Ennis Inc. Reports Results for Quarter Ended August 31
Ennis Inc., Midlothian, Texas, recently reported financial results for the three and six months ended August 31, 2013. Highlights for the quarter include:
- Consolidated gross profit margin increased 260 basis points for the quarter and 440 basis points for the period.
- Apparel gross profit margin increased 870 basis points for the quarter and 1,110 basis points for the period.
- Diluted EPS increased 31.0 percent to $0.38 per share for the quarter and 59.1 percent to $0.70 per share for the period.
The company's consolidated net sales for the quarter were $135.3 million compared to $138.3 million for the same quarter last year. Print sales were down 8.2 percent on a comparable quarter basis, from $86.1 million to $79.0 million. Apparel sales increased 7.6 percent (volume up 12.7 percent and selling price per unit down 4.9 percent) for the comparable quarter, from $52.3 million to $56.3 million.
Consolidated gross profit margin ("margin") for the quarter increased 260 basis points from 24.5 percent, for the same quarter last year, to 27.1 percent. For a quarter comparison basis, print margin remained relatively stable at 30.0 percent plus, while apparel margin increased from 14.4 percent to 23.1 percent. Apparel margin continued to increase on both a comparable and sequential quarter basis, due to lower input costs and higher production levels. As a result, net earnings increased from $7.6 million, or 5.5 percent of net sales, for the quarter ended August 31, 2012 to $9.8 million, or 7.2 percent of net sales, for the quarter ended August 31, 2013. Diluted earnings per share increased 31.0 percent from $0.29 for the 2012 quarter to $0.38 for the 2013 quarter.
"Overall we are pleased with our results for the quarter," said Keith Walters, chairman, CEO and president of Ennis Inc. "Our apparel results continued to improve on both a sequential and comparative basis, as lower input costs of manufacturing and raw materials are favorably impacting their operational results. We realized a 270 basis point sequential margin improvement last quarter and a 280 basis point sequential margin improvement this quarter in our apparel margins.We would expect our apparel margin to continue to improve as our operational efficiencies improve as production levels increase."
"While the overall apparel market continues to be challenging, both from a pricing and volume perspective, we are seeing some pricing stability in the marketplace," he continued. "Our print margin continues to remain healthy, improving 30 basis points sequentially and 60 basis points for the period, as we continue to integrate acquisitions. We feel positive about the quarter and the remainder of the year."
The full report can be viewed on Ennis Inc.'s website.