Ennis, Inc. (the “Company”), (NYSE: EBF), today reported
financial results for the quarter and fiscal year ended February
29, 2024. Highlights include:
- Revenues were $97.4 million for the quarter, a decrease of
$5.3 million or 5.2% over last year's fourth quarter and $420.1
million for the fiscal year, a decrease of $11.7 million, or 2.7%
over last fiscal year.
- Earnings per diluted share for the current quarter were
$0.39 compared to $0.47 for the same quarter last year. Earnings
per diluted share were $1.64 for the fiscal year as compared to
$1.82 for the last fiscal year.
- Gross profit margin for the quarter increased from 27.6%
last year to 28.4% this year. Gross profit margin was 29.8% for the
fiscal year compared to 30.3% for the prior fiscal year.
Financial Overview
The Company’s revenues for the fourth quarter ended February 29,
2024 were $97.4 million compared to $102.7 million for the same
quarter last year, a decrease of 5.2%. Gross profits totaled $27.7
million, or 28.4%, as compared to $28.3 million, or 27.6% for the
same quarter last year. Our gross profit margin decreased on a
sequential basis from 29.2% for the third quarter ended November
30, 2023 to 28.4%. Our net earnings for the quarter were $10.1
million, or $0.39 per diluted share as compared to $12.2 million,
or $0.47 per diluted share for the same quarter last year.
The Company’s revenues for the fiscal year ended February 29,
2024 were $420.1 million compared to $431.8 million for the prior
fiscal year, a decrease of 2.7%. Gross profits totaled $125.3
million, or 29.8%, as compared to $131.0 million, or 30.3% for the
prior fiscal year. Net earnings for the fiscal year were $42.6
million or $1.64 per diluted share, compared to $47.3 million, or
$1.82 per diluted share for the prior fiscal year.
Keith Walters, Chairman, Chief Executive Officer and President,
commented by stating, “Our performance for the quarter met our
expectations. The print market overall continues to be fairly soft
with competitive pricing, resulting in downward pressure on
operating margin. Our gross profit margin showed an 80-basis point
decline from the sequential quarter, decreasing from 29.2% to 28.4%
and an 80-basis point increase compared to 27.6% in the same prior
year quarter. Our EBITDA declined slightly at $18.1 million or
18.6% of sales for the current quarter compared to the preceding
quarter, $18.3 million or 17.5% of sales and compared to the same
quarter last year $20.5 million or 19.9% of sales. Our prior year
quarter was favorably impacted by the sale of an unused
manufacturing facility which resulted in a $5.8 million gain and
increased our diluted earnings per share $0.17.
“We are in the early stages of completing the implementations of
our ERP systems of our recent acquisitions and when fully
implemented, we believe the margins of the acquired businesses will
improve to expected levels. These acquisitions did approximately
$4.5 million in revenues for the quarter and $21.2 million in
revenues for the year. Diluted earnings per share were negatively
impacted $0.01 per diluted share for the quarter and positively
impacted $0.03 per diluted share for the year.
“The higher interest rates on our cash and short-term
investments of U.S. government treasury bills increased our
interest income which is included in other expense (income).
Interest income for the current quarter was $1.3 million compared
to $0.5 million for the same quarter last year. Interest income for
the fiscal year ended February 29, 2024 was $4.0 million compared
to $0.8 million for the prior fiscal year.
“We continue to maintain a strong financial position with $110.9
million in cash and short-term investments and no debt. We
strategically reduced inventory by $6.8 million improving our cash
flow and repurchased over 29,000 shares of our common stock in the
market at an average price of $19.96 per share during the current
quarter. Our profitability and strong financial condition will
allow us to continue operations and take advantage of acquisitions
without incurring debt. Given those strengths, we also anticipate
timely access to credit should larger acquisition opportunities
materialize. We continue to focus on returning value to
shareholders by delivering profitability and through our quarterly
dividends.”
Non-GAAP Reconciliations
To provide important supplemental information to both management
and investors regarding financial and business trends used in
assessing its results of operations, from time to time the Company
reports the non-GAAP financial measure of EBITDA (EBITDA is
calculated as net earnings before interest expense, tax expense,
depreciation, and amortization). The Company may also report
adjusted gross profit margin, adjusted earnings and adjusted
diluted earnings per share, each of which is a non-GAAP financial
measure.
Management believes that these non-GAAP financial measures
provide useful information to investors as a supplement to reported
GAAP financial information. Management reviews these non-GAAP
financial measures on a regular basis and uses them to evaluate and
manage the performance of the Company’s operations. Other companies
may calculate non-GAAP financial measures differently than the
Company, which limits the usefulness of the Company’s non-GAAP
measures for comparison with these other companies. While
management believes the Company’s non-GAAP financial measures are
useful in evaluating the Company, when this information is reported
it should be considered as supplemental in nature and not as a
substitute or an alternative for, or superior to, the related
financial information prepared in accordance with GAAP. These
measures should be evaluated only in conjunction with the Company’s
comparable GAAP financial measures.
The following table reconciles EBITDA, a non-GAAP financial
measure, for the three and twelve months ended February 29, 2024
and February 28, 2023 to the most comparable GAAP measure, net
earnings (dollars in thousands).
Three months ended
Twelve months ended
February 29,
February 28,
February 29,
February 28,
2024
2023
2024
2023
Net earnings
$
10,146
$
12,193
$
42,597
$
47,300
Income tax expense
3,718
3,978
16,526
17,630
Interest expense
—
—
—
—
Depreciation and amortization
4,217
4,310
17,512
17,356
EBITDA (non-GAAP)
$
18,081
$
20,481
$
76,635
$
82,286
% of sales
18.6
%
19.9
%
18.2
%
19.1
%
In Other News
The 2024 Annual Meeting of Shareholders will be held on July 18,
2024, with a record date of May 17, 2024.
About Ennis
Founded in 1909, the Company is one of the largest private-label
printed business product suppliers in the United States.
Headquartered in Midlothian, Texas, Ennis has production and
distribution facilities strategically located throughout the USA to
serve the Company’s national network of distributors. Ennis
manufactures and sells business forms, other printed business
products, printed and electronic media, integrated forms and
labels, presentation products, flex-o-graphic printing, advertising
specialties and Post-it® Notes, internal bank forms, plastic cards,
secure and negotiable documents, specialty packaging, direct mail,
envelopes, tags and labels and other custom products. For more
information, visit www.ennis.com.
Safe Harbor under the Private
Securities Litigation Reform Act of 1995
Certain statements that may be contained in this press release
that are not historical facts are forward-looking statements that
involve a number of known and unknown risks, uncertainties and
other factors that could cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievement expressed or implied by
such forward-looking statements. The words “anticipate,”
“preliminary,” “expect,” “believe,” “intend” and similar
expressions identify forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a “safe harbor”
for such forward-looking statements. In order to comply with the
terms of the safe harbor, the Company notes that a variety of
factors could cause actual results and experience to differ
materially from the anticipated results or other expectations
expressed in such forward-looking statements. These statements are
subject to numerous uncertainties, which include, but are not
limited to, the severity and duration of the COVID-19 pandemic and
related economic repercussions, the erosion of demand for our
printer business documents as the result of digital technologies,
risk or uncertainties related to the completion and integration of
acquisitions, the limited number of available suppliers and
variability in the prices of paper and other raw materials, and
operational challenges relating to the COVID-19 pandemic and
efforts to mitigate the spread of the virus, including logistical
challenges, protecting the health and well-being of our employees
and potential plant closures. Other important information regarding
factors that may affect the Company’s future performance is
included in the public reports that the Company files with the
Securities and Exchange Commission, including but not limited to,
its Annual Report on Form 10-K for the fiscal year ending February
28, 2023. The Company does not undertake, and hereby disclaims, any
duty or obligation to update or otherwise revise any
forward-looking statements to reflect events or circumstances
occurring after the date of this release, or to reflect the
occurrence of unanticipated events, although its situation and
circumstances may change in the future. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The inclusion of any statement in
this release does not constitute an admission by the Company or any
other person that the events or circumstances described in such
statement are material.
Ennis, Inc.
Unaudited Condensed
Consolidated Financial Information
(In thousands, except share
and per share amounts)
Three months ended
Twelve months ended
Condensed
Consolidated Operating Results
February 29,
February 28,
February 29,
February 28,
2024
2023
2024
2023
Revenues
$
97,434
$
102,692
$
420,109
$
431,837
Cost of goods sold
69,763
74,342
294,767
300,787
Gross profit margin
27,671
28,350
125,342
131,050
Operating expenses
14,736
17,877
68,830
70,793
(Gain) Loss from disposal of assets
—
(5,911
)
53
(5,896
)
Operating income
12,935
16,384
56,459
66,153
Other expense
(929
)
213
(2,664
)
1,223
Earnings before income taxes
13,864
16,171
59,123
64,930
Income tax expense
3,718
3,978
16,526
17,630
Net earnings
$
10,146
$
12,193
$
42,597
$
47,300
Weighted average
common shares outstanding
Basic
25,852,340
25,820,639
25,842,798
25,818,737
Diluted
25,984,106
25,959,448
25,940,076
25,951,141
Earnings per
share
Basic
$
0.39
$
0.47
$
1.65
$
1.83
Diluted
$
0.39
$
0.47
$
1.64
$
1.82
February 29,
February 28,
Condensed
Consolidated Balance Sheet Information
2024
2023
Assets
Current Assets
Cash
$
81,597
$
93,968
Investment Securities
29,325
-
Accounts receivable, net
47,209
53,507
Inventories, net
40,037
46,834
Other
3,214
2,317
Total Current Assets
201,382
196,626
Property, plant & equipment, net
54,965
47,789
Operating lease right-of-use assets
9,827
13,133
Goodwill and intangible assets
132,676
135,907
Other
340
380
Total Assets
$
399,190
$
393,835
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
11,846
$
18,333
Accrued expenses
17,541
18,067
Current portion of operating lease
liabilities
4,414
4,847
Total Current Liabilities
33,801
41,247
Other non-current liabilities
15,548
21,156
Total liabilities
49,349
62,403
Shareholders' Equity
349,841
331,432
Total Liabilities and Shareholders'
Equity
$
399,190
$
393,835
Twelve months ended
February 29,
February 28,
Condensed
Consolidated Cash Flow Information
2024
2023
Cash provided by operating activities
$
69,069
$
46,776
Cash used in investing activities
(54,994
)
(11,457
)
Cash used in financing activities
(26,446
)
(26,957
)
Change in cash
(12,371
)
8,362
Cash at beginning of period
93,968
85,606
Cash at end of period
$
81,597
$
93,968
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422643032/en/
Mr. Keith S. Walters, Chairman, Chief Executive Officer and
President Ms. Vera Burnett, Chief Financial Officer Mr. Dan Gus,
General Counsel and Secretary
Ennis, Inc. Phone: (972) 775-9801 Fax: (972) 775-9820
www.ennis.com
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