Exhibit 99
Press Release
2441 Presidential Parkway (bullet) Midlothian, Texas 76065
(bullet) Phone 972.775.9801 (bullet) Fax 800.579.4271 (bullet)
www.ennis.com
FOR IMMEDIATE RELEASE FOR ADDITIONAL INFORMATION
CONTACT: Keith S. Walters,
Chairman President & CEO
(800) 752-5386
Midlothian, Texas, September 27, 2004
ENNIS, INC. REPORTS SECOND QUARTER OPERATING RESULTS
Midlothian, Texas -- Ennis, Inc. (NYSE: EBF) today
reported operating results for its second quarter ended August
31, 2004.
On June 25, 2004, the Company announced two related
transactions, the purchase of Crabar/GBF, Inc. from Centrum
Equities, Inc. and the merger between the Company and Centrum
Acquisitions, Inc., the parent company of Alstyle Apparel.
"These combined transactions will solidify the Company's position
in the wholesale manufacturing portion of the business forms
industry, and at the same time provide the Company with a new
growth product line," stated Keith Walters, Chairman, President
and CEO of Ennis, Inc. "Upon completion of these transactions,
the combined entities will have annual revenues in excess of
$500,000,000. The impact of the Crabar/GBF acquisition on June
30, 2004 is reflected in second quarter operating results, and
the merger with Alstyle Apparel is expected to be completed late
in the third fiscal quarter."
For the second quarter ended August 31, 2004, net sales amounted
to $73,374,000 compared to $65,003,000 for the same period last
year, an increase of 12.9%. Net earnings for the quarter
amounted to $5,370,000 or $.32 per diluted share, compared to
$4,497,000, or $.27 per diluted share for the corresponding
period last year, an increase of 19.4%. Per share
1
earnings computations were based on 16,745,451 shares for the
quarter compared to 16,609,275 diluted shares for the
corresponding period last year.
For the six months ended August 31, 2004, net sales amounted
to $139,110,000 compared to $129,877,000 for the same period last
year, an increase of 7.1%. Net earnings for the six months
amounted to $9,952,000 or $.59 per diluted share, compared to
$8,601,000 or $.52 per diluted share for the corresponding period
last year, an increase of 15.7%. Per share earnings computations
were based on 16,715,645 diluted shares for the six months
compared to 16,556,573 shares for the corresponding period last
year.
Ennis, Inc., (NYSE: EBF) is one of the largest private-label
printed business product suppliers in the United States.
Headquartered in Midlothian, Texas, the Company has 37 production
facilities located in 16 states, strategically located to serve
the Company's national network of distributors. Ennis offers an
extensive product line from simple to complex forms, laser cut-
sheets, negotiable documents, internal bank forms, tags, labels,
presentation folders, commercial printing, advertising
specialties, screen printed products, and point-of-purchase
display advertising that can be custom designed to customer needs.
In addition, Ennis maintains highly proficient regional Customer
Sales Centers to support distributors in their business efforts.
2
ENNIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
Three Months Ended August 31, 2004 2003
---- ----
NET SALES $ 73,374 $ 65,003
-------- --------
COSTS AND EXPENSES:
Cost of sales 54,022 47,496
Selling, general and administrative
expenses 10,813 9,866
-------- --------
64,835 57,362
-------- --------
EARNINGS FROM OPERATIONS 8,539 7,641
OTHER INCOME (EXPENSE):
Investment income 137 13
Interest expense (167) (192)
Other expense, net 79 (208)
49 (387)
EARNINGS BEFORE INCOME TAXES 8,588 7,254
PROVISIONS FOR INCOME TAXES 3,218 2,757
-------- --------
NET EARNINGS $ 5,370 $ 4,497
======= =======
PER SHARE AMOUNTS:
Basic net earnings $ 0.33 $ 0.28
======= =======
Diluted net earnings $ 0.32 $ 0.27
======= =======
Dividends $ 0.155 $ 0.155
======= =======
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - BASIC 16,427,776 16,347,228
========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - DILUTED 16,745,451 16,609,275
========== ==========
Six Months Ended August 31, 2004 2003
---- ----
NET SALES $139,110 $129,877
-------- --------
COSTS AND EXPENSES:
Cost of sales 102,698 95,820
Selling, general and administrative
expenses 20,199 19,521
-------- --------
122,897 115,341
-------- --------
EARNINGS FROM OPERATIONS 16,213 14,536
OTHER INCOME (EXPENSE)
Investment income 142 27
Interest expense (301) (479)
Other expense, net (2) (211)
(161) (663)
EARNINGS BEFORE INCOME TAXES 16,052 13,873
PROVISIONS FOR INCOME TAXES 6,100 5,272
-------- --------
NET EARNINGS $ 9,952 $ 8,601
======= =======
PER SHARE AMOUNTS:
Basic net earnings $ 0.61 $ 0.53
======= =======
Diluted net earnings $ 0.59 $ 0.52
======= =======
Dividends $ 0.310 $ 0.310
======= =======
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - BASIC 16,416,737 16,340,968
========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - DILUTED 16,715,645 16,556,573
========== ==========
3
ENNIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
August 31, February 29,
2004 2004
---- ----
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 8,530 $ 15,067
Accounts receivable, net 37,622 29,800
Inventories 18,742 13,721
Other current assets 6,240 5,017
------- -------
Total current assets 71,134 63,605
------- -------
PROPERTY, PLANT AND EQUIPMENT, NET 52,308 46,480
GOODWILL, NET 42,567 34,420
OTHER ASSETS 9,476 9,538
------- -------
$ 175,485 $ 154,043
======= =======
Liabilities and Shareholders' Equity
CURRENT LIABILITIES:
Current installments of
long-term debt $ 6,237 $ 6,335
Accounts payable 10,006 5,804
Accrued expenses 17,586 13,261
Federal and state income tax payable 138 --
------- -------
Total current liabilities 33,967 25,400
------- -------
LONG-TERM DEBT,
LESS CURRENT INSTALLMENTS 16,000 7,800
DEFERRED CREDITS, PRINCIPALLY
FEDERAL INCOME TAXES 9,635 10,261
SHAREHOLDERS' EQUITY:
Preferred stock, at par value -- --
Common stock, at par value 53,125 53,125
Additional capital 126 126
Retained earnings 150,200 145,653
Accumulated other comprehensive income (40) (114)
------- -------
203,411 198,790
Treasury stock (87,528) (88,208)
------- -------
Total shareholders' equity 115,883 110,582
------- -------
$ 175,485 $ 154,043
======= =======
4
ENNIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
August 31,
2004 2003
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 9,952 $ 8,601
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 4,424 4,775
Gain on sale of property, plant
and equipment (188) (4)
Bad debt expense 429 440
Other -- (275)
Changes in operating assets and
liabilities (3,047) 4,599
------- -------
Net cash provided by
operating activities 11,570 18,136
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,581) (2,402)
Purchase operating assets, net
of cash acquired (17,701) --
Other 235 63
------- -------
Net cash used in investing
activities (21,047) (2,339)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Debt issued to finance acquisitions 11,000 --
Repayment of debt issued to finance
acquisition (3,335) (4,037)
Issue (purchase) of treasury
shares, net 363 330
Dividends (5,088) (5,068)
------- -------
Net cash (used in)
provided by financing
activities 2,940 (8,775)
------- -------
NET CHANGE IN CASH AND EQUIVALENTS (6,537) 7,022
CASH AND EQUIVALENTS AT BEGINNING
OF PERIOD 15,067 13,860
------- -------
CASH AND EQUIVALENTS AT END OF PERIOD $ 8,530 $ 20,882
======= =======
Management's comments contain forward-looking statements that
reflect the Company's current view with respect to future revenues
and earnings. These statements are subject to numerous
uncertainties, including (but not limited to) the rate at which
the traditional business forms market is contracting, the
application of technology to the production of business forms,
demand for the Company's products in the context of a contracting
market, variability in the prices of paper and other raw
materials, and competitive conditions associated with the
Company's products. Because of such uncertainties readers are
cautioned not to place undue reliance on such forward-looking
statements, which speak only as of September 27, 2004.
5