Ennis, Inc. (NYSE: EBF) stock rose 8.93% on June 24th, 2019 (Source: Google finance) after the company in the first quarter of FY 19 has reported 15.6% rise in the revenue to $108.0 million. Post a solid rally, the stock lost over 0.6% on 25th June, 2019 (As of 11:09 am GMT-4; Source: Google finance)
Gross profit margin was $32.7 million for the first quarter, or 30.3%, as compared to $30.2 million, or 32.3% for the first quarter last year. Net earnings for the quarter were $9.6 million compared to $9.2 million for the first quarter last year. The acquisitions continued to perform adding approximately $19.3 million to the comparable sales and $0.04 to the comparable earnings per diluted share. The paper supply has loosened because of the influx of imports due to the strengthening of the U.S. dollar, resulting in more paper pricing stability.
EBF has declared a quarterly cash dividend of twenty-two- and one-half cents ($0.225) per share on its common stock. The dividend is payable August 12, 2019 to shareholders of record on July 12, 2019.
Meanwhile, EBF has named Bob McAleavey, Jr. as the General Manager of its Allen-Bailey Tag & Label facility in Caledonia, New York. Allen-Bailey specializes in heavy-duty custom tags and labels that meet the unique needs of industrial and agricultural businesses, as well as producing tags for fire extinguisher service and maintenance. They also serve the hospitality, service and retail markets
Additionally, EBF has entered into Amended and Restated Employment Agreements with each of Michael Magill, as Executive Vice President and Secretary, Ronald Graham, as Vice President of Administration, and Richard Travis, as Vice President of Finance, Chief Financial Officer and Treasurer. On May 15, 2019 the Company signed the Amendment No. 1 to each of the Employment Agreements. Under the Amendments, each employee must terminate his employment for “Good Reason” (rather than for any reason) to receive a severance payment in connection with a “Change of Control” of the Company, and the definition of Good Reason is modified. The Amendments also eliminate the requirement that the Company “gross up” the employee for incremental taxes. On May 15, 2019, Michael Magill resigned his position as a member of the Board of Directors of the Company. Mr. Magill’s resignation from the Board was not because of any disagreement with the Company or the Board. On May 15, 2019, the Board elected Gary Mozina to fill the seat formerly occupied by Mr. Magill. Mr. Mozina will serve as a director with a term of office expiring at the Company’s 2020 annual meeting of stockholders.