Q3 2021 Results MONTREAL, Nov. 12, 2021 /CNW Telbec/ - 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, 2021. The Company will hold a conference call to discuss these results, today at 11:00 a.m. (Eastern Time).
Third Quarter Financial Highlights and Recent Events
- Total revenue increased by 9.9% to $54.8 million, from $49.9 million in the third quarter of 2020.
- Envelope segment revenue was up 8.5% to $37.0 million, from $34.1 million in the third quarter of 2020.
- Packaging and specialty products segment revenue increased by 12.8% to $17.8 million, from $15.8 million in the third quarter of 2020.
- EBITDA1 at $8.7 million, up 8.0%, from $8.1 million in the third quarter of 2020.
- Net Earnings at $3.4 million (or $0.12 per share), up from $2.7 million (or $0.10 per share) in the third quarter of 2020.
- The Company renewed its Normal Course Issuer Bid ("NCIB") over a maximum period of 12 months beginning on August 31, 2021 and ending on August 30, 2022.
- Purchased 292,400 shares for total consideration of $0.7 million as part of the Company's NCIB program.
- The Company entered into series of annuity buy-out transactions in order to reduce the risk profile associated with its defined benefit pension plans.
- Appointed Joe Baglione to the newly created position of President, Envelope, effective November 15, 2021.
- Appointed Leslie Sutherland to the newly created position of Vice President, People & Culture, effective November 1, 2021.
"We are very pleased with our third quarter performance which included strong sales growth in both segments and the seventh consecutive quarter of year-over-year improvement in adjusted EBITDA. We achieved these results in spite of a negative currency conversion, an extremely tight supply chain for all paper grades and rapidly escalating costs across the board. This is a testament to our product and geographic diversification, the resilience of our business model and a commitment to passing through inflation," said Stewart Emerson, President & CEO of Supremex.
"Operationally, the integration of Vista Graphic Communications is on track and the new equipment has arrived and is in the process of commissioning. Once complete, this will provide our e-Commerce team with much needed capacity in local US markets in addition to improved efficiencies. Furthermore, to position ourselves for the future, we strengthened our management bench by creating two new senior executive roles namely, President, Envelope and Vice President, People & Culture. These two important roles will immediately support our growth efforts."