Ennis (EBF) investor relations material

Executive summary

• Quarterly revenue rose 4.0% year-over-year to $96.4 million, while annual revenue declined 0.6% to $392.4 million.

• Quarterly EPS remained flat at $0.35; annual EPS increased to $1.66 from $1.54 year-over-year.

• Gross profit margin for the quarter was 29.2%, slightly down from 29.5% last year; annual margin improved to 30.7% from 29.7%.

• Acquisitions contributed $8.8 million to quarterly sales and $0.14 to annual EPS.

• Integration of Northeastern Envelope Company completed, enhancing cost management and margin consistency.

Financial highlights

• Net earnings for the quarter were $8.8 million, down from $9.0 million year-over-year.

• EBITDA for the quarter was $16.3 million (17.0% of sales), compared to $16.5 million (17.8%) last year.

• Cash at year-end was $34.6 million, down from $67.0 million the prior year.

• Operating cash flow for the year was $52.7 million, down from $65.9 million last year.

• $14.5 million was used to repurchase approximately 793,000 shares during the year.

Outlook and guidance

• Cash balances are expected to increase in coming quarters.

• No supply disruptions anticipated as inventory transitions to alternative suppliers.

• Future share repurchases will depend on market conditions and capital priorities.