Ennis, Inc. (EBF) swung to a net profit for the quarter ended May 31, 2017. The company has made a net profit of $7.78 million, or $ 0.31 a share in the quarter, against a net loss of $16.88 million, or $0.65 a share in the last year period.
Revenue during the quarter grew 4.62 percent to $94.59 million from $90.41 million in the previous year period. Gross margin for the quarter expanded 210 basis points over the previous year period to 31.63 percent. Total expenses were 86.75 percent of quarterly revenues, down from 88.26 percent for the same period last year. This has led to an improvement of 151 basis points in operating margin to 13.25 percent.
Operating income for the quarter was $12.53 million, compared with $10.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.07 million compared with $13.75 million in the prior year period. At the same time, adjusted EBITDA margin improved 177 basis points in the quarter to 16.98 percent from 15.21 percent in the last year period.
Keith Walters, chairman, chief executive officer and president, commented on continuing operations by stating, "We are pleased with the operational performance during the first quarter. The integration of our most recent acquisition, Independent Printing Company, is coming along nicely. Its operations for the quarter added approximately $9.7 million in sales and $0.03 to our diluted earnings per share. On March 1, 2017, we changed the remaining useful lives of the Company's trade names from indefinite-life to definite-life, which negatively impacted our financial results by approximately $0.01 per diluted share. Also, as recently announced, our Board, after considering our cash position, debt level, and anticipated cash flows, along with our focus on opportunities for share repurchases and acquisitions, increased our quarterly dividend rate from $0.175 per share to $0.20 per share, an increase of 14.3%. Finally, I would like to remind our shareholders that our annual shareholders’ meeting is scheduled for July 20, 2017 and we hope to see you there."
Operating cash flow declines
Ennis, Inc. has generated cash of $12.35 million from operating activities during the quarter, down 17.95 percent or $ 2.70 million, when compared with the last year period.
The company has spent $0.71 million cash to meet investing activities during the quarter as against cash inflow of $106.04 million in the last year period.
The company has spent $7.78 million cash to carry out financing activities during the quarter as against cash outgo of $6.62 million in the last year period.
Cash and cash equivalents stood at stood at $84.32 million as at May 31, 2017.
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