- After its shareholders rejected a takeover offer in June, packaging firm Intertape Polymer Group Inc. says financial and operational changes under way have reduced losses on its path to recovery.
Intertape slashed its second-quarter loss to $8.1-million from a year-earlier $18.2-million, on lower one-time charges .
The loss for the quarter ended June 30 amounted to 20 cents a share, compared with 44 cents per share a year ago, the Montreal-based company reported Monday.
Intertape recorded $4.4-million in charges for manufacturing closings and strategic review costs, compared with charges of $32.4-million in the corresponding quarter a year ago.
The strategic review resulted in a proposed sale to private equity firm Littlejohn & Co. for $195-million, but 70 per cent of Intertape's shareholders rejected the deal in late June.
Since the shareholder vote, directors have been working to secure new banking arrangements, negotiate an equity injection from shareholders and develop plans to re-establish sales growth, operating margins, employee morale and customer confidence.
"In the short period, I'm pleased to report that we've made progress on all fronts," founder and executive director Melbourne Yull said in a conference call.
"The board is dedicated to continue to stabilize operations of the company and taking advantage of those opportunities that present us."
The quarterly results included a $6.3-million increase in income tax asset valuation allowance, equivalent to 15 cents per share.
Sales declined 14 per cent from a year earlier to $187.1-million, but were a slight improvement over sales for the first quarter. The year-over-year decrease included a 12.1 per cent decrease in sales volume, with the balance of the decline attributable to price decreases.
The quarterly report represented the second consecutive quarter of improvement in the company's business, Mr. Yull said.
"Management believes the company is well positioned for the future, having substantially reduced its cost base in the past year."
Selling, general and administrative expenses were $16.7-million in the second quarter, compared with $21.5-million a year ago.