Ennis Inc. Reports Apparel Sales Increased $3.7 Million
Ennis Inc. recently reported financial results for the quarter and fiscal year ended February 28, 2014. Highlights for the year include:
- Consolidated sales increased 1.7 percent
- Print sales increased $5.2 million
- Apparel sales increased $3.7 million
- Consolidated gross profit margin increased 320 basis points
- Print gross profit margin increased 50 basis points
- Apparel gross profit margin increased 790 basis points
- Non-GAAP diluted EPS increased 42.1 percent to $1.35 per share, before impairment charge of $0.85 per share resulting in GAAP diluted EPS of $0.50 per share
Financial Overview
The Company's consolidated net sales for the quarter were $132.1 million compared to $123.6 million for the same quarter last year. Print sales increased 12.7 percent on a comparable quarter basis, from $79.8 million to $89.9 million. Apparel sales decreased 3.6 percent for the comparable quarter, from $43.9 million to $42.3 million. Consolidated gross profit margin ("margin") during the quarter remained level at 25.4 percent in comparison to last year's quarter. On a quarter comparison basis, print margin decreased 120 basis points, from 29.6 percent to 28.4 percent, while apparel margin increased 140 basis points, from 17.6 percent to 19.0 percent. Apparel margin continued to improve due to lower input costs and higher production levels. Net earnings (loss) for the quarter decreased from $7.1 million, or 5.7 percent of net sales, for the quarter ended February 28, 2013 to ($14.5) million for the quarter ended February 28, 2014, due to a goodwill and trademark impairment charge of $24.2 million relating to the apparel division. Diluted earnings (loss) per share decreased from $0.27 for the quarter ended February 28, 2013 to ($0.55) for the quarter ended February 28, 2014. Excluding the impairment charge, non-GAAP earnings for the quarter would have been approximately $7.7 million, or approximately $0.30 per share.