Exhibit 99
(Ennis Logo)
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, April 27, 2005
ENNIS, INC. YEAR-END RESULTS
Midlothian, Texas -- Ennis, Inc. (NYSE: EBF) today reported
increased sales and operating results for the year ended February
28, 2005.
"The acquisitions of Crabar/GBF, Inc., Alstyle Apparel and
Royal Business Forms, Inc. were easily the most significant events
in what was the most active acquisition year in the history of the
Company", Keith S. Walters, Chairman, President and Chief
Executive Officer of Ennis, Inc. stated. "The addition of Alstyle
Apparel establishes a new growth platform for the Company plus
bringing estimated annual revenue in excess of $200,000,000.
Crabar/GBF, Inc. and Royal Business Forms, Inc. strengthen the
Forms Solutions Group by adding estimated annual revenues of
approximately $70,000,000, along with the addition of product
capabilities and geographical coverage. While much of the year
was focused on acquisitions, the existing operating units
continued to perform solidly. The major negative event impacting
the performance of the Company was the over $1,500,000 incurred to
prepare for the challenges of compliance with the requirements of
the Sarbanes-Oxley Act of 2002."
Since the completion of the acquisitions in November 2004,
the focus of management has been directed toward the integration
of these companies into the Ennis, Inc. operating structure.
Because of the company's familiarity with business conducted by
Crabar/GBF, Inc., integration of this operation was largely
completed by the end of the third quarter, and has progressed
satisfactorily. The same can be said for Royal Business Forms,
Inc., which is a much smaller operation. Alstyle Apparel is much
larger than any organization ever acquired by the Company. At
this time, while there is still a significant amount of work to be
done to finish the integration, the process is moving forward at a
satisfactory rate. This acquisition has added a cyclical nature
to the business, which did not previously exist in our business.
Sales of activewear are heaviest in the first and second fiscal
quarters of Ennis, Inc., with the third quarter being historically
less than the previous quarter and the fourth quarter being the
low point in the cycle. The Company continues to believe the
acquisitions completed during the fiscal year will be accretive to
net earnings by the completion of twelve months from the closing
of the transactions.
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For the fourth quarter ended February 28, 2005, net sales
amounted to $134,493,000 compared to $63,085,000 for the same
period last year, an increase of 113%. Net earnings for the
quarter amounted to $6,903,000, compared to $4,875,000 for the
corresponding period last year, an increase of 41.6%. Fully
diluted earnings per share were $.27 for the current quarter,
compared to $.29 in the prior year. Per share earnings
computations were based on 25,743,051 fully diluted shares for the
quarter compared to 16,675,256 shares fully diluted for the prior
period. The difference in weighted average shares outstanding
results from the impact of the shares issued in Alstyle and Royal
transactions being outstanding for the entire quarter.
For the twelve months ended February 28, 2005, net sales
amounted to $365,353,000 compared to $259,360,000 for the same
period last year, an increase of 41%. Net earnings for the twelve
months amounted to $22,959,000, compared to $17,951,000, an
increase of 27.9%. Fully diluted earnings per share were $1.19
for the current year, compared to $1.08 in the prior year. Per
share earnings computations were based upon 19,259,550 fully
diluted shares for the current fiscal year compared to 16,601,838
fully diluted shares for the prior year. The difference in
weighted average shares outstanding for the year is also the
result of the shares issued in the Alstyle and Royal transactions.
Ennis, Inc. (www.ennis.com) (formerly Ennis Business Forms,
Inc.) is primarily engaged in the production of and sale of
business forms, apparel and other business products. The Company
is one of the largest private-label printed business product
suppliers in the United States. Headquartered in Midlothian,
Texas, the Company has 41 production and distribution facilities
located throughout 16 states, Mexico and Canada, strategically
located to serve the Company's national network of distributors.
The Company, together with its subsidiaries, operates in four
business segments: the Forms Solutions Group, Promotional
Solutions Group, Financial Solutions Group and Apparel Solutions
Group. The Forms Solutions Group is primarily engaged in the
business of manufacturing and selling business forms and other
printed business products. The Promotional Solutions Group is
primarily engaged in the business of design, production and
distribution of printed and electronic media, presentation
products, flexographic printing, advertising specialties and Post-
it (registered trademark) Notes. The Financial Solutions Group
designs, manufactures and markets printed forms and specializes in
internal bank forms, secure and negotiable documents and custom
products. The Apparel Solutions Group manufactures T-Shirts and
distributes T-Shirts and other activewear apparel through six
distribution centers located throughout North America.
Management's report to shareholders contains forward-looking
statements that reflect the Company's current view with respect to
future revenues and earnings including the expectation that net
earnings will be accretive in the future and the future impact of
the cyclical nature of the business. 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 April 27, 2005.
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