FORM 10-Q/A
(Amendment No. 1)
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, 1998
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.)
1510 N. Hampton, Suite 300, DeSoto, TX 75115
(Address of principal executive offices) (Zip Code)
(972) 228-7801
(Registrant's telephone number, including area code)
107 N. Sherman, Ennis, TX 75119
(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 period
that the registrant was required to file such reports), 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 of the latest practicable date.
Class Outstanding at November 30, 1998
Common stock, par value $2.50 per share 16,253,490
ENNIS BUSINESS FORMS, INC.
INDEX
Part I. Financial Information
Condensed Consolidated Balance Sheets --
November 30, 1998 and February 28, 1998 2
Condensed Consolidated Statements of Earnings --
Three and Nine Months Ended November 30,1998
and 1997 3
Condensed Consolidated Statements of Cash
Flows --Nine Months Ended November 30, 1998
and 1997 4
Notes to Condensed Consolidated Financial
Statements 5
Explanatory Note: The purpose of this amendment is to correct in Note 1 to
the financial statements the shares of Treasury stock issued as part of
payment of acquisition of business.
PART I. FINANCIAL INFORMATION
ENNIS BUSINESS FORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
November 30, February 28,
1998 1998
Assets
Current assets:
Cash and equivalents $ 23,309 22,700
Accounts receivable, net 18,467 17,980
Inventories 4,902 8,063
Other current assets 4,264 4,917
-------- -------
Total current assets 50,942 53,660
-------- -------
Property, plant and equipment, net 34,490 34,852
Cost of purchased businesses in excess of amounts
allocated to tangible net assets 5,765 4,574
Other assets and deferred charges 2,445 1,388
-------- -------
Total assets $ 93,642 94,474
======== =======
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt $ 197 191
Accounts payable 3,981 4,759
Accrued expenses 5,838 5,446
-------- -------
Total current liabilities 10,016 10,396
-------- -------
Long-term debt, less current installments 32 206
Deferred credits, principally Federal income taxes 1,823 2,200
Shareholders' equity:
Common stock, at par value 53,125 53,125
Additional capital 1,040 1,040
Retained earnings 120,579 119,335
-------- -------
174,744 173,500
Less:
Treasury stock 92,973 91,828
-------- -------
Total shareholders' equity 81,771 81,672
-------- -------
Total liabilities and shareholders' equity $ 93,642 94,474
======== =======
See accompanying notes to condensed consolidated financial statements.
2
ENNIS BUSINESS FORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
November 30, November 30,
1998 1997 1998 1997
Net sales $38,800 40,311 $112,038 116,516
------- ------ -------- -------
Costs and expenses:
Cost of sales 26,939 27,822 76,860 81,404
Selling, general and
administrative 6,974 7,770 20,561 22,981
Loss on disposal of
Heath Printers, Inc. -- 3,067 -- 3,067
------ ------ ------- -------
33,913 38,659 97,421 107,452
------ ------ ------- -------
Earnings from operations 4,887 1,652 14,617 9,064
Investment and other income 302 284 977 798
------ ------ ------- -------
Earnings before income taxes 5,189 1,936 15,594 9,862
Provision for income taxes 1,909 805 5,731 3,741
------- ------ ------- -------
Net earnings $ 3,280 1,131 $ 9,863 6,121
======= ====== ======= =======
Weighted average number of common
shares outstanding 16,166,634 16,437,828 16,329,264 16,438,071
========== ========== ========== ==========
Per share amounts:
Net earnings per basic and diluted
share of common stock $ .20 .07 $ .60 .37
===== === ===== ===
Cash dividends $.155 $.155 $.465 .465
===== ===== ===== ====
See accompanying notes to condensed consolidated financial statements.
3
ENNIS BUSINESS FORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
November 30,
1998 1997
Cash flows from operating activities:
Net earnings $ 9,863 6,121
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 3,980 4,685
Loss on disposal of Heath Printers, Inc. -- 3,067
Changes in operating assets and liabilities 3,902 5,911
Other (1,329) (2,105)
------- ------
Net cash provided by operating activities 16,416 17,679
------- ------
Cash flows from investing activities:
Acquisition of business (2,269) --
Capital expenditures (3,131) (8,916)
Other 664 21
------- ------
Net cash used in investing activities (4,736) (8,895)
------- ------
Cash flows from financing activities:
Purchase of treasury stock (3,300) (7)
Dividends declared (7,597) (7,644)
Other (174) 131
-------- -------
Net cash used in financing activities (11,071) (7,520)
-------- -------
Net change in cash and equivalents 609 1,264
Cash and equivalents at beginning of period 22,700 18,494
------- ------
Cash and equivalents at end of period $23,309 19,758
======= ======
See accompanying notes to condensed consolidated financial statements.
4
ENNIS BUSINESS FORMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
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, 1998 and February 28, 1998, and the results of
operations and cash flows for the three months and nine months ended
November 30, 1998 and 1997.
Statement of Cash Flow - Acquisition of Business was a purchase price
of $3,400,000. 115,816 shares of Treasury stock valued at $1,133,313
was issued as part of payment.
2. Earnings Per Common Share
The Company adopted the provisions of Statement of Financial Accounting
Standards No. 128 (SFAS 128), Earnings Per Share, in the fourth quarter
of fiscal 1998, which requires companies to present basic earnings per
share and diluted earnings per share. Basic earnings per share is
computed by dividing income available to common stockholders by the
weighted average number of common shares outstanding during the period.
Diluted earnings per share reflects the potential dilution that could
occur if securities or other contracts to issue common stock were
exercised or converted into common stock. The Company has restated its
November 30, 1997 earnings per share calculation to reflect the
adoption of SFAS 128.
3. Stock Option Plans
As of November 30, 1998, the Company has reserved 1,124,212 shares of
common stock under incentive stock option plans.
4. Inventories
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,
1998 1998
Raw material $2,746 4,640
Work-in-process 660 1,065
Finished goods 1,496 2,358
------ -----
$4,902 8,063
====== =====
5. Comprehensive Income
The Company adopted the provisions of Statement of Financial Accounting
Standards No. 130 (SFAS 130), Reporting Comprehensive Income, in the
first quarter of fiscal 1999, which requires companies to disclose
comprehensive income separately of net income from operations.
Comprehensive income is defined as the change in equity during a period
from transactions and other events and circumstances from non-ownership
sources. It includes all changes in equity during a period, except
those resulting from investments by owners and distributions to owners.
The adoption of this statement had no significant effect on the Company
for the three months and nine months ended November 30, 1998 or 1997.
5
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 29, 1999 /s/Robert M. Halowec
Robert M. Halowec
Vice-President Finance and Chief Financial
Officer
/s/Harve Cathey
Harve Cathey
Secretary and Treasurer
Principal Accounting Officer
