Supremex Announces Strong Q1 2021 Results
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Supremex Inc. (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a provider of paper-based packaging solutions, announced its results for the first quarter ended March 31, 2021.
First Quarter Financial Highlights and Recent Events
• Total revenue increased by 2.3% to $53.6 million, from $52.4 million in the first quarter of 2020.
• Envelope segment revenue was down 2.3% to $38.3 million, from $39.1 million in the first quarter of 2020.
• Packaging and specialty products segment revenue increased by 15.6% to $15.3 million, from $13.3 million in the first quarter of 2020.
• EBITDA increased by 22.1% to $9.4 million, up from $7.7 million in the first quarter of 2020 resulting primarily from growing packaging and specialty sales and operational efficiencies.
• Adjusted EBITDA1 was up by 14.5% to $9.5 million, from $8.3 million in the first quarter of 2020.
• Net Earnings at $4.1 million (or $0.15 per share), up from $2.6 million (or $0.09 per share) in the first quarter of 2020.
• Adjusted Net Earnings1 at $4.2 million (or $0.15 per share), up from $3.1 million (or $0.11 per share) in the first quarter of 2020.
• Recorded $0.6 million of assistance from the Canada Emergency Wage Subsidy ("CEWS") program.
• Acquired Vista Graphic Communications, LLC, a print and folding carton supplier that brings the Company's manufacturing closer to its American e-commerce packaging customers.
• Purchased 221,900 shares for total consideration of $473,887 as part of the Company's Normal Course Issuer Bid (''NCIB'') program.
"We continue to experience strong results from an expanded geographic reach and a diversified product offering and customer base. Increased revenues from packaging and specialty products offset the effects of secular decline and a temporary COVID related reduction in non-essential mail in the envelope segment. These revenue gains coupled with stringent cost optimization measures buoyed profitability," said Stewart Emerson, President & CEO.
"We continue to focus on the health and safety of our employees and take a prudent approach to managing cash flow and capital allocation while continuing to push on the revenue side. We are well advanced with the integration of the recent bolt-on acquisition of Vista Graphic Communications in Indianapolis which provides a turn-key platform close to our US customer base and needed capacity for continued growth in the e-commerce packaging business," concluded Stewart Emerson, President & CEO.
