Ennis, Inc. (NYSE: EBF) has reported a decrease in revenues for the third quarter ended November 30, 2024, with revenues at $99.8 million compared to $104.6 million for the same quarter last year, marking a decrease of $4.8 million or -4.6%. Despite the decline in revenues, the company's earnings per diluted share for the current quarter increased to $0.39 from $0.38 for the comparative quarter last year.
The gross profit margin for the quarter was reported at 29.3%, slightly up from 29.2% for the same quarter last year. The company's net earnings for the quarter were $10.2 million, or $0.39 per diluted share, compared to $9.9 million, or $0.38 per diluted share for the same quarter last year.
For the nine-month period ended November 30, 2024, Ennis, Inc. reported revenues of $301.9 million compared to $322.7 million for the same period last year, representing a decrease of $20.8 million or -6.4%. The gross profit margin for the nine-month period was $89.9 million, or 29.8%, compared to $97.7 million, or 30.3% for the same period last year. Net earnings for the nine-month period ended November 30, 2024, were $31.2 million, or $1.19 per diluted share, compared to $32.5 million, or $1.25 per diluted share for the same period last year.
Chairman, Chief Executive Officer, and President, Keith Walters, stated that despite facing increased competition and softening demand in some markets, the company managed to acquire a business that contributed $3.3 million in revenues and $0.02 in diluted earnings per share for the third quarter. Additionally, Ennis, Inc. reduced its selling, general, and administrative costs by $1.1 million compared to the same quarter last year.
The company returned $72.3 million to shareholders in dividends during the quarter, which included a special dividend of $2.50 per share. Ennis, Inc. emphasized its strong balance sheet with no debt and significant cash reserves, enabling it to continue operations and fund acquisitions without incurring debt.
Ennis, Inc. also declared a quarterly cash dividend of 25.0 cents per share on the company’s common stock, payable on February 6, 2025, to shareholders of record on January 9, 2025.
In terms of non-GAAP financial measures, the company reported that its EBITDA margin increased from 17.5% to 18.2% for the quarter and that its earnings per share increased from $0.38 per share to $0.39 per share.
Ennis, Inc., founded in 1909, is one of the largest private-label printed business product suppliers in the United States, with production and distribution facilities strategically located throughout the country. The company manufactures and sells a wide range of business products, including forms, printed and electronic media, labels, presentation products, and more. As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $20.81. For more information, read the company's full 8-K submission here.
