Ennis (EBF) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 were $103.1 million, down 7.4% year-over-year due to weaker demand and increased price competition, but up 5.8% sequentially from the previous quarter.

• Net earnings for the quarter were $10.7 million ($0.41 per diluted share), compared to $11.6 million ($0.45 per share) in the same quarter last year.

• Gross profit margin was 30.0%, down from 30.6% year-over-year but up sequentially.

• Recent acquisitions contributed $2.4 million in revenue and ERP integration at two acquisitions improved operational efficiencies.

• EBITDA increased sequentially to $19.0 million, holding steady at 18.4% of sales year-over-year.

Financial highlights

• Gross profit for the quarter was $30.9 million, down from $34.0 million year-over-year.

• Operating income was $13.7 million, compared to $15.7 million in the prior year quarter.

• Cash provided by operating activities was $23.1 million, up from $21.7 million in the prior year.

• Cash and short-term investments totaled $123.7 million at quarter-end, with cash at $91.4 million.

• Repurchased 91,883 shares for $1.8 million at an average price of $19.79 per share.

Outlook and guidance

• Management expects continued profitability, consistent cash flows, and capital expenditures between $3.0 million and $6.0 million for the year.

• Sufficient liquidity is anticipated to fund operations and acquisitions without incurring debt.

• A quarterly dividend of $0.25 per share was declared, payable in August 2024.