Ennis Inc. Reports Results for the First Quarter Ended May 31, 2015 and Declares Quarterly Dividend
Ennis Inc., Midlothian, Texas, reported financial results for the first quarter ended May 31, 2015. Highlights include:
- Consolidated net sales increased $9.4 million for the quarter, or 6.7 percent.
- EBITDA, a non GAAP measure, increased 11.5 percent over the comparable quarter.
- Cash provided by operating activities increased by 130.9 percent.
- Diluted earnings per share increased 16.1 percent from $0.31 for the comparable quarter last year to $0.36 for current year quarter.
The company's consolidated net sales for the quarter ended May 31, 2015 were $150.6 million compared to $141.2 million for the same quarter last year, an increase of 6.7 percent. Print sales increased 9.5 percent from $88.4 million to $96.8 million and apparel sales increased 1.9 percent from $52.8 million to $53.8 million. Consolidated gross profit margin ("margin") was $37.5 million for the quarter, or 24.9 percent, compared to $35.4 million, or 25.1 percent for the same quarter last year. Print margin was 31.0 percent for the quarter compared to 30.5 percent for the same quarter last year, while apparel margin was 14.1 percent for the quarter compared to 16.0 percent for the comparable quarter last year. Apparel margin was impacted by higher input costs due to lower initial manufacturing efficiencies related to our strategic decision to transition to more non-commodity program business and the continuing competitive selling price pressures in the marketplace on commodity type products. Net earnings for the quarter was $9.2 million, or $0.36 per diluted share as compared to $8.0 million, or $0.31 per diluted share for the same quarter last year, an increase of 16.1 percent.
The company believes the non-GAAP financial measure of EBITDA (EBITDA is calculated as net earnings before interest, taxes, depreciation and amortization) provides important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations. The company believes adding back the specified items to net earnings provides a more meaningful comparison to the corresponding reported periods and internal budgets and forecasts, provides management with a more relevant measurement of operating performance and yields metrics which are more useful in assessing management performance. In addition, EBITDA is a component of the financial covenants and an interest rate metric in the company's credit facility. While management believes this non-GAAP financial measure is useful in evaluating Ennis, this information should be considered as supplemental in nature and not as a substitute for, or superior to, the related financial information prepared in accordance with GAAP.