Ennis Inc (NYSE:EBF)
Ennis, Inc. (EBF), a company that sells business forms and other business products yesterday reported their first quarter 2016 financial results. Ennis reported first quarter earnings of a loss of $0.65 per share. Ennis reported first quarter revenues of $90.4 million.
Ennis, Inc. CEO’s Comments
Keith Walters, Chairman, Chief Executive Officer and President, commented by stating,
“We are pleased that we were able to close the sale of the apparel business within the first quarter. The completion of this transaction will allow us to focus on our core print business, including pursuing acquisitions that fit our corporate strategy. As previously announced, in connection with the sale the Company declared a one-time cash dividend of $1.50 per share to shareholders of record on July 11, 2016, which is payable on August 8, 2016.
“The print performance for the quarter, while improving over the sequential quarter’s results, did not meet the expectations we have for this business. Operational results for the quarter were impacted by the unavoidable relocation of our Folder Express operations from Omaha, Nebraska to Columbus, Kansas, which was implemented last quarter. The start-up training process for the labor force has impacted efficiencies, and we estimate the loss of efficiencies associated with the move impacted our financial performance by approximately $1.6 million for the quarter. While we have seen improvements in this operation, we continue to expect this move will impact our financial performance in the short term. However, we continue to be pleased with the integration of recent acquisitions and the margins of print operations as a whole. I would also like to remind our shareholders that our annual shareholders’ meeting is scheduled for July 21, 2016. I hope to see you there.” Business Wire
EBF Technical Analysis
EBF opened trading yesterday at $17.95 which was down from the previous days trading of $18.06. EBF closed trading yesterday at $17.65 and tumbled down after market to $17.00, equivalent to a 4% decrease from the closing price. Taking a look at the daily chart we can see the last time EBF traded below these levels was on September 18th when it traded at $16.46. Taking a closer look at the daily chart we can see that EBF has been in an downward trend dating back to April 6th when it traded at its 52 week high price of $21.55. EBF has a float of 25.23 million shares and traded 1.52 times the normal daily trading volume on Thursday. For trading purposes, I would like to see EBF open trading on Friday below $17.20 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Ennis, Inc. produces and sells business forms and other business products in the United States. The company’s Print segment designs, manufactures, and sells business forms and other printed business products, such as snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive products under the Ennis, Royal Business Forms, Block Graphics, Specialized Printed Forms, 360º Custom Labels, ColorWorx, Enfusion, Uncompromised Check Solutions, VersaSeal, Witt Printing, B&D Litho, Genforms, PrintGraphics, Calibrated Forms, PrintXcel, Printegra, and Curtis Business Forms, Falcon Business Forms, Forms Manufacturers, Mutual Graphics, TRI-C Business Forms, and Hoosier Data Forms brand names.
This segment also provides point of purchase advertising for large franchise and fast food chains, as well as kitting and fulfillment under the Adams McClure; presentation folders and document folders under the Admore and Folder Express; custom printed labels, custom, and stock tags products under Ennis Tag & Label; and custom and stock tags and labels under the Atlas Tag & Label brand names. In addition, it offers custom and imprinted envelopes under the Trade Envelopes and Block Graphics, Wisco, and National Imprint Corporation; and financial and security documents under the Northstar and General Financial Supply brand names. This segment sells its products to large banking organizations through private printers and independent distributors.
The company’s Apparel segment manufactures and sells knitted activewear, including T-shirts, tank tops, and fleece under the AAA, Alstyle Apparel and Activewear, and Murina brand names. This segment sells its products to screen printers, embellishers, retailers, and mass marketers through sales representatives in the United States, Canada, and Mexico. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was founded in 1909 and is headquartered in Midlothian, Texas.