-----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, O6XpiVMMeQU2tH3afVmglWAiJiol1zKHa/xgDQG8uz/s4E1wEelOj+ce4TeRRwhf CwlxrOhbThkR68WprL+SRw== 0000033002-97-000009.txt : 19970708 0000033002-97-000009.hdr.sgml : 19970708 ACCESSION NUMBER: 0000033002-97-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970531 FILED AS OF DATE: 19970707 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: 97636635 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 MAY 31, 1997 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) (972) 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 sock, as the latest practicable date. Class Outstanding at May 31, 1997 Common stock, par value $2.50 per share 16,438,229 ENNIS BUSINESS FORMS, INC. INDEX Part I. Financial Information Consolidated Condensed Balance Sheet -- May 31, 1997 and February 28, 1997 2 Consolidated Condensed Statements of Earnings -- Three Months Ended May 31, 1997 and 1996 3 Consolidated Condensed Statements of Cash Flows --Three Months Ended May 31, 1997 and 1996 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 6 PART I. FINANCIAL INFORMATION ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited) May 31, February 28, 1997 1997 Assets Current assets Cash and equivalents $18,020 18,494 Accounts receivable, net 18,217 18,600 Inventories 9,610 10,500 Other current assets 4,015 5,033 Total current assets 49,862 52,627 Property, plant and equipment, net 36,837 33,560 Cost of purchased businesses in excess of amounts allocated to tangible net assets 6,066 5,942 Other assets and deferred charges 2,731 2,828 Total assets $95,496 94,957 Liabilities and Shareholders' Equity Current liabilities Current installments of long-term debt $ 179 85 Accounts payable 4,687 5,234 Accrued expenses 5,732 4,988 Total current liabilities 10,598 10,307 Long-term debt, less current installments 373 195 Deferred credits, principally Federal income taxes 3,150 2,869 Shareholders' equity Common stock, at par value 53,125 53,125 Additional capital 1,040 1,040 Retained earnings 119,110 119,318 Cumulative foreign currency translation adjustments (78) (76) 173,197 173,407 Less: Treasury stock 91,822 91,821 Total shareholders' equity 81,375 81,586 Total liabilities and shareholders' equity $95,496 94,957 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 May 31, 1997 1996 Net sales $37,896 36,924 Costs and expenses: Cost of sales 27,020 24,151 Selling, general and administrative expenses 7,414 6,462 Interest expense 18 23 34,452 30,636 Earnings from operations 3,444 6,288 Investment and other income 286 483 Earnings before income taxes 3,730 6,771 Provision for income taxes 1,390 2,549 Net earnings $ 2,340 4,222 Weighted average number of common shares outstanding 16,438,279 16,439,283 Per share amounts: Net earnings $ .14 .26 Cash dividends $.155 .15 See accompanying notes to consolidated condensed financial statements. ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Three Months Ended May 31, 1997 1996 Cash flows from operating activities: Net earnings $2,340 4,222 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,460 1,125 Changes in assets and liabilities 2,339 (1,383) Other 504 (146) Net cash provided by operating activities 6,643 3,818 Cash flows from investing activities: Capital expenditures (4,861) (2,946) Purchases of operating assets -- (6,959) Other 21 9 Net cash used in investing activities (4,840) (9,896) Cash flows from financing activities: Dividends declared (2,548) (2,466) Proceeds from capital lease financing 289 -- Other (18) (4) Net cash used in financing activities (2,277) (2,470) Net changes in cash and equivalents (474) (8,548) Cash and equivalents at beginning of period 18,494 38,606 Cash and equivalents at end of period $18,020 30,058 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 May 31, 1997 and February 28, 1997, and the results of operations and cash flows for the three months ended May 31, 1997 and 1996. 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 May 31, 1997, 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 its 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): May 31, February 28, 1997 1997 Raw material $5,852 6,394 Work-in-process 1,032 1,127 Finished goods 2,726 2,979 $9,610 10,500 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION, RESULTS OF OPERATIONS AND OUTLOOK FOR THE FUTURE Liquidity and Capital Resources At May 31, 1997, the Company's financial position continues to be strong. Working capital decreased from $42,320,000 at February 28, 1997 to $39,264,000 at May 31, 1997. The decrease is primarily due to capital expenditures. 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 ended May 31, 1997 increased 2.6% from the corresponding period in the prior year. Gross profit margins decreased 14.9% in the current year compared to the same period in the prior year. The gross profit margins decline was the result of lower selling prices coupled with higher costs associated with an increase in the number of employees required to produce more orders and to improve service time. Selling, general and administrative expenses increased 14.7% in the current year compared to the prior year. The increase is because of costs associated with a new management information system and an increase in customer service personnel to accommodate an increase in customer orders. Investment and other income decreased in the current year from the prior year due to decreased amounts of funds available for investments. Funds available for investment have decreased because of capital expenditures. The effective rate of Federal and state income tax expense is substantially unchanged from the prior period. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders (a) The Company held its Annual Meeting on June 19, 1997. (b)Proxies for the meeting were solicited pursuant to Regulation 14; there was no solicitation in opposition to management's nominees for directors as listed in the Proxy Statement and all such nominees were elected. Directors elected were: Robert L. Mitchell, Thomas R. Price and Ewell L. Tankersley. (c)Briefly described below is the only other matter voted upon at the Annual Meeting and the number of affirmative votes and negatives votes respectively. (1) Selection of KPMG Peat Marwick LLP as independent auditors of the Company for the fiscal year ending February 28, 1998. For 15,107,842 Against 96,215 Abstain 33,789 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 July 7, 1997 /s/Victor V.DiTommaso Victor V. DiTommaso Vice President - Finance, Secretary & Treasurer Principal Financial and Accounting Officer 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 July, 7, 1997 Victor V. DiTommaso Vice President - Finance, Secretary & Treasurer Principal Financial and Accounting Officer EX-27 2
5 1000 3-MOS FEB-28-1998 MAY-31-1997 18020 0 19287 1070 9610 49862 91916 55079 95496 10598 373 0 0 53125 120072 95496 37896 37896 27020 27020 7414 0 18 3730 1390 2340 0 0 0 2340 .14 .14
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