content_image/291791.jpg
## MANAGEMENT’S DISCUSSION AND ANALYSIS 

Years ended December 31, 2011 and 2010 (Tabular amounts in millions of Canadian dollars, except per share data) 

<img src='content_image/291791.jpg'>

## Fourth Quarter Results 

Sales for the fourth quarter of 2011 were $317.3 million, an increase of 12.8% compared to $281.3 million recorded in the 2010 fourth quarter. Excluding currency translation, sales for the fourth quarter in 2011 increased by 13.0% compared to the prior year period. This increase was primarily due to 12.1% of organic growth and 0.9% impact from acquisitions. All business segments showed increased sales, with the Label, Container and Tube Segments up $28.5 million, $4.0 million and $3.5 million, respectively. 

Operating income (a non-IFRS measure; see “Key Performance Indicators and Non-IFRS Measures” in Section 5A below) in the fourth quarter of 2011 was $35.4 million, an increase of 16.4% from $30.4 million in the fourth quarter of 2010. This increase in operating income was attributable to the increases in the Label, Container and Tube Segments, of $2.4 million, $1.5 million and $1.1 million, respectively. 

EBITDA (a non-IFRS measure; see “Key Performance Indicators and Non-IFRS Measures” in Section 5A below) for the fourth quarter of 2011 was $54.7 million, an improvement of 15.2% compared to the $47.5 million for 2010 period. 

Corporate expenses were $6.9 million in the fourth quarter of 2011, a decline of $0.6 million from $7.5 million recorded in the prior year period. The decrease is attributable to a general reduction across the broad range of corporate costs. 

Net finance expense of $5.2 million in the 2011 fourth quarter declined $0.8 million compared to $6.0 million due primarily to lower debt levels. 

