Supremex Announces Strong Q3 2020 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, 2020.
Third Quarter 2020 Highlights and Recent Event

  • Total revenue increased by 10.4% to $49.9 million, from $45.2 million in the third quarter of 2019.
  • EBITDA1 was up 49.3% to $8.1 million, an increase of $2.7 million, from $5.4 million in the third quarter of 2019. EBITDA includes a $0.9 million of assistance from the Canadian Emergency Wage Subsidy (“CEWS”) program.
  • Net Earnings increased to $2.7 million (or $0.10 per share), from $1.2 million (or $0.04 per share) in the third quarter of 2019.
  • Packaging and Specialty Products segment revenue increased by 18.9% to $15.8 million, up from $13.3 million in the third quarter of 2019.
  • Envelope segment revenue increased by 6.9% to $34.1 million, up from $31.9 million in the third quarter of 2019.
  • Net cash flows from operating activities increased to $7.2 million, up from $3.7 million in the third quarter of 2019.
  • The TSX approved the renewal of the Company’s NCIB allowing for the purchase, for cancellation, of up to 5.0% of its issued and outstanding common shares for a period of twelve months. During the third quarter, the Company purchased 152,900 shares under this program for a total consideration of $200,841.

“We are pleased with our operational and financial results in the third quarter and wish to thank all our employees who continue to work with dedication in these challenging times”, said Stewart Emerson, President & CEO.

“Revenues in the quarter increased 10.4% through a combination of the Royal Envelope acquisition, sustained growth in our U.S. Envelope business and growing e-commerce packaging sales. EBITDA grew by 49.3% notably from synergies generated in our envelope operations, higher e-commerce packaging sales and cost mitigation measures implemented in the context of the ongoing pandemic.”

“Although there remains uncertainty with regards to the full impact of the pandemic on customers and the economy, these results demonstrate the resiliency of our business model and the benefits of our growth and diversification strategy. Looking ahead, we are focused on extracting operational leverage, profitably grow our packaging platform and creating shareholder value,” concluded Mr. Emerson.
more detail at: https://cms.supremex.com/document/873/show

Related Posts

Idealliance’s Andrew Paparozzi on 2018 Commercial Printing Industry Outlook and How It’s Being Redefined

Idealliance expects commercial printing industry sales (all sources) to grow 1.5% to 3.0% in 2018, after growing approximately 1.0% in 2017. Where in that range the industry finishes will depend largely on the strength of the American economy which, in turn, will depend on the size and efficiency of the stimulus Washington delivers. A weak package will mean a finish toward the bottom of the range, and a strong package a finish toward the top. If Washington really comes through, we may have to do something we haven’t done in years: revise a forecast up. Print enters 2018 with sales of approximately $84.0 billion, 9.1% above the 2011 low, but still 14.6% below the 2007 pre-Great Recession level. Diversification continues. Participants in the Idealliance “State of the Industry, 15th Edition” report expect, on average, something other than printing (mailing, fulfillment, database management, marketing services, Web service, etc.) to provide 31.6% of their revenue in 2018, up from just 13.3% in 2012. Click Read More below for additional information.

Sun Chemical Expands Sheetfed Offset Direct Food Contact Ink Offering

Sun Chemical has further enhanced its sheetfed offset direct food contact ink offering with the launch of an innovative, ‘green’ shade blue pigment that helps to increase the color gamut available to designers and brand owners, especially now within the ‘green’ shade color space without comprising compliance to accepted food safety standards. Due to the stringent compliance requirements Sun Chemical adheres to for direct food contact (DFC) printing, there is a rigorous pigment selection process used by Sun Chemical for its DFC product range which considers pigment chemistry and potential non-intentionally added substances (NIAS). Currently, there are no suitable green pigments available on the market. The commercial green pigments that are available contain residual NIAS of regulatory concern, which could potentially migrate into the food. This has restricted the colour palette available for direct food contact inks. The addition of this new base to the SunPak DirectFood Plus range means that 1801 colours can now be achieved at a tolerance of Delta E <2 (dE2000) to Digital Master Pantone.

Ennis Inc. Acquires Morganville, New Jersey-Based School Photo Marketing (piworld.com)

Ennis, Inc. announced its acquisition of School Photo Marketing in Morganville, New Jersey. School Photo Marketing provides printing, yearbook publishing and marketing-related services to over 1,400 school and sports photographers servicing schools around the country. Keith Walters, Chairman, President & CEO of the Company, stated, “We are delighted to have the opportunity to bring School Photo Marketing, their employees, and their customers into the Ennis family. This addition brings with it many exciting possibilities to service this new channel with products produced through Ennis manufacturing operations.” School Photo Marketing operates through a similar wholesale manufacturer-distributor-end user channel as Ennis currently operates.
Back To Top
×Close search
Search