Financial Performance - Net sales for the three months ended November 30, 2024, were $99,771,000, a decrease of 4.0% compared to $104,621,000 for the same period in 2023[133] - Net earnings for the three months ended November 30, 2024, were $10,204,000, representing a 3.0% increase from $9,906,000 in the prior year[133] - The company reported earnings before income taxes of $14,075,000 for the three months ended November 30, 2024, compared to $13,816,000 in the same period of 2023[133] - Net sales for the quarter ended November 30, 2024, were $99.8 million, a decrease of $4.8 million or -4.6% compared to $104.6 million for the same quarter in the prior year[134] - Net earnings for the quarter were $10.2 million, an increase from $9.9 million in the comparable quarter of the prior year, with after-tax earnings per diluted share at $0.39 compared to $0.38 last year[141][143] - For the nine months ended November 30, 2024, net sales were $301.9 million, a decrease of $20.8 million or -6.4% compared to $322.7 million for the same period last year[144] Profitability Metrics - Gross profit margin for the three months ended November 30, 2024, was 29.3%, slightly up from 29.2% in the same period of 2023[133] - Cost of goods sold for the three months ended November 30, 2024, was $70,522,000, which is 70.7% of net sales, compared to 70.8% in the same period of 2023[133] - Gross profit for the quarter was $29.2 million, representing a gross profit margin of 29.3%, which is a slight increase from 29.2% in the same quarter last year[135] - Gross profit margin for the nine-month period was 29.8%, down from 30.3% in the prior year, reflecting continued pressure from soft market conditions[145] Expenses - Selling, general and administrative expenses for the three months ended November 30, 2024, were $16,341,000, a decrease from $17,410,000 in the same period of 2023[133] - Selling, general, and administrative (SG&A) expenses decreased to $16.3 million, or 16.4% of net sales, down from $17.4 million or 16.6% in the prior year[136] - Income from operations for the quarter was $13.0 million, or 13.1% of net sales, remaining relatively flat compared to $13.1 million, or 12.5% of net sales, for the same quarter last year[138] Cash Flow and Working Capital - Net cash provided by operating activities was $53.1 million for the nine months ended November 30, 2024, compared to $52.5 million in the prior year[155] - Working capital decreased by $47.5 million or -28.3% to $120.1 million due to a special dividend of $65.0 million paid to shareholders during the nine months ended November 30, 2024[154] Debt and Financial Structure - As of November 30, 2024, the company had no outstanding debt, indicating a current lack of leverage in its financial structure[166] - The company is exposed to interest rate risk on both short-term and long-term financial instruments with variable interest rates, which may impact future borrowing costs[166] - The company may utilize interest rate swaps in the future to manage overall borrowing costs and mitigate adverse fluctuations in interest rates[166] Market Conditions and Strategic Initiatives - The company aims to transform its product offerings to adapt to digital business environments and is exploring new market opportunities through acquisitions[124] - The company faces challenges from increased pricing and supply chain disruptions, impacting operational results and margins[125] - The company continues to maintain a majority of its historical business despite ongoing consolidation among its distributor customers[126] - The market risk discussion includes forward-looking statements, suggesting potential variability in actual results based on market conditions[167]
Ennis(EBF) - 2025 Q3 - Quarterly Report