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ipg intertape polymer group® NEWS RELEASE FOR IMMEDIATE DISTRIBUTION Intertape Polymer Group Reports 2021 Second Quarter Results • • • Quarterly revenue increased 41 % to $ 376.7 million Quarterly IPG Net Earnings decreased 1 % to $ 14.3 million Quarterly adjusted net earnings ( 1 ) increased 162 % to $ 33.7 million Quarterly adjusted EBITDA increased 60 % to $ 65.7 million MONTREAL , QUEBEC and SARASOTA , FLORIDA - August 11 , 2021 - Intertape Polymer Group Inc. ( TSX : ITP ) ( " IPG " or the " Company " ) today released results for its second quarter ended June 30 , 2021. All amounts in this press release are denominated in US dollars ( " USD " ) unless otherwise indicated and all percentages are calculated on unrounded numbers . For more information , refer to the Company's management's discussion and analysis ( " MD & A " ) and unaudited interim condensed consolidated financial statements and notes thereto as of and for the three and six months ended June 30 , 2021 . " It was another outstanding quarter with demand driving robust growth in revenue , adjusted net earnings and adjusted EBITDA . We continue to experience strong organic growth into August led by the categories where we have made investments in capex and acquisitions , like water - activated tape , protective packaging , wovens and carton sealing tapes , " said Greg Yull , President and CEO of IPG . " While the supply chain environment remains volatile in terms of pricing and consistency of supply , we continue to effectively cover the dollar contribution spread between selling price and raw materials plus freight . We maintained our adjusted EBITDA margin at over 17 percent and our team has been effectively navigating the supply constraints to ensure we continue to meet customer demand . The business is structurally different than it was just a few years ago and our recent performance demonstrates its ability to adapt to change and deliver results for shareholders . The strength of our product bundle , our scale , our world class , low cost manufacturing assets and the improvements made to our capital structure position us to compete effectively and continue to win in a post - COVID - 19 environment . ” ( 1 ) Second Quarter 2021 Highlights ( as compared to second quarter 2020 ) : • • • • • Revenue increased 40.7 % to $ 376.7 million primarily due to organic growth in certain film , woven , and tape products , including continued strength in products with significant e - commerce end - market exposure such as water - activated tape and dispensing machines . Gross margin increased to 23.7 % from 21.3 % primarily due to a favourable product volume / mix and an increase in the spread between selling prices and combined raw material and freight costs . Net earnings attributable to the Company shareholders ( " IPG Net Earnings " ) decreased $ 0.1 million to $ 14.3 million ( $ 0.24 basic and diluted earnings per share ) primarily due to ( i ) an increase in finance costs mainly due to the 2018 Senior Unsecured Notes Redemption Charges ( 2 ) and the non - recurrence of a gain in the second quarter of 2020 resulting from a fair value adjustment to the Company's contingent consideration related to the Nortech Acquisition ( 3 ) and ( ii ) an increase in selling , general and administrative expenses ( " SG & A " ) mainly due to increases in both variable and share - based compensation . The unfavourable impacts were largely offset by an increase in gross profit . Adjusted net earnings increased $ 20.9 million to $ 33.7 million ( $ 0.57 basic adjusted earnings per share and $ 0.56 diluted adjusted earnings per share ) ( 1 ) primarily due to an increase in gross profit , partially offset by an increase in income tax expense and an increase in SG & A mainly due to an increase in variable compensation and professional consulting services . Adjusted EBITDA increased 60.0 % to $ 65.7 million from $ 41.0 million primarily due to an increase in gross profit . Cash flows from operating activities decreased $ 18.3 million to $ 22.2 million primarily due to an increase in cash used for working capital items and an increase in federal income taxes paid , partially offset by an increase in gross profit . 1