Supremex Inc. announced its results for the Q3 ended September 30, 2023. Total revenue for the Q3 2023, was $69.8 million, representing an increase of $1.9 million, or 2.8%, from the equivalent quarter of 2022.
Q3 2023 EBITDA was $13.0 million, down from $15.1 million in the Q3 2022. Adjusted EBITDA amounted to $11.7 million, compared to $15.5 million for the same period last year. The decrease reflects higher revenue and operating expenses partially offset by lower selling, general and administrative expenses.
The Adjusted EBITDA margin was 16.8% of revenue, compared to 22.8% in the equivalent quarter of 2022.
Net earnings were $5.0 million or $0.19 per share for the Q3 2023, compared to $8.1 million or $0.31 per share for the equivalent period last year. Adjusted net earnings were $4.0 million or $0.16 per share for the three-month period ended September 30, 2023, compared to $8.5 million or $0.32 per share for the equivalent period last year.
“Demand continues to improve but somewhat slower than expected with high inflation and interest rates still affecting direct mail and consumer product spending. With continuous efforts to drive efficient working capital management, Supremex generated a solid free cash flow during the Q3. Taking into consideration the business acquisitions, Supremex reimbursed over $9 million of long-term debt and repurchased shares,” said Stewart Emerson, President & CEO of Supremex. “We entered the Q4 with the right level of inventory to support our customers in the current market conditions. Meanwhile, our teams are focused on completing the integration of the packaging operations and achieving the planned efficiencies and synergies related to our most recent optimization initiatives.”
Summary of nine-month period ended September 30, 2023
Total revenue for the nine-month period ended September 30, 2023, was $229.9 million, representing an increase of $36.2 million, or 18.7%, from the equivalent period of 2022.
EBITDA was $40.8 million, down slightly from $41.0 million in the first nine months of 2022. Adjusted EBITDA was $40.1 million, down slightly from $41.5 million for the same period a year ago, reflecting higher operating expenses and selling, general and administrative expenses, partially offset by higher total revenue. The Adjusted EBITDA margin reached 17.5% in the first nine months of 2023, versus 21.4% in the corresponding period of 2022.
Net earnings were $16.6 million or $0.64 per share for the nine-month period ended September 30, 2023, compared to $21.8 million or $0.83 per share for the equivalent period last year.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paperbased packaging solutions.
