Intertape Polymer Group Reports 2017 Third Quarter Results

Intertape Polymer Group Inc. (TSX:ITP) (the “Company”) today released results for its third quarter ended September 30, 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 unaudited interim condensed consolidated financial statements and notes thereto as of and for the three and nine months ended September 30, 2017 (“Financial Statements”).

Third Quarter 2017 Highlights (as compared to third quarter 2016):
• Revenue increased 17.9% to $243.4 million primarily due to additional revenue from the Cantech and Powerband Acquisitions(1), an increase in average selling price, including the impact of product mix, and an increase in sales volume from certain tape products.
• Gross margin decreased to 20.9% from 21.7% primarily due to the dilutive impact of the Cantech Acquisition resulting mainly from non-cash purchase price accounting adjustments and certain manufacturing production inefficiencies occurring mainly in older facilities.
• Selling, general and administrative expenses (“SG&A”) decreased 31.3% to $18.8 million primarily due to a decrease in share-based compensation driven primarily by the decrease in fair value of cash-settled awards.
• Net earnings attributable to the Company shareholders (“IPG Net Earnings”) increased $13.0 million to $19.2 million, primarily due to the decrease in SG&A, a decrease in manufacturing facility closures, restructuring and other related charges mainly related to the South Carolina Flood(2) in 2016, and an increase in gross profit. These favourable impacts were partially offset by an increase in income tax expense.
• Adjusted EBITDA(3)(4) increased 15.9% to $32.4 million primarily due to an increase in gross profit and additional adjusted EBITDA from the Powerband and Cantech Acquisitions, partially offset by an increase in variable compensation resulting from an improvement in expected operating results.
• Cash flows from operating activities increased $4.0 million to $24.1 million primarily due to an increase in gross profit, partially offset by a decrease in cash flows from working capital items.
• Free cash flows(4) decreased by $12.3 million to negative $4.7 million primarily due to an increase in capital expenditures, partially offset by an increase in cash flows from operating activities.

“We are pleased by our third quarter results with Adjusted EBITDA of $32.4 million and revenue growth of 18%. Our acquisitions proved to be important contributors to revenue growth, and their contribution to adjusted EBITDA is anticipated to gradually increase over the next few quarters,” said Greg Yull, President and CEO.

“During the third quarter, we are happy to announce that we started commercial production of water-activated tapes at our new manufacturing facility in Midland, North Carolina. This major project of approximately $46 million will be substantially completed on time and on budget at the end of 2017. We are ramping up to target operating levels in the fourth quarter as planned. Given the success of this project to date and positive outlook in demand for the associated products, we are planning to further increase manufacturing capacity at this site in early 2019.

“On a less pleasing note, the major storms that hit the southern United States in the quarter have disrupted the supply chain of some key raw materials and caused sharp increases in prices. To offset the rise in input costs, we have announced price increases to our customers. At this time, we don’t expect any material impact on 2017 results. However, the fourth quarter could benefit from some customers pre-buying prior to the implementation of the price increases. Our hearts go out to the people and businesses negatively affected by these storms and we wish to thank all of our customers, suppliers and employees for mitigating the potentially negative impacts on the Company.

“We have revised our 2017 adjusted EBITDA outlook to reflect changes in the calculation to exclude the impact of M&A Costs, a common practice for many public companies. As we accelerate our acquisition program and as a result of completing several transactions in 2017, the associated expenses increased significantly and have exceeded $5 million in the first nine months of 2017. Consequently, the revised adjusted EBITDA range of $126 to $130 million has increased from the previous range of $120 to $127 million,” concluded Mr. Yull.
more detail at:  https://www.itape.com/investor%20relations/press%20releases%20and%20reports

Related Posts

Label printers world wide use the flexibility and productivity of new Gallus Labelmaster

At the beginning of December last year, Heidelberg China and Gallus Shanghai jointly organized in the Print Media Center in Shanghai a launch event for the Gallus Labelmaster in China. Around 160 guests from label print shops in China and Region Asia as well as media journalists attended the event. They were able to watch live demos of the Gallus Labelmaster in label production and experienced a new height in leading label printing. “We are extremely optimistic about the future development of packaging and label printing in China”, explains Benny Huang, CEO of Heidelberg China. “In recent years, with an increasing middle class and accelerating urbanization processes, there are more and more specific requirements on packaging and label. It is our duty to continue providing high quality products and services for packaging and label print shops in China.” Asia has become the fastest growing label market in the world. It is expected that by 2019, the Asian label market will have increased by 5.5%, in which the growth rate of self-adhesive labels will reach 6.3%. “Owing to the higher cost of raw materials and labor today, print shops are paying more attention to productivity”, describes Teddy Jiang, General Manager of Gallus Shanghai. “At the same time, influenced by consumers and branding goods manufacturers, packaging and label printing is moving towards short run, multiple orders and product diversification.“ Click Read More below for additional information.

Metsä Board develops new lightweight micro-flute packaging for HejBuddy cosmetics brand

Metsä Board, a leading European producer of premium fresh fibre paperboards, has developed a multipurpose, space-saving promotional packaging for HejBuddy, a Finnish cosmetics brand. Offering flexibility and luxury appeal, the new lightweight packaging is made of micro-flute corrugated board using Metsä Board’s white kraftliner. The new packaging is 50% lighter than a traditional rigid box made of recycled fibres. Traditionally, rigid boxes are imported from Asia as assembled packaging, which requires a lot of container space. The new packaging developed by Metsä Board requires minimal storage capacity as it can be easily folded into a box when necessary. Once the packaging has been used, it can be unfolded and recycled easily.

Huhtamäki Oyj’s Interim Report January 1-September 30, 2024

Charles Héaulmé, President and CEO: Market conditions started to improve during the third quarter. While the situation improved compared to the first half of the year, the pace was moderate with differences between categories and geographies. Demand for pre-packed on-the-shelf food increased, particularly in egg packaging and in a volatile market, demand for flexible packaging continued to improve. Food-on-the-go volumes remained subdued, with consumers still feeling the impact of inflation and elevated market prices. The foodservice market has progressed more positively in North America than in other regions. The on-going war in the Middle East continued to affect global brands in some markets in the Middle East and Asia. Our comparable net sales remained at the previous year’s level in the third quarter and decreased by 1% during the first nine months of the year. During the third quarter, sales volumes increased while pricing pressure continued. Adjusted EBIT increased by 2% in the third quarter and 8% during the first nine months of the year with an improved adjusted EBIT margin reaching 10%. The profitability development was supported by our actions to improve efficiency. Free cash flow remained strong, reaching EUR 160 million at the end of the third quarter. While continuing to focus on future growth, the investments level was contained, enabling further reduction of net debt and resulting in a net debt to adjusted EBITDA ratio of 2.0. During the quarter, North America continued to deliver profitable growth, maintaining a strong adjusted EBIT margin. Flexible Packaging profitability continued to improve. Foodservice E-A-O margins were negatively impacted by low demand. Fiber Packaging profitability was weighed on by a lag in pricing, as raw material costs increased.
Back To Top
×Close search
Search