MONTREAL – Intertape Polymer Group capped off a strong year as its net income surged nearly 10-fold to US$53.6 million in the fourth quarter on a large deferred income tax benefit.
Despite a slow economic recovery in North America, the Montreal-based maker of paper and polyolefin packaging products said it earned 86 cents per diluted share for the period ended Dec. 31. That compared to nine cents per share a year earlier when it earned US$5.7 million in net profits.
During the quarter, the company’s profits benefited from the recognition of US$38.4 million of net deferred taxes in the U.S. and Canada.
Revenues increased 1.1 per cent to US$191.5 million.
Excluding one-time items, Intertape (TSX: ITP), which reports in U.S. dollars, earned $52.5 million or 84 cents per diluted share, up from $10 million or 16 cents per share a year earlier.
For the full year, the company earned $67.4 million or $1.09 per diluted share, up from $20.4 million or 34 cents per share in 2012. Revenues decreased slightly to $781.5 million.
Adjusted pre-tax operating earnings (EBITDA) increased for the third consecutive year, rising by 20 per cent to $103.1 million in 2013 as it improved its mix of products and reduced manufacturing costs.
Intertape said it reduced total debt by $21.5 million last year to $129.8 million.
The company expects to continue reducing manufacturing costs in 2014 as it relocates its plant in South Carolina.
Intertape’s shares lost 16 cents at C$12.75 in Wednesday morning trading on the Toronto Stock Exchange.