Robust sales and earnings drive growth Highlights Revenues of $27.4 million, up 17.9% from $23.2 million in Q1 2023 Net income of $1.8 million ($0.04 cents per share1), up 100.1% from $0.9 million ($0.02 cents per share) in prior year EBITDA2 of $3.6 million (13.3% sales), up 65.0% over Q1 2023 Strong balance sheet with cash available for operating activities totalling $8.5 million at quarter end, including a cash balance of $0.9 million and another $7.6 million under Imaflex's $12.0 million revolving line of credit MONTRÉAL, May 29, 2024 /CNW/ - Imaflex Inc. ("Imaflex" or the "Corporation") (TSXV:IFX) reports consolidated financial results for the first quarter (Q1) ended March 31, 2024 and provides a business update. All amounts are in Canadian dollars. "Imaflex saw a marked improvement in results for the first quarter of 2024, with revenues and profitability growing materially over the corresponding prior year period," said Mr. Abbandonato, President and Chief Executive Officer of Imaflex. "With a solid foundation we expect continued strength going forward, though the pace and magnitude remain uncertain." Delivering Sustainable Growth"We are excited about our future and encouraged by the growth platform we have built in recent years," continued Mr. Abbandonato. In 2022, Imaflex announced important investments to support and increase its production capacity and capabilities. This included the purchase of three co-extruders, and other ancillary flexible packaging equipment, namely a metallizer. The new extruders double Imaflex's multi-layer extrusion capacity and generate an additional 12 to 15 million pounds of film per year, depending on product mix. Collectively, these investments should bring a more meaningful impact to revenues and profitability, while also heightening operational efficiencies. As previously announced, the first extruder and metallizer are installed and fully operational and the benefits are already being seen. The remaining extruders will be coming on-line in the second half of 2024. Following an initial ramp-up period, it takes approximately 18 months for a new extruder to be completely utilized. "The strong performance achieved in past years was driven by our prior capital initiatives and we are confident this proven process can be repeated with these new purchases." "The Board and Imaflex's management team are focused on driving shareholder returns and we regularly assess strategic alternatives beyond capital investments. This may include evaluating potential share buybacks in the future, or other initiatives subject to market conditions and other relevant factors. With a strong balance sheet, Imaflex is in an enviable position, and we are confident the actions we are taking position the business for sustainable growth and future success." _____________________________ 1 Based on basic and diluted weighted shares outstanding 2 EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. See "Caution Regarding Non-IFRS Financial Measures" which follows. Succession Planning"Together with the Board of Directors, we recognize the importance of proactive leadership planning to ensure our on-going success," said Mr. Abbandonato. "After founding Imaflex and dedicating over thirty years of service, I have decided to transition to the role of Executive Chairman in the next year. This will allow me to keep supporting the business in a strategic advisory capacity, while paving the way for new leadership to guide the Corporation through its next chapter of growth. With the Board's full support, we have initiated a CEO succession planning process to ensure a smooth leadership transition. We will provide further updates in due course."  Consolidated Financial Highlights (unaudited)  Three months ended March 31, CDN $ thousands, except per share amounts(or otherwise indicated) 2024 2023 % Change Revenues 27,404