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

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