Ennis Business Forms Reports Increased 4Q and Fiscal 2002 Results
Press release from the issuing company
DESOTO, Texas---April 15, 2002--Ennis Business Forms, Inc. today reported increased operating results for its fourth quarter and year ended February 28, 2002.
"We are extremely pleased of the Company's increased operating results for the quarter and the year ended February 28, 2002," Keith Walters, Chairman and CEO of Ennis Business Forms, Inc. stated. "As the year began we had no idea of the economic climate and business challenges that would face us during the 2002 fiscal year. In this cautious environment our planned internal focus for the year proved to be a prudent strategy and allowed the Company to maintain its position as one of the forms industry's most profitable companies."
The performances of both the Promotional Solutions and Financial Solutions Group for the entire year 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 fourth quarter ended February 28, 2002, net sales amounted to $58,947,000 compared to $59,652,000 for the same period last year, a decrease of 1.2%. Net earnings for the quarter amounted to $3,641,000 or $.22 per diluted share, compared to $1,515,000, or $.09 per diluted share for the corresponding period last year, an increase of 140%. Per share earnings computations were based on 16,319,535 shares for the quarter compared to 16,282,117 shares for the prior period.
For the twelve months ended February 28, 2002, net sales amounted to $236,923,000 compared to $229,186,000 for the same period last year, an increase of 3.4%. Net earnings for the twelve months amounted to $14,966,000 or $.92 per diluted share, compared to $13,177,000 or $.81 per diluted share for the corresponding period last year, an increase of 13.6%. Per share earnings computations were based on 16,318,718 shares for the twelve months compared to 16,257,897 shares for the prior period.
Revenues for both the quarter and year ended February 28, 2002 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 the same.
The improvement in operating results for both the fourth quarter and the full fiscal year over the prior fiscal year is principally due to the success of operating initiatives implemented by management to address consolidation and integration problems encountered at Adams McClure, a member of the Promotional Solutions Group. The Promotional Solutions Group's performance for the fourth quarter improved by $2,030,000 (approximately $.12 per diluted share) over the prior year, and for the full fiscal year, improved by $2,597,000 (approximately $.16 per diluted share). The Financial Solutions Group's inclusion for the full fiscal year compared to nine months in the prior year contributed to the overall improvement in operating results for the fiscal year. The Forms Solutions Group continued to experience weakness in both the fourth quarter and the full fiscal year compared to the prior year. The weakness in the Forms Solutions Group is attributable to ongoing weakness in the general economy.
Effective March 1, 2002, the Company has adopted the provisions of Statement of Financial Accounting Standard No. 142, "Goodwill and Intangible Assets" (SFAS No. 142). The Company is pleased to report that based on the required goodwill impairment test performed, no impairment of goodwill is indicated. Adoption of SFAS No. 142 will increase after-tax earnings by approximately $.06 per diluted share for the fiscal year 2003 due to goodwill no longer being amortized.
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