EX-99 3 ex99.txt EXHIBIT 99 Press Release 1510 N. Hampton Suite 300 (bullet) DeSoto, Texas 75115 (bullet) Phone 972.228.7801 (bullet) Fax 972.228.7820 FOR IMMEDIATE RELEASE FOR ADDITIONAL INFORMATION CONTACT: Keith S. Walters, Chairman President & CEO (800) 752-5386 DeSoto, Texas, June 16, 2003 ENNIS BUSINESS FORMS, INC. REPORTS FIRST QUARTER OPERATING RESULTS DeSoto, Texas -- Ennis Business Forms, Inc. (NYSE: EBF) today reported operating results for its first quarter ended May 31, 2003. For the first quarter ended May 31, 2003, net sales amounted to $64,874,000 compared to $57,743,000 for the same period last year, an increase of 12.3%. Net earnings for the quarter amounted to $4,104,000 or $.25 per diluted share, compared to $3,300,000, or $.20 per diluted share for the corresponding period last year, an increase of 24.4%. Per share earnings computations were based on 16,506,482 shares for the quarter compared to 16,493,293 shares for the corresponding prior period. The increase in revenues of 12.3% is the result of the inclusion of Calibrated Forms Co., Inc. revenues of $9,456,000 for the full fiscal quarter, offset by a decrease of 2.6% from the remaining portion of the Forms Solutions Group and a 1.4% decrease in the Promotional Solutions Group. Revenues in the Financial Solutions Group were flat. 1 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Dollars in Thousands Except Per Share Amounts) (Unaudited) ---------------------------------------------------- Three Months Ended May 31, 2003 2002 ---- ---- NET SALES $ 64,874 $ 57,743 ------- ------- COSTS AND EXPENSES: Cost of sales 48,324 42,739 Selling, general and administrative expenses 9,655 9,351 ------- ------- 57,979 52,090 ------- ------- EARNINGS FROM OPERATIONS 6,895 5,653 OTHER INCOME (EXPENSE): Interest expense (287) (338) Investment and other income, net 11 7 ------- ------- (276) (331) ------- ------- EARNINGS BEFORE INCOME TAXES 6,619 5,322 PROVISIONS FOR INCOME TAXES 2,515 2,022 ------- ------- NET EARNINGS $ 4,104 $ 3,300 ======= ====== PER SHARE AMOUNTS: Basic net earnings $ 0.25 $ 0.20 ======= ======= Diluted net earnings $ 0.25 $ 0.20 ======= ======= Dividends $ 0.155 $ 0.155 ======= ======= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 16,332,565 16,272,938 ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 16,506,482 16,493,293 ========== ========== 3 CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) ------------------------------------------ May 31, February 28, 2003 2003 -------- ------------ Assets CURRENT ASSETS: Cash and cash equivalents $ 17,873 $ 13,860 Investment securities -- -- Accounts receivable, net 30,247 32,077 Inventories 13,746 13,104 Other current assets 5,534 5,971 ------- ------- Total current assets 67,400 65,012 ------- ------- PROPERTY, PLANT AND EQUIPMENT, NET 49,718 51,264 GOODWILL, NET 34,241 34,241 OTHER ASSETS 1,323 2,020 ------- ------- $ 152,682 $ 152,537 ======= ======= Liabilities and Shareholders' Equity CURRENT LIABILITIES: Current installments of long-term debt $ 6,686 $ 7,038 Accounts payable 5,875 6,644 Accrued expenses 9,458 11,612 Federal and state income taxes payable 3,475 -- ------- ------- Total current liabilities 25,494 25,294 ------- ------- LONG-TERM DEBT, LESS CURRENT INSTALLMENTS 16,635 18,135 ACCRUED PENSION, GROSS 2,130 2,130 DEFERRED CREDITS, PRINCIPALLY FEDERAL INCOME TAXES 9,940 10,075 SHAREHOLDERS' EQUITY: Preferred stock, at par value -- -- Common stock, at par value 53,125 53,125 Additional capital 461 461 Retained earnings 139,419 137,848 Accumulated other comprehensive income (loss) (5,213) (5,225) ------- ------- 187,792 186,209 Treasury stock 89,309 89,306 ------- ------- Total shareholders' equity 98,483 96,903 ------- ------- $ 152,682 $ 152,537 ======= ======= 4 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) --------------------------------------------------- Three Months Ended May 31, 2003 2002 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 4,104 $ 3,300 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 2,410 2,248 Gain on sale of property, plant and equipment (78) (23) Changes in operating assets and liabilities 2,197 1,051 Other 521 481 ------- ------- Net cash provided by operating activities 9,154 7,057 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of business, net of cash acquired -- -- Capital expenditures (842) (440) Redemption (purchase) of investments -- 722 Proceeds from disposal of property -- -- Other 89 33 ------- ------- Net cash provided by (used in) investing activities (753) 315 ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Debt issued to finance acquisition -- -- Repayment of debt issued to finance acquisition (1,850) (1,850) Issue (purchase) of treasury shares (3) -- Dividends (2,533) (2,522) Other (2) (58) ------- ------- Net cash used in financing activities (4,388) (4,430) ------- ------- NET CHANGE IN CASH AND EQUIVALENTS 4,013 2,942 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 13,860 16,180 ------- ------- CASH AND EQUIVALENTS AT END OF PERIOD $ 17,873 $ 19,122 ======= ======= Management's comments contains forward-looking statements that reflect the Company's current view with respect to future revenues and earnings. These statements are subject to numerous uncertainties, including (but not limited to) the rate at which the traditional business forms market is contracting, the application of technology to the production of business forms, demand for the Company's products in the context of a contracting market, variability in the prices of paper and other raw materials, and competitive conditions associated with the Company's products. Because of such uncertainties readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of June 16, 2003. 5