Intertape Polymer earns $12.05-million (U.S.) in Q3
INTERTAPE POLYMER Group Inc. has released results for its third quarter ended Sept. 30, 2018. All amounts in this press release are denominated in U.S. dollars unless otherwise indicated and all percentages are calculated on unrounded numbers.
“Another period of high performance across our organization, including contributions from recent acquisitions and our disciplined pricing strategy to pass through raw material costs, helped us to achieve year-over-year quarterly topline growth of nearly 15 per cent. The strength of our product bundle and the value customers derive from our bundle strategy are both key elements of our year-over-year quarterly organic growth rate of nearly 6 per cent. As we approach year-end, we remain on track to achieve our 2018 financial targets, including our adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) target which we have narrowed with this morning’s announcement,” said Greg Yull, president and chief executive officer.
Third quarter 2018 highlights (as compared with third quarter 2017):
• Revenue increased 14.6 per cent to $279.1-million primarily due to the Polyair and Airtrax acquisitions and an increase in average selling price, including the impact of product mix.
• Gross margin increased to 21.1 per cent from 20.9 per cent primarily due to an increase in spread between selling prices and combined raw material and freight costs, partially offset by an increase in plant-related operating costs.
• Selling, general and administrative expenses (SG&A) increased $14.7-million to $33.4-million primarily due to an increase in share-based compensation of $10.1-million driven primarily by an increase in the fair value of cash-settled awards in the third quarter of 2018 as compared with a decrease in fair value in the third quarter of 2017 as well as $3.1-million of additional SG&A from the Polyair and Airtrax acquisitions.
• Net earnings attributable to the company shareholders decreased $7.2-million to $12.0-million, primarily due to an increase in SG&A and an increase in manufacturing facility closure costs associated with a one-time charge for
non-cash impairments of property, plant and equipment, and inventory related to the closure of the Johnson City, Tenn., manufacturing facility, partially offset by an increase in gross profit and a decrease in income tax expense.
• Adjusted net earnings increased to $20.3-million (34 cents in basic and diluted adjusted earnings per share) from $15.3-million (26 cents in basic and diluted adjusted earnings per share) primarily due to organic growth in gross profit and additional adjusted net earnings contributed by Polyair.
• Adjusted EBITDA increased 15.9 per cent to $37.6-million primarily due to organic growth in gross profit and adjusted EBITDA contributed by Polyair.
The company’s expectations for the fiscal year are as follows:
• Revenue growth in 2018 is expected to be between 16 per cent and 18 per cent, excluding any significant fluctuations in selling prices caused by unforeseen variations in raw material prices.
• Adjusted EBITDA for 2018 is expected to be between $140-million and $143mil lion whic h has been narrowed from the company’s previous expectation of between $140-million and $150million.
• Total capital expenditures for 2018 are expected to be between $80-million and $90-million.
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Erika Flores condensed this news release (firstname.lastname@example.org).
Robert M Beil, Frank Di Tomaso, Robert John Foster, James Pantelidis, Jorge Nelson Quintas, Mary Pat Salomone, Gregory A C Yull, Melbourne F Yull
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