Supremex Announces Record Q3 2022 Results

Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced its results for the third quarter ended September 30, 2022.

Third Quarter Financial Highlights and Recent Events

  • Total revenue increased by 23.9% to $67.9 million, from $54.8 million in the third quarter of 2021.
  • Packaging and specialty products segment revenue of $18.8 million, up 5.8% from $17.8 million last year.
  • Envelope segment revenue up 32.6% to $49.1 million, from $37.0 million in the prior year.
  • Adjusted EBITDA1 of $15.5 million, or 22.8% of revenue, up from $8.7 million, or 15.9% of revenue, a year ago.
  • Net Earnings increased significantly to $8.1 million, or 11.9% of revenue, from $3.4 million or 6.1% of revenue, last year.
  • Earnings per share of $0.31, up sharply from $0.13 a year ago.
  • Recorded no assistance from the Canada Emergency Wage Subsidy (“CEWS”) and Canada Emergency Rent Subsidy (“CERS”) programs in the third quarter of 2022, compared to $0.6 million in the equivalent quarter of 2021.
  • Renewal of the Normal Course Issuer Bid (“NCIB”) program, allowing the Company to repurchase up to 1,301,713 common shares between August 31, 2022 and August 30, 2023.
  • Purchased 96,600 shares for a total consideration of $0.3 million as part of NCIB program.
  • Acquisition on November 1, 2022 of Royal Envelope Corporation (“Royal Envelope”) located in Chicago.
  • On November 10, 2022, the Board of Directors declared a quarterly dividend of $0.03 per common share payable on December 23, 2022, to the shareholders of record at the close of business of December 8, 2022.

“Supremex once again generated record results in terms of sales and profitability. We are delighted with our team’s ability to sustain significant operating progress, as the third quarter was the eleventh straight period of year-over-year improvement in Adjusted EBITDA. As consolidated revenue grew nearly 24% over last year, strong profitability gains in both segments drove a significant improvement in Net Earnings per share that more than doubled from the previous year”, said Stewart Emerson, President & CEO of Supremex.

“The Envelope performance continues to validate the strategy of geographic diversification into the U.S. envelope market to optimize both Canadian and U.S. operations. The November 1 acquisition of Royal Envelope in Chicago, a formidable player in the robust direct mail market, allows further geographic penetration in the fragmented U.S. market. The Packaging business continues to perform exceedingly well. Adjusted for the impact of the Durabox wind-down, revenues are up double-digits for the quarter, and margins are also strong. We are currently laser focused on servicing customers and growing sales as we move one of our primary Montreal area facilities in Q4. Once completed, our focus will be significantly narrowed to the value-added pharmaceutical, health & beauty, in home food and e-commerce markets.
more at: https://cms.supremex.com/document/1006/show

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