-----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, QCLNdsoNQj4cjShFdow6ZmfSC7AXmuDbrAMLs+k/6ogVMFyQ0b/kJKxxfKP3BOMB wRaoY2aTZS3Hzh7vw/TWPA== 0000033002-97-000011.txt : 19971010 0000033002-97-000011.hdr.sgml : 19971010 ACCESSION NUMBER: 0000033002-97-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970831 FILED AS OF DATE: 19971009 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: SEC FILE NUMBER: 001-05807 FILM NUMBER: 97692967 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 AUGUST 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 stock, as of the latest practicable date. Class Outstanding at August 31, 1997 Common stock, par value $2.50 per share 16,437,998 ENNIS BUSINESS FORMS, INC. INDEX Part I. Financial Information Consolidated Condensed Balance Sheets -- August 31, 1997 and February 28, 1997 2 Consolidated Condensed Statements of Earnings -- Three and Six Months Ended August 31,1997 and 1996 3 Consolidated Condensed Statements of Cash Flows --Six Months Ended August 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 7 PART I. FINANCIAL INFORMATION ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited) August 31, February 28, 1997 1997 Assets Current assets Cash and equivalents $ 20,083 18,494 Accounts receivable, net 18,226 18,600 Inventories 8,196 10,500 Other current assets 4,220 5,033 Total current assets 50,725 52,627 Property, plant and equipment, net 37,886 33,560 Cost of purchased businesses in excess of amounts allocated to tangible net assets 6,002 5,942 Other assets and deferred charges 2,533 2,828 Total assets $ 97,146 94,957 Liabilities and Shareholders' Equity Current liabilities Current installments of long-term debt $ 180 85 Accounts payable 4,517 5,234 Accrued expenses 7,173 4,988 Federal and state income taxes payable 4 -- Total current liabilities 11,874 10,307 Long-term debt, less current installments 349 195 Deferred credits, principally Federal income taxes 3,456 2,869 Shareholders' equity Common stock, at par value 53,125 53,125 Additional capital 1,040 1,040 Retained earnings 119,211 119,318 Cumulative foreign currency translation adjustments (85) (76) 173,291 173,407 Less: Treasury stock 91,824 91,821 Total shareholders' equity 81,467 81,586 Total liabilities and shareholders' equity $ 97,146 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 Six Months Ended August 31, August 31, 1997 1996 1997 1996 Net sales $38,309 38,715 $76,205 75,639 Costs and expenses: Cost of sales 26,562 26,422 53,582 50,573 Selling, general and administrative expenses 7,797 6,917 15,211 13,379 Interest expense 19 23 37 46 34,378 33,362 68,830 63,998 Earnings from operations 3,931 5,353 7,375 11,641 Investment and other income 265 395 551 878 Earnings before income taxes 4,196 5,748 7,926 12,519 Provision for income taxes 1,546 2,153 2,937 4,702 Net earnings $ 2,650 3,595 $ 4,989 7,817 Weighted average number of common shares outstanding 16,438,126 16,438,890 16,438,199 16,439,055 Per share amounts: Net earnings $ .16 .22 $ .30 .48 Cash dividends $.155 .155 $ .31 .305 See accompanying notes to consolidated condensed financial statements. ENNIS BUSINESS FORMS, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Six Months Ended August 31, 1997 1996 Cash flows from operating activities: Net earnings $ 4,989 7,817 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,112 2,395 Changes in assets and liabilities 4,853 (4,101) Other 812 (1,181) Net cash provided by operating activities 13,766 4,930 Cash flows from investing activities: Capital expenditures (7,347) (6,211) Purchases of operating assets -- (7,342) Other 21 9 Net cash provided by (used in) investing activities (7,326) (13,544) Cash flows from financing activities: Dividends declared (5,096) (5,014) Proceeds from capital lease financing 288 -- Other (43) (9) Net cash used in financing activities (4,851) (5,023) Net change in cash and equivalents 1,589 (13,637) Cash and equivalents at beginning of period 18,494 38,606 Cash and equivalents at end of period $ 20,083 24,969 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 August 31, 1997 and February 28, 1997, and the results of operations and cash flows for the three months and six months ended August 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 August 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 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): August 31, February 28, 1997 1997 Raw material $ 4,850 6,394 Work-in-process 981 1,127 Finished goods 2,365 2,979 $ 8,196 10,500 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources At August 31, 1997, the Company's financial position continues to be strong. Working capital decreased from $42,320,000 at February 28, 1997 to $38,851,000 at August 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 August 31, 1997 decreased 1.0% from the corresponding period in the prior year. Net sales for the six months ended August 31, 1997 increased .7% from the corresponding period in the prior year. The sales decline in the second quarter is attributable to declines in cotton tag sales and sales from the two commercial printing operations acquired last year. Cotton tag sales declined $700,000 in the second quarter as compared to the same period in the prior year. From a record high in 1992, cotton tag sales have steadily declined as a result of changing industry practices, new technologies and competitive pressures. The gross margins for the three and six month periods ended August 31, 1997 decreased 4.4% and 9.7%, respectively, compared to the same periods in the prior year. The decline in gross profits is because of price discounting and the cost of providing improved service to customers. The gross profit decline for the three months ended August 31, 1997 compared to the corresponding three months ended August 31, 1996 is not as substantial as the gross profit margin decline between the six month periods. This is because there was less discounting of prices in the second quarter of 1997 compared to the first quarter of 1997. Selling, general and administrative expenses for the three and six month periods ended August 31, 1997 increased 12.7% and 13.7%, respectively, compared to the corresponding periods in the prior year. The increases are primarily due to higher marketing and promotion costs, increased customer telephone call activity, increased personnel costs and expanded information and communications systems, all associated with the ongoing efforts to grow sales. 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 and lower earnings. The effective Federal and state income tax rate is substantially the same each 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 October 9, 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 October 9, 1997 Victor V. DiTommaso Vice President - Finance, Secretary & Treasurer Principal Financial and Accounting Officer EX-27 2
5 1000 6-MOS FEB-28-1998 AUG-31-1997 20083 0 19224 998 8196 50725 94237 56351 97146 11874 349 0 0 53125 120166 97146 38309 38309 26562 26562 7797 0 19 4196 1546 2650 0 0 0 2650 .16 .16
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