Business
Supremex announces second quarter 2014 results and dividend increase of 12.5%
MONTREAL , Aug. 1, 2014 /CNW Telbec/ - Supremex Inc., Canada's largest producer of...
About this update from Supremex Inc.
[{"type":"text","content":"\n\nMONTREAL, Aug. 1, 2014 /CNW Telbec/ - Supremex Inc., Canada's largest producer of stock and custom-manufactured envelopes and growing provider of packaging and related products (TSX: SXP), today announced its results for the second quarter ended June 30, 2014.\n\n\n\n\n\n\n\nRevenue of $30.6 million \nEBITDA of $5.8 million \nCash flows from operating activities before working capital adjustments relatively stable at $4.4 million \nDebt repayment of $7.3 million year-to-date; total debt to TTM EBITDA ratio reduced to 1.2 times \nEntered into a multi-year agreement valued at approximately $9 million per year to supply packaging products to a customer in the U.S \nBoard of directors has approved a 12.5% increase to the annualized dividend rate from $0.16 to $0.18 per share. Effective immediately, the new quarterly dividend rate will be $0.045 per share\n\n\n\n\n\n\"We are pleased to have achieved an EBITDA of $5.8 million\" said Stewart Emerson, President and Chief Operating Officer of Supremex. \"The decline in units sold during the quarter was largely offset by improved average selling prices, and we also realized the benefits of manufacturing efficiencies and our ongoing efforts to contain costs. With solid cash flow from operations, we have reduced our debt level by $7.3 million year-to-date and have begun repurchasing shares with the NCIB program put in place in May.  \n\nUnits sold and sales in the U.S. were somewhat lower than anticipated this quarter, but our outlook on the U.S. market remains positive,\" Mr. Emerson added. \"There have been some reductions in capacity and changes to the competitive environment south of the border, and these factors, combined with the increased sales efforts that we have made, are translating into many more quotation opportunities for us. The recent win of a $27 million agreement in the U.S. over a period of three years certainly validates our efforts and strategy. \n\nAt this stage, our continuing efforts to expand in the U.S. market with value-added products, to manage costs and to reduce our debt level remain key priorities,\" Mr. Emerson concluded.  \n\nFinancial ResultsRevenue in the second quarter of 2014 amounted to $30.6 million compared with $31.9 million in the second quarter of 2013, a decrease of $1.3 million or 4.1%, which is attributable to a decr...