Ennis Reports 6.2 Percent Increased Revenue
Financial Overview
For the quarter, consolidated net sales increased by $10.0 million, or 8.2 percent, from $121.4 million for the quarter ended Feb. 28, 2010 to $131.4 million for the quarter ended Feb. 28, 2011. Print sales for the quarter were $66.2 million, compared to $66.1 million for the same quarter last year, or an increase of 0.2 percent. Apparel sales for the quarter were $65.2 million, compared to $55.3 million for the same quarter last year, or an increase of 17.9 percent. Overall gross profit margins ("margins") during the quarter decreased slightly from 28.2 percent for the three months ended Feb. 28, 2010 to 27.5 percent for the three months ended Feb. 28, 2011. Print margins increased from 26.6 percent to 26.9 perecent, while our Apparel margins decreased from 30.1 percent to 28.0 percent, due to higher cotton costs and the impact of the start-up of our Agua Prieta facility. While our Apparel margins decreased slightly over the comparable quarter last year, they were in line with our nine month numbers (27.8 percent for the nine months ended Nov. 30, 2010 compared to 28.0 percent for the current quarter). Net earnings were $9.8 million, or 8.1 percent of sales, for the three months ended Feb. 28, 2010 and $9.8 million, or 7.5 percent of sales, for the quarter ended Feb. 28, 2011. Diluted EPS for the quarter remained at $0.38 per share, due to the impact of higher cotton costs and the impact of the Agua Prieta startup. We estimate that the impact of the start-up of Agua Prieta during the quarter was approximately $2.4 million or $1.6 million after tax.