MONTREAL, Nov. 06, 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 third quarter ended September 30, 2025. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).
Third Quarter Financial Highlights and Recent Events
- Total revenue of $65.7 million, versus $69.4 million in the third quarter of 2024.
- Envelope segment revenue of $45.1 million, compared to $47.5 million in the prior year.
- Packaging & Specialty Products segment revenue of $20.6 million, versus $21.9 million last year.
- Earnings per share of $0.37, versus a loss per share of $0.92 a year ago.
- Adjusted EBITDA1 of $6.2 million, or 9.4% of revenue, versus $7.9 million, or 11.4% of revenue, a year ago.
- Acquisition on July 7, 2025, of the assets of Trans-Graphique, a provider of folding carton packaging solutions, mainly for the at-home food market.
- On July 10, 2025, the Company completed the sale and leaseback transaction in respect of its two owned properties in LaSalle, Quebec and Etobicoke, Ontario for gross proceeds of $53.0 million.
- Acquisition on July 14, 2025, of the assets of Enveloppe Laurentide, a provider of envelope in Eastern Canada.
- On September 5, 2025, the Company announced the appointment of Normand Macaulay as Chief Financial Officer, effective September 15, 2025.
- On September 25, 2025, the Company paid a special dividend of $0.50 to shareholders of record at the close of business on September 10, 2025.
- On November 5, 2025, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on December 19, 2025, to shareholders of record at the close of business on December 4, 2025.
| Financial Highlights (in thousands of dollars, except for per share amounts and margins) | Three-month periods ended September 30 | Nine-month periods ended September 30 | ||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||
| Statements of Earnings | ||||||||||
| Revenue | 65,678 | 69,355 | 201,863 | 211,960 | ||||||
| Operating earnings (loss) | 1,344 | (22,569 | ) | 5,814 | (12,901 | ) | ||||
| Adjusted EBITDA(1) | 6,203 | 7,933 | 20,863 | 27,414 | ||||||
| Adjusted EBITDA margin(1) | 9.4% | 11.4% | 10.3% | 12.9% | ||||||
| Net earnings (loss) | 9,127 | (23,038 | ) | 10,738 | (17,562 | ) | ||||
| Basic and diluted net earnings (loss) per share | 0.37 | (0.92 | ) | 0.44 | (0.70 | ) | ||||
| Adjusted net earnings(1) | 4,674 | 1,044 | 6,901 | 6,663 | ||||||
| Adjusted net earnings per share(1) | 0.19 | 0.05 | 0.28 | 0.27 | ||||||
| Cash Flow | ||||||||||
| Net cash flows related to operating activities | (608 | ) | 7,568 | 6,661 | 22,886 | |||||
| Free cash flow(1) | 53,032 | 7,369 | 59,791 | 23,022 | ||||||
| (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. | ||||||||||
"Supremex reinforced its track record for value creation in the third quarter of 2025 as proceeds from a sale and leaseback transaction related to properties in Ontario and Quebec were used to substantially reduce debt and return significant funds to shareholders through a special dividend," said Stewart Emerson, President and CEO of Supremex. "As for operations, Envelope volume was relatively stable despite the considerable headwinds associated with the ongoing Canada Post labour turmoil with gains from recently acquired Envelope Laurentide in Canada partially offsetting material reduction in volume from a single U.S. direct mail account. In Packaging & Specialty Products, solid performances from our folding carton, e-commerce packaging solutions and the contribution of the recently acquired Trans-Graphique folding carton business activities were overshadowed by lower revenue from the commercial printing business, which was also impacted by the ongoing Canada Post labour turmoil."
"Looking ahead, our strong balance sheet provides us with significant flexibility to execute our business strategy and sustain long-term profitable growth. We also intend to continue our regular dividend payment, while sustaining share repurchases to provide shareholders with dual instruments to maximize their returns," concluded Mr. Emerson.
Summary of three and nine-month periods ended September 30, 2025
Revenue
Total revenue for the three-month period ended September 30, 2025, was $65.7 million, representing a decrease of $3.7 million, or 5.3%, from the equivalent period of 2024.
For the nine-month period ended September 30, 2025, total revenue was $201.9 million, representing a decrease of $10.1 million, or 4.8%, from the equivalent period of 2024.
Envelope Segment
In the third quarter of 2025, revenue was $45.1 million, representing a decrease of $2.4 million, or 5.0%, from $47.5 million in the third quarter of 2024. The variation is mainly due to an average selling price decrease of 4.2% from last year's third quarter primarily due to a less favourable customer and product mix between the U.S. and Canadian markets. The volume of units sold declined 0.8% reflecting lower volume in the U.S. direct mail market and the labour disruption at Canada Post, partially offset by the contribution of Enveloppe Laurentide, acquired in July 2025. The Envelope segment represented 68.7% of the Company's revenue in the quarter, versus 68.5% in the equivalent period of last year.
In the first nine months of 2025, revenue totaled $137.3 million, representing a decrease of $13.0 million, or 8.7%, from $150.4 million in the nine-month period ended September 30, 2024. The variation is attributable to an average selling price decrease of 7.6% and a 1.1% decrease in the volume of units sold compared to last year reflecting the factors mentioned above. These factors were partially offset by a favourable currency conversion effect. Envelope represented 68.0% of the Company's revenue in the period, versus 70.9% in the equivalent period of last year.
Packaging & Specialty Products Segment
In the third quarter of 2025, revenue was $20.6 million, down $1.3 million, or 6.0 %, from $21.9 million in the third quarter of 2024. The decrease is mostly attributable to lower revenue from non-envelope direct mail activities in commercial print. This factor was partially offset by higher folding carton revenue driven by increased demand from sectors more closely correlated to economic conditions, new business wins from existing customers, and the contribution from Trans-Graphique, acquired in July 2025. Revenue from e-commerce packaging solutions also increased, reflecting both higher demand from existing customers and new customer wins. The Packaging & Specialty Products segment represented 31.3% of the Company's revenue in the quarter, versus 31.5% in the equivalent period of last year.
For the nine-month period ended September 30, 2025, revenue was $64.5 million, up $2.9 million, or 4.8%, from $61.6 million in the corresponding period of 2024. The variation 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. These factors were partially offset by lower revenue from non-envelope direct mail activities. Packaging & Specialty Products represented 32.0% of the Company's revenue in the first nine months of 2025, compared with 29.1% in the equivalent period of last year.
EBITDA2 and Adjusted EBITDA2
In the third quarter of 2025, EBITDA was $12.2 million, compared to negative $17.5 million in the third quarter of 2024. Adjusted EBITDA was $6.2 million, versus $7.9 million in the third quarter of 2024. The decrease reflects lower revenue, partially offset by lower operating expenses and lower selling, general and administrative expenses. The Adjusted EBITDA margin was 9.4% of revenue, versus 11.4% in the equivalent quarter of 2024.
For the first nine months of 2025, EBITDA was $26.0 million, versus $1.8 million in the first nine months of 2024. Adjusted EBITDA was $20.9 million, versus $27.4 million for the same period a year ago. The decrease reflects lower revenue and higher selling, general and administrative expenses, partially offset by lower operating expenses. The Adjusted EBITDA margin was 10.3% of revenue, versus 12.9% in the equivalent period of 2024.
Envelope Segment
Adjusted EBITDA was $5.3 million, versus $7.9 million in the third 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 11.8%, compared to 16.7% in the equivalent period of 2024.
For the first nine months of 2025, adjusted EBITDA was $19.8 million, compared to $26.8 million in the first nine months of 2024. The decrease reflects the factors mentioned above. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 14.5%, compared to 17.9% in the equivalent period of 2024.
Packaging & Specialty Products Segment
Adjusted EBITDA was $2.2 million, versus $2.5 million in the third quarter of 2024. The decrease mainly reflects a less favourable revenue mix, partially offset by procurement optimization initiatives. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 10.5%, compared to 11.3% in the equivalent period of 2024.
For the first nine months of 2025, adjusted EBITDA was $8.3 million, up from $6.4 million in the first nine months of 2024. This increase mostly 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 10.4% in the equivalent period of 2024.
Corporate and other non-allocated expenses
Corporate and other non-allocated expenses were $1.3 million compared to $2.5 million in the third quarter of 2024. The decrease is mostly due a foreign exchange gain and lower professional fees.
In the first nine months of 2025, corporate and other non-allocated expenses were $7.3 million compared to $5.8 million in the first nine months of 2024. The increase resulted mainly from a foreign exchange loss and higher professional fees.
Net Earnings (Loss), Adjusted Net Earnings2, Net Earnings (Loss) Per Share and Adjusted Net Earnings Per Share2
Net earnings were $9.1 million, or $0.37 per share, for the three-month period ended September 30, 2025, compared to a net loss of $23.0 million, or a loss of $0.92 per share, for the equivalent period last year. Adjusted net earnings were $4.7 million, or $0.19 per share, for the three-month period ended September 30, 2025, compared to $1.0 million, or $0.05 per share, for the equivalent period in 2024.
For the nine-month period ended September 30, 2025, net earnings were $10.7 million, or $0.44 per share, compared to a net loss of $17.6 million, or a loss of $0.70 per share, for the equivalent period last year. Adjusted net earnings amounted to $6.9 million, or $0.28 per share, compared to $6.7 million, or $0.27 per share, for the equivalent period in 2024.
Liquidity and Capital Resources
Cash Flow
Net cash flows used by operating activities were $0.6 million during the three-month period ended September 30, 2025, compared to providing $7.6 million in the equivalent period of 2024. The decrease is attributable to lower profitability, and lower working capital release this year compared to last.
For the nine-month period ended September 30, 2025, net cash flows from operating activities were $6.7 million, compared to $22.9 million in the equivalent period of 2024. In addition to the lower profitability in the current year, the variation reflects working capital requirements of $0.7 million in the first nine months of 2025, as opposed to a $4.4 million release last year.
Free cash flow3 was $53.0 million in the third quarter of 2025, compared to $7.4 million for the same period last year. The variation is attributable to proceeds of $53.0 million from the sale and leaseback transaction, partially offset by lower cash flow from operations.
For the nine-month period ended September 30, 2025, free cash flow was $59.8 million, compared to $23.0 million for the same period in 2024. The variation is attributable to the elements mentioned above.
Debt and Leverage
Total debt decreased to $11.7 million as at September 30, 2025, compared to $43.1 million as at December 31, 2024. The variation is essentially attributable to debt repayment using proceeds from the sale and leaseback transaction and free cash flow generation, offset by the acquisitions made in the quarter and the special dividend payment. As at September 30, 2025, the ratio of Net debt3 to Adjusted EBITDA3 was 0.3x, versus 1.0x as at December 31, 2024.
Dividend Declaration
On November 5, 2025, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on December 19, 2025, to shareholders of record at the close of business on December 4, 2025. This dividend is designated as an "eligible" dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Outlook
Demand for the Company's products is affected by current economic volatility, ongoing trade uncertainty, postage increases and reduced service standards at the United States Postal Service and labour issues at Canada Post which creates a degree of variability in the operating environment. 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, mainly in the Packaging and Specialty Products segment, while maintaining capital returns to shareholders.
November 6, 2025 - Third Quarter Results Conference Call:
A conference call to discuss the Company's results for the third quarter ended September 30, 2025, will be held Thursday, November 6, 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 9305146. The recording will be available until Thursday, November 13, 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, business acquisition costs, and gain on sale and leaseback. 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 earnings(loss)to Adjusted EBITDA (in thousands of dollars, except for margins) | Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||
| 2025 | 2024 | 2025 | 2024 | ||||||
| Net earnings (loss) | 9,127 | (23,038 | ) | 10,738 | (17,562 | ) | |||
| Income tax (recovery) expense | (3,139 | ) | (801 | ) | (2,282 | ) | 983 | ||
| Net financing charges | 1,456 | 1,270 | 3,458 | 3,678 | |||||
| Depreciation of property, plant and equipment | 1,506 | 1,755 | 4,546 | 5,118 | |||||
| Depreciation of right-of-use assets | 1,603 | 1,575 | 4,570 | 4,407 | |||||
| Amortization of intangible assets | 1,667 | 1,777 | 5,017 | 5,202 | |||||
| EBITDA | 12,220 | (17,462 | ) | 26,047 | 1,826 | ||||
| Retroactive COVID-related subsidies | - | - | (71 | ) | - | ||||
| Acquisition costs related to business combinations | 79 | (6 | ) | 135 | 105 | ||||
| Asset impairment | - | 23,337 | 563 | 23,412 | |||||
| Restructuring expenses | 4 | 2,064 | 289 | 2,125 | |||||
| Value adjustment on acquired inventory through a business combination | - | - | - | (54 | ) | ||||
| (Gain) on sale and leaseback | (6,100 | ) | - | (6,100 | ) | - | |||
| Adjusted EBITDA | 6,203 | 7,933 | 20,863 | 27,414 | |||||
| Adjusted EBITDA margin | 53,213 | 212 | |||||||
| Acquisitions of intangible assets | (13 | ) | (10 | ) | (83 | ) | (76 | ) | |
| Free cash flow | 53,032 | 7,369 | 59,791 | 23,022 | |||||
| Net debt to Adjusted EBITDA ratio (in thousands of dollars except for ratios) | As at September 30, 2025 | As at December 31, 2024 | |||
| Total debt | 11,691 | 43,142 | |||
| Deferred financing costs | (162 | ) | (159 | ) | |
| Cash | (2,642 | ) | (1,794 | ) | |
| Net debt | 8,887 | 41,189 | |||
| Adjusted EBITDA - TTM(1) | 33,782 | 40,333 | |||
| Net debt to Adjusted EBITDA ratio | 0.3 | 1.0 | |||
| (1) Refer to the ''Selected Quarterly Operating Results'' section for more information on the results of each of the last eight quarters. | |||||
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 www.sedarplus.ca and on Supremex' website.
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 www.supremex.com.
| Contact: Normand Macaulay Chief Financial Officer investors@supremex.com 514 595-0555, extension 2316 | Martin Goulet, M.Sc., CFA MBC Capital Markets Advisors mgoulet@maisonbrison.com 514 731-0000, extension 229 |
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1 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
2Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
3Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
4 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
