Ennis reports Q2 EPS 51c vs. 40c last year

Reports Q2 revenue $98.7M vs. $99M last year. Keith Walters, CEO commented by stating, “Our performance for the quarter met our expectations. While sales volume declined, we achieved a gross margin of 30.5%, up nearly 40 basis points from 30.1% in the same period last year, though down 60 basis points from 31.1% in the prior quarter. EBITDA rose to $22.5 million, or 22.8% of sales, compared with $17.7 million, or 18.2% of sales, in the preceding quarter, and $18.4 million, or 18.6% of sales, in the same quarter last year. This quarter’s results reflect $5.7 million that we collected after the 8th Circuit Court of Appeals affirmed the judgment against Mark Wright, Mardra Sikora, Wright Printing Company and other defendants for willful and malicious theft of trade secrets, breach of contract and tortious interference with the Company’s Folders Express business unit. We are pleased to have this matter resolved, as the judgment fulfilled our responsibility to protect shareholder interests and held the defendants accountable for the losses their actions caused. “Our recent acquisitions added approximately $5.5 million in revenues for the quarter and $11.0 million in revenues for the six-month period. Diluted earnings per share were positively impacted by $0.03 per diluted share for the quarter and positively impacted by $0.06 per diluted share for the six-month period. During the first quarter of the current year, we completed the acquisition of Northeastern Envelope Company (NEC), based in Old Forge, PA. NEC is a leading commercial envelope manufacturer known for providing next-day shipment on hundreds of double-window and specialty single-window envelopes. Printing Technologies, acquired in the second quarter of last year, along with NEC, are both delivering strong results. We believe our balance sheet is among the strongest in the industry, with no debt and sufficient cash reserves. We expect cash flow to strengthen in the coming quarters. In the current and prior quarter, we strategically used cash to build additional inventory following the announced closure of the only domestic producer of carbonless paper. With this inventory now in place, we anticipate lower purchasing needs over the next few quarters, positioning us to restore and potentially enhance our cash levels. Year to date, we have repurchased 456,671 shares of our common stock for $8.5 million. Our profitability and financial position will allow us to operate and pursue acquisitions without debt, while also giving us timely access to credit if larger opportunities arise. We remain focused on sustaining profitability and delivering returns to our shareholders.”