MONTREAL, May 08, 2024 (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 first quarter ended March 31, 2024. The Company will hold a conference call to discuss these results tomorrow at 8:30 a.m. (Eastern Time). First Quarter Financial Highlights and Recent Events Total revenue of $73.3 million, down from $88.4 million in the first quarter of 2023, but up sequentially from $72.3 million in the fourth quarter of 2023. Envelope segment revenue of $53.4 million, versus $64.5 million a year ago and $50.6 million three months ago. Packaging and Specialty Products segment revenue of $19.8 million, versus $24.0 million last year and $21.7 million in the fourth quarter of 2023. Net earnings of $3.5 million, or $0.14 per share, versus $9.5 million, or $0.37 per share, in the first quarter of 2023, and $0.7 million, or $0.03 per share in the fourth quarter of 2023. Adjusted EBITDA1 was $10.5 million, or 14.3% of revenue, versus $18.8 million, or 21.3% of revenue, last year, and 9.0 million, or 12.4% of sales, in the fourth quarter of 2023. On May 1st, 2024, the Company announced the acquisition of the assets of Forest Envelope Group ("Forest Envelope"), a regional leader in specialty envelope manufacturing located in Bolingbrook, Illinois. On May 8, 2024, the Board of Directors declared a quarterly dividend of $0.04 per common share, payable on June 21, 2024, to shareholders of record at the close of business on June 6, 2024.   Three-month periods ended Financial Highlights(in thousands of dollars, except for per share amounts and margins) March 31, 2024   December 31, 2023   March 31, 2023   Statement of Earnings Revenue 73,268   72,301   88,422   Operating earnings 5,763   1,936   14,371   Adjusted EBITDA(1) 10,483   8,986   18,841   Adjusted EBITDA margin(1) 14.3 % 12.4 % 21.3 % Net earnings 3,496   724   9,497   Basic and diluted net earnings per share 0.14   0.03   0.37   Adjusted net earnings(1) 3,514   2,236   9,780   Adjusted net earnings per share(1) 0.14   0.09   0.38   Cash Flow Net cash flows related to operating activities 5,096   14,814   7,541   Free cash flow(1) 4,733   15,113   3,403   (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. "The first quarter of 2023 was a record revenue and adjusted EBITDA quarter for Supremex. We are encouraged with our first quarter performance, highlighted by sequential increases in adjusted EBITDA and net earnings from the fourth quarter of 2023," said Stewart Emerson, President and CEO of Supremex. "Our envelope business generated a solid adjusted EBITDA margin, while our recent acquisition in the U.S. Midwest should offer opportunities to expand our market reach and rapidly achieve synergies. In packaging, we are gaining momentum in the food market and overall efficiency continues to gradually improve, although volume growth remains modest. Looking ahead, our healthy balance sheet and solid cash flow generation provide us with the flexibility to pursue strategic initiatives that create shareholder value, while continuing to methodically pay down debt, pay dividends and repurchase our shares." Summary of three-month period ended March 31, 2024 Revenue Total revenue for the three-month period ended March 31, 2024, was $73.3 million, representing a decrease of $15.2 million, or 17.1%, from the equivalent quarter of 2023. Envelope Segment Revenue was $53.4 million, representing a decrease of 17.1%, from $64.5 million in the equivalent quarter of 2023, which was positively affected by the tailwinds of the company's ability to capitalize on the supply-chain issues of 2022. The variation mainly reflects the lower volume of units sold due to the effects of higher interest rates and inflation on market demand partially offset by a slightly higher average selling price. The Envelope segment represented 72.9% of the Company's revenue in the quarter, unchanged from the equivalent period of last year. Packaging and Specialty Products Segment Revenue was $19.8 ...