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Ennis Reports Q1 Earnings Increase

Tuesday, June 27, 2006

Press release from the issuing company

MIDLOTHIAN, Texas--June 26, 2006-- Ennis, Inc., today reported financial results for the first quarter ended May 31, 2006. Highlights * Net earnings increased 7.3% over the same quarter last year, from approximately $10.6 million to approximately $11.3 million. * Diluted EPS increased by 7.3% over the same quarter last year, from $.41 per share to $.44 per share for the year. Financial Overview For the quarter, net sales decreased by $4.0 million, or 2.7% from $149.1 million for the quarter ended May 31, 2005 to $145.1 million for the quarter ended May 31, 2006. Sales in the Print Solutions segment for the period were $77.1 million, compared to $80.7 million for the same period last year. The Apparel Solutions segment sales for the period were $68.0 million, compared to $68.4 million for the same period last year. Due mainly to improved margins realized at the Apparel Group during the quarter, the Company's overall margins improved from 25.1% to 26.1% for the quarters ended May 31, 2005 and 2006, respectively. Net earnings for the quarter increased by $772,000, or 7.3%, from $10.6 million for the quarter ended May 31, 2005 to $11.3 million for the quarter ended May 31, 2006. Diluted earnings increased from $.41 per share to $.44 per share for the quarters ended May 31, 2005 and 2006, respectively. The decline in the Print Solutions segment's revenues during the quarter is primarily due to the impact associated with a large promotional customer which the Company ceased doing business with during the fourth quarter of fiscal year 2006, approximately $4.0 million, and the impact of the two print plants closings, which were in 2005, approximately $2.0 million. Without these items, the Print Solutions segment's revenues for the quarter actually increased by approximately 3% quarter over quarter. The Company generated approximately $24.3 million in EBITDA (earnings before interest, taxes, depreciation and amortization) during the quarter, compared to $24.2 million for the comparable quarter last year. Keith Walters, Chairman, President & CEO, commented by saying, "We are extremely pleased with our results for the quarter. We realized that our closing of the two print plants last fiscal year and our decision to cease doing business with a major promotional customer would most likely impact our top-line in the short-term; however being true to our stated focus on profit versus revenue growth, we felt that these moves were in the best interest of our stakeholders. In addition, while we recently completed two acquisitions in the print sector, due to the timing of these acquisitions, neither of these had a significant impact on our operational results during the reported quarter. While we will continue to look for strategic acquisitions in both the print and apparel sectors, we will, as in the past, continue to manage our business with an eye on the bottom line."

 

 

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