Ennis Reports Revenue Increase Due to Apparel Sales

The company, during the quarter, generated $23.7 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $14.3 million for the comparable quarter last year.

Keith Walters, Chairman, CEO and President, commented by saying, "We are extremely pleased with the operational results this quarter. Operationally, both sectors were able to significantly increase their margins, with Print increasing 390 bps, against paper costs increases, and Apparel increasing 930 bps due to continued operational efficiencies and lower cotton pricing. Our Apparel sector showed strong sales growth during the quarter as well, without having to make major price concessions. While we saw the benefit of lower cotton costs during the quarter in our apparel sector, we continue to be concerned with current cotton pricing which continues to be extremely high. Also, we recently received notification of additional paper price increases. Our ability to pass these costs increases on to the market continues to be unknown and is dependent upon the continuing economic recovery and the actions of our competitors. The construction of our new apparel manufacturing facility in Agua Prieta, Mexico continues to progress and we continue to expect that production will begin in this facility during the third quarter of our current fiscal year. We continue to look forward to the start-up of this new facility and the potential cost savings, once fully operational. So while much was accomplished during this last quarter, many challenges remain for fiscal year 2011. As always, we will continue to remain vigilant to the task at hand."