NYSEAM:ITP - Post by User
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retiredcfon May 11, 2022 9:17am
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Post# 34673496
CIBC
CIBCEQUITY RESEARCH
May 11, 2022 Flash Research
INTERTAPE POLYMER GROUP INC.
Q1/22 Results In Line With Expectations – First Glance
Impact: Neutral. We expect limited share price impact given Q1 was close
to expectations and the company is in the process of being acquired by
Clearlake Capital for C$40.50/share (transaction expected to close in early
Q3/22 subject to shareholder, regulatory and court approvals). The
shareholder vote is being held today at 9 a.m. ET.
Q1/22 Results In Line With Expectations: Intertape reported adjusted
EBITDA of $59MM, above our forecast of $55MM but close to consensus of
$60MM (range of $55MM to $67MM). Adjusted EPS of $0.48 in the quarter
compared to our estimate of $0.36 and the Street at $0.43. Adjusted EBITDA
margins of 14.4% (CIBCe 14.3%) were down 300 bps Y/Y. The company
pointed to the strong demand backdrop for its packaging products in Q1
continuing into the second quarter.
Revenues Increased 18% Y/Y To $406MM (CIBCe $381MM): Sales rose
due to higher selling prices (+20%) for tape, film, woven and protective
packaging, partially offset by a decrease in volume/mix (-4%) driven by
supply chain constraints and isolated labor challenges that limited shipments.
Gross profit margins were 21.0% in the quarter (-290 bps Y/Y), largely due to
the impact of maintaining dollar spread on higher average selling prices and
increased plant operating costs.