Supremex a provider of packaging and specialty products, has announced its results for the second quarter ended 30 June 2018.
Revenue increased by 13.8% year-over-year, to $46.8 million from $41.1 million.
Revenue from packaging and specialty products now account for 32.6% of sales, up from 15.0% in the second quarter of 2017.
Adjusted EBITDA1 increased by 13.8% to $6.1 million, compared with $5.4 million.
Net Earnings increased by 10.6%, to 3.1 million (or $0.11 per share) compared with $2.8 million (or $0.10 per share). Adjusted Net Earnings1 increased by 4.4% to $3.0 million.
Acquired Groupe Deux Printing Inc. and its related company Pharmaflex Labels Inc., a leading manufacturer of premium quality folding carton packaging and labels primarily for the pharmaceutical industry.
Increased credit facility from $65 million to $75 million, to further support the diversification strategy.
Maintained strong financial flexibility with a net indebtedness to Adjusted EBITDA1 ratio of 1.9 times.
Approved a quarterly dividend of $0.065 per share, equivalent to the last quarter and up 8.3% year-over-year.
Purchased a total of 100,000 common shares for cancellation under the Normal Course Issuer Bid (“NCIB”) program, for total consideration of $349,334.
Received approval from the TSX for the renewal of the Company’s NCIB program.
Supremex president and CEO Stewart Emerson said: “Revenues increased almost 14% in the quarter, as a result of our diversification strategy into the growing packaging market.
With almost 33% of our revenues in the quarter coming from packaging and specialty products, we more than offset the secular decline of the Canadian envelope market achieving a 4.4% increase in adjusted net earnings.”
Revenue from packaging products was $15.2 million, an increase of 147.3% or $9.1 million compared to the prior year, primarily resulting from the acquisitions of Stuart Packaging, concluded on July 20, 2017 and of G2 Printing and Pharmaflex, concluded on April 30, 2018, and from organic growth of the corrugate and e-commerce packaging offerings.
Source: Company Press Release