Ennis, Inc. Reports Results for the Quarter and Year Ended February 28, 2021, Sets Record Date for Annual Shareholder Meeting & Increases Quarterly Dividend
Ennis, Inc. (NYSE: EBF) reported financial results for the quarter and fiscal year ending February 28, 2021. Revenues for the fourth quarter were $89.9 million, a decrease of 15.7% year-over-year, and $358.0 million for the fiscal year, reflecting an 18.3% decline. Earnings per diluted share decreased to $0.20 from $0.33 in the prior quarter. Gross profit margin improved to 29.6% for the quarter. The Board declared an 11% increase in quarterly dividends to $0.25 per share.
- Quarterly gross profit margin improved to 29.6%, up from 28.1% year-over-year.
- Board increased the quarterly dividend by 11% to $0.25 per share.
- Fourth quarter revenues declined by 15.7%, and fiscal year revenues decreased by 18.3%.
- Earnings per diluted share dropped from $0.33 to $0.20 for the quarter and $1.47 to $0.93 for the fiscal year.
- A pension settlement charge of $1.6 million negatively impacted quarterly earnings by $0.05 per share.
Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the quarter and fiscal year ended February 28, 2021. Highlights include:
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Revenues were
$89.9 million for the quarter, a decrease of$16.7 million or15.7% for the comparative quarter and$358.0 million for the fiscal year, a decrease of$80.4 million , or18.3% for the comparative fiscal year. -
Earnings per diluted share for the current quarter were
$0.20 compared to$0.33 for the comparative quarter last year. Earnings per diluted share were$0.93 for the fiscal year as compared to$1.47 for the last fiscal year. Quarterly results were impacted by a pension settlement charge related to a large amount of lump-sum distributions paid to retirees. The settlement charge of$1.6 million impacted quarterly results by$0.05 per share. -
Our gross profit margin for the quarter increased on a comparative quarter basis from
28.1% to29.6% . Gross profit margin was29.0% for the fiscal year compared to29.4% for the prior fiscal year. -
The Board declared the amount of the next quarterly dividend early and increased it
11% , from$0.22 5 to$0.25 per share.
Financial Overview
The Company’s revenues for the fourth quarter ended February 28, 2021 were
The Company’s revenues for the fiscal year ended February 28, 2021 were
Keith Walters, Chairman, Chief Executive Officer and President, commented by stating, “Our fourth quarter operational performance was largely in line with our expectations given the challenging environment presented by the coronavirus (COVID-19) pandemic. Management’s ability to adjust operations and costs during the changing circumstances throughout the year allowed us to preserve and improve our gross profit margins,
We continued to invest in our business, including our most recent acquisition of Infoseal at the end of 2020, a leader in the production of pressure seal documents. This well-known brand brings added capabilities and expertise to our expanding product offering including our existing VersaSeal pressure seal product line. Infoseal products are sold through our traditional sales channel of independent distributors and this business continues our strategy to support our loyal distributors with an industry leading product offering.
The U.S. economy continues to be significantly impacted by the COVID-19 pandemic and parts of the economy have started to re-open as vaccinations become more prevalent, but remain subject to ongoing surges and local shutdowns, creating a very fluid economic environment. Total nonfarm payroll employment rose by 916,000 in March, and the unemployment rate edged down to 6.0 percent, as recently reported by the U.S. Bureau of Labor Statistics (“BLS”). These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the COVID-19 pandemic. Job growth was encouraging in March, led by gains in leisure and hospitality, public and private education, and construction. These BLS statistics provide evidence that various sectors continue to improve, while others have not. We continue to monitor incoming order volumes so that we can proactively adjust our costs accordingly.
Our continued financial strength, including a current ratio (current assets divided by current liabilities) of 4.2, cash balance of
Dividend Increase and Declaration
Additionally, the Board of Directors announced today that they have increased the quarterly dividend to twenty-five cents (
FAQ
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