Ennis Inc. Reports Second Quarter Results

Ennis Inc.'s consolidated net sales were $138.3 million for the second quarter ended August 31, 2012 compared to $130.4 million for the second quarter ended August 31, 2011, or an increase of 6.1 percent. Print sales increased 24.3 percent for the quarter, from $69.2 million to $86.0 million. Apparel sales for the quarter declined by 14.5 percent (down 4.5 percent on units and down 10 percent on price) from $61.2 million to $52.3 million. The consolidated gross profit margin ("margin") decreased from 26.1 percent to 24.5 percent for the quarters ended August 31, 2011 and August 31, 2012, respectively. The print segment margin increased from 28.6 percent to 30.7 percent, while the apparel segment margin, which continues to be impacted by higher cotton costs, decreased from 23.4 percent to 14.4 percent for the quarter. As a result, net earnings decreased from $9.7 million, or 7.4 percent of net sales, for the quarter ended August 31, 2011 to $7.6 million, or 5.5 percent of net sales, for the quarter ended August 31, 2012. Diluted earnings per share decreased from $0.37 to $0.29 for the quarters ended August 31, 2011 and August 31, 2012, respectively.