Ennis, Inc. (EBF) has reported a 46.22 percent plunge in profit for the quarter ended Nov. 30, 2016. The company has earned $5.74 million, or $0.22 a share in the quarter, compared with $10.67 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $7 million, or $0.27 a share compared with $8.60 million or $0.33 a share, a year ago.
Revenue during the quarter dropped 9.08 percent to $88.66 million from $97.52 million in the previous year period. Gross margin for the quarter contracted 195 basis points over the previous year period to 28.53 percent. Total expenses were 89.63 percent of quarterly revenues, up from 86 percent for the same period last year. That has resulted in a contraction of 363 basis points in operating margin to 10.37 percent.
Operating income for the quarter was $9.20 million, compared with $13.65 million in the previous year period.
However, the adjusted EBITDA from continuing operations for the quarter stood at $14.40 million compared with $16.78 million in the prior year period. At the same time, adjusted EBITDA margin contracted 96 basis points in the quarter to 16.24 percent from 17.20 percent in the last year period.
Mr. Keith Walters, chief executive officer of Ennis, stated, "While overall the quarter did not meet our expectations, we are pleased to report that the Folder Express operation no longer has a negative impact on our operational results. Although this operation has come a long way over the past nine months, we continue to focus on returning it to the contribution levels we believe are achievable for this business unit. As we experienced in the second quarter, operational results for the quarter continued to be impacted by medical claims. We repurchased 387,352 shares of our common stock during the third quarter at an average price of $15.41, with repurchases over the last six months totaling 491,057 shares. While market conditions continue to be challenging, we believe we are well positioned to not only provide quality products, but also products that are competitively priced."
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