-----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, RkP9tKv7sXTbrgNTO5fgQK9hY7oew9TZmzqu7nnPCd3LawrKDePSy59bD9N1n4lt yK4pD85aCf1jX1DMEBqcbA== 0000033002-99-000006.txt : 19990203 0000033002-99-000006.hdr.sgml : 19990203 ACCESSION NUMBER: 0000033002-99-000006 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981130 FILED AS OF DATE: 19990202 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/A SEC ACT: SEC FILE NUMBER: 001-05807 FILM NUMBER: 99519312 BUSINESS ADDRESS: STREET 1: 107 N SHERMAN ST CITY: ENNIS STATE: TX ZIP: 75119 BUSINESS PHONE: 9728723100 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/A 1 FORM 10-Q/A (Amendment No. 1) 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, 1998 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.) 1510 N. Hampton, Suite 300, DeSoto, TX 75115 (Address of principal executive offices) (Zip Code) (972) 228-7801 (Registrant's telephone number, including area code) 107 N. Sherman, Ennis, TX 75119 (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 period that the registrant was required to file such reports), 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 November 30, 1998 Common stock, par value $2.50 per share 16,253,490 ENNIS BUSINESS FORMS, INC. INDEX Part I. Financial Information Condensed Consolidated Balance Sheets -- November 30, 1998 and February 28, 1998 2 Condensed Consolidated Statements of Earnings -- Three and Nine Months Ended November 30,1998 and 1997 3 Condensed Consolidated Statements of Cash Flows --Nine Months Ended November 30, 1998 and 1997 4 Notes to Condensed Consolidated Financial Statements 5 Explanatory Note: The purpose of this amendment is to correct in Note 1 to the financial statements the shares of Treasury stock issued as part of payment of acquisition of business. PART I. FINANCIAL INFORMATION ENNIS BUSINESS FORMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) November 30, February 28, 1998 1998 Assets Current assets: Cash and equivalents $ 23,309 22,700 Accounts receivable, net 18,467 17,980 Inventories 4,902 8,063 Other current assets 4,264 4,917 -------- ------- Total current assets 50,942 53,660 -------- ------- Property, plant and equipment, net 34,490 34,852 Cost of purchased businesses in excess of amounts allocated to tangible net assets 5,765 4,574 Other assets and deferred charges 2,445 1,388 -------- ------- Total assets $ 93,642 94,474 ======== ======= Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 197 191 Accounts payable 3,981 4,759 Accrued expenses 5,838 5,446 -------- ------- Total current liabilities 10,016 10,396 -------- ------- Long-term debt, less current installments 32 206 Deferred credits, principally Federal income taxes 1,823 2,200 Shareholders' equity: Common stock, at par value 53,125 53,125 Additional capital 1,040 1,040 Retained earnings 120,579 119,335 -------- ------- 174,744 173,500 Less: Treasury stock 92,973 91,828 -------- ------- Total shareholders' equity 81,771 81,672 -------- ------- Total liabilities and shareholders' equity $ 93,642 94,474 ======== ======= See accompanying notes to condensed consolidated financial statements. 2 ENNIS BUSINESS FORMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Dollars in Thousands Except Per Share Amounts) (Unaudited) Three Months Ended Nine Months Ended November 30, November 30, 1998 1997 1998 1997 Net sales $38,800 40,311 $112,038 116,516 ------- ------ -------- ------- Costs and expenses: Cost of sales 26,939 27,822 76,860 81,404 Selling, general and administrative 6,974 7,770 20,561 22,981 Loss on disposal of Heath Printers, Inc. -- 3,067 -- 3,067 ------ ------ ------- ------- 33,913 38,659 97,421 107,452 ------ ------ ------- ------- Earnings from operations 4,887 1,652 14,617 9,064 Investment and other income 302 284 977 798 ------ ------ ------- ------- Earnings before income taxes 5,189 1,936 15,594 9,862 Provision for income taxes 1,909 805 5,731 3,741 ------- ------ ------- ------- Net earnings $ 3,280 1,131 $ 9,863 6,121 ======= ====== ======= ======= Weighted average number of common shares outstanding 16,166,634 16,437,828 16,329,264 16,438,071 ========== ========== ========== ========== Per share amounts: Net earnings per basic and diluted share of common stock $ .20 .07 $ .60 .37 ===== === ===== === Cash dividends $.155 $.155 $.465 .465 ===== ===== ===== ==== See accompanying notes to condensed consolidated financial statements. 3 ENNIS BUSINESS FORMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Nine Months Ended November 30, 1998 1997 Cash flows from operating activities: Net earnings $ 9,863 6,121 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 3,980 4,685 Loss on disposal of Heath Printers, Inc. -- 3,067 Changes in operating assets and liabilities 3,902 5,911 Other (1,329) (2,105) ------- ------ Net cash provided by operating activities 16,416 17,679 ------- ------ Cash flows from investing activities: Acquisition of business (2,269) -- Capital expenditures (3,131) (8,916) Other 664 21 ------- ------ Net cash used in investing activities (4,736) (8,895) ------- ------ Cash flows from financing activities: Purchase of treasury stock (3,300) (7) Dividends declared (7,597) (7,644) Other (174) 131 -------- ------- Net cash used in financing activities (11,071) (7,520) -------- ------- Net change in cash and equivalents 609 1,264 Cash and equivalents at beginning of period 22,700 18,494 ------- ------ Cash and equivalents at end of period $23,309 19,758 ======= ====== See accompanying notes to condensed consolidated financial statements. 4 ENNIS BUSINESS FORMS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation 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, 1998 and February 28, 1998, and the results of operations and cash flows for the three months and nine months ended November 30, 1998 and 1997. Statement of Cash Flow - Acquisition of Business was a purchase price of $3,400,000. 115,816 shares of Treasury stock valued at $1,133,313 was issued as part of payment. 2. Earnings Per Common Share The Company adopted the provisions of Statement of Financial Accounting Standards No. 128 (SFAS 128), Earnings Per Share, in the fourth quarter of fiscal 1998, which requires companies to present basic earnings per share and diluted earnings per share. Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company has restated its November 30, 1997 earnings per share calculation to reflect the adoption of SFAS 128. 3. Stock Option Plans As of November 30, 1998, the Company has reserved 1,124,212 shares of common stock under incentive stock option plans. 4. Inventories 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, 1998 1998 Raw material $2,746 4,640 Work-in-process 660 1,065 Finished goods 1,496 2,358 ------ ----- $4,902 8,063 ====== ===== 5. Comprehensive Income The Company adopted the provisions of Statement of Financial Accounting Standards No. 130 (SFAS 130), Reporting Comprehensive Income, in the first quarter of fiscal 1999, which requires companies to disclose comprehensive income separately of net income from operations. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-ownership sources. It includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners. The adoption of this statement had no significant effect on the Company for the three months and nine months ended November 30, 1998 or 1997. 5 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 29, 1999 /s/Robert M. Halowec Robert M. Halowec Vice-President Finance and Chief Financial Officer /s/Harve Cathey Harve Cathey Secretary and Treasurer Principal Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----