Ennis Revenues Up In Second Quarter, First Half Of Fiscal 2019
Ennis, Inc. has announced financial results for the fiscal quarter and half-year, which ended August 31. The Midlothian, Texas-headquartered company—parent company of several industry suppliers, including Folder Express (PPAI 354129, S1), Independent Folders (PPAI 111993, S2) and Admore, Inc. (PPAI 111144, S10)—reports revenues increased $10.2 million, or 10.3 percent, in the quarter and $24.8 million, or 12.9 percent, in the first six months of the year as compared to the same periods in 2018.
Ennis’ revenues for the second quarter were $108.8 million compared to $98.6 million for the same quarter last year. Gross profit margin was $32.5 million for the quarter, or 29.8 percent, compared to $30.3 million, or 30.8 percent for the second quarter in 2018. Net earnings for the quarter were $9.5 million, or $0.37 per diluted share, compared to $9.6 million, also $0.37 per diluted share, for the previous second quarter.
The company’s revenues for the six-month period were $216.8 million compared to $192 million for the same period last year. The margin was $65.2 million, or 30 percent, compared to $60.5 million, or 31.5 percent for the six-month period ended August 31, 2019 and August 31, 2018, respectively. Net earnings from operations for the half year were $19.2 million, or $0.74 per diluted share compared to $18.8 million, or $0.74 per diluted share for the same period last year.
“Overall we are pleased with our performance for the quarter,” says Keith Walters, chairman, CEO and president. “While our gross profit margin showed a slight decline from the sequential quarter, decreasing from 30.3 percent to 29.8 percent, our EBITDA margin was consistent in the low- to mid-16-percent range. Our gross profit margin percentage continues to be impacted by our past four acquisitions, which all had gross profit margins considerably lower than our historical gross profit margin. While their margins are improving, until these acquisitions are fully integrated into our systems, we would expect to continue to see a comparable negative impact on our consolidated gross profit margin percentage. With that being said, these same acquisitions added $35.4 million in sales and $0.08 in diluted earnings per share for the six-month period. During the quarter, we completed the acquisition of The Flesh Company and its wholly-owned subsidiary, Impression Direct, Inc.”
Walters adds, “We continue to strategically repurchase our shares and acquired over 22,000 shares during the quarter. We have repurchased almost 294,000 shares since the acquisition of Wright Business Graphics, which represents about 35.4 percent of the shares issued as consideration for that acquisition. Given our strong financial position, we will continue to explore strategic opportunities as a way to profitably utilize our cash and leverage our balance sheet, and when advantageous, repurchase our shares in the marketplace.”