Ennis Inc. Reports Results for Quarter Ended August 31
Ennis Inc., Midlothian, Texas, yesterday reported financial results for the three and six months ended Aug. 31, 2013.
Highlights for the quarter include:
- Consolidated gross profit margin increased 260 basis points for the quarter and 440 basis points for the period.
- Apparel gross profit margin increased 870 basis points for the quarter and 1,110 basis points for the period.
- Diluted EPS increased 31.0 percent to $0.38 per share for the quarter and 59.1 percent to $0.70 per share for the period.
The company’s consolidated net sales for the quarter were $135.3 million compared to $138.3 million for the same quarter last year. Print sales were down 8.2 percent on a comparable quarter basis, from $86.1 million to $79.0 million. Apparel sales increased 7.6 percent (volume up 12.7 percent and selling price per unit down 4.9 percent) for the comparable quarter, from $52.3 million to $56.3 million. Consolidated gross profit margin (“margin”) for the quarter increased 260 basis points from 24.5 percent, for the same quarter last year, to 27.1 percent. For a quarter comparison basis, print margin remained relatively stable at 30.0 percent plus, while apparel margin increased from 14.4 percent to 23.1 percent. Apparel margin continued to increase on both a comparable and sequential quarter basis, due to lower input costs and higher production levels. As a result, net earnings increased from $7.6 million, or 5.5 percent of net sales, for the quarter ended Aug. 31, 2012 to $9.8 million, or 7.2 percent of net sales, for the quarter ended Aug. 31, 2013. Diluted earnings per share increased 31.0 percent from $0.29 for the 2012 quarter to $0.38 for the 2013 quarter.
For the six-month period, net sales decreased from $280.9 million to $273.8 million, or 2.5 percent. Print sales for the six-month period were $160.4 million, compared to $173.4 million for the same period last year, a decrease of $13.0 million, or 7.5 percent. Apparel sales for the six-month period were $113.4 million, compared to $107.5 million for the same period last year, or an increase of $5.9 million or 5.5 percent (volume up 11.6 percent and price down 6.1 percent). The consolidated margin increased from 22.1 percent to 26.5 percent for the six months ended Aug. 31, 2012 and 2013, respectively. Print margin increased during the period from 29.3 percent to 29.9 percent, as a result of the elimination of duplicative costs associated with the integration of acquisitions. Apparel margin increased 1,110 basis points from 10.6 percent to 21.7 percent during the period, due to lower input costs and increased production levels. Net earnings increased from $11.5 million, or 4.1 percent of net sales, for the six months ended Aug. 31, 2012 to $18.3 million, or 6.7 percent of net sales, for the six months ended Aug. 31, 2013. Diluted earnings per share increased 59.1 percent from $0.44 to $0.70 for the six months ended Aug. 31, 2012 and 2013, respectively.