Financial Performance - Net sales for the quarter ended May 31, 2025, were $97.2 million, a decrease of $5.9 million or -5.7% compared to $103.1 million in the same quarter of the prior year[138]. - Income from operations for the quarter was $13.3 million, representing 13.7% of net sales, compared to $13.7 million or 13.3% in the prior year[137]. - Net earnings for the quarter were $9.8 million, or 10.1% of net sales, down from $10.7 million or 10.4% in the same quarter last year[137]. - Gross profit was $30.2 million, or 31.1% of revenue, for the quarter ended May 31, 2025, compared to $30.9 million, or 30.0% of revenue, for the same quarter in the prior year[139]. - Cash provided by operating activities was $7.96 million for the three months ended May 31, 2025, compared to $23.1 million for the same period in 2024[149]. - Working capital decreased by $29.2 million, or -24.4%, from $119.4 million at February 28, 2025, to $90.2 million at May 31, 2025[148]. - The effective income tax rate remained flat at 27.5% for the three months ended May 31, 2025, compared to the same period in 2024[144]. Sales and Revenue - Sales from legacy plants decreased by $11.4 million due to weaker volume demand, partially offset by an increase of approximately $5.5 million in revenues from recent acquisitions[138]. - The company acquired the net assets and business of NEC and ESS, which generated approximately $26.0 million in sales for the fiscal year ended December 31, 2024[127]. Cost Management - Cost of goods sold decreased by $5.2 million, or -7.2%, from $72.2 million to $67.0 million for the three months ended May 31, 2024, and 2025 respectively[139]. - Selling, general, and administrative expenses decreased by $0.3 million, or -1.7%, from $17.2 million to $16.9 million for the three months ended May 31, 2024, and 2025 respectively[140]. - The company continues to focus on managing product costs and maintaining margins amid competitive pressures and fluctuating raw material prices[130]. Industry Challenges - The printing industry is facing challenges such as product obsolescence and increased pricing due to supply chain disruptions[129]. Manufacturing and Operations - Approximately 96% of the business products manufactured are custom and semi-custom products, tailored to customer specifications[121]. - The company operates 57 manufacturing plants across 20 states in the U.S.[121]. Capital Expenditures - Capital expenditures for the three months ended May 31, 2025 were approximately $1.4 million, with expected capital requirements for the current fiscal year between $4.0 million and $7.0 million[156]. - Cash used in investing activities was $30.8 million for the three months ended May 31, 2025, compared to $5.1 million for the same period in 2024, primarily due to the acquisition of NEC and ESS for approximately $34.9 million[150].

Financial Performance - Revenues for the first quarter ended May 31, 2025, were $97.2 million, a decrease of $5.9 million or 5.7% compared to $103.1 million for the same quarter last year[1] - Net earnings for the quarter were $9.8 million, or $0.38 per diluted share, compared to $10.7 million, or $0.41 per diluted share for the same quarter last year[1] - EBITDA for the current quarter was $17.7 million, or 18.2% of sales, compared to $19.0 million, or 18.4% of sales for the same quarter last year[2] Profitability Metrics - Gross profit margin increased to 31.1% for the quarter, up from 30.0% for the same quarter last year[2] - Recent acquisitions generated approximately $5.5 million in revenues during the quarter and positively impacted diluted earnings per share by $0.035[3] Cash Flow and Capital Management - Cash provided by operating activities was $7.96 million, while cash used in investing activities was $(30.8) million for the quarter[15] - The company repurchased 260,560 shares of common stock at an average price of $19.00 per share, reducing cash balances to $32.0 million[5] Dividends and Financial Position - The company declared a quarterly cash dividend of $0.25 per share, payable on August 11, 2025[10] - The company maintains a strong financial position with no debt and anticipates timely access to credit for future acquisitions[5] Inventory and Supply Chain Management - The company is investing in additional inventory to mitigate supply disruptions from the closure of the sole U.S. mill producing carbonless paper[4]

Core Insights - The article emphasizes the importance of taking proactive steps towards career advancement by suggesting individuals start their own businesses instead of waiting for promotions that may not materialize [1]. Group 1 - The quote from Sallie Krawcheck encourages a shift in mindset from hoping for external validation to creating personal opportunities [1].

Company Operations and Acquisitions - Ennis, Inc. operates 56 manufacturing plants across 20 states in the U.S., primarily producing custom and semi-custom printed products, with approximately 94% of products tailored to customer specifications [18]. - The company acquired Printing Technologies, Inc. on June 26, 2024, which generated approximately $12.5 million in sales in the year prior to the acquisition, enhancing production capabilities [24]. - On October 11, 2023, Ennis acquired Eagle Graphics, Inc. and Diamond Graphics, Inc., which together generated approximately $8.7 million in sales in the previous year, strengthening production in the Northeast [25]. - The acquisition of UMC Print on June 2, 2023, added approximately $16.1 million in sales for 2022, expanding the distributor customer base and product offerings [26]. Financial Performance - Net sales for fiscal year 2025 were $394.6 million, a decrease of $25.5 million or -6.1% from $420.1 million in fiscal year 2024, primarily due to a $38.7 million decrease in volume demand [126]. - Cost of goods sold decreased by $17.4 million or -5.9% from $294.8 million in fiscal year 2024 to $277.3 million in fiscal year 2025, resulting in a gross profit margin of 29.7% [128]. - Selling, general and administrative expenses for fiscal year 2025 were $65.4 million, a decrease of $3.5 million or -5.0% from $68.8 million in fiscal year 2024 [130]. - Income from operations decreased by $4.5 million to $52.0 million or 13.2% of net sales in fiscal year 2025, compared to $56.5 million or 13.4% in fiscal year 2024 [133]. - Net earnings for fiscal year 2025 were $40.2 million, or $1.54 per diluted share, down from $42.6 million or $1.64 per diluted share in fiscal year 2024 [137]. Employee and Labor Relations - The company employs 1,856 individuals, with 157 represented by labor unions, maintaining a good relationship with employees and unions [42]. - Employee health benefits costs are significant and have risen, impacting financial results and cash flow [76]. - Labor shortages and rising labor-related costs could adversely impact the company's earnings [62]. Environmental and Sustainability Efforts - Ennis recycled 21.1 million pounds of paper and 1.1 million pounds of cardboard in fiscal year 2025, demonstrating commitment to environmental stewardship [35]. - The company’s primary paper supplier is certified by SFI, FSC, and PEFC, ensuring sustainable sourcing of raw materials [38]. Risks and Challenges - The company faces risks from global and local market conditions, which can adversely affect sales, margins, and net income [49]. - The company has a significant reliance on a limited number of suppliers for raw materials, which could impact operations if disruptions occur [54]. - The prices for paper and raw materials have been volatile, with significant fluctuations potentially impacting operating results [55]. - The company is monitoring changes in U.S. tariff and trade policies, which could lead to higher costs and impact demand from customers [65]. - The company is exposed to the risk of non-payment by customers, which could materially affect results of operations [68]. Cybersecurity and Technology - The company experienced a ransomware attack on November 30, 2022, which was eliminated, and systems were restored [74]. - The company has implemented additional security measures, including multifactor authentication and a robust firewall, to enhance network security [75]. - The company views cybersecurity as a shared responsibility and conducts annual risk assessments and penetration testing to maintain a robust cybersecurity program [80]. - The company has not identified any material risks from cybersecurity threats that have affected business operations or financial conditions during the fiscal year ended February 28, 2025 [81]. Shareholder Returns and Stock Performance - The company's common stock price fluctuated between $18.88 and $25.75 during the fiscal year ended February 28, 2025, with a trading volume of 7,439 thousand shares in the first quarter [98]. - A special dividend of $2.50 per share was paid in addition to the ordinary dividend of $0.25 per share during the third quarter of fiscal year 2025 [99]. - The company has authorized a stock repurchase program of up to $60.0 million, with $21.5 million remaining as of February 28, 2025 [101]. - Since the program's inception in October 2008, the company has repurchased 2,334,344 shares at an average price of $16.47 per share, with 91,883 shares repurchased in fiscal year 2025 at an average price of $19.79 [101]. Pension and Retirement Plans - As of February 28, 2025, the company's Pension Plan was 103% funded on a projected benefit obligation basis and 109% on an accumulated benefit obligation basis [57]. - Approximately 12% of the company's employees are covered by a noncontributory defined benefit retirement plan [57]. - The expected rate of return on pension plan assets was 5.50% as of February 28, 2025, down from 6.00% in the previous year [117]. - The discount rate for pension obligations was 5.15% for fiscal years 2024 and 2025, with a 10-basis point change impacting pension liability by approximately $0.5 million [118]. Inventory and Capital Expenditures - The allowance for excess and obsolete inventory was $1.8 million for fiscal year 2025, up from $1.7 million in fiscal year 2024 [124]. - The company intends to build a surplus of inventory as a buffer until transitioning to other sources of carbonless paper [150]. - The company anticipates capital expenditures for fiscal year 2025 to be between $4.0 million and $7.0 million, funded through existing cash flows [151]. Legal Matters - The company is involved in litigation matters but does not believe any current matter will materially affect its consolidated financial position or results of operations [93]. - The company has accrued a liability reserve of approximately $0.4 million related to a lawsuit concerning the lease of a facility [95].

Financial Performance - Revenues for the fourth quarter were $92.7 million, a decrease of 4.8% from $97.4 million in the same quarter last year[2] - Net earnings for the fourth quarter were $9.0 million, or $0.35 per diluted share, compared to $10.1 million, or $0.39 per diluted share in the same quarter last year[2][6] - For the fiscal year, revenues were $394.6 million, down 6.1% from $420.1 million in the previous fiscal year[3] - Net earnings for the fiscal year were $40.2 million, or $1.54 per diluted share, compared to $42.6 million, or $1.64 per diluted share in the previous fiscal year[3][6] Profitability - Gross profit for the fourth quarter was $27.4 million, representing a gross profit margin of 29.5%, up from 28.4% in the prior year quarter[2][4] - Gross profits for the fiscal year totaled $117.3 million, with a gross profit margin of 29.7%, slightly down from 29.8% in the prior fiscal year[3][6] - EBITDA for the fourth quarter was $16.5 million, or 17.8% of sales, compared to $18.1 million, or 18.6% of sales in the same quarter last year[4][12] Shareholder Returns - The company returned $92.0 million to shareholders in dividends, including a special dividend of $2.50 per share[8] Financial Position - The company maintains a strong financial position with $72.5 million in cash and short-term investments and no debt[8] Acquisitions - Recent acquisitions generated approximately $2.5 million in revenues for the quarter and $13.2 million for the year[5]

Financial Performance - Net sales for the three months ended November 30, 2024, were $99,771,000, a decrease of 4.0% compared to $104,621,000 for the same period in 2023[133] - Net earnings for the three months ended November 30, 2024, were $10,204,000, representing a 3.0% increase from $9,906,000 in the prior year[133] - The company reported earnings before income taxes of $14,075,000 for the three months ended November 30, 2024, compared to $13,816,000 in the same period of 2023[133] - Net sales for the quarter ended November 30, 2024, were $99.8 million, a decrease of $4.8 million or -4.6% compared to $104.6 million for the same quarter in the prior year[134] - Net earnings for the quarter were $10.2 million, an increase from $9.9 million in the comparable quarter of the prior year, with after-tax earnings per diluted share at $0.39 compared to $0.38 last year[141][143] - For the nine months ended November 30, 2024, net sales were $301.9 million, a decrease of $20.8 million or -6.4% compared to $322.7 million for the same period last year[144] Profitability Metrics - Gross profit margin for the three months ended November 30, 2024, was 29.3%, slightly up from 29.2% in the same period of 2023[133] - Cost of goods sold for the three months ended November 30, 2024, was $70,522,000, which is 70.7% of net sales, compared to 70.8% in the same period of 2023[133] - Gross profit for the quarter was $29.2 million, representing a gross profit margin of 29.3%, which is a slight increase from 29.2% in the same quarter last year[135] - Gross profit margin for the nine-month period was 29.8%, down from 30.3% in the prior year, reflecting continued pressure from soft market conditions[145] Expenses - Selling, general and administrative expenses for the three months ended November 30, 2024, were $16,341,000, a decrease from $17,410,000 in the same period of 2023[133] - Selling, general, and administrative (SG&A) expenses decreased to $16.3 million, or 16.4% of net sales, down from $17.4 million or 16.6% in the prior year[136] - Income from operations for the quarter was $13.0 million, or 13.1% of net sales, remaining relatively flat compared to $13.1 million, or 12.5% of net sales, for the same quarter last year[138] Cash Flow and Working Capital - Net cash provided by operating activities was $53.1 million for the nine months ended November 30, 2024, compared to $52.5 million in the prior year[155] - Working capital decreased by $47.5 million or -28.3% to $120.1 million due to a special dividend of $65.0 million paid to shareholders during the nine months ended November 30, 2024[154] Debt and Financial Structure - As of November 30, 2024, the company had no outstanding debt, indicating a current lack of leverage in its financial structure[166] - The company is exposed to interest rate risk on both short-term and long-term financial instruments with variable interest rates, which may impact future borrowing costs[166] - The company may utilize interest rate swaps in the future to manage overall borrowing costs and mitigate adverse fluctuations in interest rates[166] Market Conditions and Strategic Initiatives - The company aims to transform its product offerings to adapt to digital business environments and is exploring new market opportunities through acquisitions[124] - The company faces challenges from increased pricing and supply chain disruptions, impacting operational results and margins[125] - The company continues to maintain a majority of its historical business despite ongoing consolidation among its distributor customers[126] - The market risk discussion includes forward-looking statements, suggesting potential variability in actual results based on market conditions[167]

Financial Performance - Revenues for the quarter ended November 30, 2024, were $99.8 million, a decrease of $4.8 million or -4.6% compared to the same quarter last year[2] - Net earnings for the quarter were $10.2 million, or $0.39 per diluted share, compared to $9.9 million, or $0.38 per diluted share for the same quarter last year[13] - Gross profit margin for the quarter was 29.3%, an increase from 29.2% in the same quarter last year[14] - For the nine-month period ended November 30, 2024, revenues were $301.9 million, a decrease of $20.8 million or -6.4% compared to the same period last year[7] - EBITDA for the three months ended November 30, 2024, was $18.3 million, compared to $18.2 million for the same quarter last year[5] - Net sales for the three months ended November 30, 2024, were $99,771 million, a decrease of 1.3% from $104,621 million in the same period last year[21] - Gross profit for the nine months ended November 30, 2024, was $89,932 million, down 8.0% from $97,671 million year-over-year[21] - Net earnings for the three months ended November 30, 2024, were $10,204 million, compared to $9,906 million in the prior year, reflecting a 3.0% increase[21] - Earnings per share (diluted) for the three months ended November 30, 2024, was $0.39, up from $0.38 in the same quarter last year[21] Shareholder Returns - The company returned $72.3 million to shareholders in dividends during the quarter, including a special dividend of $2.50 per share[8] - The Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on February 6, 2025[17] Cost Management - Selling, general and administrative costs were reduced by $1.1 million compared to the same quarter last year[14] Cash Flow and Assets - Cash provided by operating activities for the nine months ended November 30, 2024, was $53,097 million, an increase from $52,500 million year-over-year[21] - Total current assets decreased to $152,415 million from $201,382 million as of February 29, 2024[21] - Cash at the end of the period was $55,704 million, down from $83,902 million at the end of the previous year[21] - The company’s total assets decreased to $346,055 million from $399,190 million year-over-year[21] Liabilities and Financial Position - Total liabilities decreased to $48,359 million from $49,349 million year-over-year[21] - The company maintains a strong balance sheet with no debt and significant cash reserves, allowing for continued operations and potential acquisitions[8] Business Acquisitions - The company acquired a business in late June, contributing $3.3 million in revenues and $0.02 in diluted earnings per share for the third quarter[3] Asset Disposal - The company reported a loss from the disposal of assets of $(138) million for the three months ended November 30, 2024, compared to a gain of $1 million in the same period last year[21]

Core Viewpoint - The article discusses the challenges and unpredictability of financial markets, emphasizing the importance of historical knowledge in making investment decisions [1]. Group 1 - The author highlights a personal passion for financial history and its application to market analysis [1]. - There is an acknowledgment of the difficulty in predicting market trends and spotting value, suggesting a cautious approach to investment [1]. Group 2 - The article does not provide specific company or industry insights, focusing instead on the author's perspective and experiences [1].

Dividends and Financial Position - The Board declared a quarterly cash dividend of $0.25 per share and a one-time special dividend of $2.50 per share, with an expected payout of approximately $72.4 million[19]. - The company had a cash balance of $100.0 million and short-term investments of $22.7 million as of August 31, 2024, indicating strong liquidity[104]. - Working capital increased by $10.9 million or 6.5% from $167.6 million at February 29, 2024, to $178.5 million at August 31, 2024[106]. - Cash provided by operating activities was $35.0 million for the six months ended August 31, 2024, consistent with the prior year[107]. - Cash used in financing activities increased by $1.8 million during the six months ended August 31, 2024, primarily due to common stock repurchases[109]. - The funded status of the Pension Plan requires future contributions between $1.0 million and $3.0 million per year, with a contribution of $1.2 million made during the period ended August 31, 2024[110]. - The company had no outstanding debt as of August 31, 2024, but may face interest rate risk if future borrowing occurs[113]. Sales and Revenue Performance - Net sales for the three months ended August 31, 2024, were $99.0 million, a decrease of $7.8 million or 7.3% compared to $106.8 million for the same period in 2023[94]. - For the six months ended August 31, 2024, net sales were $202.1 million, a decrease of $15.9 million or 7.3% compared to $218.1 million for the same period in 2023[99]. Cost and Profitability - Cost of goods sold decreased by $4.4 million or 6.0% to $69.3 million for the three months ended August 31, 2024, resulting in a gross profit margin of 30.1%[95]. - The gross profit margin for the six months ended August 31, 2024, was 30.0%, down from 30.8% for the same period in 2023[100]. - Selling, general, and administrative expenses were $16.6 million for the three months ended August 31, 2024, a decrease of $1.8 million or 9.7% compared to $18.3 million for the same period in 2023[96]. - Income from operations for the three months ended August 31, 2024, was $13.2 million, or 13.3% of net sales, down from $14.7 million or 13.8% for the same period in 2023[97]. - Net earnings for the three months ended August 31, 2024, were $10.3 million, compared to $10.9 million for the same period in 2023, with diluted earnings per share of $0.40[99]. Operational Challenges and Strategic Initiatives - The company is facing challenges such as product obsolescence and increased pricing due to supply chain disruptions, impacting operational results[86]. - The company plans to transform its product offerings to include digital solutions and innovative products, requiring investments in technology and strategic business relationships[87]. - Continued consolidation among distributors may impact the company's margins and sales in the future[89]. - The company emphasizes the importance of managing operational costs and maintaining margins amid competitive pricing pressures[88]. Manufacturing and Distribution - As of August 31, 2024, the company operates 58 manufacturing plants across 20 states, with approximately 94% of products being custom and semi-custom[82]. - The company believes it is the largest provider of business forms and related products to independent distributors in the United States[81]. - The company distributes products primarily through independent distributors, including commercial printers and advertising agencies[85]. - Paper mill shipments were down in the first half of 2023, but the company has maintained stable supply in early 2024 while managing cost pressures[88]. Financial Management and Future Outlook - There have been no material changes to critical accounting estimates during the quarter ended August 31, 2024[90]. - There have been no significant changes in contractual obligations since February 29, 2024, that would materially impact financial condition[113]. - The company anticipates sufficient cash flows from operating activities to cover future operating and capital requirements[112]. - The company has long-term contracts with paper suppliers to ensure adequate sources of raw materials[111]. - Management expects to meet required volumes for certain rebate programs tied to minimum purchase commitments[111]. - The company does not utilize derivative instruments for trading purposes and employs interest rate swaps to manage borrowing costs[113].

Financial Performance - Revenues for the second quarter ended August 31, 2024, were $99.0 million, a decrease of $7.8 million or 7.3% compared to $106.8 million in the same quarter last year[1][2] - Earnings per diluted share for the current quarter were $0.40, down from $0.42 in the comparative quarter last year[2][15] - Gross profit margin for the quarter was 30.1%, compared to 31.0% for the same quarter last year[2][4] - For the six-month period ended August 31, 2024, revenues were $202.1 million, a decrease of $16.0 million or 7.3% from $218.1 million for the same period last year[3] - EBITDA margin improved slightly to 18.6% of sales compared to 18.5% during last year's second quarter[4] - Cash provided by operating activities was $34.9 million for the quarter, compared to $34.9 million in the same quarter last year[17] Acquisitions and Investments - The Company completed the acquisition of Printing Technologies, Inc., enhancing production capabilities and diversifying product offerings[5] - The Company maintains a strong balance sheet with no debt and significant cash reserves, allowing for continued operations and funding of acquisitions[5] Dividends - The Board declared a quarterly cash dividend of $0.25 per share and a special dividend of $2.50 per share, payable on November 8, 2024[10] Assets - Total assets increased to $406.8 million as of August 31, 2024, compared to $399.2 million in the previous year[16]