Intertape Polymer Group Inc. (TSX:ITP) (the "Company" or "IPG")
today released results for its fourth quarter and year ended
December 31, 2021. 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 ("MD&A") and audited consolidated financial
statements and notes thereto as of December 31, 2021 and 2020
and for the three-year period ended December 31, 2021
("Financial Statements").
“Strong demand and the effectiveness of our
pricing strategy drove revenue growth of more than 20% and 26% in
the quarterly and annual periods, respectively, with record sales
of more than $1.5 billion in 2021,” said Greg Yull, President and
CEO of IPG. “This increase in revenue consisted of organic growth
from volume/mix of 12% in 2021 and price increases to offset higher
input costs. The global supply chain challenges continued in the
fourth quarter and into 2022 which have impacted our production.
Our procurement and sales teams are effectively managing a
difficult situation to ensure our key customers have sufficient
supply of our essential packaging and protective solutions. The
business is stronger today than when we entered the pandemic. Our
competitive position and the investments we are making in our high
growth markets put us in a great position for continued growth in
the 2022 and beyond.”
Fourth Quarter 2021 Highlights (as
compared to fourth quarter 2020):
- Revenue increased 20.2% to $413.7
million primarily due to the impact of higher selling prices and an
increase in volume/mix primarily driven by certain tapes and
dispensing machines.
- Gross margin decreased to 19.7%
from 25.7% primarily due to the unfavourable mathematical impact of
Dollar Spread Maintenance(2) and an increase in plant operating
costs including costs associated with supply chain disruptions and
labor shortages, partially offset by a favourable product mix.
- Selling, general and administrative
expenses ("SG&A") decreased $9.9 million to $43.5 million
primarily due to a decrease in the fair value of cash-settled
share-based compensation awards in the fourth quarter of 2021
compared to a significant increase in the fourth quarter of 2020,
partially offset by an increase in costs resulting from the growth
of the business in 2021 and the non-recurrence of cost saving
measures implemented in response to COVID-19 related uncertainty in
2020.
- Net earnings attributable to the
Company's shareholders ("IPG Net Earnings") decreased $8.0 million
to $9.1 million primarily due to an increase in finance costs
mainly due to an increase in the NCI Put Options Revaluation(3) and
a decrease in gross profit, partially offset by a decrease in
SG&A.
- Adjusted net earnings(4) decreased
$8.6 million to $26.2 million and adjusted EBITDA decreased $9.4
million to $58.2 million primarily due to an increase in SG&A
and a decrease in gross profit.
- Cash flows from operating
activities increased $35.8 million to $124.4 million primarily due
to an increase in cash flows from working capital items and a
decrease in income tax paid, partially offset by a decrease in
gross profit.
- Free cash flows increased $26.8
million to $90.6 million primarily due to an increase in cash flows
from operating activities, partially offset by an increase in
capital expenditures.
Fiscal Year 2021 Highlights (as compared
to fiscal year 2020):
- Revenue increased 26.3% to $1,531.5
million primarily due to the impact of higher selling prices in all
product categories driven by significant increases in the cost of
raw materials and freight as well as an increase in
volume/mix.
- Gross margin decreased to 22.2%
from 23.8% primarily due to the unfavourable mathematical impact of
Dollar Spread Maintenance.
- IPG Net Earnings decreased $4.9
million to $67.8 million primarily due to (i) an increase in
finance costs mainly due to the 2018 Senior Unsecured Notes
Redemption Charges(5), the non-recurrence of the Nortech Contingent
Consideration Gain(6) and an increase in the NCI Put Options
Revaluation, and (ii) an increase in SG&A, partially offset by
an increase in gross profit.
- Adjusted net earnings increased
$26.3 million to $118.5 million primarily due to an increase in
gross profit, partially offset by increases in SG&A and income
tax expense.
- Adjusted EBITDA increased 17.1% to
$247.2 million primarily due to an increase in gross profit,
partially offset by an increase in SG&A.
- Cash flows from operating
activities decreased in the year ended December 31, 2021 by
$19.2 million to $160.4 million primarily due to an increase in
cash used for working capital items, partially offset by an
increase in gross profit.
- Free cash flows decreased by $54.6
million to $79.1 million primarily due to an increase in capital
expenditures and working capital needs.
|
(1) |
Non-GAAP financial measure. A non-GAAP financial measure is not a
standardized financial measure under GAAP and therefore may not be
comparable to similar financial measures disclosed by other
issuers. For definitions and reconciliations of non-GAAP financial
measures to their most directly comparable GAAP financial measures,
see “Non-GAAP and Other Specified Financial Measures” below. |
| (2) |
The "Dollar Spread Maintenance" refers to the Company's objective
of maintaining the dollar spread between selling prices and the
cost of raw materials and freight in an inflationary environment by
attempting to increase selling prices to offset those higher costs.
When this objective is successfully met, the result is a reduction
in margin percentages due to the mathematical effect of having a
constant dollar profit per unit on a higher revenue per unit. The
opposite would be expected to occur in a deflationary input cost
environment. |
| (3) |
The "NCI Put Options Revaluation" refers to the valuation
adjustment made to non-controlling interest put options. |
| (4) |
As of December 31, 2021, the Company modified its definition of
adjusted net earnings to also exclude the NCI Put Options
Revaluation. The NCI Put Options Revaluation has been excluded
because it is not considered by management to be representative of
the Company's underlying core operating performance as it is a
non-operating, non-cash adjustment. Prior period amounts presented
have been conformed to the current definition of adjusted net
earnings. |
| (5) |
The "2018 Senior Unsecured Notes Redemption Charges" refers to debt
issuance costs of $3.6 million that were written off, as well as an
early redemption premium and other costs of $14.4 million recorded
in the second quarter of 2021 in connection with the redemption of
the $250 million 7.00% senior unsecured notes that were scheduled
to mature on October 15, 2026. |
| (6) |
The "Nortech Contingent Consideration Gain" refers to the fair
value adjustment recorded in the second quarter of 2020 related to
the potential earn-out consideration obligation associated with the
Nortech Acquisition. The "Nortech Acquisition" refers to the
acquisition by the Company of substantially all of the operating
assets of Nortech Packaging LLC and Custom Assembly Solutions, Inc.
(together "Nortech") on February 11, 2020. |
Other Highlights:
Syfan USA Acquisition
On January 13, 2022, the Company acquired
substantially all of the operating assets of Syfan Manufacturing,
Inc. ("Syfan USA") for $18.0 million, subject to post-closing
adjustments. Syfan USA manufactures polyolefin shrink film products
at a facility in Everetts, North Carolina, serving customers in a
variety of end use applications. The acquisition of Syfan USA is
expected to expand the Company’s existing shrink film production
capacity in North America, allowing the Company to better service
the growing demand of its customer base.
Acquisition by Clearlake
On March 7, 2022, the Company entered into a
definitive agreement to be acquired by an affiliate of Clearlake
Capital Group, L.P. (together with certain of its affiliates,
“Clearlake”). Under the terms of the agreement, Clearlake agreed to
acquire the outstanding shares of the Company for CDN$40.50 per
share in an all-cash transaction valued at approximately US$2.6
billion, including net debt. Upon completion of the transaction,
the Company will become a privately held company. The transaction,
which will be effected pursuant to a court-approved plan of
arrangement, is expected to close in the third quarter of 2022. The
transaction is not subject to a financing condition but is subject
to customary closing conditions, including receipt of shareholder,
regulatory and court approvals.
Dividend Declaration
On March 10, 2022, the Board of Directors
declared a dividend of $0.17 per common share payable on
March 31, 2022 to shareholders of record at the close of
business on March 21, 2022. These dividends will be designated
by the Company as "eligible dividends" as defined in Subsection
89(1) of the Income Tax Act (Canada).
COVID-19
In response to the coronavirus ("COVID-19")
pandemic that began in December 2019, the Company implemented
measures to prioritize the health and safety of its employees while
protecting its assets, customers, suppliers, shareholders and other
stakeholders. The Company instituted paid leave for all U.S.
employees for certain COVID-19-related reasons, implemented remote
work practices where possible, and added significant safety
protocols for those needing to be on site at manufacturing
facilities. The Company's COVID-19 safety practices can be grouped
into four main areas:
- PROACTIVE COMMUNICATION: Portal to
facilitate communication, including weekly COVID-19 updates for
operations managers and town halls for all staff conducted by the
Company's senior management.
- PREVENTION: Cleaning and
sanitization processes including disinfection using UVC light and
ozone to sanitize areas and objects; social distancing, including
camera monitoring to assess social distancing performance and
wearables to alert workers when the adequate distance is not
maintained and help with contact tracking; mandatory mask
requirement; remote working; physical barriers; touchless entry and
exit, and temperature monitoring; and thank you bonuses for
employees electing to receive the vaccination.
- RESPONSE PLAN: Incident response
and ‘ready-to-go’-resources including cleaning kits.
- BEST PRACTICE SHARING AND
TECHNOLOGY: Knowledge transfer across locations managed by a
dedicated corporate team, including a COVID-19 Best Practice
Matrix, as well as the evaluation of technologies to manage risk
and automate processes.
While the Company has delivered positive
financial results to date, the pandemic could yet materially
impact, and in certain ways has negatively impacted (see the
discussion elsewhere in this document regarding supply chain
challenges) the Company’s ability to manufacture, source (including
the delivery of raw materials to its facilities) or distribute its
products both domestically and internationally and reduce demand
for its products, any of which could have a significant negative
impact on the Company’s financial results in 2022 and beyond. Given
the dynamic nature of the pandemic (including its duration and the
severity of its impact on the global economy and the applicable
governmental responses), the extent to which the COVID-19 pandemic
impacts the Company’s future results will depend on unknown future
developments and any further impact on the global economy and the
markets in which the Company operates and sells its products, all
of which remain highly uncertain and cannot be accurately predicted
at this 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,
shrink and stretch films, protective packaging, woven and non-woven
products and packaging machinery for industrial and retail use.
Headquartered in Montreal, Quebec and Sarasota, Florida, the
Company employs approximately 4,100 employees with operations in 34
locations, including 22 manufacturing facilities in North America,
five in Asia and two in Europe.
For information about the Company,
visit www.itape.com.
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"), which 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 Company’s positioning for continued growth
in 2022 and beyond; the expansion of the Company's existing shrink
film production capacity in North America; the potential future
impacts of COVID-19 on the Company's business; the tailwinds that
support the Company's growth; the strong demand that the Company
sees in its core end markets; the headwinds facing the Company
2022, including supply chain constraints and raw material prices;
the Company's expected organic demand; the expected performance and
benefits of the Syfan USA transaction; and the acquisition of the
Company by Clearlake, including expected consideration, timing and
closing conditions, may constitute forward-looking statements.
These forward-looking statements are based on current beliefs,
assumptions, expectations, estimates, forecasts and projections
made by the Company's management. Words such as "may," "will,"
"should," "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: business conditions and growth or
declines in the Company's industry, the Company's customers'
industries and the general economy, including as a result of the
impact of COVID-19; the anticipated benefits from the Company's
greenfield developments, and other restructuring efforts; the
anticipated benefits from the Company’s manufacturing facility
capacity expansions; the impact of fluctuations in raw material
prices and freight costs including the availability and pricing due
to supply chain disruptions; selling prices including maintaining
dollar spread due to higher raw material and freight costs; the
impacts of new accounting standards, including the impact of new
accounting guidance for leases; the anticipated benefits from the
Company's acquisitions and partnerships; the anticipated benefits
from the Company's capital expenditures; the quality and market
reception of the Company's products; the Company's anticipated
business strategies; risks and costs inherent in litigation; legal
and regulatory developments, including as related to COVID-19; the
Company's ability to maintain and improve quality and customer
service; anticipated trends in the Company's business; the expected
strategic and financial benefits from the Company's ongoing capital
investment and mergers and acquisitions programs; anticipated cash
flows from the Company's operations; availability of funds under
the Company's 2021 Credit Facility; the Company's flexibility to
allocate capital as a result of the Senior Unsecured Notes
offering; 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 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", "Item 5
Operating and Financial Review and Prospects (Management's
Discussion & Analysis)" and statements located elsewhere in the
Company's annual report on Form 20-F for the year ended December
31, 2020 and the other statements and 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.
Note to readers: Complete
consolidated financial statements and Management's Discussion &
Analysis are available on the Company's website
at www.itape.com in the Investor Relations section and
under the Company's profile on SEDAR at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:Ross
MarshallInvestor Relations(T) (416) 526-1563(E)
ross.marshall@loderockadvisors.com
Intertape Polymer Group
Inc.Consolidated EarningsPeriods ended
December 31, (In thousands of US dollars, except per share
amounts)
| |
|
|
|
| |
Three months endedDecember 31 (unaudited) |
|
Years endedDecember 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 (1) |
|
2020 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
| Revenue |
413,665 |
|
|
344,079 |
|
|
1,531,469 |
|
1,213,028 |
|
| Cost of sales |
332,378 |
|
|
255,599 |
|
|
1,191,495 |
|
924,244 |
|
| Gross profit |
81,287 |
|
|
88,480 |
|
|
339,974 |
|
288,784 |
|
| Selling, general and
administrative expenses |
43,486 |
|
|
53,424 |
|
|
177,139 |
|
157,486 |
|
| Research expenses |
3,027 |
|
|
2,763 |
|
|
11,882 |
|
11,196 |
|
| |
46,513 |
|
|
56,187 |
|
|
189,021 |
|
168,682 |
|
| Operating profit before
manufacturing facility closures, restructuring and other related
charges |
34,774 |
|
|
32,293 |
|
|
150,953 |
|
120,102 |
|
| Manufacturing facility
closures, restructuring and other related charges |
— |
|
|
— |
|
|
— |
|
4,328 |
|
| Operating profit |
34,774 |
|
|
32,293 |
|
|
150,953 |
|
115,774 |
|
| Finance costs |
|
|
|
|
|
|
|
|
Interest |
6,081 |
|
|
6,757 |
|
|
27,676 |
|
29,436 |
|
|
Other expense (income), net |
12,231 |
|
|
3,188 |
|
|
29,208 |
|
(6,238 |
) |
| |
18,312 |
|
|
9,945 |
|
|
56,884 |
|
23,198 |
|
| Earnings before income tax
expense |
16,462 |
|
|
22,348 |
|
|
94,069 |
|
92,576 |
|
| Income tax expense
(benefit) |
|
|
|
|
|
|
|
|
Current |
8,012 |
|
|
9,871 |
|
|
22,113 |
|
25,595 |
|
|
Deferred |
(1,288 |
) |
|
(4,910 |
) |
|
1,951 |
|
(6,474 |
) |
| |
6,724 |
|
|
4,961 |
|
|
24,064 |
|
19,121 |
|
| Net earnings |
9,738 |
|
|
17,387 |
|
|
70,005 |
|
73,455 |
|
| |
|
|
|
|
|
|
|
| Net earnings attributable
to: |
|
|
|
|
|
|
|
|
Company shareholders |
9,109 |
|
|
17,089 |
|
|
67,813 |
|
72,670 |
|
|
Non-controlling interests |
629 |
|
|
298 |
|
|
2,192 |
|
785 |
|
| |
9,738 |
|
|
17,387 |
|
|
70,005 |
|
73,455 |
|
| |
|
|
|
|
|
|
|
| Earnings per share
attributable to Company shareholders |
|
|
|
|
|
|
|
|
Basic |
0.15 |
|
|
0.29 |
|
|
1.15 |
|
1.23 |
|
|
Diluted |
0.15 |
|
|
0.28 |
|
|
1.12 |
|
1.22 |
|
|
(1) |
Certain prior period amounts, including net earnings and the
Company's non-GAAP financial measures, presented in the section
below entitled "Non-GAAP and Other Specified Financial Measures",
have been adjusted to reflect the allocation of purchase proceeds
related to the acquisition by the Company of Nuevopak Global
Limited on July, 30, 2021 as measured and reported in the fourth
quarter of 2021. These results reflect all adjustments which are,
in the opinion of management, necessary to present a fair statement
of the results for these interim periods. These adjustments are of
a normal recurring nature. |
|
|
|
Intertape Polymer Group
Inc.Consolidated Cash FlowsPeriods ended
December 31, (In thousands of US dollars)
| |
|
|
|
| |
Three months endedDecember 31 (unaudited) |
|
Years endedDecember 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
| OPERATING ACTIVITIES |
|
|
|
|
|
|
|
| Net earnings |
9,738 |
|
|
17,387 |
|
|
70,005 |
|
|
73,455 |
|
| Adjustments to net earnings |
|
|
|
|
|
|
|
|
Depreciation and amortization |
17,123 |
|
|
16,246 |
|
|
65,547 |
|
|
63,840 |
|
|
Income tax expense |
6,724 |
|
|
4,961 |
|
|
24,064 |
|
|
19,121 |
|
|
Interest expense |
6,081 |
|
|
6,757 |
|
|
27,676 |
|
|
29,436 |
|
|
Early redemption premium and other costs |
— |
|
|
— |
|
|
14,412 |
|
|
— |
|
|
Non-cash charges in connection with manufacturing facility
closures, restructuring and other related charges |
— |
|
|
10 |
|
|
— |
|
|
596 |
|
|
Impairment of inventories |
3,371 |
|
|
85 |
|
|
5,240 |
|
|
1,179 |
|
|
Share-based compensation expense |
720 |
|
|
18,404 |
|
|
21,655 |
|
|
22,879 |
|
|
Pension and other post-retirement expense related to defined
benefit plans |
416 |
|
|
560 |
|
|
1,944 |
|
|
2,057 |
|
|
Contingent consideration liability fair value adjustment |
— |
|
|
— |
|
|
— |
|
|
(11,005 |
) |
|
Valuation adjustment to non-controlling interest put options |
12,007 |
|
|
2,470 |
|
|
12,007 |
|
|
2,470 |
|
|
(Gain) loss on foreign exchange |
(312 |
) |
|
200 |
|
|
(48 |
) |
|
38 |
|
|
Other adjustments for non-cash items |
129 |
|
|
27 |
|
|
573 |
|
|
868 |
|
|
Income taxes paid, net |
(646 |
) |
|
(14,092 |
) |
|
(25,846 |
) |
|
(24,610 |
) |
|
(Contributions) adjustments to defined benefit plans |
(315 |
) |
|
130 |
|
|
(1,178 |
) |
|
(1,129 |
) |
| Cash flows from operating
activities before changes in working capital items |
55,036 |
|
|
53,145 |
|
|
216,051 |
|
|
179,195 |
|
|
Changes in working capital items |
|
|
|
|
|
|
|
|
Trade receivables |
(3,040 |
) |
|
(2,543 |
) |
|
(40,726 |
) |
|
(25,947 |
) |
|
Inventories |
(15,742 |
) |
|
(1,654 |
) |
|
(86,759 |
) |
|
(4,742 |
) |
|
Other current assets |
— |
|
|
406 |
|
|
(3,471 |
) |
|
383 |
|
|
Accounts payable and accrued liabilities |
88,301 |
|
|
39,438 |
|
|
91,440 |
|
|
29,014 |
|
|
Share-based compensation settlements |
— |
|
|
— |
|
|
(13,205 |
) |
|
— |
|
|
Provisions |
(178 |
) |
|
(190 |
) |
|
(2,923 |
) |
|
1,682 |
|
| |
69,341 |
|
|
35,457 |
|
|
(55,644 |
) |
|
390 |
|
| Cash flows from operating
activities |
124,377 |
|
|
88,602 |
|
|
160,407 |
|
|
179,585 |
|
| INVESTING ACTIVITIES |
|
|
|
|
|
|
|
| Acquisition of subsidiaries, net
of cash acquired |
— |
|
|
— |
|
|
(34,660 |
) |
|
(35,704 |
) |
| Purchases of property, plant and
equipment |
(33,760 |
) |
|
(24,790 |
) |
|
(81,268 |
) |
|
(45,828 |
) |
| Purchase of intangible
assets |
(99 |
) |
|
(815 |
) |
|
(5,627 |
) |
|
(1,854 |
) |
| Other investing activities |
58 |
|
|
118 |
|
|
192 |
|
|
579 |
|
| Cash flows from investing
activities |
(33,801 |
) |
|
(25,487 |
) |
|
(121,363 |
) |
|
(82,807 |
) |
| FINANCING ACTIVITIES |
|
|
|
|
|
|
|
| Proceeds from borrowings |
38,063 |
|
|
64,074 |
|
|
797,429 |
|
|
302,031 |
|
| Repayment of borrowings and lease
liabilities |
(88,668 |
) |
|
(104,441 |
) |
|
(739,127 |
) |
|
(325,881 |
) |
| Payments of debt issue costs |
— |
|
|
— |
|
|
(8,279 |
) |
|
— |
|
| Payments of early redemption
premium and other costs |
— |
|
|
— |
|
|
(14,444 |
) |
|
— |
|
| Interest paid |
(10,886 |
) |
|
(10,898 |
) |
|
(27,907 |
) |
|
(28,764 |
) |
| Proceeds from exercise of stock
options |
— |
|
|
271 |
|
|
2,664 |
|
|
271 |
|
| Dividends paid |
(10,151 |
) |
|
(9,354 |
) |
|
(38,641 |
) |
|
(35,386 |
) |
| Dividends paid to non-controlling
interest in GPCP Inc. |
— |
|
|
(100 |
) |
|
— |
|
|
(100 |
) |
| Other financing activities |
33 |
|
|
— |
|
|
1,223 |
|
|
— |
|
| Cash flows from financing
activities |
(71,609 |
) |
|
(60,448 |
) |
|
(27,082 |
) |
|
(87,829 |
) |
| Net increase in cash |
18,967 |
|
|
2,667 |
|
|
11,962 |
|
|
8,949 |
|
| Effect of foreign exchange
differences on cash |
(186 |
) |
|
679 |
|
|
(2,137 |
) |
|
471 |
|
| Cash, beginning of year |
7,511 |
|
|
13,121 |
|
|
16,467 |
|
|
7,047 |
|
| Cash, end of year |
26,292 |
|
|
16,467 |
|
|
26,292 |
|
|
16,467 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Intertape Polymer Group
Inc.Consolidated Balance SheetsAs of(In
thousands of US dollars)
| |
|
|
|
| |
December 31, 2021 |
|
December 31, 2020 |
| |
$ |
|
$ |
| ASSETS |
|
|
|
| Current assets |
|
|
|
|
Cash |
26,292 |
|
|
16,467 |
|
|
Trade receivables |
203,984 |
|
|
162,235 |
|
|
Inventories |
280,323 |
|
|
194,516 |
|
|
Other current assets |
32,110 |
|
|
21,048 |
|
| |
542,709 |
|
|
394,266 |
|
| Property, plant and
equipment |
459,356 |
|
|
415,214 |
|
| Goodwill |
151,834 |
|
|
132,894 |
|
| Intangible assets |
138,725 |
|
|
124,274 |
|
| Deferred tax assets |
24,579 |
|
|
29,677 |
|
| Other assets |
16,549 |
|
|
13,310 |
|
| Total assets |
1,333,752 |
|
|
1,109,635 |
|
| LIABILITIES |
|
|
|
| Current liabilities |
|
|
|
|
Accounts payable and accrued liabilities |
280,353 |
|
|
180,446 |
|
|
Share-based compensation liabilities, current |
19,089 |
|
|
17,769 |
|
|
Non-controlling interest put options, current |
27,523 |
|
|
— |
|
|
Provisions, current |
4,504 |
|
|
4,222 |
|
|
Borrowings and lease liabilities, current |
18,119 |
|
|
26,219 |
|
| |
349,588 |
|
|
228,656 |
|
| Borrowings and lease
liabilities, non-current |
537,142 |
|
|
463,745 |
|
| Pension, post-retirement and
other long-term employee benefits |
15,807 |
|
|
19,826 |
|
| Share-based compensation
liabilities, non-current |
19,850 |
|
|
13,664 |
|
| Non-controlling interest put
options, non-current |
— |
|
|
15,758 |
|
| Deferred tax liabilities |
38,925 |
|
|
34,108 |
|
| Provisions, non-current |
7,645 |
|
|
2,430 |
|
| Other liabilities |
12,547 |
|
|
14,766 |
|
| |
981,504 |
|
|
792,953 |
|
| EQUITY |
|
|
|
| Capital stock |
358,953 |
|
|
354,880 |
|
| Contributed surplus |
23,070 |
|
|
22,776 |
|
| Deficit |
(18,113 |
) |
|
(51,114 |
) |
| Accumulated other
comprehensive loss |
(25,749 |
) |
|
(21,886 |
) |
| Total equity attributable to
Company shareholders |
338,161 |
|
|
304,656 |
|
| Non-controlling interests |
14,087 |
|
|
12,026 |
|
| Total equity |
352,248 |
|
|
316,682 |
|
| Total liabilities and
equity |
1,333,752 |
|
|
1,109,635 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
Non-GAAP and Other Specified Financial
Measures
This press release contains certain non-GAAP and
other specified financial measures as defined under applicable
securities legislation, including adjusted net earnings (loss),
adjusted earnings (loss) per share, EBITDA, adjusted EBITDA and
free cash flows. In determining these measures, the Company
excludes certain items which are otherwise included in determining
the comparable GAAP financial measures. The Company believes such
non-GAAP and other specified financial measures are key performance
indicators that improve the period-to-period comparability of the
Company’s results and provide investors with more insight into, and
an additional tool to understand and assess, the performance of the
Company's ongoing core business operations. Where required by
applicable securities legislation, the Company has provided
definitions of those measures and reconciliations of those measures
to the most directly comparable GAAP financial measures. Investors
and other readers are encouraged to review the related GAAP
financial measures and the reconciliation of non-GAAP and other
specified financial measures to their most directly comparable GAAP
financial measures set forth below and should consider non-GAAP and
other specified financial measures as a supplement to, and not as a
substitute for or as a superior measure to, measures of financial
performance prepared in accordance with GAAP.
Adjusted Net Earnings (Loss) and
Adjusted Earnings (Loss) Per Share
A reconciliation of the Company’s adjusted net
earnings (loss), a non-GAAP financial measure, to IPG Net Earnings,
the most directly comparable GAAP financial measure, is set out in
the adjusted net earnings (loss) reconciliation table below.
Adjusted net earnings (loss) should not be construed as IPG Net
Earnings as determined by GAAP. The Company defines adjusted net
earnings (loss) as IPG Net Earnings before (i) manufacturing
facility closures, restructuring and other related charges
(recoveries); (ii) advisory fees and other costs associated with
mergers and acquisitions activity, including due diligence,
integration and certain non-cash purchase price accounting
adjustments ("M&A Costs"); (iii) share-based compensation
expense (benefit); (iv) impairment of goodwill; (v) impairment
(reversal of impairment) of long-lived assets and other assets;
(vi) write-down on assets classified as held-for-sale; (vii) (gain)
loss on disposal of property, plant, and equipment; (viii) the
valuation adjustment made to non-controlling interest put options
("NCI Put Option Revaluation"); (ix) other discrete items as shown
in the table below; and (x) the income tax expense (benefit)
effected by these items. The term “adjusted net earnings (loss)”
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 (loss) is not a measurement
of financial performance under GAAP and should not be considered as
an alternative to IPG 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 allows investors to
make a more meaningful comparison of the Company’s performance
between periods presented by excluding certain non-operating
expenses, non-cash expenses and, where indicated, non-recurring
expenses. In addition, adjusted net earnings (loss) 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 meaningful than GAAP financial measures for the
reasons stated in the previous sentence.
Adjusted earnings (loss) per share is also
presented in the following table and is a non-GAAP financial
measure. Adjusted earnings (loss) per share should not be construed
as IPG Net Earnings per share as determined by GAAP. The Company
defines adjusted earnings (loss) per share as adjusted net earnings
(loss) divided by the weighted average number of common shares
outstanding, both basic and diluted. The term “adjusted earnings
(loss) 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 (loss) per
share is not a measurement of financial performance under GAAP and
should not be considered as an alternative to IPG Net 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 allows investors to make a more meaningful
comparison of the Company’s performance between periods presented
by excluding certain non-operating expenses, non-cash expenses and,
where indicated, non-recurring expenses. In addition, adjusted
earnings (loss) 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 meaningful than
GAAP financial measures for the reasons stated in the previous
sentence.
Adjusted Net Earnings Reconciliation to
IPG Net Earnings(In millions of US dollars, except per
share amounts and share numbers) (Unaudited)
| |
|
|
|
| |
Three months endedDecember 31, |
|
Years ended December 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
| IPG Net Earnings |
9.1 |
|
|
17.1 |
|
|
67.8 |
|
|
72.7 |
|
| Manufacturing facility
closures, restructuring and other related charges |
— |
|
|
— |
|
|
— |
|
|
4.3 |
|
| M&A Costs |
5.0 |
|
|
0.4 |
|
|
8.1 |
|
|
3.5 |
|
| Share-based compensation
expense |
0.7 |
|
|
18.4 |
|
|
21.7 |
|
|
22.9 |
|
| Impairment of long-lived
assets and other assets |
0.4 |
|
|
0.3 |
|
|
0.8 |
|
|
0.6 |
|
| Loss on disposal of property,
plant and equipment |
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.3 |
|
| NCI Put Option
Revaluation |
12.0 |
|
|
2.5 |
|
|
12.0 |
|
|
2.5 |
|
| Other item: Nortech Contingent
Consideration Gain |
— |
|
|
— |
|
|
— |
|
|
(11.0 |
) |
| Other item: Nortech
incremental tax costs incurred(1) |
— |
|
|
— |
|
|
0.8 |
|
|
— |
|
| Other item: 2018 Senior
Unsecured Notes Redemption Charges |
— |
|
|
— |
|
|
18.1 |
|
|
— |
|
| Income tax benefit, net |
(1.3 |
) |
|
(3.9 |
) |
|
(10.8 |
) |
|
(3.4 |
) |
| Adjusted net earnings(2) |
26.2 |
|
|
34.8 |
|
|
118.5 |
|
|
92.2 |
|
| |
|
|
|
|
|
|
|
| IPG Net Earnings per
share |
|
|
|
|
|
|
|
| Basic |
0.15 |
|
|
0.29 |
|
|
1.15 |
|
|
1.23 |
|
| Diluted |
0.15 |
|
|
0.28 |
|
|
1.12 |
|
|
1.22 |
|
| |
|
|
|
|
|
|
|
| Adjusted earnings per
share(2) |
|
|
|
|
|
|
|
| Basic |
0.44 |
|
|
0.59 |
|
|
2.00 |
|
|
1.56 |
|
| Diluted |
0.43 |
|
|
0.58 |
|
|
1.96 |
|
|
1.55 |
|
| |
|
|
|
|
|
|
|
| Weighted average number of
common shares outstanding |
|
|
|
|
|
|
|
| Basic |
59,284,947 |
|
|
59,012,869 |
|
|
59,127,025 |
|
|
59,010,485 |
|
| Diluted |
60,568,005 |
|
|
60,083,664 |
|
|
60,516,106 |
|
|
59,630,873 |
|
|
(1) |
Refers to charges incurred related to an amount payable to the
former owners of Nortech for tax-related costs associated with the
Nortech Acquisition that was subsequently paid in July 2021. |
| (2) |
Prior period amounts presented
have been conformed to the current definition of adjusted net
earnings which excludes the NCI Put Options Revaluation. |
| |
|
EBITDA and Adjusted EBITDA
A reconciliation of the Company’s EBITDA and
adjusted EBITDA, both of which are non-GAAP financial measures, to
net earnings (loss), the most directly comparable GAAP financial
measure, is set out in the table below. EBITDA and adjusted EBITDA
should not be construed as earnings (loss) before income taxes, net
earnings (loss) or cash flows from operating activities as
determined by GAAP. The Company defines EBITDA as net earnings
(loss) before (i) interest and other finance costs (income);
(ii) income tax expense (benefit); (iii) amortization of
intangible assets; and (iv) depreciation of property, plant
and equipment. The Company defines adjusted EBITDA as EBITDA before
(i) manufacturing facility closures, restructuring and other
related charges (recoveries); (ii) advisory fees and other costs
associated with mergers and acquisitions activity, including due
diligence, integration and certain non-cash purchase price
accounting adjustments ("M&A Costs"); (iii) share-based
compensation expense (benefit); (iv) impairment of goodwill;
(v) impairment (reversal of impairment) of long-lived assets
and other assets; (vi) write-down on assets classified as
held-for-sale; (vii) (gain) loss on disposal of property, plant and
equipment; and (viii) 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 (loss) 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 they allow investors to
make a more meaningful comparison between periods of the Company’s
performance, underlying business trends and the Company’s ongoing
operations. The Company further believes these measures may be
useful in comparing its operating performance with the performance
of other companies that may have different financing and capital
structures, and tax rates. Adjusted EBITDA excludes costs that are
not considered by management to be representative of the Company’s
underlying core operating performance, including certain
non-operating expenses, non-cash expenses and, where indicated,
non-recurring expenses. In addition, EBITDA and adjusted EBITDA are
used by management to set targets and are metrics that, among
others, can be used by the Company’s Human Resources and
Compensation Committee to establish performance bonus metrics and
payout, and by the Company’s lenders and investors to evaluate the
Company’s performance and ability to service its debt, finance
capital expenditures and acquisitions, and provide for the payment
of dividends to shareholders.
EBITDA and Adjusted EBITDA
Reconciliation to Net Earnings(In millions of US
dollars)(Unaudited)
| |
|
|
|
| |
Three months endedDecember 31, |
|
Years ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
$ |
|
$ |
|
$ |
|
$ |
| Net earnings |
9.7 |
|
17.4 |
|
70.0 |
|
73.5 |
| Interest and other finance
costs |
18.3 |
|
9.9 |
|
56.9 |
|
23.2 |
| Income tax expense |
6.7 |
|
5.0 |
|
24.1 |
|
19.1 |
| Depreciation and
amortization |
17.1 |
|
16.2 |
|
65.5 |
|
63.8 |
| EBITDA |
51.9 |
|
48.5 |
|
216.5 |
|
179.6 |
| Manufacturing facility
closures, restructuring and other related charges |
— |
|
— |
|
— |
|
4.3 |
| M&A Costs |
5.0 |
|
0.4 |
|
8.1 |
|
3.5 |
| Share-based compensation
expense |
0.7 |
|
18.4 |
|
21.7 |
|
22.9 |
| Impairment of long-lived
assets and other assets |
0.4 |
|
0.3 |
|
0.8 |
|
0.6 |
| Loss on disposal of property,
plant and equipment |
0.2 |
|
0.1 |
|
0.1 |
|
0.3 |
| Adjusted EBITDA |
58.2 |
|
67.7 |
|
247.2 |
|
211.1 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Free Cash Flows
Free cash flows is defined by the Company as
cash flows from operating activities less purchases of property,
plant and equipment.
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 the total cash
movement for the period as described in the Company's Financial
Statements, or to represent residual cash flow available for
discretionary purposes, as it excludes other mandatory expenditures
such as debt service. The Company is including free cash flows
because it is used by management and investors in evaluating the
Company’s performance and liquidity. The Company experiences
business seasonality that typically results in the majority of cash
flows from operating activities and free cash flows being generated
in the second half of the year.
A reconciliation of free cash flows to cash
flows from operating activities, the most directly comparable GAAP
financial measure, is set forth below.
Free Cash Flows Reconciliation to Cash
Flows from Operating Activities(In millions of US
dollars)(Unaudited)
| |
|
|
|
| |
Three months endedDecember 31, |
|
Years endedDecember 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
| Cash flows from operating
activities |
124.4 |
|
|
88.6 |
|
|
160.4 |
|
|
179.6 |
|
| Less purchases of property, plant
and equipment |
(33.8 |
) |
|
(24.8 |
) |
|
(81.3 |
) |
|
(45.8 |
) |
| Free cash flows |
90.6 |
|
|
63.8 |
|
|
79.1 |
|
|
133.8 |
|
Intertape Polymer (TSX:ITP)
過去 株価チャート
から 10 2024 まで 11 2024
Intertape Polymer (TSX:ITP)
過去 株価チャート
から 11 2023 まで 11 2024
