Ennis Revenue Up in Second Quarter

Midlothian, Texas-based Ennis reported financial results for the three and six months ended Aug. 31, 2010.

Highlights included:

• Consolidated revenues for the six months ended Aug. 31, 2010 were $283.8 million compared to $268.6 million for the same period ended last year, an increase of $15.2 million or 5.7 percent.

• Consolidated gross profit margins increased 400 basis points ("bps") over the comparable six month period last year.

• Diluted earnings per share increased from $0.63 per share for the same period last year to $0.97 for the current period, or an increase of 54.0 percent.

Financial Overview

For the quarter, consolidated net sales increased by $5.2 million, or 3.8 percent, from $137.8 million for the quarter ended Aug. 31, 2009 to $143.0 million for the quarter ended Aug. 31, 2010. Print sales for the quarter were $69.1 million, compared to $73.9 million for the same quarter last year, or a decrease of 6.5 percent. Apparel sales for the quarter were $73.9 million, compared to $63.9 million for the same quarter last year, or an increase of 15.6 percent. Overall gross profit margins ("margins") increased from 26.0 percent to 27.8 percent for the quarters ended Aug. 31, 2009 and Aug. 31, 2010, respectively. Print margins decreased from 28.7 percent to 28.2 percent, and apparel margins increased from 22.9 percent to 27.4 percent, for the quarters ended Aug. 31, 2009 and Aug. 31, 2010, respectively. Net earnings, for the quarter, increased from $9.5 million, or 6.9 percent of sales, for the quarter ended Aug. 31, 2009 to $12.1 million, or 8.5 percent of sales, for the quarter ended Aug. 31, 2010. Diluted EPS increased from $0.37 per share to $0.47 per share for the quarters ended Aug. 31, 2009 and Aug. 31, 2010, respectively.

For the six-month period, net sales increased from $268.6 million for the six months ended Aug. 31, 2009 to $283.8 million for the six months ended Aug. 31, 2010, or 5.7 percent. Print sales for the period were $136.9 million, compared to $145.6 million for the same period last year, or a decrease of 6.0 percent. Apparel sales for the period were $146.8 million, compared to $123.0 million for the same period last year, or an increase of 19.4 percent. Print margins increased from 27.5 percent to 29.2 percent, while apparel margins increased from 21.7 percent to 28.5 percent, for the six months ended Aug. 31, 2009 and 2010, respectively. Net earnings, for the period, increased from $16.2 million, or 6.0 percent of sales, for the six months ended Aug. 31, 2009 to $25.2 million, or 8.9 percent of sales, for the six months ended Aug. 31, 2010. Diluted earnings increased from $0.63 per share to $0.97 per share for the six months ended Aug. 31, 2009 and 2010, respectively.