Intertape Polymer earns $19.24-million (U.S.) in Q3
INTERTAPE POLYMER Group Inc. has released results for its third quarter ended Sept. 30, 2017 (in U.S. dollars unless otherwise indicated).
“We are pleased by our third quarter results with adjusted EBITDA of $32.4-million and revenue growth of 18 per cent. 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 chief executive officer.
“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, N.C. This major project of approximately $46-million will be substantially completed on time and on budget by 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 . ...
“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[-million] to $130-million has increased from the previous range of $120[-million] to $127-million.”
Third quarter 2017 highlights (as compared with third quarter 2016):
• Revenue increased 17.9 per cent to $243.4-million, primarily due to additional revenue from the Cantech and Powerband Acquisitions, among other things.
• Gross margin decreased to 20.9 per cent from 21.7 per cent.
• Net earnings attributable to the company shareholders (IPG net earnings) increased $13.0-million to $19.2-million.
• Adjusted EBITDA increased 15.9 per cent to $32.4-million.
• Cash flows from operating activities increased $4.0-million to $24.1-million.
• Free cash flows decreased by $12.3-million to negative $4.7-million, primarily due to an increase in capital expenditures.
(See ITP Table 1 on page 29)
The company’s expectations for the fiscal year 2017 include:
• Fiscal year 2017 gross margin is now expected to be between 22 per cent to 22.5 per cent, lower than the
previously stated range of 22.5 per cent to 23 per cent.
• Fiscal year 2017 adjusted EBITDA has been revised to be between $126-million to $130-million from the previously stated range of $120-million to $127-million.
• Fiscal year 2017 manufacturing cost reductions are now expected to exceed the previously stated range of $10-million to $12-million.
• Due primarily to the progress on the Capstone greenfield project, fiscal year 2017 capital expenditures are now expected to be between $85-million and $90-million, an increase from the previously stated range of $75-million to $85-million.
On Nov. 10, 2017, the board of directors declared a quarterly cash dividend of 14 cents per common share, payable on Dec. 29, 2017, to shareholders of record at the close of business on Dec. 15, 2017.
We seek Safe Harbor.
Karen Baxter condensed this news release (email@example.com).
Robert M Beil, George J Bunze, Frank Di Tomasso, Robert John Foster, James Pantelidis, Jorge Nelson Quintas, Mary Pat Salomone, Gregory A C Yull, Melbourne F Yull
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