Ennis posts 5.9% hike in Q3FY'13 sales

Our consolidated net sales were $129.0 million for the third quarter ended November 30, 2012 compared to $121.8 million for the third quarter ended November 30, 2011, or an increase of 5.9%. Print sales increased 17.8% for the quarter, from $69.2 million to $81.5 million.

Apparel sales for the quarter declined by 9.9% (down 6.9% on units and down 3.0% on price) from $52.6 million to $47.4 million. Our consolidated gross profit margin ("margin") decreased from 24.8% to 23.7% for the quarters ended November 30, 2011 and November 30, 2012, respectively.

Our print segment margin increased from 27.8% to 28.7%, while our apparel segment margin, which continues to be impacted by higher cotton costs residing in finished goods, decreased from 20.8% to 15.2% for the quarter.

As a result, our net earnings decreased from $6.9 million, or 5.7% of net sales, for the quarter ended November 30, 2011 to $6.2 million, or 4.8% of net sales, for the quarter ended November 30, 2012. Diluted earnings per share decreased from $0.27 to $0.24 for the quarters ended November 30, 2011 and November 30, 2012, respectively.

For the nine month period, net sales increased from $395.5 million to $409.9 million, or 3.6%. Print sales for the nine month period were $254.9 million, compared to $205.5 million for the same period last year, an increase of $49.4 million, or 24.0%.

Apparel sales for the nine month period were $155.0 million, compared to $189.9 million for the same period last year, or a decrease of 18.4% (down 12.7% on units and down 5.7% on price). Overall our margin decreased from 26.3% to 22.6% for the nine months ended November 30, 2011 and 2012, respectively.

Our print margin increased during the period from 28.4% to 29.1%, while our apparel margin decreased from 24.0% to 12.0%, again due to higher cost of cotton in finished goods. Net earnings for the period decreased from $28.0 million, or 7.1% of net sales, to $17.6 million, or 4.3% of net sales, for the nine months ended November 30, 2011 and 2012, respectively.

Diluted earnings per share decreased from $1.08 to $0.68 for the nine months ended November 30, 2011 and 2012, respectively.

Ennis Inc