MIDLOTHIAN, Texas (News release) -- Ennis, Inc. reported financial results for the first quarter ended May 31, 2025. Highlights include:

• Revenues were $97.2 million for the quarter compared to $103.1 million for the same quarter last year, a decrease of $5.9 million or 5.7%.
• Earnings per diluted share for the current quarter were $0.38 compared to $0.41 for the comparative quarter last year.
• Our gross profit margin for the quarter was 31.1% compared to 30.0% for the comparative quarter last year.

Financial Overview

The Company's revenues for the first quarter ended May 31, 2025 were $97.2 million compared to $103.1 million for the same quarter last year, a decrease of $5.9 million, or 5.7%. Gross profits totaled $30.2 million for a gross profit margin of 31.1%, as compared to $30.9 million, or 30.0%, for the same quarter last year. Net earnings for the quarter were $9.8 million, or $0.38 per diluted share, as compared to $10.7 million, or $0.41 per diluted share for the same quarter last year.

Keith Walters, Chairman, Chief Executive Officer and President, commented by stating, "Our performance for the quarter met our expectations. Although there was a year-over-year decline in sales, our gross profit margin increased to 31.1% for the quarter compared to 30.0% for the same quarter last year and 29.5% for the fourth quarter. Our EBITDA increased to $17.7 million or 18.2% of sales for the current quarter compared to the preceding quarter of $16.5 million or 17.8% of sales and declined slightly compared to the same quarter last year from $19.0 million or 18.4% of sales. Our ability to maintain or improve our profit margins amidst decreased market demand highlights the success of our cost management and pricing discipline.

"Our recent acquisitions generated approximately $5.5 million in revenues during the quarter and positively impacted diluted earnings per share by $0.035. Midway through the quarter, we acquired Northeastern Envelope ("NEC") located in Old Forge, PA. NEC is a large commercial manufacturer of envelopes and offers next day shipment of hundreds of double window and special single window envelopes. Printing Technologies, Inc. ("PTI") acquired during the second quarter of the prior year has been fully integrated in the Ennis ERP systems and is performing well.

"Recently, the sole mill in the United States that produces carbonless paper announced that it would be closing this calendar year. In preparation for that supply disruption, we invested in and are continuing to purchase additional inventory as a buffer as we pivot to other sources of carbonless paper. The additional investment in inventory, our purchase of NEC and our share repurchases this quarter have reduced our cash balances, such that our interest income for the quarter declined to $0.6 million compared to $1.4 million for the same quarter last year.

"We continue to maintain a strong financial position with $32.0 million in cash and no debt. We repurchased 260,560 shares of our common stock in the open market at an average price of $19.00 per share. Our profitability and strong financial condition will allow us to fund our operations and routine acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit should larger acquisition opportunities materialize. We continue to focus on returning value to shareholders by delivering profitability and through our quarterly dividends."

Reconciliation Non-GAAP Measure

To provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations, from time to time the Company reports the non-GAAP financial measure of EBITDA (EBITDA is calculated as net earnings before interest expense, tax expense, depreciation, and amortization). The Company may also report adjusted gross profit margin, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.

Management believes that these non-GAAP financial measures provide useful information to investors as a supplement to reported GAAP financial information. Management reviews these non-GAAP financial measures on a regular basis and uses them to evaluate and manage the performance of the Company's operations. Other companies may calculate non-GAAP financial measures differently than the Company, which limits the usefulness of the Company's non-GAAP measures for comparison with these other companies. While management believes the Company's non-GAAP financial measures are useful in evaluating the Company, when this information is reported it should be considered as supplemental in nature and not as a substitute or an alternative for, or superior to, the related financial information prepared in accordance with GAAP. These measures should be evaluated only in conjunction with the Company's comparable GAAP financial measures.

The following table reconciles EBITDA, a non-GAAP financial measure, for the three-months ended May 31, 2025 and 2024 to the most comparable GAAP measure, net earnings (dollars in thousands).

In Other News

On June 20, 2025 the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the Company's common stock. The dividend is payable on August 11, 2025 to shareholders of record on July 11, 2025