Sports Photo Marketing parent Ennis reports lower second-quarter sales

The company’s revenues for the six-month period ended Aug. 31, 2023, were $218.1 million compared to $218.9 million for the same period last year, a decrease of $0.8 million or 0.4%. Gross profit margin was $67.1 million, or 30.8%, as compared to $69.2 million, or 31.6% for the six-month periods ended Aug. 31, 2023, and Aug. 31, 2022, respectively. Net earnings for the six-month period ended August 31, 2023, were $22.5 million, or $0.87 per diluted share compared to $23.8 million, or $0.92 per diluted share for the same period last year.

“Our results for the quarter were within our expectations,” said Keith Walters, president, CEO, and chairman, of Ennis. “Our gross profit margin for the quarter of 31.0% is within our target range and showed improvement of 40 basis points from 30.6% in the sequential quarter ending May 31, 2023, and declined 70 basis points to 31.0% compared to 31.7% in the same prior-year quarter. Our EBITDA remained relatively stable at $19.8 million or 18.5% of sales compared to the sequential quarter, $20.5 million or 18.4% of sales, and compared to the same quarter last year $21.3 million or 19.1% of sales.

“Our recent acquisitions added approximately $6.5 million in revenues and $0.02 in diluted earnings per share for the quarter and $10.6 million in revenues and $0.06 in diluted earnings per share for the six-month period. These increases were offset by sales volume decline as some of our print partners have experienced slowness in their sales and reduced their outsourced work to us. We will continue to explore acquisitions that make sense and hunt for new sales in new markets and new channels. As part of our regular course of business, we continue to monitor incoming order volumes so that we can proactively adjust our costs accordingly and maintain our profitability.

“We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash. Our profitability and strong financial condition will allow us to continue operations and fund acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit should larger acquisition opportunities materialize. We continue to focus on delivering profitability and returns to our shareholders.”

Last quarter, the company reported a jury had awarded it $5 million in actual and punitive damages in a lawsuit against Wright Printing Co., its owner, CEO and other employees. The award has not been recognized in the company’s financial reports due to post-verdict motions, including the company’s motion for its attorney’s fees, that are still pending before the Court.