Intertape Polymer Group Inc. Announces June 1999 2nd Quarter Results

Business Wire, August 3, 1999

MONTREAL--(BUSINESS WIRE)--Aug. 3, 1999--

(TSE:ITP.) (AMEX:ITP) Intertape Polymer Group Inc. today reported its financial results for the second quarter ended June 30, 1999. These results do not reflect the recently announced acquisition of the business assets of Spinnaker Electrical Tape Company.

Sales in the period were $133.2 million, up from $82.6 million in 1998, representing an increase of $50.6 million or 61.2 percent; and for the six months were $254.7 million, an increase of $91.7 million or 56.3 percent from 1998 of $163.0 million. "The second quarter results have been impressive. This was anticipated given the continued success of our existing products and intensified emphasis on acquisitions." stated Melbourne F. Yull, Chairman and Chief Executive Officer.

Gross margins for the second quarter of 1999 were 27.4 6 percent, compared to 28.8 percent for the same period last year; and six months were 28.0 percent compared to 28.6 percent last year.

Net income under US and Canadian GAAP for the three months ended June, 1999 increased 41.1 percent or $2.8 million to $9.7 million from $6.9 million.

Net income under US and Canadian GAAP for the six month period ended June, 1999 increased 34.4 percent or $4.6 million to $17.8 million from $13.3 million.

Under both US and Canadian GAAP, June 1999 earnings per share increased to US$0.34 as compared to US$0.27 for the quarter ended June 1998. On a fully diluted basis, earnings per share were US$0.34 under US GAAP and were US$0.33 under Canadian GAAP. In Canadian dollars, primary and fully diluted earnings per share were Cdn$0.51 and Cdn$0.49 respectively. This compares to Cdn$0.42 and Cdn$0.40 for the same period last year.

The exchange rate at June 30, 1999 was Cdn. $1.4691 = U.S. $1.00.

Intertape Polymer Group Inc. develops, manufacturers and markets a wide variety of specialized polyolefin plastic and paper based packaging products and systems for industrial uses. The Company is based in Montreal, Quebec and Sarasota, Florida with manufacturing facilities in fourteen North American and one European location.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months, copies of which are available from the SEC or may be obtained upon request from the Company.

                        INTERTAPE POLYMER GROUP INC
                     Summary Consolidated Financial Data
                               Using Canadian
                 Generally Accepted Accounting Principles
       (in thousands of U.S. dollars, except per share amounts
                     and # of shares outstanding)
                   3 Months June 30 6 Months June 30
                    1999          1998         1999          1998
-----------------------------------------------------------------
-----------------------------------------------------------------
Sales            133,234        82,619      254,704       162,986

Cost of sales     96,711        58,810      183,304       116,403
-----------------------------------------------------------------
Gross profit      36,523        23,809       71,400        46,583
-----------------------------------------------------------------
Selling, general
 and administrative
 expenses         15,959        10,19        32,057        20,263
Research and
 development         766          717         1 579         1,459
Amortization of
 goodwill          1,256          727         2,480         1,454
Financial
 expenses          4,901        2,524        10,150         4,747
-----------------------------------------------------------------
                  22,882       14,159        46,266        27,923
-----------------------------------------------------------------
Earnings before
 taxes            13,641        9,650        25,134        18,660
Income taxes       3,956        2,784         7,289         5,378
-----------------------------------------------------------------
Net earnings for
 the period        9,685        6,866        17,845        13,282

Earnings per share
Cdn GAAP           $0.34        $0.27         $0.66         $0.53
Cdn GAAP -
 Fully diluted     $0.33        $0.26         $0.63         $0.51
U.S. GAAP          $0.34        $0.27         $0.66         $0.53
U.S. GAAP -
 Fully diluted     $0.34        $0.26         $0.64         $0.51

Cdn GAAP - CDN $   $0.51        $0.42         $0.99         $0.81
Cdn GAAP -
 Fully diluted
 - CDN $           $0.49        $0.40         $0.94         $0.78

Weighted average
 shares outstanding
Cdn GAAP      28,296,915   25,132,700    26,999,750    25,082,000
Cdn GAAP -
 Fully
 diluted      30,636,098   27,147,500    29,292,267    27,097,000
U.S. GAAP     28,296,915   25,132,700    26,999,750    25,082,000
U.S. GAAP -
Fully
 diluted      29,262,328   26,228,090    27,917,560    26,165,350