IPL Plastics Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenue of $178.3 million against $132.3 million a year ago. The increase was primarily driven by the acquisition of Macro Plastics Inc. in June 2017, which contributed $27.6 million of additional revenue, and strong organic volume growth in each of the Large Format Packaging and Environmental Solutions, Consumer Packaging Solutions and Returnable Packaging Solutions divisions. Adjusted EBITDA was $22.8 million against $20.8 million a year ago. The increase in Adjusted EBITDA was driven by higher revenue, and a full quarter contribution from the Returnable Packaging Solutions division following the acquisition of Macro. Net loss was $2.6 million against net income of $10.9 million a year ago. This net loss was primarily due to onetime costs associated with IPO as well as bank refinancing costs and, to a lesser extent, disruption costs arising from the start of an integration of a major capital expansion program at Forsyth, Georgia facility. Adjusted net income was $8.7 million or $0.20 per diluted share against $8.8 million or $0.27 per diluted share a year ago. Pro forma adjusted diluted earnings per share were $0.16 against $0.17 a year ago. Adjusted free cash outflow of $3.7 million as compared to an inflow of $5.6 million a year ago. This was largely due to an increase in working capital, which was driven primarily by higher trade receivables from the revenue growth and by additional inventory build-up in respect of third quarter 2018 demand.

For the six months, the company reported revenue of $326.6 million against $244.9 million a year ago. Adjusted EBITDA was $39.9 million against $35.4 million a year ago. Net loss was $1.2 million against net income of $9.7 million a year ago. Adjusted net income was $13.8 million or $0.35 per diluted share against $13.4 million or $0.41 per diluted share a year ago. Pro forma adjusted diluted earnings per share were $0.26 against $0.25 a year ago. Capex was $34.5 million compared to $23 million last year.

The company expects to incur total cash outflow in respect of capital purchases of property, plant and equipment for fiscal 2018 of approximately $52.5 million. The company continues to experience strong growth in demand for its products across all three operating segments and it continues to organically grow revenues given the significant customer and market opportunities available to it. The results for 2018 continue to be adversely impacted by increases in resin prices, freight and logistics, and labor costs. As a result, it expects similar pressure on gross margin and Adjusted EBITDA margin percentages in the second half of 2018 compared with the prior year. Notwithstanding these input cost pressures, some of which are cyclical, it believes that as resin prices stabilize it will be able to realign cost of sales to return business margins to normalized profitability levels.