Punt brought out of own endzone.

[RogersUmp]

I saw this at my son's 8th grade football game last night. They use NFHS rules.

Yellow team is punting from their own 15 on 4th and long. The punter is standing too close too his line and doesn't have room to step and just drop kicks it. The ball goes backwards over his head and lands inside the 10 and bounces in the air into his own end zone. His Yellow teammate catches the ball in the end zone in the air off the first bounce and runs it out to the 1 yard line where he is tackled. They give the Gray team the ball at the 1 yard line first and goal. Can the defense advance their own untouched punt out of their own end zone? Was that the correct ruling?