Ennis reports Q1 EPS 41c vs. 45c last year

Reports Q1 revenue $103.1M vs. $111.3M last year. Keith Walters, CEO, commented, “Our results for the quarter were within our expectations given softening demand amidst an uncertain economic environment. While we experienced a decline compared to the first quarter of our previous fiscal year, our gross profit margin showed a 160-basis point increase over the previous quarter as revenues, profits and earnings per share all increased this quarter. Our EBITDA increased from $18.1 million last quarter to $19.0 million this quarter. While revenues have decreased compared to the same quarter last year, our EBITDA as a percentage of sales has held steady at 18.4%. In the first quarter we completed the integration of our ERP system at two of our recent acquisitions and are beginning to see improved performance. This along with our disciplined cost management and pricing strategies contributed to our improved margins over the sequential quarter, despite continued pressure from soft market conditions with increasingly competitive pricing. We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash. During the quarter, with cash on hand we repurchased 91,883 shares of our common stock in the open market at an average price of $19.79 per share and increased our investment in U.S. government treasury bills $2.6 million while we continue to pursue greater returns through additional acquisition opportunities. Our profitability and strong financial condition will allow us to continue operations and fund acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit should larger acquisition opportunities materialize. We continue to focus on delivering profitability and returns to our shareholders.”