MIDLOTHIAN, Texas - Ennis, Inc. (NYSE:EBF), a leading manufacturer of printed business products, disclosed its financial outcomes for the quarter ending May 31, 2024, revealing a revenue decrease of 7.4% to $103.1 million from the $111.3 million reported in the same period last year. The company's earnings per diluted share also saw a decline to $0.41 from the previous year's $0.45.
Despite the revenue downturn, the company's gross profit margin slightly decreased to 30.0% from 30.6% in the comparative quarter of the previous year. Net earnings for the quarter were reported at $10.7 million, a slight drop from the $11.6 million in the same quarter last year.
Chairman, CEO, and President Keith Walters commented on the results, attributing them to softening demand in an uncertain economic climate. However, he noted an improvement in gross profit margin by 160 basis points over the last quarter, with a rise in revenues, profits, and earnings per share within this quarter. The company's EBITDA increased from $18.1 million to $19.0 million, maintaining an EBITDA to sales percentage of 18.4%.
Walters highlighted the completion of the integration of an ERP system at two recent acquisitions, which has started to yield improved performance. He emphasized the company's strong balance sheet, with no debt and significant cash reserves, which facilitated the repurchase of 91,883 shares of common stock and a $2.6 million investment in U.S. government treasury bills. Ennis, Inc. looks to continue leveraging its financial health to fund acquisitions and operations without incurring debt.
The company also announced the declaration of a quarterly cash dividend of 25.0 cents per share, payable on August 5, 2024, to shareholders of record as of July 5, 2024.
In other recent news, Ennis Inc ., a major player in the business products industry, has declared a quarterly cash dividend of $0.25 per share. This announcement was made by Keith S. Walters, the Chairman, President, and Chief Executive Officer of the company. The dividend is set to be paid out to shareholders on record as of April 15, 2024.
This recent development follows Ennis's established pattern of sharing profits with its shareholders, reflecting the company's commitment to providing value to its investors. Regular dividend payments are often viewed as a sign of a company's positive performance and management's confidence in its financial position. Ennis Inc.'s consistent dividend payments highlight the company's financial management strategy to maintain a steady return to its shareholders.
InvestingPro Insights
As Ennis, Inc. (NYSE:EBF) navigates through challenging market conditions, the company's financial stability is underscored by its impressive track record of maintaining dividend payments for over half a century. The InvestingPro Tips highlight that Ennis, Inc. has upheld its commitment to shareholders by consistently distributing dividends for 52 consecutive years, a testament to its financial resilience and prudent management.
In addition to its dividend reliability, Ennis, Inc.'s balance sheet strength is further reinforced by the fact that its cash reserves exceed its debt, providing the company with a solid financial cushion. This is particularly noteworthy given the current economic uncertainty, as it allows Ennis to navigate market fluctuations without the added pressure of high debt levels.
Focusing on real-time financial metrics, Ennis, Inc. boasts a market capitalization of $542.81 million, with a Price/Earnings (P/E) ratio of 12.65, reflecting investor confidence in the company's earnings potential. Furthermore, the company's Price/Book ratio of 1.55 suggests that its stock is reasonably valued relative to its book value. It's also worth noting that Ennis, Inc. has a Gross Profit Margin of 29.84%, which, while slightly lower than the previous year, still indicates a healthy level of profitability.
Investors looking for additional insights on Ennis, Inc. can find more InvestingPro Tips by visiting https://www.investing.com/pro/EBF. Moreover, those interested in a deeper analysis can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24. With these resources, shareholders and potential investors can make more informed decisions regarding Ennis, Inc.'s stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.