Ennis Reports Quarterly Sales Slightly Down
Supplier Ennis, Inc. (UPIC: Ennis), headquartered in Midlothian, Texas, has released its financial results for the quarter and six-month period ending August 31.
The company’s net sales from continuing operations for the quarter ending August 31 were $91.2 million compared to $100.5 million for the same quarter last year, a decrease of 9.3 percent. The gross profit margin for continuing operations that quarter were $27 million or 29.6 percent. This compares to 29.5 percent for the previous quarter and 31.2 percent for the same quarter last year.
For the six-month period ending August 31, Ennis’ net sales from continuing operations were $181.7 million compared to $197.2 million for the same period last year, a decrease of 7.9 percent. The margin for continuing operations was $53.7 million, or 29.6 percent, as compared to $61.3 million, or 31.1 percent, for the six-month period ending August 31, 2015.
Keith Walters, chairman, chief executive officer and president, explains the report, “The financial performance for the quarter was an improvement over the sequential quarter’s results. The quarter actually would have exceeded, on a percentage basis, our prior year’s print results, if you excluded the $2.3 million adjustment we made to our medical reserve and the impact of the relocation of our Folder Express operations of $1.2 million ($2.7 million for the six-month period). While our results continued to be impacted by the relocation of our Folder Express operations, it appears this operation is well on its way to becoming once again a contributor to our earnings and not a drag, which is quite a turnaround, and ahead of our previously announced plan. Medical claims are running higher than our historical trends, resulting in an additional $2.3 million charge during the quarter. Although we are evaluating various alternatives to impact the cost curve, we most likely would not see the impact of the implementation of any alternative plan we may choose until the start of the next fiscal year. … Overall, the business climate remains challenging, as we face predatory pricing, among other factors. However, we continue to believe we are well positioned to not only provide our customers quality products, but products that are competitively priced.”