Intertape Polymer Group Inc. (TSX:ITP) (the “Company”) today released results for its first quarter ended March 31, 2018. 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 months ended March 31, 2018 (“Financial Statements”).
First Quarter 2018 Highlights (as compared to first quarter 2017):
• Revenue increased 14.5% to $237.2 million primarily due to additional revenue from the Cantech Acquisition(1) and an increase in average selling price, including the impact of product mix.
• Gross margin decreased to 21.3% from 23.7% primarily due to the non-recurrence of insurance proceeds related to the South Carolina Flood (“Insurance Proceeds”)(2) of $2.1 million, and an increase in average freight costs. Gross margin in the first quarter of 2017 would have been 22.7% excluding the impact of the Insurance Proceeds.
• Selling, general and administrative expenses (“SG&A”) increased 12.1% to $29.1 million primarily due to an increase in employee related costs, including salaries and other short-term benefits, to support growth initiatives and additional SG&A from the Cantech Acquisition.
• Net earnings attributable to the Company shareholders (“IPG Net Earnings”) decreased $2.1 million to $11.4 million, primarily due to the increase in SG&A and other finance costs, partially offset by a decrease in income tax expense and an increase in gross profit.
• Adjusted EBITDA(3) decreased 0.6% to $30.2 million primarily due to an increase in SG&A and the non-recurrence of Insurance Proceeds of $2.1 million realized in the first quarter of 2017, partially offset by adjusted EBITDA contributed by Cantech and an increase in gross profit. Excluding the Insurance Proceeds, adjusted EBITDA for the first quarter of 2018 increased by almost 7% compared to the first quarter of 2017.
• Cash flows from operating activities decreased $9.5 million to an outflow of $20.1 million primarily due to a decrease in cash flows from working capital items.
• Free cash flows(3) decreased by $5.8 million to negative $38.5 million primarily due to a decrease in cash flows from operating activities.
more detail at: https://www.itape.com/investor%20relations/press%20releases%20and%20reports