Supremex Announces Results for the Second Quarter of 2025, a Special Dividend of $0.50 Per Common Share, the Renewal of Its Normal Course Issuer Bid and Completes Two Tuck-In Acquisitions Subsequent to the End of the Quarter
MONTREAL, Aug. 07, 2025 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2025. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).
In addition, the Company today announced the renewal of its normal course issuer bid (the “NCIB”) after its approval by the Toronto Stock Exchange (“TSX”) to purchase for cancellation up to 1,507,850 common shares, representing 10.0% of its “public float” (within the meaning of the TSX Company Manual) as of July 28, 2025, for the twelve-month period starting August 11, 2025 and ending August 10, 2026.
Second Quarter Financial Highlights and Recent Events
- Total revenue of $66.0 million, down from $69.3 million in the second quarter of 2024.
- Envelope segment revenue of $43.8 million, down 11.5% from $49.5 million in the prior year.
- Packaging & Specialty Products segment revenue of $22.2 million, up 11.6% from $19.9 million last year.
- Net loss of $0.3 million, compared to net earnings of $2.0 million last year.
- Loss per share of $0.01, versus earnings per share of $0.08 a year ago.
- Adjusted EBITDA1 of $5.8 million, or 8.8% of revenue, versus $9.0 million, or 13.0% of revenue, a year ago.
- On July 10, 2025, Supremex announced the completion of a sale-leaseback transaction in respect of its owned properties in LaSalle, Quebec and Etobicoke, Ontario for gross proceeds of approximately $53.0 million.
- On August 6, 2025 the Board of Directors declared a special dividend to shareholders of $0.50 per common share. The special dividend will be paid on September 25, 2025 to shareholders of record at the close of business on September 10, 2025.
- On July 14, 2025, Supremex acquired the assets of Enveloppe Laurentide, a provider of envelope in Eastern Canada. Operations will be integrated within the Company’s existing Envelope network.
- On July 7, 2025, the Company acquired Trans-Graphique, a provider of folding carton packaging solutions, mainly for the at-home food market. Operations will be integrated within the existing Lachine facility.
- On August 6, 2025, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on September 19, 2025, to shareholders of record at the close of business on September 4, 2025.
| Financial Highlights (in thousands of dollars, except for per share amounts and margins) | Three-month periods ended June 30 | Six-month periods ended June 30 | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Statement of Earnings | ||||||||
| Revenue | 65,957 | 69,337 | 136,185 | 142,605 | ||||
| Operating earnings | 692 | 3,905 | 4,470 | 9,668 | ||||
| Adjusted EBITDA(1) | 5,831 | 8,998 | 14,660 | 19,481 | ||||
| Adjusted EBITDA margin(1) | 8.8% | 13.0% | 10.8% | 13.7% | ||||
| Net (loss) earnings | (309 | ) | 1,980 | 1,611 | 5,476 | |||
| Basic and diluted net (loss) earnings per share | (0.01 | ) | 0.08 | 0.07 | 0.22 | |||
| Adjusted net earnings(1) | 75 | 2,105 | 2,227 | 5,619 | ||||
| Adjusted net earnings per share(1) | 0.00 | 0.08 | 0.09 | 0.22 | ||||
| Cash Flow | ||||||||
| Net cash flows related to operating activities | 304 | 10,222 | 7,269 | 15,318 | ||||
| Free cash flow(1) | (41 | ) | 10,920 | 6,759 | 15,653 | |||
| (1) | Non-IFRS financial measures or ratios. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. Refer to the non-IFRS financial measures section for definitions and reconciliations. |
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1 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
“Our second quarter results showed mixed performance across the two business segments,” said Stewart Emerson, President and CEO of Supremex. “Packaging activities had another solid quarter driven by double-digit revenue growth in folding carton and e-commerce fulfillment solutions. In the envelope segment, the reduction in volume from a single U.S. direct mail customer drove the majority of the decline, without which volume would have increased by 2% versus a 3.1% decline. This, coupled with pricing pressures in the U.S. market and the impact on volume from uncertainty from the Canada Post labour situation was a drag on earnings. A non-cash foreign exchange loss of $1.5 million from the revaluation of intercompany accounts also affected profitability for the period, overshadowing our cost reduction initiatives.”
“Looking ahead, the addition of the two tuck-ins, one in packaging and one in Canadian envelope will be accretive immediately and our even stronger balance sheet following the sale-leaseback transaction provides us with significant flexibility to execute our business strategy and sustain long-term profitable growth. As always, we reiterate our commitment to value creation by optimizing returns to shareholders by way of dividends and share buybacks as confirmed by the new NCIB program,” concluded Mr. Emerson.
Summary of three and six-month periods ended June 30, 2025
Revenue
Total revenue for the three-month period ended June 30, 2025, was $66.0 million, representing a decrease of $3.4 million, or 4.9%, from the equivalent quarter of 2024.
For the six-month period ended June 30, 2025, total revenue was $136.2 million, representing a decrease of $6.4 million, or 4.5%, from the equivalent period of 2024.
Envelope Segment
In the second quarter of 2025, revenue was $43.8 million, representing a decrease of $5.7 million, or 11.5%, from $49.5 million in the second quarter of 2024. The variation is attributable to an average selling price decrease of 8.7% from last year’s second quarter primarily due to a less favourable customer and product mix between the U.S. and Canadian markets and to a 3.1% decrease in the volume of units sold, in-line with industry demand. These factors were partially offset by a favourable currency conversion effect. The Envelope segment represented 66.4% of the Company’s revenue in the quarter, versus 71.3% in the equivalent period of last year.
In the first half of 2025, revenue totaled $92.2 million, representing a decrease of $10.7 million, or 10.4%, from $102.9 million in the six-month period ended June 30, 2024. The variation is attributable to an average selling price decrease of 9.2% from last year’s first half for the reasons mentioned above and to a 1.3% decrease in the volume of units sold compared to last year, driven by an increase in units sold in the first quarter which was offset by a larger reduction in the second quarter. These factors were partially offset by a favourable currency conversion effect. Envelope represented 67.7% of the Company’s revenue in the period, versus 72.2% during the equivalent period of last year.
Packaging & Specialty Products Segment
Revenue was $22.2 million, up $2.3 million, or 11.6 %, from $19.9 million in the second quarter of 2024. The increase reflects higher demand from sectors more closely correlated to economic conditions, new business wins from existing customers, and both higher demand from existing customers and new customer wins for e-commerce packaging solutions. The Packaging & Specialty Products segment represented 33.6% of the Company’s revenue in the quarter, versus 28.7% in the equivalent period of last year.
For the six-month period ended June 30, 2025, revenue was $44.0 million, up $4.3 million, or 10.7%, from $39.7 million in the corresponding period of 2024. The variation reflects the factors mentioned above. Packaging & Specialty Products represented 32.3% of the Company’s revenue in the first half of 2025, compared with 27.8% during the equivalent period of last year.
EBITDA2 and Adjusted EBITDA2
EBITDA was $5.3 million, compared to $8.8 million in the second quarter last year. Adjusted EBITDA was $5.8 million, versus $9.0 million in the second quarter of 2024. The decrease reflects lower revenue and higher selling, general and administrative expenses, mainly from the foreign exchange loss of $1.5 million due to the effect of variances in closing rates during the periods on intercompany trade accounts, partially offset by lower operating expenses. The Adjusted EBITDA margin was 8.8% of revenue, versus 13.0% in the equivalent quarter of 2024.
For the first half of 2025, EBITDA was $13.8 million, down from $19.3 million in the first half of 2024. Adjusted EBITDA was $14.7 million, down from $19.5 million for the same period a year ago. The decrease reflects the factors mentioned above. The Adjusted EBITDA margin was 10.8% of revenue, versus 13.7% in the equivalent period of 2024.
Envelope Segment
Adjusted EBITDA was $6.2 million, versus $8.0 million in the second quarter of 2024. The decrease reflects lower average selling prices due to a less favourable customer and product mix, and the effect of lower volume on the absorption of fixed costs. These factors were partially offset by benefits from optimization measures announced in July 2024 and procurement optimization initiatives. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 14.1%, compared with 16.2% in the equivalent period of 2024.
For the first half of 2025, adjusted EBITDA was $14.5 million, down from $18.9 million in the first half of 2024. The decrease reflects the factors mentioned above. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 15.7%, compared to 18.4% in the equivalent period of 2024.
Packaging & Specialty Products Segment
Adjusted EBITDA was $2.9 million, versus $2.7 million in the second quarter of 2024. This increase mainly reflects the effect of higher volume on the absorption of fixed costs and procurement optimization initiatives. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 12.9%, compared to 13.7% in the equivalent period of 2024.
For the first half of 2025, Adjusted EBITDA was $6.1 million, compared to $3.9 million in the first half of 2024. This increase mostly reflects the factors mentioned above. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 13.9%, compared to 9.9% in the equivalent period of 2024.
Corporate and other non-allocated expenses
Corporate and other non-allocated expenses were $3.2 million compared to $1.7 million in the second quarter of 2024. The increase is mainly due to the effect of variances in closing rates during the periods on intercompany trade accounts which resulted in a foreign exchange loss of $1.4 million this quarter, as opposed to a foreign exchange gain of $0.1 million last year.
For the first half of 2025, corporate and other non-allocated expenses were $6.0 million compared to $3.4 million in the first half of 2024. This increase is mainly attributable to a $1.5 million foreign exchange loss this year for the reason mentioned above, as opposed to a $0.3 million gain last year, higher professional fees.
Net (Loss) Earnings, Adjusted Net Earnings2, Net (Loss) Earnings Per Share and Adjusted Net Earnings Per Share2
The net loss was $0.3 million or net loss of $0.01 per share for the three-month period ended June 30, 2025, compared to net earnings of $2.0 million or $0.08 per share for the equivalent period last year. Adjusted net earnings were $0.1 million or $0.00 per share for the three-month period ended June 30, 2025, compared to $2.1 million or $0.08 per share for the equivalent period in 2024.
For the six-month period ended June 30, 2025, net earnings were $1.6 million or $0.07 per share, compared to $5.5 million or $0.22 per share for the equivalent period last year. Adjusted net earnings amounted to $2.2 million or $0.09 per share, compared to $5.6 million or $0.22 per share for the equivalent period in 2024.
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2 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
Liquidity and Capital Resources
Cash Flow
Net cash flows from operating activities were $0.3 million during the three-month period ended June 30, 2025, compared to $10.2 million in the equivalent period of 2024. The variation is attributable to working capital requirements of $4.0 million in the second quarter of 2025, as opposed to a $4.1 million working capital release last year, and to lower profitability this year compared to last.
For the six-month period ended June 30, 2025, net cash flows from operating activities were $7.3 million, compared to $15.3 million in the equivalent period of 2024. The variation is attributable to working capital requirements of $3.4 million in the first half of 2025, as opposed to a $1.5 million release last year, and to lower profitability this year compared to last.
Free cash flow3 was negative $41 thousand in the second quarter of 2025, compared to positive $10.9 million for the same period last year. The variation is attributable to lower cash flow from operations.
For the six-month period ended June 30, 2025, free cash flow was $6.8 million, compared to $15.7 million for the same period in 2024. The variation is attributable to lower cash flow from operations.
Debt and Leverage
Total debt decreased to $40.6 million as at June 30, 2025, compared to $43.1 million as at December 31, 2024. The decrease is essentially attributable to debt repayment resulting from free cash flow generation. As at June 30, 2025, the ratio of Net debt to Adjusted EBITDA was 1.1x compared to 1.0x as at December 31, 2024.
Dividend Declaration
On August 6, 2025, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on September 19, 2025, to shareholders of record at the close of business on September 4, 2025. This dividend is designated as an “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Special Dividend Declaration
On August 6, 2025, the Board of Directors declared a special dividend of $0.50 per common share, payable on September 25, 2025, to shareholders of record at the close of business on September 10, 2025. This dividend is designated as an “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Renewal of Normal Course Issuer Bid
The Company today announces that it has received approval from the TSX to purchase by way of a NCIB, for cancellation, up to 1,507,850 of its common shares, representing 10.0% of its “public float” (within the meaning of the TSX Company Manual) as of July 28, 2025. As at July 28, 2025, there were 24,559,869 issued and outstanding common shares, of which 15,078,500 common shares were comprising the public float.
Purchases under the NCIB will be made through the facilities of the TSX and/or alternative trading systems in Canada, if eligible, in accordance with applicable securities laws and regulations, over a maximum period of 12 months beginning on August 11, 2025 and ending on August 10, 2026. The price to be paid by Supremex for any common share will be the market price at the time of acquisition. All common shares purchased pursuant to the NCIB will be cancelled.
The average daily trading volume of Supremex’ common shares over the six completed calendar months prior to the date hereof, as calculated in accordance with TSX rules, is 21,119 common shares. Accordingly, under TSX rules, Supremex is entitled to purchase, on any trading day, up to 5,279 common shares, representing 25% of such average daily trading volume.
In connection with the NCIB, the Company entered into an automatic share purchase plan. Under the automatic share purchase plan, the Company’s broker may repurchase common shares which it would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by the Company’s broker based upon the parameters prescribed by the TSX and applicable Canadian securities laws and the terms of the parties’ written agreement. The automatic share purchase plan has been pre-cleared by the TSX and will be implemented effective as of August 11, 2025.
Supremex believes that, from time to time, the purchase of its common shares under the NCIB is an appropriate and desirable use of available cash to increase shareholder value.
Within the last twelve months, Supremex repurchased 156,800 of its outstanding common shares through the facilities of the TSX and/or alternative trading systems in Canada under a normal course issuer bid, at a weighted average price per share of $4.0921. The TSX had approved the purchase of 1,294,058 common shares under a normal course issuer bid over the period from August 31, 2023 to August 30, 2024.
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3 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
Subsequent Events
On July 7, 2025, the Company acquired Trans-Graphique, a provider or folding carton packaging solutions. Located in Boisbriand Quebec, Trans-Graphique mainly services the at-home food market and generates annual revenue of approximately $5.0 million. Operations will be integrated within the existing Lachine facility.
On July 10, 2025, the Company completed the sale-leaseback of two owned properties located in LaSalle, Quebec and Etobicoke, Ontario for gross proceeds of approximately $53.0 million. At closing, Supremex entered into lease agreements in respect of the properties for an initial 10-year term supplemented by three five-year renewal options. In connection with the transaction, the Company used a portion of the proceeds to repay $31.5 million of its credit facility and the facility was amended to reduce the available limit to $70.0 million.
On July 14, 2025, the Company acquired Enveloppe Laurentide, a provider of envelope in Eastern Canada. Located in Ville Saint-Laurent, Quebec, Enveloppe Laurentide generates annual revenue of approximately $10.0 million. Operations will be integrated within the Company’s existing Envelope network.
Outlook
Demand for the Company’s products has largely normalized, although the current economic volatility, ongoing trade uncertainty, postage increases at the United States Postal Service and labour issues at Canada Post are causing unpredictability. As it continues to expand in the vast and fragmented U.S. envelope market, Supremex will be increasingly subject to competitive pressures, but the Company will rely on its solid reputation and geographic reach to stimulate sales while continuing to proactively control expenses.
The Company continues to focus on optimizing operating efficiency, productivity and capacity utilization throughout its network, as well as on capturing all sales and cost synergies from recent business acquisitions.
With respect to capital deployment, the Company will continue to look for acquisitions, as evidenced by two tuck-in transactions completed subsequent to the quarter ended June 30, 2025, while maintaining capital returns to shareholders.
August 7, 2025 – Second Quarter Results Conference Call:
A conference call to discuss the Company’s results for the second quarter ended June 30, 2025, will be held Thursday, August 7, 2025, at 10:00 a.m. (Eastern Time). A live broadcast of the Conference Call will be available on the Company’s website, in the Investors section under Webcast. To participate (professional investment community only) or to listen to the live conference call, please dial the following numbers. We suggest that participants call-in at least 5 minutes prior to the scheduled start time:
- Local (Toronto) and international participants, dial: 647-846-8776
- North American participants, dial toll-free: 1-833-752-3804
A replay of the conference call will be available on the Company’s website in the Investors section under Webcast. To listen to a recording of the conference call, please call toll-free 1-855-669-9658 or 412-317-0088 and enter the code 3547850. The recording will be available until Thursday, August 14, 2025.
Non-IFRS Financial Measures
Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies and should not be viewed as alternatives to measures of financial performance prepared in accordance with IFRS. Management considers these metrics to be information which may assist investors in evaluating the Company’s profitability and enable better comparability of the results from one period to another.
These Non-IFRS Financial Measures are defined as follows:
| Non-IFRS Measure | Definition |
| EBITDA | EBITDA represents earnings before net financing charges, income tax expense, depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets. The Company uses EBITDA to assess its performance. Management believes this non-IFRS measure, provides users with an enhanced understanding of its operating earnings. |
| Adjusted EBITDA | Adjusted EBITDA represents EBITDA adjusted to remove items of significance that are not in the normal course of operations and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. These items of significance include, when applicable, but are not limited to, charges for impairment of assets, restructuring expenses, value adjustment on inventory acquired and business acquisition costs. The Company uses Adjusted EBITDA to assess its operating performance, excluding items that are not in the normal course of operations and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. Management believes this non-IFRS measure provides users with enhanced understanding of the Company’s operating earnings and increases the transparency and clarity of the Company’s core results. It also allows users to better evaluate the Company’s operating profitability when compared to previous years. |
| Adjusted EBITDA margin | Adjusted EBITDA margin is a percentage corresponding to the ratio of Adjusted EBITDA divided by revenue. The Company uses Adjusted EBITDA margin for the purpose of evaluating business performance, excluding items that are not in the normal course of operations and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. Management believes this non-IFRS measure, provides users with enhanced understanding of its results and related trends. |
| Adjusted net earnings | Adjusted net earnings represent net earnings excluding items of significance listed above under Adjusted EBITDA, net of income taxes. The Company uses Adjusted net earnings to assess its business performance and profitability without the effect of items that are not in the normal course of operations, and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance, net of income taxes. Management believes this non-IFRS measure provides users with an alternative assessment of the Company’s earnings without the effect of items that are not it the normal course of operations or reflective of operating performance, making it valuable to assess ongoing operations and trends in the business performance. Management also believes this non-IFRS measure provides users with enhanced understanding of the Company’s results and provides better comparability between periods. |
| Adjusted net earnings per share | Adjusted net earnings per share represents Adjusted net earnings divided by the weighted average number of common shares outstanding for the relevant period. The Company uses Adjusted net earnings per share for the purpose of evaluating performance and profitability, excluding items that are not in the normal course of operations of the Company, net of income taxes, on a per share basis. |
| Free cash flow | This measure corresponds to net cash flows related to operating activities according to the consolidated statements of cash flows, less additions (net of disposals) to property, plant and equipment and intangible assets. Management considers Free cash flow to be a good indicator of the Company’s financial strength and operating performance because it shows the amount of funds available to manage growth, repay debt and reinvest in the Company. Management considers this measure useful to provide investors with a perspective on its ability to generate liquidity, after making capital investments required to support business operations and long-term value creation. |
| Net debt | Net debt represents the Company’s total debt, net of deferred financing costs and cash. The Company uses Net debt as an indicator of its indebtedness level and financial leverage as it represents the amount of debt that is not covered by available cash. Management believes that investors could benefit from the use of net debt to determine a company’s financial leverage. |
| Net debt to Adjusted EBITDA ratio | Net debt to Adjusted EBITDA ratio represents Net debt divided by trailing 12-month (TTM) Adjusted EBITDA. This ratio is used by management to monitor the Company’s financial leverage and management believes certain investors use this ratio as a measure of financial leverage. |
The following tables provide the reconciliation of Non-IFRS Financial Measures:
| Reconciliation of Net (loss) earnings to Adjusted EBITDA (in thousands of dollars, except for margins) | Three-month periods ended June 30 | Six-month periods ended June 30 | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Net (loss) earnings | (309 | ) | 1,980 | 1,611 | 5,476 | |||
| Income tax expense | 56 | 631 | 857 | 1,784 | ||||
| Net financing charges | 945 | 1,294 | 2,002 | 2,408 | ||||
| Depreciation of property, plant and equipment | 1,552 | 1,730 | 3,040 | 3,363 | ||||
| Depreciation of right-of-use assets | 1,399 | 1,478 | 2,967 | 2,832 | ||||
| Amortization of intangible assets | 1,668 | 1,716 | 3,350 | 3,425 | ||||
| EBITDA | 5,311 | 8,829 | 13,827 | 19,288 | ||||
| Retroactive COVID-related subsidies | (71 | ) | — | (71 | ) | — | ||
| Acquisition costs related to business combinations | 56 | 111 | 56 | 111 | ||||
| Asset impairment | 563 | 75 | 563 | 75 | ||||
| Restructuring (recovery) expenses | (28 | ) | 37 | 285 | 61 | |||
| Value adjustment on acquired inventory through a business combination | — | (54 | ) | — | (54 | ) | ||
| Adjusted EBITDA | 5,831 | 8,998 | 14,660 | 19,481 | ||||
| Adjusted EBITDA margin (%) | 8.8% | 13.0% | 10.8% | 13.7% | ||||
| Reconciliation of Net (loss) earnings to Adjusted net earnings and of Net (loss) earnings per share to Adjusted net earnings per share (in thousands of dollars, except for per share amounts) | Three-month periods ended June 30 | Six-month periods ended June 30 | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Net (loss) earnings | (309 | ) | 1,980 | 1,611 | 5,476 | |||
| Adjustments, net of income taxes | ||||||||
| Retroactive COVID-related subsidies | (53 | ) | — | (53 | ) | — | ||
| Acquisition costs related to business combinations | 41 | 82 | 41 | 82 | ||||
| Asset impairment | 417 | 56 | 417 | 56 | ||||
| Restructuring (recovery) expenses | (21 | ) | 27 | 211 | 45 | |||
| Value adjustment on acquired inventory through a business combination | — | (40 | ) | — | (40 | ) | ||
| Adjusted net earnings | 75 | 2,105 | 2,227 | 5,619 | ||||
| Net (loss) earnings per share | (0.01 | ) | 0.08 | 0.07 | 0.22 | |||
| Adjustments, net of income taxes, per share | 0.01 | — | 0.02 | — | ||||
| Adjusted net earnings per share | 0.00 | 0.08 | 0.09 | 0.22 | ||||
| Reconciliation of Cash flows related to operating activities to Free cash flow (in thousands of dollars) | Three-month periods ended June 30 | Six-month periods ended June 30 | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Cash flows related to operating activities | 304 | 10,222 | 7,269 | 15,318 | ||||
| Acquisitions (net of disposals) of property, plant and equipment | (300 | ) | 764 | (440 | ) | 401 | ||
| Acquisitions of intangible assets | (45 | ) | (66 | ) | (70 | ) | (66 | ) |
| Free cash flow | (41 | ) | 10,920 | 6,759 | 15,653 | |||
| Net debt to Adjusted EBITDA ratio (in thousands of dollars except for ratios) | As at June 30, 2025 | As at December 31, 2024 | ||
| Total debt | 40,574 | 43,142 | ||
| Deferred financing costs | (124 | ) | (159 | ) |
| Cash | (2,056 | ) | (1,794 | ) |
| Net debt | 38,394 | 41,189 | ||
| Adjusted EBITDA – TTM(1) | 35,512 | 40,333 | ||
| Net debt to Adjusted EBITDA ratio | 1.1 | 1.0 | ||
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted net earnings per share, free cash flow, Net debt, Net debt to Adjusted EBITDA ratio4, capital expenditures, dividend payments, the normal course issuer bid, the automatic share purchase plan and the intended purchase for cancellation of common shares of the Company thereunder, and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the year ended December 31, 2024, and in the Company’s Annual Information Form dated March 20, 2025. Supremex cautions that such assumptions may not materialize and that economic conditions such as economic uncertainty, downturns or recessions, or the imposition of tariffs or trade restrictions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.
Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, raw material price increases, operational disruption, cyber security and data protection, dependence on and loss of customer relationships, increase of competition, economic conditions and uncertainty, risk related to the international trade and tax environment (including tariffs, quotas and custom and other restrictions), exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation and, no guarantee to pay dividends. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2024, and in the Company’s Annual Information Form dated March 20, 2025, particularly in “Risk Factors”. Consequently, the Company cannot guarantee that any forward‑looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The Management Discussion and Analysis and Financial Statements can be found on and on Supremex’ website.
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4 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
About Supremex
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper‑based packaging solutions. Supremex operates nine manufacturing facilities across four provinces in Canada and five manufacturing facilities in four states in the United States employing approximately 900 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.
For more information, please visit .
| Contact: | |
| Stewart Emerson | Martin Goulet, M.Sc., CFA |
| President and Chief Executive Officer | MBC Capital Markets Advisors |
| 514 595-0555, extension 2316 | 514 731-0000, extension 229 |
