In a Nutshell
*Q1 revenue was down year-over-year from $94.6 million to $93.4 million.
*Net earnings were $9.2 million, up from $7.8 million.
While year-over-year first quarter revenue declined, Top 40 Supplier Ennis, Inc. (asi/52493) generated increases in net earnings and earnings-per-share, according to financial data the Texas-based company released Tuesday.
Ennis said that revenue for the three-month period ending May 31st tallied $93.4 million. While that was up 7.3% on a sequential quarter basis, the sales number was down from the prior fiscal year’s first quarter result of $94.6 million.
Nonetheless, this year’s Q1 earnings were $9.2 million, or $0.36 per diluted share – increases from last year’s quarterly figures of $7.8 million in earnings, or $0.31 per diluted share. Ennis also noted that gross profit margin rose, inching forward from $30 million, or 31.7%, to $30.2 million, or 32.3%. “We are pleased with our first quarter performance,” said Keith Walters, Ennis’ chairman, CEO and president. “We continue to build on the momentum of last year.”
Buoyed by what they felt were the good results, Ennis’ board of directors approved a 12 ½% increase in quarterly dividend, which is effective with the company’s upcoming regularly scheduled August dividend payment. Executives for Ennis said the firm expects the recently acquired Allen-Bailey Tag & Label, a New York-based company that produces tags and labels for the fire safety and agriculture industries, to help fuel greater sales in the months ahead. Ennis remains interested in making more acquisitions. “We continue to strengthen one of the strongest balance sheets in the industry and our cash position remains significant, which allows us many opportunities,” said Walters.
In April, Ennis reported increases in revenue and earnings for its previous full fiscal year and fourth quarter, which both ended on Feb. 28. With reported 2016 North American promotional product revenue of $235 million, Ennis ranked seventh on Counselor’s most recent list of the 40 largest suppliers in the industry. The new rankings are due out in July.