Ennis, Inc. Releases Quarterly And Year-End Financial Results
Supplier Ennis, Inc. (UPIC: Ennis), headquartered in Midlothian, Texas, has released its financial results for the quarter and fiscal year ending February 29, 2016.
Ennis recently came to an agreement with Gildan Activewear to acquire its apparel division. Through improved manufacturing efficiencies, continued lower input costs and strict adherence to the maintenance of selling prices, the apparel segment’s margin improved 700 basis points over the comparable quarter last year and 470 basis points over the previous fiscal year. Ennis says the sale will allow it to fully focus on its core print segment, which saw its print sales decrease 5.5 percent in the quarter to $91.2 million.
The company says the print segment’s profit margin of 27.7 percent in last quarter, compared to 29.2 percent for the same quarter last year, reflects the move of its folder operations from Omaha, Nebraska, to Columbus, Kansas, and a one-time earn-out payment associated with the previous acquisition of Kay Toledo Tag. Without these costs, the company estimates that print margin for the quarter would have been in line with prior fiscal year’s results.
“The move of the Folder Express operations from Omaha to Columbus during the quarter, while not desirable, was required due to the landlord’s non-renewal of the real property lease,” says Keith Walters, chairman, CEO and president. “After analyzing options, we made the decision to relocate to a company-owned facility in Columbus, Kansas which would allow us to more fully utilize this facility and disburse the fixed costs over two business units. Unfortunately, we have experienced start-up labor costs arising from training a new labor force for a product that involves printing, die-cutting and folding. … While we believe there will continue to be negative overhang associated with this move into fiscal year 2017, we expect these issues to be resolved during the first half of the year, after which we believe profitability will return to historical levels. … Absent these costs, operational performance would have been in line with previous quarters.”
Read the full release here.