Ennis Posts Increase in Net Sales as Print Sales Spike
MIDLOTHIAN, TX—Sept. 25, 2012—Ennis Inc. reported financial results for the three and six months ended August 31, 2012.
Its consolidated net sales were $138.3 million for the second quarter ended August 31, 2012, compared to $130.4 million for the second quarter ended August 31, 2011, or an increase of 6.1 percent.
- Print sales increased 24.3 percent for the quarter, from $69.2 million to $86.0 million.
- Apparel sales for the quarter declined by 14.5 percent (down 4.5 percent on units and down 10 percent on price) from $61.2 million to $52.3 million.
Net earnings decreased from $9.7 million, or 7.4 percent of net sales, for the quarter to $7.6 million, or 5.5 percent of net sales, for the quarter ended August 31, 2012.
For the six month period, net sales increased from $273.6 million to $280.9 million, or 2.7 percent. Print sales for the six month period were $173.4 million, compared to $136.3 million for the same period last year, an increase of $37.1 million, or 27.2 percent. Apparel sales for the six month period were $107.5 million, compared to $137.3 million for the same period last year, or a decrease of 21.7 percent (down 14.7 percent on units and down 7 percent on price).
Net earnings for the period decreased from $21.1 million, or 7.7 percent of net sales, for the six months ended August 31, 2011 to $11.5 million, or 4.1 percent of net sales, for the six months ended August 31, 2012.
During the second quarter, the company generated $15.7 million in EBITDA (a non-GAAP financial measure calculated as net earnings before interest, taxes, depreciation, and amortization) compared to $19.0 million for the comparable quarter last year. For the six month period ended August 31, 2012, the company generated $25.7 million of EBITDA compared to $40.9 million for the comparable period last year.
Ennis Inc. is primarily engaged in the production and sale of business forms, apparel and other business products. The company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, TX, the company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve its national network of distributors. The company, together with its subsidiaries, operates in two business segments: print and apparel.