Ennis Inc. Reports Results for the First Quarter Ended May 31, 2015 and Declares Quarterly Dividend
During the quarter, the company generated $19.2 million in EBITDA compared to $17.3 million for the comparable quarter last year, or an increase of 11.5 percent.
"The print group continued its strong performance during the quarter, improving margins by 50 basis points. The apparel group continues to be impacted by market dynamics. The discounting that was prevalent in the apparel marketplace for most of last fiscal year is continuing as expected into fiscal 2016," said Keith Walters, chairman, chief executive officer and president, Ennis. "As such, our ability to raise prices to offset any input cost increases has been, and we believe will continue to remain, difficult. Margins will continue to be restrained below historical levels unless relieved from the cost side. We are starting to see some relief on the cotton pricing, which could lead to cost side relief in quarters to come, unless we are forced to concede these savings due to market pressures. While our apparel sales improved during the quarter due to the non-commodity private label programs we entered into as part of our strategic initiative, our cost, as expected, increased some due to manufacturing complexities associated with these programs. These costs should fall back in line now that all the processes have been put into place and the initial learning curve overcome.
- Companies:
- Ennis