Supremex Announces Results for the Second Quarter of 2025, a Special Dividend of $0.50 Per Common Share, the Renewal of Its Normal Course Issuer Bid and Completes Two Tuck-In Acquisitions Subsequent to the End of the Quarter

Core Viewpoint - Supremex Inc. reported mixed financial results for the second quarter of 2025, with a decline in revenue primarily from the envelope segment, while the packaging segment showed growth. The company also announced a special dividend and the renewal of its normal course issuer bid to enhance shareholder value [1][5][7]. Financial Highlights - Total revenue for Q2 2025 was $66.0 million, down 4.9% from $69.3 million in Q2 2024 [8]. - Envelope segment revenue decreased by 11.5% to $43.8 million, while the Packaging & Specialty Products segment revenue increased by 11.6% to $22.2 million [5][11]. - Adjusted EBITDA for Q2 2025 was $5.8 million, representing an adjusted EBITDA margin of 8.8%, down from 13.0% in the previous year [13][14]. Earnings and Losses - The company reported a net loss of $0.3 million or $0.01 per share for Q2 2025, compared to net earnings of $2.0 million or $0.08 per share in Q2 2024 [21][22]. - Adjusted net earnings were $0.1 million or $0.00 per share for Q2 2025, down from $2.1 million or $0.08 per share in the same quarter last year [21][23]. Cash Flow and Debt - Net cash flows from operating activities were $0.3 million in Q2 2025, a significant decrease from $10.2 million in Q2 2024 [24]. - Free cash flow was negative $41 thousand in Q2 2025, compared to positive $10.9 million in the same period last year [26]. - Total debt decreased to $40.6 million as of June 30, 2025, down from $43.1 million at the end of 2024 [27]. Dividend Declarations - The Board of Directors declared a special dividend of $0.50 per common share, payable on September 25, 2025, and a quarterly dividend of $0.05 per common share, payable on September 19, 2025 [28][29]. Recent Acquisitions - Supremex acquired Trans-Graphique, a provider of folding carton packaging solutions, and Enveloppe Laurentide, a provider of envelopes in Eastern Canada, to enhance its product offerings [38][40]. Outlook - The company anticipates continued demand normalization for its products, but faces challenges from economic volatility, trade uncertainties, and labor issues [41]. - Supremex aims to optimize operational efficiency and capture synergies from recent acquisitions while maintaining capital returns to shareholders [42].