Midlothian, TX. -- Ennis, Inc. (the “Company”), today reported financial results for the second quarter ended August 31, 2022.  Highlights include:

• Revenues were $111.2 million for the quarter compared to $100.5 million for the same quarter last year, an increase of $10.7 million or 10.6%.
• Earnings per diluted share for the current quarter were $0.47 compared to $0.29 for the comparative quarter last year, an increase of 62.0%.
• Our gross profit margin for the quarter was 31.7% compared to 28.8% for the comparative quarter last year. 

Financial Overview

The Company’s revenues for the second quarter ended August 31, 2022 were $111.2 million compared to $100.5 million for the same quarter last year, an increase of $10.7 million, or 10.6%.  Gross profit margin was $35.2 million, or 31.7%, as compared to $28.9 million, or 28.8%, for the same quarter last year. Net earnings for the quarter were $12.2 million, or $0.47 per diluted share, as compared to $7.5 million, or $0.29 per diluted share, for the same quarter last year. 

The Company’s revenues for the six-month period ended August 31, 2022 were $218.9 million compared to $197.4 million for the same period last year, an increase of $21.5 million or 10.9%.  Gross profit margin was $69.2 million, or 31.6%, as compared to $58.1 million, or 29.4% for the six-month periods ended August 31, 2022 and August 31, 2021, respectively.  Net earnings for the six-month period ended August 31, 2022 were $23.8 million, or $0.92 per diluted share compared to $14.8 million, or $0.57 per diluted share for the same period last year.

Keith Walters, Chairman, Chief Executive Officer and President, commented by stating, "We are pleased with our performance for the second quarter. Customer demand for our products continues to be strong as seen in revenue increases in recent quarters.  Our gross profit margin increased to 31.7% for the current quarter from 28.8% for the same prior year quarter, an increase of 2.9%. Our EBITDA increased over the first quarter from $20.5 million to $21.3 million, representing 19.1% of sales for both quarters. Our disciplined cost management and pricing strategies contributed to our improved performance despite a challenging supply chain and inflationary cost environment.  Paper remains in short supply and the tight labor market persists, but we continue to monitor incoming order volumes as well as rising raw material and other input costs so that we can proactively adjust our pricing and costs accordingly. We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash.  Our profitability and strong financial condition will allow us to continue operations and fund acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit should larger acquisition opportunities materialize as we continue to explore strategic opportunities in the acquisition arena to increase profitability."

Non-GAAP Reconciliations

To provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations, from time to time the Company reports the non-GAAP financial measure of EBITDA (EBITDA is calculated as net earnings before interest expense, tax expense, depreciation, and amortization).  The Company may also report adjusted gross profit margin, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.  

Management believes that these non-GAAP financial measures provide useful information to investors as a supplement to reported GAAP financial information.  Management reviews these non-GAAP financial measures on a regular basis and uses them to evaluate and manage the performance of the Company’s operations.  Other companies may calculate non-GAAP financial measures differently than the Company, which limits the usefulness of the Company’s non-GAAP measures for comparison with these other companies.  While management believes the Company’s non-GAAP financial measures are useful in evaluating the Company, when this information is reported it should be considered as supplemental in nature and not as a substitute or an alternative for, or superior to, the related financial information prepared in accordance with GAAP.  These measures should be evaluated only in conjunction with the Company’s comparable GAAP financial measures. 

The following table reconciles EBITDA, a non-GAAP financial measure, for the three and six months ended August 31, 2022 to the most comparable GAAP measure, net earnings (dollars in thousands). 

In Other News

On September 16, 2022 the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the Company’s common stock.  The dividend is payable on November 4, 2022 to shareholders of record on October 7, 2022.