Aug 03, 2012. /Lesprom Network/. For the 2Q 2012, Supremex Inc. generated revenue of $31.8 million compared with $34.1 million for the three-month period ended June 30, 2011, representing a decrease of $2.3 million or 6.6%, as the company said in the press release received by Lesprom Network. The decrease in revenue is mainly attributable to the number of units sold in Canada and in the United States. Revenue from sales in Canada decreased by $2 million or 6.3%, from $31.1 million to $29.1 million. Revenue from sales in the United States decreased by $0.3 million or 9.2%, from $3 million to $2.7 million. The decrease in sales revenue in Canada was driven by a 4.9% decrease in the number of units sold combined with a 1.5% decrease in the average selling price. The decrease in the number of units sold was generally spread in all accounts with bigger decline seen in large corporations and in the public sector. The decrease in sales revenue in the United States was due to a 10.4% decrease in the number of units sold offset by a 1.3% increase in the average selling prices. The decrease in the number of units sold was attributable to 2011 orders not repeated in 2012 due to the softness of the market. The increase in the average selling prices reflects changes in the product mix. EBITDA for the 2Q 2012 was $5.2 million compared with $6.6 million for the same period in 2011, representing a decrease of $1.4 million or 21.0%. EBITDA margin was 16.5% compared with 19.5% in the 2Q 2011. Excluding non-recurring items incurred in the 2Q 2012, EBITDA margin would have been 17.8%. The margin erosion is attributable to reduction of average selling price due to competitive pressure and increase of raw material costs. Net earnings for the 2Q 2012 were $1.4 million or $0.05 per share compared with $1.5 million or $0.05 per share for the same period in 2011, representing a decrease of $0.1 million. For the first six months, Supremex generated revenue of $67.4 million compared with $73.2 million in 2011, representing a decrease of $5.8 million or 7.8%. The EBITDA for the first six months of 2012 was $11.7 million compared with $14.5 million for the same period in 2011, a decrease of $2.8 million or 19.8%. “The industry is continuing to experience important negative trends. People are still using lots of various sized of envelopes but the average runs are getting smaller as the market continues to decline,” said Gilles Cyr, President and CEO of Supremex. “Although we had successes in gaining back some piece of business lost in the past few years and also marketing new products, such as our new protective envelopes for credit cards, this was not enough to offset the reduction in volume felt almost in every market. The major billers are buying less envelopes and, as a result, every order is now priced very aggressively thus impacting our margins. The cost reduction measures taken in the last few years have help, but this was not enough and Supremex is still pursuing cost saving opportunities in order to mitigate the impact of reduced volume and margins. At the beginning of July 2012, we have just announced to all of our employees that we were not able to afford anymore the cost of the defined benefit pension plans and as such have converted them, for future service, into defined contribution pension plans. We estimate that such a change will save more than $1.8 million on an annual basis,” said Mr. Cyr. Supremex Inc. is Canada’s largest manufacturer and marketer of a broad range of stock and custom envelopes and related products.