Ennis, Inc. Issues Financial Statement For Fiscal Second Quarter 2017, And First Half Of Its Fiscal Year
Ennis, Inc. has reported financial results for the quarter and six-month period ending August 31. The Midlothian, Texas-headquartered supplier’s revenues for the quarter were $94.9 million, compared to $91.2 million for the same quarter last year, an increase of 4.1 percent. Its revenues for the six-month period were $189.5 million compared to $181.7 million for the same period last year, an increase of 4.3 percent.
Keith Walters, chairman, chief executive officer and president, says, “We continue to be pleased with our operational performance during the year. Our recent acquisition continues to perform nicely with operating results improving as integration continues to progress. For the six months ended August 31, this addition has added approximately $20 million in revenues and seven cents to our diluted earnings per share.”
Ennis’ gross profit margin for the quarter was $30.8 million, or 32.4 percent, as compared to $27 million, or 29.6 percent for second quarter last year. Net earnings for the current quarter were $8.5 million, or 34 cents per diluted share compared to $6.8 million, or 26 cents per diluted share for the same quarter last year. During the 2016 second quarter, operational results included relocation and start-up costs arising from the company’s folder operations and medical expenses in excess of historical levels. These costs and expenses negatively impacted the prior year’s quarterly net earnings by approximately $2.2 million, or nine cents per diluted share.
Looking at the six-month period, the gross profit margin was $60.7 million, or 32.0 percent, as compared to $53.7 million, or 29.6 percent, for the six-month period that ended on August 31, 2016. Earnings from continuing operations for the six-month period were $16.3 million, or 64 cents per diluted share compared to $13.5 million, or 52 cents per diluted share for the same period last year. The costs from the folder relocation and higher than historical medical expenses negatively affected the company’s net loss for the six months ended August 31, 2016 by approximately $3.1 million, or 12 cents per diluted share.
Walters adds, “Recent changes to our health program appear to have stemmed the tide, at least for the time being, in the rising costs of medical claims. As a result, we did not take an additional charge to our medical reserve as we did in last year’s second quarter.
“The negative impact of the relocation and startup of a folder operating company seems to be behind us, which also positively impacted our quarterly results,” he says. “It appears the costs and expenses experienced last year related to the folder operation relocation, and the higher than historical medical expense, have been successfully dealt with and are behind us from an operational perspective. While we feel the environment overall will remain challenging, we are positive about the remainder of this fiscal year. We continue to further strengthen one of the strongest balance sheets in the industry and our cash position remains significant.”