Ennis Reports First Quarter Results for Period Ended May 31, 2013
Ennis Inc., the print and apparel company based in Midlothian, Texas, has reported results for its first quarter of 2013, ended May 31.
The company's consolidated net sales for the quarter were $138.5 million compared to $142.5 million for the same quarter last year and $123.6 million for the sequential quarter. Print sales were down 6.8 percent on a comparable quarter basis, from $87.3 million to $81.4 million, but were up 2.0 percent on a sequential quarter basis from $79.8 million. Apparel sales increased 3.3 percent for the comparable quarter, from $55.2 million to $57.0 million, with a 10.6 percent increase in volume offset by a pricing decline of 7.3 percent, and increased 29.8 percent on a sequential quarter basis from $43.9 million.
Consolidated gross profit margin for the quarter increased 610 basis points from 19.8 percent, for the same quarter last year, to 25.9 percent. For a quarter comparison basis, print margin increased from 27.9 percent to 29.7 percent, and apparel margin increased from 7.0 percent to 20.3 percent. Ennis Inc.'s apparel margin continues to increase on both a comparable and sequential quarter basis, as lower priced cotton is starting to favorably impact apparel's margin. The company expects its margins will continue to improve as average finished goods costs continue to decline and sales volume increases. Print margins improved from the continued elimination of duplicative costs by the further integration of recent acquisitions. As a result, net earnings increased from $3.9 million, or 2.7 percent of net sales, for the quarter ended May 31, 2012 to $8.5 million, or 6.1 percent of net sales, for the quarter ended May 31, 2013. Diluted earnings per share increased from $0.15 for the same quarter last year to $0.33 for the 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 priced cotton, which has been flowing into our finished goods inventory, is starting to impact our operational results. We realized a 240 basis point sequential margin improvement last quarter and a 270 basis point sequential margin improvement this quarter. We would expect our apparel margin to continue to improve as the average carrying value of our finished goods inventory declines and as our operational efficiencies improve as production levels increase."
Walters continued, "While the overall apparel market continues to be challenged, both from a pricing and volume perspective, we have seen some pricing stability. Our print margin remained healthy improving 180 basis points over last year's comparable quarter, as we continue to eliminate duplicate costs associated with our recent acquisitions. Overall we feel positive about the quarter and the remainder of the year."
For more information, visit www.ennis.com.