Ennis Posts Overall Sales Increase, Print Segment Decline

MIDLOTHIAN, TX—June 20, 2011—Ennis Inc. reported financial results for the first quarter ended May 31, 2011.

Highlights:

  • Consolidated revenues for the quarter increased $2.6 million, or 1.8 percent over the comparable quarter last year.
  • Apparel sales increased $3.1 million, or 4.2 percent over the comparable quarter last year.

Financial Overview

For the quarter, consolidated net sales increased by $2.6 million, or 1.8 percent, from $140.7 million for the quarter ended May 31, 2010, to $143.3 million for the quarter ended May 31, 2011.

Print sales for the quarter were $67.1 million, compared to $67.8 million for the same quarter last year, or a decrease of 1.0 percent.

Apparel sales for the quarter were $76.1 million, compared to $73.0 million for the same quarter last year, or an increase of 4.2 percent.

Overall gross profit margins decreased from 30.0 percent to 27.7 percent for the quarters ended May 31, 2010 and May 31, 2011, respectively. Print margins decreased from 30.3 percent to 28.8 percent, and Apparel margins decreased from 29.7 percent to 26.8 percent, for the quarters ended May 31, 2010 and May 31, 2011, respectively.

Net earnings for the quarter decreased from $13.0 million, or 9.3 percent of sales, for the quarter ended May 31, 2010, to $11.4 million, or 8.0 percent of sales, for the quarter ended May 31, 2011.

The company, during the quarter, generated $21.9 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $23.7 million for the comparable quarter last year.

Keith Walters, chairman, CEO and president, commented, “Overall we are pleased with the operational results this quarter, even though our reported margins for both sectors decreased over their comparables due to higher raw material costs. In our Apparel sector alone, our raw material costs flowing through our operating results increased approximately 35 percent over the comparable quarter last year. In addition, our Apparel sector had manufacturing inefficiencies associated with the start-up and transition to our new manufacturing facility in Agua Prieta, Mexico of approximately $2.2 million, or 289 basis points, which were not incurred during the same quarter last year.

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