
181,612 |
|
|
185,592 |
|
Other assets |
3,650 |
|
|
3,597 |
|
Intangible assets |
1,597 |
|
|
1,980 |
|
Deferred tax assets |
76,319 |
|
|
36,016 |
|
Total assets |
465,199 |
|
|
426,152 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
76,417 |
|
|
76,005 |
|
|
Provisions |
1,865 |
|
|
1,526 |
|
|
Installments on long-term debt |
8,703 |
|
|
9,688 |
|
|
86,985 |
|
|
87,219 |
|
Long-term debt |
121,111 |
|
|
141,611 |
|
Pension and other post-retirement benefits |
21,545 |
|
|
40,972 |
|
Other liabilities |
1,250 |
|
|
625 |
|
Provisions |
3,880 |
|
|
1,891 |
|
|
234,771 |
|
|
272,318 |
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Capital stock |
359,201 |
|
|
351,702 |
|
Contributed surplus |
20,497 |
|
|
16,386 |
|
Deficit |
(148,500 |
) |
|
(217,462 |
) |
Accumulated other comprehensive income (loss) |
(770 |
) |
|
3,208 |
|
|
230,428 |
|
|
153,834 |
|
Total liabilities and shareholders' equity |
465,199 |
|
|
426,152 |
|
|
|
|
|
|
|
(1) On January 1, 2013 Amended IAS 19-Employee
Benefits became effective and required retrospective
application to operating results for fiscal years 2012 and 2011,
and as a result, the Company's net earnings for 2012 and 2011 were
lower than originally reported. Refer to Note 2 - Changes in
Accounting Policies of the December 31, 2013 consolidated financial
statements, for a summary of the impact of the adoption of this
guidance on the Company's financial results. |
|
MaisonBrison CommunicationsRick Leckner/Pierre
Boucher514-731-0000
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