Ennis Inc.’s consolidated net sales were $138.3 million for the second quarter ended August 31, 2012 compared to $130.4 million for the second quarter ended August 31, 2011, or an increase of 6.1 percent. Print sales increased 24.3 percent for the quarter, from $69.2 million to $86.0 million. Apparel sales for the quarter declined by 14.5 percent (down 4.5 percent on units and down 10 percent on price) from $61.2 million to $52.3 million. The consolidated gross profit margin (“margin”) decreased from 26.1 percent to 24.5 percent for the quarters ended August 31, 2011 and August 31, 2012, respectively. The print segment margin increased from 28.6 percent to 30.7 percent, while the apparel segment margin, which continues to be impacted by higher cotton costs, decreased from 23.4 percent to 14.4 percent for the quarter. As a result, net earnings decreased from $9.7 million, or 7.4 percent of net sales, for the quarter ended August 31, 2011 to $7.6 million, or 5.5 percent of net sales, for the quarter ended August 31, 2012. Diluted earnings per share decreased from $0.37 to $0.29 for the quarters ended August 31, 2011 and August 31, 2012, respectively.
For the six month period, net sales increased from $273.6 million to $280.9 million, or 2.7 percent. Print sales for the six month period were $173.4 million, compared to $136.3 million for the same period last year, an increase of $37.1 million, or 27.2 percent. Apparel sales for the six month period were $107.5 million, compared to $137.3 million for the same period last year, or a decrease of 21.7 percent (down 14.7 percent on units and down 7 percent on price). Overall the margin decreased from 27.0 percent to 22.1 percent for the six months ended August 31, 2011 and 2012, respectively. The print margin increased during the period from 28.7 percent to 29.3 percent, while the apparel margin decreased from 25.3 percent to 10.6 percent, again due to higher cotton costs. Net earnings for the period decreased from $21.1 million, or 7.7 percent of net sales, for the six months ended August 31, 2011 to $11.5 million, or 4.1 percent of net sales, for the six months ended August 31, 2012. Diluted earnings per share decreased from $0.81 to $0.44 for the six months ended August 31, 2011 and 2012, respectively.
During the second quarter, the company generated $15.7 million in EBITDA (a non-GAAP financial measure calculated as net earnings before interest, taxes, depreciation, and amortization) compared to $19.0 million for the comparable quarter last year. For the six month period ended August 31, 2012, the company generated $25.7 million of EBITDA compared to $40.9 million for the comparable period last year.
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