Intertape Polymer Group Inc. Announces September 2000 Third Quarter Results

Business Wire, Nov 6, 2000

Business Editors

MONTREAL--(BUSINESS WIRE)--Nov. 6, 2000

Intertape Polymer Group, Inc. (TSE:ITP.)(NYSE:ITP)

(stated in U.S. dollars)
(reported using Canadian GAAP other than noted)

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                            3rd  Quarter Results

                       2000             1999               % Change
  Sales              $166.4 million   $161.5 million         3.0%
  Net Income  $         9.6 million    $10.2 million        (5.9%)
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Intertape Polymer Group Inc. today reported its financial results for the third quarter ended September 30, 2000.

Sales in the period were $166.4 million, up from $161.5 million for the same period in 1999, representing an increase of $4.9 million or 3.0%. For the nine month period, sales were $502.9 million, an increase of $86.7 million or 20.8% for 1999 from $416.2 million.

Melbourne F. Yull, Intertape's Chairman and Chief Executive Officer stated "I am satisfied with the course the Company is taking. As expected, we are gradually improving in every area within the organization... we are on track. The results of the third quarter are mostly due to current market conditions, which have attributed to a slower growth rate than expected, while our customers are busy depleting their higher cost inventory. September was a record month for IPG and we expect that trend to continue into the fourth quarter. Margins remain healthy."

Gross margins for the third quarter of 2000 increased to 26.9%, compared to 26.4% for the same period last year. The nine months were 24.6% compared to 27.4% last year. Net income under US and Canadian GAAP for the three months ended September, 2000 decreased 5.9% or $0.6 million from the same period last year. Net income for this period was $9.6 million in 2000 down from $10.2 million in 1999. Net income under US and Canadian GAAP for the nine month period ended September, 2000 increased 6.0% or $1.7 million from the same period last year. Net income for the nine month period was $29.8 million in 2000 up from $28.1 million for 1999. Under both US and Canadian GAAP, September 2000 earnings per share (EPS) decreased to US$0.34 as compared to US$0.36 for the quarter ended September 1999.

On a fully diluted basis, EPS was US$0.33 and US$0.32 under both US and Canadian GAAP respectively, as compared to US$0.35 for both US and Canadian GAAP for the same period last year. EPS for the nine month period ending September 2000, under both US and Canadian GAAP, increased to US$1.05 as compared to US$1.02 for the same period ending 1999. On a fully diluted basis, EPS under US GAAP was US$1.03 and under Canadian GAAP was US$1.00 increasing from US$0.99 and US$0.98 for both US and Canadian GAAP respectively in the same period last year.

The exchange rate at September 30, 2000 was Cdn. $1.5030 = U.S. $1.00. Intertape Polymer Group Inc. develops, manufactures and markets a wide variety of specialized polyolefin plastic and paper based packaging products and systems for industrial and retail use. The Company is based in Montreal, Quebec and Sarasota, Florida with facilities in twenty North American and one European location.

This release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 or forward-looking statements. Those risks and uncertainties include, but are not limited to:

* risks associated with pricing, volume and continued strength of
  markets where the Company's products are sold, and the timing and
  acceptance of new product offerings.

* actions of competitors as are described in the Company's filings
  with the Securities and Exchange Commission (SEC) over the last
  twelve months.

* the Company's ability to successfully integrate the operations and
  information systems of acquired companies with its existing
  operations, and information system, including risks and
  uncertainties relating to its ability to achieve projected earnings
  estimates, achieve administrative and operating cost savings and
  anticipate synergies.

* the effect of competition and raw material pricing on the Company's
  ability to maintain margins on existing or acquired operations.

The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.