Ennis Business Forms Reports 2001 Results, Revenue Up, Earnings Way Down
Press release from the issuing company
4/16/01DESOTO, Texas, April 16 — Ennis Business Forms, Inc. NYSE:EBF) today reported operating results for its fourth quarter and year ended February 28, 2001. For the fourth quarter ended February 28, 2001, net sales amounted to $59,652,000 compared to $50,517,000 for the same period last year, an increase of 18.1%. Net earnings for the quarter amounted to $1,515,000 or $.09 per diluted share, compared to $4,024,000, or $.25 per diluted share for the corresponding period last year, a decrease of 62.4%. Per share earnings computations were based on 16,270,765 shares for the quarter compared to 16,241,862 shares for the prior period.
For the twelve months ended February 28, 2001, net sales amounted to $229,186,000 compared to $176,600,000 for the same period last year, an increase of 29.8%. Net earnings for the twelve months amounted to $13,177,000 or $.81 per diluted share, compared to $15,123,000 or $.93 per diluted share for the corresponding period last year, a decrease of 12.9%. Per share earnings computations were based on 16,246,545 shares for the twelve months compared to 16,249,861 shares for the prior period.
The increase in net sales in the fourth quarter ended February 28, 2001 resulted from our newly acquired business Northstar Computer Forms, Inc., which was acquired in June, 2000. The increase in net sales for the twelve months ended February 28, 2001 resulted from the Northstar acquisition as well as from our other newly acquired businesses, Adams McClure L.P. and American Forms, Inc., both acquired in November 1999.
The decrease in net earnings in the fourth quarter and the fiscal year ended February 28, 2001 when compared to the same period last year resulted principally from the consolidation and integration of the Company's Louisville operations with its Adams McClure operations in Denver. The impact of this event reduced net earnings approximately $.10 per diluted share in the fourth quarter. In addition, fiscal fourth quarter 2000 earnings benefited from year-end adjustments related to physical inventory counts and LIFO valuation of approximately $434,000 net of income taxes ($.03 per diluted share). These adjustments affecting fiscal fourth quarter 2001 earnings were negligible. Finally, revenue in the Forms Solutions group, like the economy, reflected weakness resulting in lower than expected earnings in the quarter.
Keith Walters, Chairman, President and CEO of Ennis, stated, ''''We have taken measures to ensure that the Adams McClure operation will return to profitability in the first quarter. We anticipate that the consolidation of certain of our operations will ultimately result in greater efficiencies and profitability.''''
In accordance with recent accounting requirements, net sales for the quarter and twelve months ended February 28, 2001 and for all periods reported have been restated to include revenues from shipping and handling charges. The corresponding costs have been included in cost of sales. In the past, these revenues and related costs have been reported in net sales. This change in accounting treatment has no effect on net earnings.
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