Ennis Inc. Reports Financial Results
Ennis Inc., Midlothian, Texas, reported financial results for the three and nine months ended Nov. 30, 2020. Highlights include:
- Revenues decreased 19.6% for the comparative quarter and increased 6.7% sequentially.
- Earnings per diluted share decreased $0.09 per share for the comparative quarter and increased $0.07 per diluted share, or 28.0% over the sequential quarter.
- The company’s gross profit margin increased on a comparative quarter basis from 29.5% to 30.4%, and increased on a sequential quarter basis from 29.0%.
The company’s revenues for the third quarter ended Nov. 30, 2020 were $92.4 million compared to $114.9 million for the same quarter last year, a decrease of 19.6%. As compared to the previous quarter ended Aug. 31, 2020, revenues were up $5.8 million from $86.6 million, or 6.7%. Gross profit margin was $28.1 million for the quarter, or 30.4%, as compared to $33.8 million, or 29.5% for the third quarter last year. Net earnings for the quarter were $8.4 million, or $0.32 per diluted share compared to $10.6 million, or $0.41 per diluted share, for the third quarter last year. While our net earnings for the quarter were down on a comparable basis, they were up 28.0% from $0.25 per diluted share for our sequential quarter.
The company’s revenues for the nine-month period ended Nov. 30, 2020 were $268.1 million compared to $331.7 million for the same period last year, a decrease of 19.2%. Margin was $77.2 million, or 28.8%, as compared to $99.0 million, or 29.8%, for the nine-month periods ended Nov. 30, 2020 and Nov. 30, 2019, respectively. Net earnings for the nine-month period ended Nov. 30, 2020 were $19.0 million, or $0.73 per diluted share, compared to $29.7 million, or $1.14 per diluted share, for the same period last year.
Keith Walters, chairman, CEO and president, released the following statement:
As we expected, our results continue to be significantly impacted by the coronavirus (COVID-19) pandemic. Our modification to our cost structure in response to the sales impact of the COVID-19 pandemic and the integration of our recent acquisitions resulted in improvements in our gross profit margin and operating income as a percentage of sales. During the third quarter, our gross profit margin percentage improved to 30.4% from our sequential quarter of 29.0% and from the prior year’s third quarter of 29.5%. Our operating income improved to 12.5% from our sequential quarter of 10.3% and from the prior year’s third quarter of 12.3%, and EBITDA increased over the sequential quarter from $13.1 million to $15.8 million, representing 15.1% and 17.0% of sales, respectively. Our balance sheet continues to be strong with our cash position increasing to $89.4 million from our sequential quarter of $83.9 million and a current ratio (current assets divided by current liabilities) of 4.89. The U.S. economy continues to be significantly impacted by the COVID-19 pandemic and parts of the economy have started to re-open, but remain subject to ongoing surges and local shutdowns, creating a very fluid economic environment. As a recent indicator, according to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 245,000 in November, reflecting a degree of resumption of economic activity that had previously been curtailed due to the COVID-19 pandemic and efforts to contain it. According to the BLS report, in November, notable job gains occurred in transportation and warehousing, professional and business services, and health care, whereas employment levels declined in government and retail trade. These BLS statistics provide evidence that various sectors continue to improve, while others have not, which we believe was reflected in our sequential sales increase. We continue to monitor incoming order volumes so that we can proactively adjust our costs accordingly. Although no one is sure of the exact timing of an economic recovery, we will continue to stay focused during this period of economic unrest. We will continue to explore acquisitions that can utilize our cash position more effectively and hunt for new sales in new markets and new channels. We will focus, as always, on maintaining our dividend. We expect that our strong balance sheet and strong free-cash flow position should provide us with the means to accomplish these objectives.
In other news, on Dec. 17, 2020 the board of directors declared a quarterly cash dividend of 22.5 cents per share on the company’s common stock. The dividend is payable on Feb. 4, 2021 to shareholders of record on Jan. 7, 2021.
View the complete report here.
The preceding press release was provided by a company unaffiliated with Print+Promo. The views expressed within do not directly reflect the thoughts or opinions of Print+Promo.