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ENNIS BUSINESS FORMS, INC., COMMENTS ON THE OUTLOOK FOR EARNINGS FOR FISCAL 1994

 DALLAS, Sept. 17 /PRNewswire/ -- Kenneth A. McCrady, chairman of the board of Ennis Business Forms, Inc. (NYSE: EBF), looks for lower earnings for the year ending Feb. 28, 1994, compared to the year ended Feb. 28, 1993. McCrady stated that this would be the first decline in annual net earnings of the company in 17 years; however, the increases for each of the last three fiscal years have been minimal. The company recently reported that sales increased 1.9 percent and net earnings decreased 18.1 percent in the three months ended Aug. 31, 1993, compared to the same period in the prior year. For the six months ended Aug. 31, 1993, sales increased 1 percent and net earnings decreased 13 percent. These earnings declines are attributable primarily to competitive conditions in the markets served by the company. Both raw material and labor costs have increased so far this fiscal year and price increases have not been sufficient to offset cost increases. The company does not expect market conditions to change substantially in the next few months; therefore, the company currently projects that net earnings for the full year ending Feb. 28, 1994, will likely be in the range of $17.5 million to $19.5 million ($1.05 to $1.16 per share). Net earnings for the year ended Feb. 28, 1993, amounted to $21,252,000 ($1.21 per share), including earnings from discontinued operations of $560,000 (3 cents per share).
 The company has for many years purchased blocks of its stock from time-to-time, depending on the availability of cash, the stock price, etc. McCrady also stated that the company has decided to temporarily suspend its purchases of the company's common stock. The reason for this decision is to give stockholders time to digest the recent earnings report and the outlook for this fiscal year. Furthermore, the company is considering the desirability of becoming more aggressive in the acquisition area. The company has approximately $15 million cash on hand which could be used for acquisitions or treasury stock purchases, and the company expects to continue generating positive cash flow from operations beyond that required for common stock dividends, debt payments, capital expenditures, and normal working capital requirements.
 -0- 9/17/93
 /CONTACT: Kenneth A. McCrady of Ennis Business Forms, Inc., 214/875-6581/
 (EBF)


CO: Ennis Business Forms, Inc. ST: Dallas IN: SU: ERP

TW -- NY037 -- 3193 09/17/93 16:01 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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