Intertape Polymer Group reported revenue for the third quarter of 2013.
The Company reported revenue for the third quarter of 2013 of $199.9 million, an increase of 0.7% compared to $198.5 million for the third quarter of 2012 and an increase of 3.3% sequentially compared to $193.5 million for the second quarter of 2013.
Gross profit totalled $40.0 million for the third quarter of 2013 as compared to $35.0 million and $42.3 million for the third quarter of 2012 and the second quarter of 2013, respectively. Revenue was higher in the third quarter of 2013 compared to the third quarter of 2012 primarily due to an increase in selling prices, including the impact of product mix partially offset by a decrease in sales volume.
Revenue increased in the third quarter of 2013 compared to the second quarter of 2013 primarily due to an increase in sales volume partially offset by a decrease in selling prices, including the impact of product mix.
Net earnings for the third quarter of 2013 was $14.4 million ($0.24 earnings per share basic and $0.23 earnings per share diluted) as compared to $10.9 million ($0.18 earnings per share, both basic and diluted) for the third quarter of 2012 and $15.1 million ($0.25 earnings per share, both basic and diluted) for the second quarter of 2013.
On August 14, 2013, the Board of Directors amended the Company’s dividend policy to increase the frequency of the dividend from a semi-annual payment to a quarterly payment and concurrently declared a dividend of $0.08 per common share, paid on September 30, 2013 to shareholders of record at the close of business September 16, 2013. The aggregate amount of the dividend paid was $4.9 million. The Board’s decision to double the annualized dividend reflects the Company’s continued financial improvement and positive outlook.
On August 30, 2013, the Company redeemed, at par value, the remaining $18.7 million aggregate principal amount of its outstanding Senior Subordinated Notes (“Notes”) due August 2014 and the Indenture was discharged and all Notes satisfied.
Revenue
The Company’s revenue for the third quarter of 2013 was $199.9 million, an increase of 0.7% compared to $198.5 million for the third quarter of 2012. Revenue was higher in the third quarter of 2013 compared to the third quarter of 2012 primarily due to an increase in selling prices, including the impact of product mix, partially offset by a decrease in sales volume.
The decrease in sales volume of approximately 3% when compared to the third quarter of 2012 was primarily due to the progress the Company made in reducing sales of low-margin products in the second half of 2012 partially offset by increased sales of new products.
Selling prices, including the impact of product mix, increased approximately 4% in the third quarter of 2013 compared to the third quarter of 2012. The increase in selling prices was primarily due to higher selling prices of equivalent units and a shift in the mix of products sold.
Revenue for the first nine months of 2013 was $590.0 million, a 0.9% decrease compared to $595.1 million for the same period in 2012. The decrease in revenue was primarily due to a decrease in sales volume of approximately 2% partially offset by an approximately 2% increase in selling prices, including the impact of product mix.
