Intertape Polymer Group Reports 2017 Fourth Quarter and Annual Results

• Revenue increased over 10% to $237.4 million and $898.1 million for the quarter and year ended December 31, 2017, respectively
• IPG Net Earnings increased $13.1 million to $64.2 million for the year ended December 31, 2017 • Adjusted EBITDA increased 6.2% to $129.6 million for the year ended December 31, 2017

Intertape Polymer Group Inc. (TSX:ITP) (the “Company”) today released results for its fourth quarter and year ended December 31, 2017. All amounts in this press release are denominated in US dollars unless otherwise indicated and all percentages are calculated on unrounded numbers. For more information, you may refer to the Company’s management’s discussion and analysis and audited consolidated financial statements and notes thereto as of December 31, 2017 and 2016 and for the three-year period ended December 31, 2017 (“Financial Statements”).

Fourth Quarter 2017 Highlights (as compared to fourth quarter 2016):
• Revenue increased 13.1% to $237.4 million primarily due to additional revenue from the Cantech Acquisition (1), an increase in average selling price, including the impact of product mix, and an increase in sales volume.
• Gross margin decreased to 22.8% from 25.6% primarily due to the non-recurrence of Insurance Proceeds (2). Gross margin in the fourth quarter of 2016 would have been 21.7% excluding the impact of the Insurance Proceeds.
• Selling, general and administrative expenses (“SG&A”) increased 33.4% to $34.1 million primarily due to (i) an increase in share-based compensation of $4.7 million primarily driven by an increase in fair value of cash-settled awards, (ii) additional SG&A resulting from the Cantech Acquisition, and (iii) a $1.6 million increase in M&A Costs (3).
• Income tax expense decreased $12.2 million to an income tax benefit of $2.5 million for 2017 primarily due to a $9.6 million net tax benefit mainly resulting from the remeasurement of the US net deferred tax liability using the lower US corporate tax rate provided under the Tax Cuts and Jobs Act (“TCJA”) enacted into law on December 22, 2017.
• Net earnings attributable to the Company shareholders (“IPG Net Earnings”) decreased $0.4 million to $21.3 million. The decrease was primarily due to an increase in SG&A and an increase in manufacturing facility closures, restructuring and other related charges primarily driven by the non-recurrence of the benefit from Insurance Proceeds in the fourth quarter of 2016 partially offset by a decrease in income tax expense and an increase in foreign exchange gains.
• Adjusted EBITDA (3)(4) increased 0.2% to $35.7 million primarily due to organic growth in gross profit and adjusted EBITDA contributed by Cantech, partially offset by the non-recurrence of $8.1 million in Insurance Proceeds. Excluding Insurance Proceeds, adjusted EBITDA for the fourth quarter of 2016 would have been $27.5 million.

Fiscal Year 2017 Highlights (as compared to fiscal year 2016):
• Revenue increased 11% to $898.1 million primarily due to additional revenue from the Cantech Acquisition and Powerband Acquisition (1) (“Acquisitions”) and an increase in average selling price, including the impact of product mix.
• Gross margin decreased to 22.4% from 23.7% primarily due to a reduction in the Insurance Proceeds. Gross margin would have been 22.2% and 22.1% excluding the impact of the Insurance Proceeds in 2017 and 2016, respectively.
• SG&A increased 4.9% to $107.6 million primarily due to additional SG&A resulting from the Acquisitions and a $3.4 million increase in M&A Costs, partially offset by a decrease in share-based compensation of $4.9 million primarily driven by a decrease in the fair value of cash-settled awards.
• Income tax expense decreased $6.5 million to $13.0 million in 2017 primarily due to a $9.6 million net tax benefit mainly resulting from the remeasurement of the US net deferred tax liability using the lower US corporate tax rate provided under the TCJA.
• IPG Net Earnings increased $13.1 million to $64.2 million primarily due to an increase in gross profit and a decrease in income tax expense, partially offset by an increase in SG&A.
• Adjusted EBITDA increased 6.2% to $129.6 million primarily due to organic growth in gross profit and adjusted EBITDA contributed by Cantech, partially offset by a $10.5 million reduction in Insurance Proceeds and an increase in SG&A mainly due to employee related costs to support growth initiatives in the business. Excluding the impact of Insurance Proceeds, adjusted EBITDA for 2017 and 2016 would have been $127.5 million and $109.4 million, respectively.
more details at:  https://www.itape.com/investor%20relations/press%20releases%20and%20reports

Related Posts

The right packaging a key factor in the green transition

Living in the Bioeconomy is the title of the two-day conference Sweden is organizing during the Presidency of EU. Today, Billerud’s President and CEO Christoph Michalski spoke about the role of fibre-based packaging in the needed green transition. The conclusion is that material and design of package matters. The bioeconomy is an important part of the circular economy. Fiber-based packaging is recycled, and the fiber is reused again and again until the quality of the fiber has become so low that it no longer can be used. Then it returns to carbon dioxide and the natural carbon cycle is closed. This contrasts the fossil economy. Billerud replaces fossil-based materials with renewable and recyclable materials. Recycled content contributes to the sustainability of paper-based packaging and to a more sustainable, circular economy. “I would also like to stress the importance of food safety. Protecting food and reducing food waste have a greater impact than the actual climate impact of producing the package”, says Christoph Michalski.

Sonoco Reports Third Quarter 2020 Results

Net sales for the third quarter of 2020 were $1.31 billion, down 3.1 percent from last year's third quarter sales of $1.35 billion. The sales decline was driven by lower volume/mix, a stronger U.S. dollar and lower selling prices. These negative impacts were partially offset by sales added from acquisitions. GAAP net income attributable to Sonoco in the third quarter was $83.4 million, or $0.82 per diluted share, a decrease of $8.6 million, compared with $92.1 million, or $0.91 per diluted share, in 2019. Gross profit was $257.0 million in the third quarter compared to $265.5 million in the same period in 2019. Quarterly gross profit as a percentage of sales was essentially flat year over year at 19.6 percent. Third-quarter selling, general and administrative expenses increased $5.8 million from the prior year to $126.1 million.

Smurfit Kappa and KHS join forces to roll out sustainable TopClip solution

Packaging leader Smurfit Kappa has joined forces with KHS, one of the world’s leading manufacturers of filling and packaging systems for the beverage and liquid food industries, to roll out its sustainable TopClip multipack product for bundling canned beverages. The partnership brings to the market an end to end solution for beverage companies, including a combined unique and innovative packaging solution and high speed, efficient packaging machines. Launched last year at Smurfit Kappa’s global Better Planet Packaging Day, TopClip is a recyclable solution that replaces the need for shrink wrap, therefore providing an option for substituting plastic with sustainably sourced paper-based packaging. TopClip is free from additional glue, meaning it is 100% plastic free, also allowing for a greater ease to remove or pull apart the cans. The patented product addresses the needs of consumers who are looking to retailers and brands to provide more environmentally friendly packaging.
Back To Top
×Close search
Search