Ennis, Inc. Reports 16% Increase in Revenue in Second Quarter Financial Report
Ennis, Inc. (the “Company”), (NYSE: EBF), recently released its financial results for the second quarter ended August 31, 2021. Highlights include:
• Revenue was $ 100.5 million for the quarter compared to $ 86.6 million for the same quarter last year, an increase of $ 13.9 million or 16.0%.
• Diluted earnings per share for the current quarter was $ 0.29 compared to $ 0.25 for the corresponding quarter last year, an increase of 16%.
• Our gross profit margin for the quarter was 28.8% compared to 29.0% for the corresponding quarter last year.
The Company’s revenues for the second quarter ended August 31, 2021 were $ 100.5 million compared to $ 86.6 million for the same quarter last year, an increase of $ 13.9 million. dollars, or 16.0%. Gross profit margin was $ 28.9 million, or 28.8%, compared to $ 25.2 million, or 29.0%, for the same quarter last year. Net income for the quarter was $ 7.5 million, or $ 0.29 per diluted share, compared to $ 6.4 million, or $ 0.25 per diluted share, for the same quarter last year .
The Company’s revenues for the six-month period ended August 31, 2021 were $ 197.4 million compared to $ 175.6 million for the same period last year, an increase of $ 21.8 million. dollars or 12.4%. Gross profit margin was $ 58.1 million, or 29.4%, compared to $ 49.1 million, or 27.9% for the six-month periods ended August 31, 2021 and August 31, 2020, respectively. Net income for the six-month period ended August 31, 2021 was $ 14.8 million, or $ 0.57 per diluted share, compared to $ 10.6 million or $ 0.41 per diluted share for the same period last year, an increase of $ 4.2 million or $ 0.16 per diluted share. .
Keith Walters, Chairman of the Board, CEO and President, commented, stating, “Overall, we are satisfied with our performance for the quarter. As the recovery from the COVID-19 pandemic continues, some of our customers are seeing their sales return to normalized levels. While our gross profit margin percentage for the quarter decreased slightly from 29.0% to 28.8% mainly due to higher inflationary factors, our EBITDA margin remained stable in the low to mid range of 15%. Our recent acquisitions added approximately $ 6.7 million in revenue and $ 0.02 in diluted earnings per share for the quarter and $ 11.9 million in revenue and $ 0.04 in diluted earnings per share for the period. six months. Paper production declined last year due to the pandemic, and as the economy improved, increased demand was initially met by existing inventory at paper mills. “
He continued, “While paper mills are now operating at a very high capacity, they are mainly producing to fill orders rather than inventory, which contributes to the tightening of the market for certain grades of paper. Paper prices have also increased due to global logistics. issues that have delayed and reduced imports that have generally filled the gaps in domestic supply.Although the availability of paper in the North American market is very low, our strong relationship with our paper supplier allows us to meet the demand. demand from customers for their commercial product needs. We also adjusted our prices to cover paper inflation during the year, but the impact of inflation with most of our other suppliers as well as the labor market had a slight impact on the profit margin. brute. To take these other inflationary factors into account, we anticipate additional tariff adjustments to maintain our gross profit margins at historical levels.
We are in the process of consolidating some of our underperforming manufacturing facilities into existing sites with excess capacity in order to reduce future costs and improve our operational efficiency. We expect to incur additional costs during this transition process which could include a probable pension settlement expense of approximately $ 2.3 million by year end. Management believes that future lump-sum payments will exceed the settlement threshold resulting in these settlement costs. Settlement costs are non-cash charges that accelerate the recognition of unrecognized pension benefit costs that would have been incurred in subsequent periods when plan payments, primarily lump sums from eligible pension plans, exceed a threshold of. service and interest charges for the period.
We believe we have one of the strongest balance sheets in the industry, with low debt and significant liquidity. We have not borrowed against our long-term bank line of credit for three consecutive years which expires in November 2021. With our profitability and a solid financial position that have enabled us to finance acquisitions without incurring debt, we are considering the no. – renewing the facility or renewing with a smaller line of credit limit.
In order to provide additional important information to management and investors regarding financial and business trends used in the evaluation of its operating results, the Company from time to time presents the non-GAAP financial measure of EBITDA ( EBITDA is calculated as net profit before interest expense, tax expense, depreciation and amortization). The Company may also report adjusted gross profit, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.
Management believes that these non-GAAP financial measures provide useful information to investors in addition to the published GAAP financial information. Management regularly reviews these non-GAAP financial measures and uses them to assess and manage the performance of the Company’s operations. In addition, EBITDA is a component of financial covenants and a measure of the interest rate in the Company’s credit agreement. Other companies may calculate non-GAAP financial measures differently from the Company, which limits the usefulness of the Company’s non-GAAP measures for comparison with those other companies.
Although management believes that the Company’s non-GAAP financial measures are useful in assessing the Company, when such information is disclosed, it should be viewed as complementary in nature and not as a substitute for or an alternative to or superior to. related financial information prepared in accordance with GAAP. These measures should only be evaluated in conjunction with the Company’s comparable GAAP financial measures.
In other news
On September 17, 2021, the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the common shares of the Company. The dividend is payable on November 5, 2021 to shareholders of record on October 8, 2021.
The previous press release was provided by a company not affiliated with Printing of fingerprints. The views expressed do not directly reflect the thoughts or opinions of Printing of fingerprints.