Ennis Releases Financials Showing Rising Revenues
Supplier Ennis, Inc., headquartered in Midlothian, Texas, has released financial results for the fourth quarter and fiscal year ended February 28. The company reports revenues up 3.7 percent, or $13.3 million, from the same quarter last year. Ennis also registered an increase in the gross profit margin from 28.8 percent to 30.2 percent, compared to the same quarter last year, and an increase from 29.1 percent to 31.6 percent compared to the previous fiscal year.
“Overall, we were pleased with our operational performance this fiscal year and our ability to successfully put the negative overhangs of the prior fiscal year behind us,” says Keith Walters, chairman, chief executive officer and president. “Changes we implemented last year have resulted in our health plan costs being more in line with historical averages, and the negative impact of the relocation and start-up of a folder operation appears to be fully behind us. The acquisition completed at the end of the 2017 fiscal year continues to outperform our expectations, adding approximately $36 million to our revenues and contributing $0.13 to our diluted earnings per share this fiscal year.”
Revenues for fourth quarter were $87.1 million, compared to $86.6 million for the same quarter last year, an increase of 0.6 percent. Ennis’ gross profit margin was $26.3 million for the quarter compared to $24.9 million for fourth quarter last year. Net earnings from continuing operations for the quarter were $8.2 million, or $0.32 per diluted share compared to $7.2 million, or $0.28 per diluted share for the fourth quarter last year. The Tax Cuts and Jobs Act of 2017 reduced the company’s deferred tax expense and positively impacted operating results by $3.6 million. In addition, due to the benefits of the Tax Act and Ennis’ strong performance, the company approved special and performance-based bonuses, which negatively impacted its operating results by $1.4 million compared to the same quarter last year.
Revenues for the fiscal year were $370.2 million compared to $356.9 million for the same period last year. The margin was $116.9 million, compared to $104 million for the fiscal year that ended February 28, 2017. Earnings from continuing operations for the year were $32.8 million, or $1.29 per diluted share compared to $26.4 million, or $1.03 per diluted share for the previous fiscal year. For fiscal year 2017, Ennis’ net earnings from continuing operations were negatively impacted by relocation and start-up costs of a folder operating company and higher than historical medical expenses of approximately $3.5 million, or $0.13 per diluted share.
Walters adds, “We are encouraged by the recently enacted Tax Cuts and Jobs Act of 2017 and the potential positive impact it may have for all U.S. manufacturers. In the fourth quarter we shared the savings the company realized from the Tax Act by paying each of our non-management level employees a $500 special cash bonus and paying our shareholders a special one-time cash dividend of $0.10 per share. Going forward, although the print industry remains challenging, we are optimistic about our ability to navigate these waters and continue to return positive financial results to our shareholders. We have strengthened one of the strongest balance sheets in the industry and continue to improve our cash position.”