Ennis, Inc. · NYSE:EBF
Ennis — Shareholder Meeting (2006)
19 slides from Ennis's shareholder meeting presentation, Nov 10, 2006
Slide 1: Annual Meeting
ANNUAL ae nl OD i 2 Mie IiING
Slide 2: Putting the Pieces Together!
Putting the Pieces Together! The Look and Feel of a New Company • New Facilities! • New Size of Business! • New Markets to Sell To!
Slide 3: Financial Highlights
Financial Highlights • Revenues increased by $194 million from last year, or 53% • Profits increased 77%, from $23 million to $41 million • EPS (fully diluted) increased from $1.19 per share to $1.58, or 33%
Slide 4: The New Opportunities
The New Opportunities • Better opportunities for Organic growth • Profits are spread across larger base • Established business base outside of U.S. • Acquisitions brought in talented executives • New Scale allows increased opportunities
Slide 5: The Challenges
The Challenges • Management changes in Apparel Group – Lack of public company experience – Transition issues did not prevent record profits • Print Segment dealt with its own challenges – Major program with customer – Timing & product mix changes cost far more than we anticipated – but we delivered
Slide 6: Our Goals & Values
Our Goals & Values • Commitment to the printing industry • Focus on profits, not revenue growth at expense of profits – “Ennis is Printing Profits” – Motley Fool June 27th • M&A strategy focuses on partners who want a future for their business • Continued conservative business practices • De-central
Slide 7: Special Recognition
Special Recognition • Robert (“Bob”) Mitchell – Board Member • Harve Cathey – Retired CFO • Charles Ray – Retired Ennis, Texas Plant Manager
Slide 8: The Next Year
The Next Year • Printing Acquisitions that fit our model. • Apparel Acquisitions examined. • Use cash flow for: – Acquisitions – Pay down debt – Dividends • Install ERP system in Alstyle & improve their competitive position in operations. • Exploit new opportunities from our markets, products and sc
Slide 9: Apparel Segment
Apparel Segment • Financial Improvements – Gross Profit increased from 21.3% in 2005 to 26.1% in 2006 – Profits were 12.6% in 2006 versus 6.4% in 2005 • Product Expansion • Brand Recognition • Channel Expansion • ERP Expansion • Operations improvements
Slide 10: Apparel Segment: Markets & Products
Apparel Segment Markets & Products • Expansion into the ASI market – Dunbrooke line – Reebok products • Acquisition Strategy – Criteria – Timing
Slide 11: Print Segment
Print Segment • Unifying the Printing groups – Realign the three former groups to allow cross- selling – Segment operates under a single management team – Expansion occurs through acquisitions – Print segment provides solid and stable profit margins amidst a difficult operating environment
Slide 12: Print Segment: Focusing the Sales Effort
Print Segment Focusing the Sales Effort • Expanding relationships with customers; – Due to more products – Due to more locations – Regional presence focuses on the customer • Focus on larger end-users – Partner with distributors to capture larger accounts – Expanded product line and nationwide manuf
Slide 13: Print Segment: Performance & Profitability
Print Segment Performance & Profitability • Challenges during year – Crabar/GBF integration – plant closures – Acquisitions • TBF - $2 million in sales • Specialized Printing - $10 million in sales • Block Graphics (Pending) - $35 million in sales • Profitability – Former Forms group had slight sale
Slide 14: Ennis, Inc. - Revenue
ENNIS, INC. - REVENUE 160,000 149,113 140,000 145,113 120,000 $ - IN THOUSANDS 100,000 2006 80,000 80,723 2005 77,097 68,016 68,390 60,000 40,000 20,000 - TOTAL APPAREL PRINT
Slide 15: Ennis, Inc. - Gross Margin
ENNIS, INC. - GROSS MARGIN 37,900 37,800 37,815 $ - IN THOUSANDS 37,700 37,600 37,500 37,478 37,400 37,300 2006 2005 YEAR
Slide 16: Ennis, Inc. - Earnings
ENNIS, INC. - EARNINGS 11,400 11,330 11,200 11,000 DOLLARS 10,800 10,600 10,558 10,400 10,200 10,000 2006 2005 YEAR
Slide 17: Ennis, Inc. - EPS
ENNIS, INC. - EPS $0.45 $0.44 $0.44 $ PER SHARE $0.43 $0.42 $0.41 $0.41 $0.40 2006 2005 YEAR
Slide 18: Ennis, Inc. - Shareholders' Equity
ENNIS, INC. - SHAREHOLDERS' EQUITY 310,000 305,000 304,801 300,000 295,000 $ - THOUSANDS 290,000 285,000 280,000 278,628 275,000 270,000 265,000 MAY 2006 1-May-05
Slide 19: Thank you!
Thank you!