Ennis Reports Year End Results: Increased Sales and Operating Results
Press release from the issuing company
April 27, 2005 -- Ennis, Inc. today reported increased sales and operating results for the year ended February 28, 2005.
"The acquisitions of Crabar/GBF, Inc., Alstyle Apparel and Royal Business Forms, Inc. were easily the most significant events in what was the most active acquisition year in the history of the Company," Keith S. Walters, Chairman, President and Chief Executive Officer of Ennis, Inc. stated. "The addition of Alstyle Apparel establishes a new growth platform for the Company plus bringing estimated annual revenue in excess of $200,000,000. Crabar/GBF, Inc. and Royal Business Forms, Inc. strengthen the Forms Solutions Group by adding estimated annual revenues of approximately $70,000,000, along with the addition of product capabilities and geographical coverage. While much of the year was focused on acquisitions, the existing operating units continued to perform solidly. The major negative event impacting the performance of the Company was the over $1,500,000 incurred to prepare for the challenges of compliance with the requirements of the Sarbanes-Oxley Act of 2002."
Since the completion of the acquisitions in November 2004, the focus of management has been directed toward the integration of these companies into the Ennis, Inc. operating structure. Because of the company's familiarity with business conducted by Crabar/GBF, Inc., integration of this operation was largely completed by the end of the third quarter, and has progressed satisfactorily. The same can be said for Royal Business Forms, Inc., which is a much smaller operation. Alstyle Apparel is much larger than any organization ever acquired by the Company. At this time, while there is still a significant amount of work to be done to finish the integration, the process is moving forward at a satisfactory rate. This acquisition has added a cyclical nature to the business, which did not previously exist in our business. Sales of activewear are heaviest in the first and second fiscal quarters of Ennis, Inc., with the third quarter being historically less than the previous quarter and the fourth quarter being the low point in the cycle. The Company continues to believe the acquisitions completed during the fiscal year will be accretive to net earnings by the completion of twelve months from the closing of the transactions.
For the fourth quarter ended February 28, 2005, net sales amounted to $134,493,000 compared to $63,085,000 for the same period last year, an increase of 113%. Net earnings for the quarter amounted to $6,903,000, compared to $4,875,000 for the corresponding period last year, an increase of 41.6%. Fully diluted earnings per share were $.27 for the current quarter, compared to $.29 in the prior year. Per share earnings computations were based on 25,743,051 fully diluted shares for the quarter compared to 16,675,256 shares fully diluted for the prior period. The difference in weighted average shares outstanding results from the impact of the shares issued in Alstyle and Royal transactions being outstanding for the entire quarter.
For the twelve months ended February 28, 2005, net sales amounted to $365,353,000 compared to $259,360,000 for the same period last year, an increase of 41%. Net earnings for the twelve months amounted to $22,959,000, compared to $17,951,000, an increase of 27.9%. Fully diluted earnings per share were $1.19 for the current year, compared to $1.08 in the prior year. Per share earnings computations were based upon 19,259,550 fully diluted shares for the current fiscal year compared to 16,601,838 fully diluted shares for the prior year. The difference in weighted average shares outstanding for the year is also the result of the shares issued in the Alstyle and Royal transactions.
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