Intertape Polymer Group cuts debt by $22 million in third quarter

By Lisa Kerner

Charlotte, N.C., Nov. 7 - Intertape Polymer Group Inc. ended its third quarter with cash and availability under its asset-based loan facility totaling about $88 million.

During the quarter, Intertape decreased debt by about $22 million, and by about $27 million year to date, due to improved cash flows from operating activities, according to the company's third-quarter earnings release.

Intertape, subsequent to quarter end, received funding on a $16.6 million real estate loan and paid a dividend of $4.8 million.

At Nov. 6, the company had cash and loan availability under its ABL exceeding $108 million.

The real estate loan bears interest at a rate of one-month Libor plus 250 basis points until Dec. 31. Afterwards, the loan will bear interest at a rate of one-month Libor plus a loan margin between 225 bps and 275 bps determined by the debt to EBITDA ratio, the release said.

On Oct. 29, Intertape issued a notice of redemption for $55 million of its 8½% notes. The notes will be redeemed on Dec. 13.

According to Intertape, the notional amount of notes outstanding after redemption will be $38.7 million.

Financial highlights

Intertape generated cash flows from operating activities before changes in working capital of $21.2 million in the third quarter, up from $14 million in the prior-year period.

The company also reported an increase in gross margin to 18.2%, a 15.1% gain from the same quarter last year.

Third-quarter revenue decreased 1.4% to $198.5 million, compared to $201.4 million in 2011, while sales volume rose about 2% from the prior-year quarter.

Adjusted EBITDA increased 32% from the comparable period to $23.5 million.

Intertape Polymer is a Saint Laurent, Quebec, developer, manufacturer and seller of polyolefin films, paper and film pressure-sensitive tapes and complementary packaging systems.

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