This week Top 40 supplier Ennis, Inc. (asi/52493) reported increases in revenue and earnings for its full fiscal year and fourth quarter, which both ended on Feb. 28.
For the fiscal year, total company revenue grew to about $370.2 million, up from $356.9 million the year prior, the Texas-based company said. Ennis’ gross profit margin improved too, rising to $116.9 million, or 31.6%, compared to the previous year’s $104 million, or $29.1%.
Meanwhile, total net earnings, which include continued and discontinued operations, tallied $32.9 million, or $1.30 per diluted share. That was up from $1.78 million, or $0.07 per share during the previous 12-month period. Earnings from the fiscal year ended in February 2017 were negatively impacted to the tune of $27.1 million, or $1.05 per share, by Ennis’ May 2016 sale of Alstyle Apparel – what Ennis now calls its discontinued operations. Ennis said its earnings from continuing operations for fiscal 2017 – which came in at $26.4 million/$1.03 per share – were also hurt by the relocation and start-up costs of a folder company, and higher than usual medical expenses. Having sold Alstyle Apparel, Ennis’ continuing operations are centered in its print division.
Now past 2017’s challenges, fiscal 2018 results demonstrate that Ennis is on an upward swing, company officials said. “Overall, we were pleased with our operational performance this fiscal year and our ability to successfully put the negative overhangs of the prior fiscal year behind us,” said Keith Walters, Ennis chairman, CEO and president.
During the fourth quarter of its 2018 fiscal year, Ennis said that revenue inched up 0.6% to $87.1 million. Total net earnings were $8.3 million, or $0.33 per share. That performance bested the previous Q4’s earnings, which were reported as $6.13 million, or $0.24. As was the case with full year results, gross profit margin accelerated during Ennis’ 2018 fourth quarter, reaching $26.3 million – up from 2017’s $24.9 million.
“Although the print industry remains challenging, we are optimistic about our ability to navigate these waters and continue to return positive financial results to our shareholders,” said Walters. “We have strengthened one of the strongest balance sheets in the industry and continue to improve our cash position.”
With estimated North American promotional products revenue of $235 million, Ennis ranked 7th on Counselor’s most recent list of the largest suppliers in the industry.