Supremex Inc. announced continued strong results for the 2Q and first half of 2016. Revenue in the 2Q 2016 was up 16.4%, reaching $39.4 million as a result of the acquisition of Classic Envelope Inc. in the US, the acquisition of Premier Envelope Ltd. operating primarily in Western Canada and from growing sales of packaging and specialty products.
Net earnings reached $3.9 million in the 2Q 2016, compared with $5.6 million in the equivalent quarter of 2015. Adjusted net earnings grew by 45.7% reaching $3.9 million compared with $2.7 million for the comparable period of 2015.
Adjusted EBITDA grew by 7.4%, or $0.5 million in the 2Q 2016, reaching $6 .9 million. Adjusted EBITDA margins stood at 17.5% compared to 19% last year as a result of a growing presence in the U.S. envelope market and business integration costs.
"We are pleased by our 2Q and year-to-date results which again delivered solid revenue, adjusted net earnings and cash flow growth. With our growing presence in the U.S. we are now among the five largest envelope manufacturers in North America. Our strategy to leverage our Canadian envelope platform and diversify into growth markets continues to bear fruit," said Stewart Emerson, President and CEO of Supremex.
Revenue for the six-month period ended June 30, 2016, grew by 17.7% or $12.1 million , reaching $80 .7 million on strong growth from the U.S. envelope market (up by $7 million, or 66.5%), the Canadian envelope market (up by $4 .5 million, or 8.5%) and packaging and specialty products (up $0.6 million. or 13.1%).
Net earnings reached $7.1 million in the first six months of 2016, compared with $9.4 million in the equivalent period of 2015. Adjusted net earnings grew by 25.1% to $7.1 million for the six-month period ended June 30, 2016 , up from $5.7 million for the same period in 2015.
Supremex Inc. is a leading North American manufacturer and marketer of a broad range of stock and custom envelopes and growing provider of packaging and specialty products.
