Ennis Business Forms, Inc. Reports Increased Fourth Quarter and Fiscal 2003 Results.Business Editors DESOTO DeSoto is the name of several places in the United States of America:
Ennis Ennis, city (1990 pop. 13,883), Ellis co., N Tex.; inc. 1872. It is a trading, financial, rail, and processing center in a fertile blackland area that produces cattle, cotton, and grain. Ennis also has light manufacturing. Business Forms, Inc. (NYSE NYSE See: New York Stock Exchange :EBF EBF Ennis Business Forms, Inc. EBF European Business Forum EBF European Banking Federation EBF European Baptist Federation EBF Early B Cell Factor EBF Exclusively Breastfed EBF Ecumenical Bishops' Forum EBF Environmental Bamboo Foundation ) today reported increased sales and operating results for its fourth quarter and year ended February February: see month. 28, 2003. "The Company's performance record through another fiscal year of challenging economic and industry conditions is one for which we are proud," Keith Keith may refer to: People with the given name Keith:
American television newscaster and reporter. After working for the National Broadcasting Company (1963-1976), she joined the American Broadcasting Company (1976-1979) and became the first woman to anchor the nightly , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ennis Business Forms, Inc. stated. "The Company's focus on controlling costs is reflected in the results of operations, and Calibrated cal·i·brate tr.v. cal·i·brat·ed, cal·i·brat·ing, cal·i·brates 1. To check, adjust, or determine by comparison with a standard (the graduations of a quantitative measuring instrument): Forms Co., Inc., which was acquired in November November: see month. 2002, has performed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with expectations." For the fourth quarter ended February 28, 2003, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight amounted to $67,217,000 compared to $58,947,000 for the same period last year, an increase of 14%. Net earnings for the quarter amounted to $4,455,000 or $.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $3,641,000, or $.22 per diluted share for the corresponding period last year, an increase of 22%. Per share earnings computations were based on 16,491,824 shares for the quarter compared to 16,319,535 shares for the prior period. For the twelve months ended February 28, 2003, net sales amounted to $240,757,000 compared to $236,923,000 for the same period last year, an increase of 1.6%. Net earnings for the twelve months amounted to $15,247,000 or $.93 per diluted share, compared to $14,966,000 or $.92 per diluted share for the corresponding period last year, an increase of 1.9%. Per share earnings computations were based on 16,478,140 shares for the twelve months compared to 16,318,718 shares for the prior period. Revenues for both the quarter and year ended February 28, 2003 increased primarily as a result of the inclusion of Calibrated Forms Co., Inc. (Calibrated). Calibrated was acquired in November 2002 to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: the Forms Solutions Group. This Group, excluding Calibrated, continued to be impacted by both the general economy and industry declines. Calibrated contributed $11,050,000 of revenues for the full fiscal year, and $9,835,000 for the quarter. The Promotional Solutions Group experienced a decline in revenue for the year ended February 28, 2003 of 3.6% with 1.5% of that decline coming in the fourth quarter. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the Financial Solutions Group has a revenue increase of 2.2% for the full fiscal year, with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one-half of that increase occurring in the fourth quarter. Earnings for the quarter and full fiscal year exceeded both the periods in the prior year. Excluding the impact of the adoption of Statement of Accounting Standard No. 142 (Goodwill and Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142) on March 1, 2002, the full fiscal year earnings were below the prior year. The impact of the adoption of SFAS No. 142 was to increase fiscal year 2003 earnings by approximately $.06 per diluted share. The primary reason for the decrease is the lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. performance of the Forms Solutions Group, which has been reported throughout the fiscal year. Earnings in the fourth quarter improved over the same quarter in 2002 after giving consideration to the adoption of SFAS No. 142. This is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the inclusion of Calibrated for the full fiscal quarter. Calibrated contributed after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. earnings of $734,000 ($.04 per diluted share) for the full fiscal year, and $650,000 ($.04 per diluted share) in the fourth quarter. Earnings contribution from the Promotional and Financial Solutions Groups were reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the changes in revenues. Ennis Business Forms, Inc., (NYSE:EBF) is one of the largest private-label printed business product suppliers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Headquartered in DeSoto, Texas, the Company has 30 production facilities located in 12 states, strategically located to serve the Company's national network of distributors. Ennis offers an extensive product line from simple to complex forms, laser cut-sheets, negotiable NEGOTIABLE. That which is capable of being transferred by assignment; a thing, the title to which may be transferred by a sale and indorsement or delivery. 2. documents, internal bank forms, tags, labels, presentation folders, commercial printing, advertising specialties, screen printed products, and point-of-purchase display advertising that can be custom designed to customer needs. In addition, Ennis maintains highly proficient pro·fi·cient adj. Having or marked by an advanced degree of competence, as in an art, vocation, profession, or branch of learning. n. An expert; an adept. regional Customer Sales Centers to support distributors in their business efforts.
ENNIS BUSINESS FORMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended February 28, 2003 2002
----------- -----------
NET SALES $67,217 $58,947
----------- -----------
COSTS AND EXPENSES:
Cost of sales 50,136 43,705
Selling, general and administrative
expenses 9,754 9,048
----------- -----------
59,890 52,753
----------- -----------
EARNINGS FROM OPERATIONS 7,327 6,194
OTHER INCOME (EXPENSE):
Interest expense (369) (372)
Investment and other income (expense) (19) 15
----------- -----------
(388) (357)
----------- -----------
EARNINGS BEFORE INCOME TAXES 6,939 5,837
PROVISIONS FOR INCOME TAXES 2,484 2,196
----------- -----------
NET EARNINGS $4,455 $3,641
=========== ===========
PER SHARE AMOUNTS:
Basic net earnings $0.27 $0.22
=========== ===========
Diluted net earnings $0.27 $0.22
=========== ===========
Dividends $0.155 $0.155
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - BASIC 16,298,259 16,272,938
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - DILUTED 16,491,824 16,319,535
=========== ===========
Fiscal Year Ended February 28, 2003 2002
----------- -----------
NET SALES $240,757 $236,923
----------- -----------
COSTS AND EXPENSES:
Cost of sales 177,485 171,935
Selling, general and administrative
expenses 37,559 39,000
----------- -----------
215,044 210,935
----------- -----------
EARNINGS FROM OPERATIONS 25,713 25,988
OTHER INCOME (EXPENSE):
Interest expense (1,306) (1,949)
Investment and other income (expense) (62) 364
----------- -----------
(1,368) (1,585)
----------- -----------
EARNINGS BEFORE INCOME TAXES 24,345 24,403
PROVISIONS FOR INCOME TAXES 9,098 9,437
----------- -----------
NET EARNINGS $15,247 $14,966
=========== ===========
PER SHARE AMOUNTS:
Basic net earnings $0.94 $0.92
=========== ===========
Diluted net earnings $0.93 $0.92
=========== ===========
Dividends $0.620 $0.620
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - BASIC 16,284,575 16,272,121
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - DILUTED 16,478,140 16,318,718
=========== ===========
ENNIS BUSINESS FORMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
---------------------------------------------------------------------
February 28, February 28,
Assets 2003 2002
----------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $13,860 $16,180
Investment securities -- 1,802
Accounts receivable, net 32,077 28,713
Inventories 13,104 12,222
Other current assets 5,971 3,729
----------------- ------------
Total current assets 65,012 62,646
----------------- ------------
PROPERTY, PLANT AND EQUIPMENT, NET 51,264 51,343
GOODWILL, NET 34,241 21,951
OTHER ASSETS 2,020 3,094
----------------- ------------
$152,537 $139,034
================= ============
Liabilities and Shareholders' Equity
CURRENT LIABILITIES:
Current installments of long-term
debt $7,038 $9,035
Accounts payable 6,644 5,568
Accrued expenses 11,612 9,363
----------------- ------------
Total current liabilities 25,294 23,966
----------------- ------------
LONG-TERM DEBT,
LESS CURRENT INSTALLMENTS 18,135 9,170
ACCRUED PENSION, GROSS 2,130 --
DEFERRED CREDITS, PRINCIPALLY
FEDERAL INCOME TAXES 10,075 9,863
SHAREHOLDERS' EQUITY:
Preferred stock, at par value -- --
Common stock, at par value 53,125 53,125
Additional capital 461 1,040
Retained earnings 137,848 132,694
Accumulated other comprehensive
income (5,225) (401)
----------------- ------------
186,209 186,458
Less:
Treasury stock 89,306 90,423
----------------- ------------
Total shareholders' equity 96,903 96,035
----------------- ------------
$152,537 $139,034
================= ============
ENNIS BUSINESS FORMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
Fiscal Year Ended
February 28,
2003 2002
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $15,247 $14,966
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 9,156 10,296
Gain on sale of property, plant and
equipment (93) (26)
Changes in operating assets and liabilities (1,374) 4,894
Other (320) (2,525)
-------- --------
Net cash provided by operating
activities 22,616 27,605
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired (20,522) --
Capital expenditures (3,763) (2,254)
Redemption (purchase) of investments 1,802 1,348
Proceeds from disposal of property 176 35
Other (38) 78
-------- --------
Net cash used in investing activities (22,345) (793)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Debt issued to finance Northstar acquisition 15,000 --
Repayment of debt issued to finance Northstar
acquisition (7,540) (8,890)
Issue (purchase) of treasury shares 538 19
Dividends (10,093) (10,089)
Other (496) (636)
-------- --------
Net cash provided by (used in)
financing activities (2,591) (19,596)
-------- --------
INCREASE IN CASH AND EQUIVALENTS (2,320) 7,216
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 16,180 8,964
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD $13,860 $16,180
======== ========
Management's report to shareholders contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the Company's current view with respect to future revenues and earnings. 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 15, 2003. |
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