FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended NOVEMBER 30, 1995
Commission File Number 1-5807
ENNIS BUSINESS FORMS, INC.
(Exact name of registrant as specified in its charter)
TEXAS 75-0256410
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
107 N. Sherman Street, Ennis, TX 75119
(Address of principal executive offices) (Zip Code)
(214) 872-3100
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter prior that the
registrant was required to file such report), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No.
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as the latest practicable date.
Class Outstanding at November 30, 1995
Common stock, par value $2.50 per share 16,439,554
ENNIS BUSINESS FORMS, INC.
INDEX
Part I. Financial Information
Consolidated Condensed Balance Sheets --
November 30, 1995 and February 28, 1995 2
Consolidated Condensed Statements of Earnings --
Three and Nine Months Ended November 30,
1995 and 1994 3
Consolidated Condensed Statements of Cash
Flows --Nine Months Ended November 30,
1995 and 1994 4
Notes to Consolidated Condensed Financial
Statements 5
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 6
Part II.
Other Information 7
PART I. FINANCIAL INFORMATION
ENNIS BUSINESS FORMS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
November 30, February 28,
1995 1995
Assets
Current assets
Cash and equivalents $ 33,265 10,541
Temporary investments -- 17,600
Accounts receivable, net 17,548 18,284
Inventories 8,629 10,301
Other current assets 4,347 2,539
Total current assets 63,789 59,265
Property, plant and equipment, net 21,720 19,521
Cost of purchased businesses in excess of amounts
allocated to tangible net assets 4,242 4,356
Other assets and deferred charges 1,074 1,849
Total assets $ 90,825 84,991
Liabilities and Stockholders' Equity
Current liabilities
Current installments of long-term debt $ 75 75
Accounts payable 4,054 5,014
Accrued expenses 7,488 6,807
Federal and state income taxes payable 986 1,080
Total current liabilities 12,603 12,976
Long-term debt, less current installments 285 360
Deferred credits, principally Federal
income taxes 1,926 2,317
Stockholders' equity
Common stock, at par value 53,125 53,125
Additional capital 1,040 1,040
Retained earnings 113,755 107,100
Cumulative foreign currency translation
adjustments (101) (125)
167,819 161,140
Less:
Treasury stock 91,808 91,802
Total stockholders' equity 76,011 69,338
Total liabilities and
stockholders' equity $ 90,825 84,991
See accompanying notes to consolidated condensed financial statements.
ENNIS BUSINESS FORMS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
November 30, November 30,
1995 1994 1995 1994
Net sales $36,827 35,249 $107,643 103,884
Costs and expenses:
Cost of sales 23,157 22,336 68,200 64,840
Selling, general and
administrative expenses 6,182 5,685 18,200 16,646
Interest expense 24 22 71 65
29,363 28,043 86,471 81,551
Earnings from operations 7,464 7,206 21,172 22,333
Investment and other income 305 477 1,231 1,092
Earnings before income taxes 7,769 7,683 22,403 23,425
Provision for income taxes 2,929 2,899 8,432 8,773
Net earnings $ 4,840 4,784 $ 13,971 14,652
Weighted average number of common
shares outstanding 16,439,554 16,440,291 16,439,688 16,439,776
Per share amounts:
Net earnings $ .29 .29 $.85 .89
Cash dividends $ .15 .145 $.445 .43
See accompanying notes to consolidated condensed financial statements.
ENNIS BUSINESS FORMS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
November 30,
1995 1994
Cash flows from operating activities:
Net earnings $13,971 14,652
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 2,803 2,755
Changes in assets and liabilities 411 (2,021)
Other 195 (322)
Net cash provided by operating activities 17,380 15,064
Cash flows from investing activities:
Capital expenditures (4,943) (2,775)
Purchases of investments (6,064) (11,601)
Maturities of investments 23,742 --
Other 6 371
Net cash provided by (used in) investing
activities 12,741 (14,005)
Cash flows from financing activities:
Purchase of treasury stock (6) (8)
Dividends declared (7,316) (7,069)
Other (75) (66)
Net cash used in financing activities (7,397) (7,143)
Net changes in cash and equivalents 22,724 (6,084)
Cash and equivalents at beginning of period 10,541 21,577
Cash and equivalents at end of period $33,265 15,493
See accompanying notes to consolidated condensed financial statements.
ENNIS BUSINESS FORMS, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The information included herein reflects all adjustments (none of which
were other than normal recurring accruals) which, in the opinion of the
Company, are necessary to a fair statement of the financial position as
of November 30, 1995 and February 28, 1995, and the results of
operations and cash flows for the three months and nine months ended
November 30, 1995 and 1994.
2. Earnings per common share amounts are based on the weighted average
number of shares outstanding during the period. Common stock
equivalents (options see Note 3) have not been included in determining
earnings per common share amounts because their inclusion, either for
purposes of computing primary or fully diluted earnings per share,
would not produce sufficient incremental shares (using the treasury
stock method) to reduce the per share amounts shown.
3. As of November 30, 1995, the Company has reserved 378,958 shares of
common stock under incentive stock options plans.
4. The Company uses the Last-In, First-Out (LIFO) method of pricing the
raw material content of most of its business forms inventories, and the
First-In, First-Out (FIFO) method is used to value the remainder. The
following table summarizes the components of inventory at the different
stages of production (in thousands of dollars):
November 30, February 28,
1995 1995
Raw material $5,654 6,746
Work-in-process 790 963
Finished goods 2,185 2,592
$8,629 10,301
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At November 30, 1995, the Company's financial position continues to be
strong. Working capital increased from $46,289,000 at February 28, 1995 to
$51,186,000 at November 30, 1995. The increase is due to cash provided by
operating activities. The Company's cash flow from operations continues to
be adequate to sustain operations, meet debt repayment requirements and
fund capital additions. No liquidity problems are anticipated.
Results of Operations
Net sales for the quarter and nine months ended November 30, 1995
increased 4.5% and 3.6%, respectively, from the corresponding periods in
the prior year. Gross margins for the three months and nine months ended
November 30, 1995 increased 5.9% and 1%, respectively over the same periods
in the prior year. Because of competitive market conditions and the amount
and frequency of raw material price increases during the first half of the
year our selling price increases have lagged behind cost increases. Raw
material prices have stabilized recently and our selling price increases
are catching up to the past raw material cost increases. Selling, general
and administrative expenses increased 8.7% and 9.3% for the three-month and
nine-month periods, respectively, compared to the corresponding periods in
the prior year. Increases in selling and marketing efforts and expenses of
our Mexico operation account for the increases. Investment and other
income increased in the current year over the prior year due to increased
amounts of funds available for investments. The effective rate of Federal
and state income tax expense is substantially unchanged from year-to-year.
PART II. OTHER INFORMATION
Item 6. Exhibits
Exhibit:
(27) Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ENNIS BUSINESS FORMS, INC.
Date January 5, 1996 /s/Harve Cathey
Harve Cathey
Vice President - Finance
Principal Financial Officer
Date January 5, 1996 /s/Victor V. DiTommaso
Victor V. DiTommaso
Treasurer
Principal Accounting Officer
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