Ennis Business Forms Reports 3Q Results, Sales of $59 Million
Press release from the issuing company
DESOTO, Texas--Dec. 10, 2001--Ennis Business Forms has reported operating results for its third quarter ended November 30, 2001.
"Not withstanding the challenges presented by the general economy, the business forms industry and the ongoing integration of recent acquisitions,'' Keith Walters, Chairman and CEO of Ennis Business Forms, Inc. stated "he was proud of the Company's operating results for the quarter and the nine months ended in November 2001''. Mr. Walters also stated that he was pleased that the Company was able to maintain its position as one of the forms industry's most profitable companies. "We continue to accomplish our results without resorting to the use of restructuring charges, an achievement dating back to 1972.''
The performances of both the Promotional Solutions and Financial Solutions Group for the entire year have exceeded internal expectations. Their performances have served to offset declines in both revenues and earnings of the Forms Solutions Group, which has been impacted by both the general economy and industry decline.
For the third quarter ended November 30, 2001, net sales amounted to $59,458,000 compared to $61,381,000 for the same period last year, a decrease of 3.1%. Net earnings for the quarter amounted to $3,870,000 or $.24 per diluted share, compared to $4,023,000, or $.25 per diluted share for the corresponding period last year, a decrease of 3.8%. Per share earnings computations were based on 16,272,984 shares for the quarter compared to 16,270,876 shares for the prior period.
For the nine months ended November 30, 2001, net sales amounted to $177,976,000 compared to $169,534,000 for the same period last year, an increase of 5.0%. Net earnings for the nine months amounted to $11,325,000 or $.70 per diluted share, compared to $11,662,000 or $.72 per diluted share for the corresponding period last year, a decrease of 2.9%. Per share earnings computations were based on 16,271,876 shares for the nine months compared to 16,239,279 shares for the prior period.
Revenues for both the quarter and nine months ended November 30, 2001 were negatively impacted by business declines in the Forms Solutions Group. Year-to-date revenues are up primarily as a result of the inclusion of Northstar Computer Forms, Inc. (Northstar) for the full fiscal year. Northstar, which is now known as the Financial Solutions Group, was acquired in June of 2000. Excluding the first quarter of fiscal 2002, the revenues of the Financial Solutions and Promotional Solutions Group have been relatively flat.
Year to year comparisons of net earnings for the quarter and nine months ended in November is impacted by an after tax gain on the sale of the Louisville, Kentucky manufacturing facility of $407,000 (approximately $.03 per diluted share) in November 2000. Excluding this gain, net earnings for the quarter ended November 30, 2001 were $.24 per diluted share compared to $.22 per diluted share in the prior period. This increase resulted from improvements in earnings from both the Promotional Solutions and Financial Solutions Groups, including reduction of interest expense related to the financing of the Northstar acquisition, substantially offset by the continued weakness in the Forms Solutions Group. For the nine months ended in November 2001, net earnings, excluding the gain on sale of the Louisville, Kentucky facility, were $.70 per diluted share compared to $.69 in 2000. The increase for the nine months, as with the quarter, is the result of contributions from the Promotional Solutions Group and the Financial Solutions Group, which are substantially offset by declines in revenues and earnings of the Forms Solutions Group. The weakness in the Forms Solutions Group for the entire fiscal year is attributable to ongoing weakness in the general economy.
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