Supremex Inc. (SXP) Q1 2026 Earnings Call

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Replay transcript excerpt

packaging activities, new business wins from existing customers, and revenue from the acquisition of TransGraphic acquired in July 2025. Moving to slide 15, adjusted EBITDA totaled $9.9 million or 13.2% of revenue, up from $8.8 million or 12.6% of revenue in last year's first quarter, and up sequentially from $9.1 million or 12.5% of revenue in the fourth quarter of 2025. Envelope adjusted EBITDA was $8.4 million or 16.6% of revenue versus $8.3 million or 17.2% of revenue last year. Sequentially, it was up from $7.8 million or 15.9% of revenue in the fourth quarter. The improvement mainly reflects the favorable impact of higher volume on the absorption of fixed costs, which more than offset the effect of lower average selling prices. Packaging and specialty products generated adjusted EBITDA of 3.7 million, or 15.4% of revenue, up from 3.3 million, or 15% of revenue last year, and up sequentially from 3.2 million, or 13.2% of revenue in the fourth quarter. The year-over-year increase is essentially due to the effect of higher volume on the absorption of fixed costs. Finally, corporate unallocated costs totaled 2.3 million compared to 2.8 million last year, mostly due to lower professional fees. Turning to slide 16, adjusted net earnings for the quarter were 1.9 million or 8 cents per share versus 2.2 million or 9 cents per share last year. Please note that this year's tax rate was higher due to the non-recognition of 0.8 million in income tax benefits. Otherwise, adjusted net earnings would have been about half a million above last year's. Moving to cash flow on slide 17. Net cash flows from operating activities were negative 0.8 million as opposed to positive $7 million last year. The variation mainly stems from working capital requirements this year, primarily due ...