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MONTREAL, Jan. 06, 2022 (GLOBE NEWSWIRE) -- Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced the reinstatement of its quarterly dividends after having suspended them in the early months of the pandemic.
On January 5, 2022, the Board of Directors also declared a dividend of $0.025 per common share, payable on February 15, 2022, to the shareholders of record at the close of business on January 31, 2022. Starting in the first quarter of 2022, the Board will reinstate its quarterly dividends of $0.025 per common share. On an annual basis, this represents a dividend of $0.10 per common share.
“We reviewed our capital allocation strategy through the lens of sustained year-over-year revenue and EBITDA growth, a substantial reduction in leverage over the past several quarters and an increasingly favorable outlook in the business. We believe a balanced approach to capital deployment including capex, acquisitions, share buybacks and dividends is an attractive combination for shareholders,” stated Stewart Emerson, President & CEO of Supremex.
This dividend is designated as “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation. Note that the declaration of dividends remains subject to the discretion of the Board of Directors and may vary depending on, among other things, Supremex’ earnings, financial requirements, compliance to the covenants of its Secured Credit Facility and the satisfaction of the solvency tests imposed by the CBCA for the declaration and payment of dividends and other conditions existing at such future time.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the future performance of Supremex, future declaration and payments of dividends, and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and liability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the nine-month period ended September 30, 2021 and, in the Company’s Annual Information Form dated March 31, 2021. Supremex cautions that such assumptions may not materialize and that current economic conditions, including all of the current uncertainty resulting from the ongoing COVID-19 health crisis and its broader repercussions on the global economy, render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.
Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: global health crisis, economic cycles, decline in envelope consumption, increase of competition, growth by acquisition, reliance on key personnel, raw material price increases, exchange rate fluctuation, concerns about protection of the environment, availability of capital, credit risks with respect to trade receivables, interest rate fluctuation, potential risk of litigation, contributions to employee benefits plans, cyber security and data protection, no guarantee to pay dividends. In addition, risks and uncertainties arising as a result of the COVID-19 pandemic that could cause results to differ from those expected include, but are not limited to: potential government actions, changes in consumer behaviors and demand, changes in customer requirements, disruptions of the Company’s suppliers and supply chain, availability of personnel and uncertainty about the extent and duration of the pandemic. Such risks and uncertainties are discussed throughout the MD&A for the nine-month period ended September 30, 2021 and, in the Company’s Annual Information Form dated March 31, 2021, in particular, in ‘’Risk Factors’’. Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The Management Discussion and Analysis and Financial Statements can be found on www.sedar.com and on Supremex’ website.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates ten manufacturing facilities across four provinces in Canada and three manufacturing facilities in the United States employing approximately 825 people. Supremex’ growing footprint allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs and solutions providers.
For more information, please visit www.supremex.com.
Chief Financial Officer
514 595-0555, extension 2316