This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ennis, Inc. Reports Results For The First Quarter Ended May 31, 2010

Ennis, Inc. (the “Company"), (NYSE: EBF), today reported financial results for the first quarter ended May 31, 2010.


  • Consolidated revenues for the quarter increased 7.6% over the comparable quarter last year.
  • Consolidated gross profit margins increased 630 basis points (“bps”) over the comparable quarter last year.
  • Net earnings increased 97.0% over the comparable quarter.
  • Diluted earnings per share increased from $0.26 per share for the same quarter last year to $0.50 for the current quarter.

Financial Overview

For the quarter, consolidated net sales increased by $9.9 million, or 7.6%, from $130.8 million for the quarter ended May 31, 2009 to $140.7 million for the quarter ended May 31, 2010. Print sales for the quarter were $67.8 million, compared to $71.7 million for the same quarter last year, or a decrease of 5.4%. Apparel sales for the quarter were $73.0 million, compared to $59.1 million for the same quarter last year, or an increase of 23.5%. Overall gross profit margins ("margins") increased from 23.7% to 30.0% for the quarters ended May 31, 2009 and May 31, 2010, respectively. Print margins increased from 26.4% to 30.3%, and Apparel margins increased from 20.4% to 29.7%, for the quarters ended May 31, 2009 and May 31, 2010, respectively. Net earnings for the quarter increased from $6.6 million, or 5.1% of sales, for the quarter ended May 31, 2009 to $13.0 million, or 9.3% of sales, for the quarter ended May 31, 2010. Diluted EPS increased from $0.26 per share to $0.50 per share for the quarters ended May 31, 2009 and May 31, 2010, respectively.

The Company, during the quarter, generated $23.7 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $14.3 million for the comparable quarter last year.

Three months ended
May 31,
  2010   2009
Earnings before income taxes $ 20,536 $ 10,532
Interest expense 437 695
Depreciation/amortization   2,776   3,070
EBITDA (non-GAAP) $ 23,749 $ 14,297

Keith Walters, Chairman, Chief Executive Officer and President, commented by saying, “We are extremely pleased with the operational results this quarter. Operationally, both sectors were able to significantly increase their margins, with Print increasing 390 bps, against paper costs increases, and Apparel increasing 930 bps due to continued operational efficiencies and lower cotton pricing. Our Apparel sector showed strong sales growth during the quarter as well, without having to make major price concessions. While we saw the benefit of lower cotton costs during the quarter in our apparel sector, we continue to be concerned with current cotton pricing which continues to be extremely high. Also, we recently received notification of additional paper price increases. Our ability to pass these costs increases on to the market continues to be unknown and is dependent upon the continuing economic recovery and the actions of our competitors. The construction of our new apparel manufacturing facility in Agua Prieta, Mexico continues to progress and we continue to expect that production will begin in this facility during the third quarter of our current fiscal year. We continue to look forward to the start-up of this new facility and the potential cost savings, once fully operational. So while much was accomplished during this last quarter, many challenges remain for fiscal year 2011. As always, we will continue to remain vigilant to the task at hand.”

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs