-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C27FZscZEHLg5myTpLiWYYUa/DaeEu4AFYY0m61aTQEqdqZEvApjWhKLOStdyabs npWX78JKyFLCRKssfEM2lw== 0000033002-96-000002.txt : 19960111 0000033002-96-000002.hdr.sgml : 19960111 ACCESSION NUMBER: 0000033002-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951130 FILED AS OF DATE: 19960105 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENNIS BUSINESS FORMS INC CENTRAL INDEX KEY: 0000033002 STANDARD INDUSTRIAL CLASSIFICATION: MANIFOLD BUSINESS FORMS [2761] IRS NUMBER: 750256410 STATE OF INCORPORATION: TX FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05807 FILM NUMBER: 96501304 BUSINESS ADDRESS: STREET 1: 107 N SHERMAN ST CITY: ENNIS STATE: TX ZIP: 75119 BUSINESS PHONE: 2148756581 MAIL ADDRESS: STREET 1: 107 NORTH SHERMAN STREET CITY: ENNIS STATE: TX ZIP: 75119 FORMER COMPANY: FORMER CONFORMED NAME: ENNIS TAG & SALESBOOK CO DATE OF NAME CHANGE: 19700805 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended NOVEMBER 30, 1995 Commission File Number 1-5807 ENNIS BUSINESS FORMS, INC. (Exact name of registrant as specified in its charter) TEXAS 75-0256410 (State or other Jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 107 N. Sherman Street, Ennis, TX 75119 (Address of principal executive offices) (Zip Code) (214) 872-3100 (Registrant's telephone number, including area code) No Change (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter prior that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. Yes X No. Indicate the number of shares outstanding of each of the issuer's classes of common stock, as the latest practicable date. Class Outstanding at November 30, 1995 Common stock, par value $2.50 per share 16,439,554 ENNIS BUSINESS FORMS, INC. INDEX Part I. Financial Information Consolidated Condensed Balance Sheets -- November 30, 1995 and February 28, 1995 2 Consolidated Condensed Statements of Earnings -- Three and Nine Months Ended November 30, 1995 and 1994 3 Consolidated Condensed Statements of Cash Flows --Nine Months Ended November 30, 1995 and 1994 4 Notes to Consolidated Condensed Financial Statements 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Part II. Other Information 7 PART I. FINANCIAL INFORMATION ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited) November 30, February 28, 1995 1995 Assets Current assets Cash and equivalents $ 33,265 10,541 Temporary investments -- 17,600 Accounts receivable, net 17,548 18,284 Inventories 8,629 10,301 Other current assets 4,347 2,539 Total current assets 63,789 59,265 Property, plant and equipment, net 21,720 19,521 Cost of purchased businesses in excess of amounts allocated to tangible net assets 4,242 4,356 Other assets and deferred charges 1,074 1,849 Total assets $ 90,825 84,991 Liabilities and Stockholders' Equity Current liabilities Current installments of long-term debt $ 75 75 Accounts payable 4,054 5,014 Accrued expenses 7,488 6,807 Federal and state income taxes payable 986 1,080 Total current liabilities 12,603 12,976 Long-term debt, less current installments 285 360 Deferred credits, principally Federal income taxes 1,926 2,317 Stockholders' equity Common stock, at par value 53,125 53,125 Additional capital 1,040 1,040 Retained earnings 113,755 107,100 Cumulative foreign currency translation adjustments (101) (125) 167,819 161,140 Less: Treasury stock 91,808 91,802 Total stockholders' equity 76,011 69,338 Total liabilities and stockholders' equity $ 90,825 84,991 See accompanying notes to consolidated condensed financial statements. ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Dollars in Thousands Except Per Share Amounts) (Unaudited) Three Months Ended Nine Months Ended November 30, November 30, 1995 1994 1995 1994 Net sales $36,827 35,249 $107,643 103,884 Costs and expenses: Cost of sales 23,157 22,336 68,200 64,840 Selling, general and administrative expenses 6,182 5,685 18,200 16,646 Interest expense 24 22 71 65 29,363 28,043 86,471 81,551 Earnings from operations 7,464 7,206 21,172 22,333 Investment and other income 305 477 1,231 1,092 Earnings before income taxes 7,769 7,683 22,403 23,425 Provision for income taxes 2,929 2,899 8,432 8,773 Net earnings $ 4,840 4,784 $ 13,971 14,652 Weighted average number of common shares outstanding 16,439,554 16,440,291 16,439,688 16,439,776 Per share amounts: Net earnings $ .29 .29 $.85 .89 Cash dividends $ .15 .145 $.445 .43 See accompanying notes to consolidated condensed financial statements. ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Nine Months Ended November 30, 1995 1994 Cash flows from operating activities: Net earnings $13,971 14,652 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,803 2,755 Changes in assets and liabilities 411 (2,021) Other 195 (322) Net cash provided by operating activities 17,380 15,064 Cash flows from investing activities: Capital expenditures (4,943) (2,775) Purchases of investments (6,064) (11,601) Maturities of investments 23,742 -- Other 6 371 Net cash provided by (used in) investing activities 12,741 (14,005) Cash flows from financing activities: Purchase of treasury stock (6) (8) Dividends declared (7,316) (7,069) Other (75) (66) Net cash used in financing activities (7,397) (7,143) Net changes in cash and equivalents 22,724 (6,084) Cash and equivalents at beginning of period 10,541 21,577 Cash and equivalents at end of period $33,265 15,493 See accompanying notes to consolidated condensed financial statements. ENNIS BUSINESS FORMS, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. The information included herein reflects all adjustments (none of which were other than normal recurring accruals) which, in the opinion of the Company, are necessary to a fair statement of the financial position as of November 30, 1995 and February 28, 1995, and the results of operations and cash flows for the three months and nine months ended November 30, 1995 and 1994. 2. Earnings per common share amounts are based on the weighted average number of shares outstanding during the period. Common stock equivalents (options see Note 3) have not been included in determining earnings per common share amounts because their inclusion, either for purposes of computing primary or fully diluted earnings per share, would not produce sufficient incremental shares (using the treasury stock method) to reduce the per share amounts shown. 3. As of November 30, 1995, the Company has reserved 378,958 shares of common stock under incentive stock options plans. 4. The Company uses the Last-In, First-Out (LIFO) method of pricing the raw material content of most of its business forms inventories, and the First-In, First-Out (FIFO) method is used to value the remainder. The following table summarizes the components of inventory at the different stages of production (in thousands of dollars): November 30, February 28, 1995 1995 Raw material $5,654 6,746 Work-in-process 790 963 Finished goods 2,185 2,592 $8,629 10,301 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources At November 30, 1995, the Company's financial position continues to be strong. Working capital increased from $46,289,000 at February 28, 1995 to $51,186,000 at November 30, 1995. The increase is due to cash provided by operating activities. The Company's cash flow from operations continues to be adequate to sustain operations, meet debt repayment requirements and fund capital additions. No liquidity problems are anticipated. Results of Operations Net sales for the quarter and nine months ended November 30, 1995 increased 4.5% and 3.6%, respectively, from the corresponding periods in the prior year. Gross margins for the three months and nine months ended November 30, 1995 increased 5.9% and 1%, respectively over the same periods in the prior year. Because of competitive market conditions and the amount and frequency of raw material price increases during the first half of the year our selling price increases have lagged behind cost increases. Raw material prices have stabilized recently and our selling price increases are catching up to the past raw material cost increases. Selling, general and administrative expenses increased 8.7% and 9.3% for the three-month and nine-month periods, respectively, compared to the corresponding periods in the prior year. Increases in selling and marketing efforts and expenses of our Mexico operation account for the increases. Investment and other income increased in the current year over the prior year due to increased amounts of funds available for investments. The effective rate of Federal and state income tax expense is substantially unchanged from year-to-year. PART II. OTHER INFORMATION Item 6. Exhibits Exhibit: (27) Financial Data Schedule SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ENNIS BUSINESS FORMS, INC. Date January 5, 1996 /s/Harve Cathey Harve Cathey Vice President - Finance Principal Financial Officer Date January 5, 1996 /s/Victor V. DiTommaso Victor V. DiTommaso Treasurer Principal Accounting Officer EX-27 2
5 1,000 9-MOS FEB-29-1996 NOV-30-1995 33,265 0 18,667 1,119 8,629 63,789 72,418 50,698 90,825 12,603 285 0 0 53,125 114,694 90,825 107,643 107,643 68,200 68,200 18,200 0 71 22,403 8,432 13,971 0 0 0 13,971 .85 .85
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