Supremex Inc T.SXP

Alternate Symbol(s): SUMXF

Forest Products Paper & Paper Products

Supremex Inc. is a Canada-based company, which manufactures and markets envelopes and provides paper-based packaging solutions designed to the specifications of national and multinational corporations, direct mailers, resellers, government entities, small-medium enterprises (SMEs) and solutions providers. The Company operates through two segments: the manufacturing and sale of envelopes and the manufacturing and sale of paper-based packaging solutions and specialty products. It also manufactures and distributes a diverse range of packaging and specialty products, including high-end quality folding carton packaging and e-commerce fulfillment packaging solutions. Its other packaging and specialty products include the Conformer Products, labels, polyethylene bags for courier applications, bubble mailers and Enviro-logiX. It operates 10 manufacturing facilities across four provinces in Canada and six manufacturing facilities in four states in the United States.

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Supremex Inc > New research from Cormark

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Comment by HermannHalleron Jan 21, 2023 2:17pm

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Post# 35237544

RE:RE:RE:RE:New research from Cormark

Thanks. The 1.0x at the end of Q3 is including lease liabilities, which mgmt excludes when they present the figure in the quarterly report (which is why their figure is only 0.6x).

I think most analysts only include announced acquisitions in their official forecasts. Which is probably why there appears to be no growth beyond 2023, although we expect there will be (in part due to future acquisitions).

I will get more info next week, and will post the EPS and EBITDA estimates here.

mrmoribund wrote: I'm sure neither Cormark nor Supremex would appreciate me doing serious cutting and pasting here. But I think there are a couple of highlights that it would be within the realm of reasonable to note.

Their number for net debt / last 12 month EBITDA is 1.0x at end of Q3/22 and 1.7x pro forma post the two recent acquisitions. (This should be a calculation-projection anyone can make + uncontroversial. Might be on the conservative side if they use the same Q4-21 to Q3-22 EBITDA denominator for both calculations.)

One thing that looks to be flirting with contradiction. They muse that there could be further packaging acquisitions (reflective of management's target to have packaging at 50% of total sales by 2025). But in their whole-company financial projections, after big year-over-year growth in 2023, they show very little sales growth in 2024 and 2025.

So I guess there could be more packaging acquisitions down the road or there might not be. (Again, this is hardly giving away the keys to the Cormark kingdom.)