EX-99.1 2 d35310exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
FOR IMMEDIATE RELEASE
ENNIS, INC. REPORTS RESULTS FOR THE QUARTER AND YEAR ENDED FEBRUARY 28, 2006
     Midlothian, Texas April 24, 2006 — Ennis, Inc. (the “Company), (NYSE: EBF), today reported financial results for the quarter and the year ended February 28, 2006.
Highlights
•   Revenues increased by $194 million over the last year, or 53%.
•   Profits increased 77% for the year, from approximately $23 million to approximately $41 million.
•   Diluted EPS increased by 33%, from $1.19 per share to $1.58 per share for the year.
Financial Overview
     For the year, net sales increased by approximately $194.0 million, or 53.1% from $365.4 million for the year ended February 28, 2005 to $559.4 million for the year ended February 28, 2006. Sales in the Print Solutions segment for the period were $321.4 million, compared to $309.3 million for the same period last year. The Apparel Solutions segment sales for the period were $238.0 million, compared to $56.1 million for the period from the acquisition date (November 19, 2004) to February 28, 2005. Due to improved margins realized at the Apparel Group during the year, the Company’s margins improved from 24.8% to 25.3% for fiscal years 2005 and 2006, respectively. Net earnings for the year increased by $17.5 million, or 76.6% from $23.0 million for the year ended February 28, 2005 to $40.5 million for the year ended February 28, 2006. Diluted earnings increased from $1.19 per share to $1.58 per share for the year ended February 28, 2005 and 2006, respectively.
     For the fourth quarter, net sales decreased by $4.0 million, or 3.0% from $134.5 for the three months ended February 28, 2005 to $130.5 million for the three months ended February 28, 2006. Net sales in the Print Solutions segment for the quarter were $79.0 million, compared to $82.8 million for the same quarter last year. Sales in the Apparel Solutions segment during the period were $51.5 million, compared to $51.7 million for the same quarter last year. Due to the improved margins at the Apparel Group, the Company’s margins during the quarter continued to improve over the prior, from 23.3% for the quarter ended February 28, 2005 to 24.3% for the

 

 

quarter ended February 28, 2006. Net earnings for the quarter increased by $2.4 million, or 34.8% from $6.9 million for the three months ended February 28, 2005 to $9.3 million for the three months ended February 28, 2006. Diluted earnings for the three months ended February 28, 2006 were $.36 per share, compared to $.27 per share for the three months ended February 28, 2005. The decline in the Print Solutions segment’s revenues was due in part to reduced volume from a large customer in the Promotional Solutions group.
     The Company generated approximately $19.4 million in EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter compared to $18.0 million for the comparable quarter last year, and $90.1 million for the year ended February 28, 2006 compared to $51.3 for the comparable period last year.
Reconciliation of Non-GAAP to GAAP measure (dollars in thousands):
                                 
    Three months ended     Year ended  
    February 28,     February 28,  
    2006     2005     2006     2005  
Earnings before income taxes
   $ 13,188     $ 11,544     $ 63,971     $ 37,465  
Interest expense
     1,530       2,166       8,331       2,755  
Depreciation/amortization
     4,644       4,310       17,811       11,076  
 
                        
EBITDA (non-GAAP)
   $ 19,362     $ 18,020     $ 90,113     $ 51,296  
 
                        
     Keith Walters, Chairman, President & CEO, commented by saying, “we are extremely pleased with our results for the year and with the post-merger operating results of our apparel company which continues to meet or exceed our pro-forma expectations outlined in last year’s S-4 filing. Our operating performance for the year was the highest in the Company’s history. We were also pleased that our Print segment’s sales for the year were up almost 4%, even given the closing of two of our plants and the loss of volume from a large Promotional Group customer. While this industry continues to deal with contraction, we plan to continue to look for opportunities in this market sector to add to our product offerings or improve our geographic presence. We plan to start to look for potential opportunities that may be available in the apparel sector as well.”
About Ennis
Ennis, Inc. (www.ennis.com) (formerly Ennis Business Forms, Inc.) is primarily engaged in the production of and sale of business forms, apparel and other business products. The Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, the Company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve the Company’s national network of distributors. The Company, together with its subsidiaries, operates in two business segments: the Printing Segment and Apparel Segment. There are three groups within the Printing Segment: the Forms Solutions Group, Promotional Solutions Group, and Financial Solutions Group. The Apparel Segment consists entirely of the Apparel Solutions Group. The Forms Solutions Group is primarily engaged in the business of manufacturing and selling business forms and other printed business products. The Promotional Solutions Group is primarily engaged in the business of design, production and distribution of printed and electronic

 

 

media, presentation products, flex-o-graphic printing, advertising specialties and Post-it® Notes. The Financial Solutions Group designs, manufactures and markets printed forms and specializes in internal bank forms, secure and negotiable documents and custom products. The Apparel Solutions Group manufactures T-Shirts and distributes T-Shirts and other active-wear apparel through six distribution centers located throughout North America.
Safe Harbor Under The Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words “anticipate,” “preliminary,” “expect,” “believe,” “intend” and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the Company’s ability to effectively manage its business functions while growing its business in a rapidly changing environment, the Company’s ability to adapt and expand its services in such an environment, the variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company’s future performance is included in the public reports that the Company files with the Securities and Exchange Commission. The Company undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.
For Further Information Contact:
Mr. Keith Walters, Chairman, Chief Executive Officer and President
Mr. Michael Magill, Executive Vice President
Mr. Richard L. Travis, Jr., Chief Financial Officer
Ennis, Inc.
2441 Presidential Parkway
Midlothian, Texas 76065
Phone: (972) 775-9801
Fax: (972) 775-9820
www.ennis.com

 

 

Ennis, Inc.
Condensed Financial Information
(In thousands, except per share amounts)
                                 
    Three months ended     Twelve months ended  
Condensed Operating Results   February 28,     February 28,  
    2006     2005     2006     2005  
Revenues
   $ 130,479     $ 134,493     $ 559,397     $ 365,353  
Cost of goods sold
     98,738       103,022       417,307       274,596  
 
                        
Gross profit
     31,741       31,471       142,090       90,757  
Operating expenses
     16,631       18,053       70,060       51,159  
 
                        
Operating income
     15,110       13,418       72,030       39,598  
Other expense
     1,922       1,874       8,059       2,133  
Income tax expense
     3,883       4,641       23,434       14,506  
 
                        
Net earnings
   $ 9,305     $ 6,903     $ 40,537     $ 22,959  
 
                        
Earnings per share
                                
Basic
   $ 0.37     $ 0.27     $ 1.59     $ 1.21  
 
                        
Diluted
   $ 0.36     $ 0.27     $ 1.58     $ 1.19  
 
                        
                         
Condensed Balance Sheet Information   February 28,          
    2006     2005          
Current assets
                        
Cash
   $ 13,860     $ 10,694          
Accounts receivable, net
     41,686       46,685          
Inventories, net
     89,155       79,900          
Other
     11,360       11,894          
 
                    
 
     156,061       149,173          
 
                    
Property, plant & equipment
     66,197       72,019          
Other
     272,143       276,054          
 
                    
 
   $ 494,401     $ 497,246          
 
                    
Current Liabilities
                        
Accounts payable
   $ 26,589     $ 33,887          
Accrued expenses
     25,752       25,794          
Current portion of long-term debt
     11,620       21,702          
 
                    
 
     63,961       81,383          
 
                    
Long-term debt
     102,916       112,342          
Deferred credits
     30,189       31,790          
 
                    
Total liabilities
     197,066       225,515          
 
                    
Shareholders’ equity
     297,335       271,731          
 
                    
 
   $ 494,401     $ 497,246          
 
                    
Condensed Cash Flow Information
                        
Cash provided by operating activities
   $ 47,903     $ 20,046          
Cash used by investing activities
     (9,842 )     (121,091 )        
Cash provided by (used in) financing activities
     (34,895 )     96,672          
 
                    
Change in Cash
     3,166       (4,373 )        
Cash at beginning of period
     10,694       15,067          
 
                    
Cash at end of period
   $ 13,860     $ 10,694