May 15 (Bloomberg) -- Intertape Polymer Group Inc., a maker of packing tape and shrink wrap, advanced to its highest price in more than seven years after reporting an increase in adjusted first-quarter earnings.
Intertape rose 1.7 percent to C$11.90 at 4 p.m. in Toronto, the highest close since July 2005. The stock has surged 49 percent this year, compared with a 0.3 percent gain for the Standard & Poor’s/TSX Composite Index.
Adjusted earnings per share in the quarter ended March 31 rose to 24 cents from 14 cents a year earlier, the St. Laurent, Quebec-based company said in a statement today. Gross margin increased to 19.5 percent from 16.3 percent a year ago.
Chief Executive Officer Greg Yull said the company’s debt to trailing 12-month adjusted earnings before interest, taxes, depreciation and amortization ratio was 1.7 compared to 2.8 a year earlier.
“This improvement allows us to significantly increase our capital expenditures with confidence over the next two years as we invest for the future,” Yull said in the statement.
Intertape also plans to redeem $20 million of notes in June to further reduce its debt.
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