Ennis, Inc. (asi/52493) has reported that sales and earnings declined during the first six months of its fiscal year, which concluded Aug. 31.

The Midlothian, TX-based publicly traded supplier of print and promotional products said sales for the fiscal half-year totaled $218.1 million, down 0.4% from the same period the prior year. Net earnings registered $22.5 million, or $0.87 per diluted share – a year-over-year backward step from $23.8 million, or $0.92 per diluted share.

Keith Walters, Ennis, Inc.

The half-year results feature numbers from the firm’s first and second quarters. Ennis also just reported its performance for Q2 in particular. Revenue retreated 4% year over year in Q2 to $106.8 million. Net earnings were $10.9 million, or $0.42 per diluted share, as compared to $12.2 million, or $0.47 per diluted share for the same quarter last year.

The sales and earnings decreases occurred despite business from recent acquisitions adding approximately $6.5 million in revenue and $0.02 in diluted earnings per share for the quarter and $10.6 million in revenue and $0.06 in diluted earnings per share for the six-month period.

“These increases were offset by sales volume decline as some of our print partners have experienced slowness in their sales and reduced their outsourced work to us,” said Ennis CEO/Chairman Keith Walters. “We will continue to explore acquisitions that make sense and hunt for new sales in new markets and new channels.”

Walters added that Ennis will continue to monitor incoming order volumes so it can adjust costs, if needed, to maintain profitability. Gross profit margin for Q2 was $33.1 million, or 31%, as compared to $35.2 million, or 31.7%, for the same quarter last year. Gross profit margin for the half-year was $67.1 million, or 30.8%; that compares to $69.2 million, or 31.6% in the 2022 half-year.

“We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash,” Walters said. “Our profitability and strong financial condition will allow us to continue operations and fund acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit, should larger acquisition opportunities materialize.”

Ennis reported in April that total company sales for its previous full fiscal year, which concluded Feb. 28, increased 8% to $431.8 million. Net earnings for the fiscal year were $47.3 million, or $1.82 per diluted share.

Ennis sells promotional products, business forms and supplies, checks and software-compatible forms, envelopes and presentation folders, among other items.