Financial Performance - Net sales for the quarter ended May 31, 2024, were $103.1 million, a decrease of $8.2 million or -7.4% compared to $111.3 million for the same quarter in the prior year[75]. - Net earnings for the quarter were $10.7 million, down from $11.6 million in the prior year, reflecting a decrease of 8.1%[74]. - Income from operations for the three months ended May 31, 2024, was $13.7 million, representing 13.3% of net sales, down from $15.7 million or 14.1% for the same period in 2023[87]. - Net earnings for the three months ended May 31, 2024, were $10.7 million, compared to $11.6 million for the same quarter last year, with diluted earnings per share decreasing from $0.45 to $0.41[88][89]. Cost and Expenses - Cost of goods sold decreased by $5.1 million or 6.6%, from $77.3 million in Q2 2023 to $72.2 million in Q2 2024, resulting in a gross profit margin of 30.0%[76]. - Selling, general, and administrative expenses were $17.2 million, a decrease of $1.1 million or 6.0% compared to $18.3 million in the same quarter last year[77]. Cash Flow and Investments - Cash provided by operating activities increased to $23.1 million for the three months ended May 31, 2024, compared to $21.7 million for the same period in 2023[102]. - Cash used in investing activities was $5.0 million for the three months ended May 31, 2024, down from $7.1 million in the same period of 2023[103]. - Capital expenditures for the three months ended May 31, 2024, were approximately $2.5 million, with total capital requirements expected to remain between $3.0 million and $6.0 million for the fiscal year[91]. Tax and Contributions - The effective tax rate for the quarter was 27.5%, slightly down from 28.0% in the same quarter last year[79]. - The funded status of the Pension Plan is expected to require contributions between $1.0 million and $3.0 million per year, with a contribution of $1.2 million made in fiscal year 2024[108]. Market Conditions and Strategy - The company experienced a weakened demand environment with increased competition on price, impacting sales volume and revenues[75]. - The integration of the ERP system at recent acquisitions is expected to improve efficiencies and performance moving forward[76]. - The company plans to continue exploring new market opportunities and acquisitions to enhance its product offerings and growth potential[65]. Working Capital and Liquidity - Working capital increased by $6.8 million or 4.0%, from $167.6 million at February 29, 2024, to $174.3 million at May 31, 2024[82]. - The current ratio decreased from 6.0 to 1.0 at February 29, 2024, to 5.7 to 1.0 at May 31, 2024[82]. - The company had $0.3 million outstanding under a standby letter of credit arrangement as of May 31, 2024, and anticipates sufficient cash and short-term investments to fund future expenditures[105]. Legal Matters - The company was awarded $5.8 million in damages in a legal case, pending appeal, with cash bonds of approximately $5.1 million posted by defendants[112]. Inventory Management - Inventory levels are deemed sufficient to meet customer demands, supported by long-term contracts with paper suppliers[109]. Other Income - Other income increased to $1.0 million for the three months ended May 31, 2024, primarily due to higher interest income of $1.4 million compared to $0.8 million in the same period last year[99].

Financial Performance - Revenues for the first quarter ended May 31, 2024, were $103.1 million, a decrease of $8.2 million or 7.4% compared to $111.3 million for the same quarter last year [1]. - Gross profit margin for the quarter was 30.0%, down from 30.6% in the same quarter last year [5]. - Net earnings for the quarter were $10.7 million, or $0.41 per diluted share, compared to $11.6 million, or $0.45 per diluted share for the same quarter last year [1]. - EBITDA increased from $18.1 million last quarter to $19.0 million this quarter, maintaining 18.4% as a percentage of sales [2]. - Cash provided by operating activities was $23.1 million, an increase from $21.7 million in the same quarter last year [15]. Shareholder Returns - The company declared a quarterly cash dividend of $0.25 per share, payable on August 5, 2024 [10]. - The company repurchased 91,883 shares of common stock at an average price of $19.79 per share during the quarter [4]. Assets and Liabilities - Total assets increased to $406.2 million from $399.2 million in the previous quarter [15]. - The company has no debt and significant cash reserves, allowing for continued operations and potential acquisitions [4]. Operational Improvements - The integration of the ERP system at recent acquisitions is expected to improve performance moving forward [3].

Acquisitions - The company acquired Eagle Graphics and Diamond Graphics on October 11, 2023, which generated approximately $8.7 million in combined sales in the last full year prior to acquisition [27]. - On June 2, 2023, Ennis acquired UMC Print, which reported approximately $16.1 million in sales for 2022, enhancing its commercial printing capabilities [28]. - The acquisition of Stylecraft Printing Company on May 23, 2023, added approximately $7.0 million in sales for the fiscal year ended December 31, 2022 [29]. - Ennis acquired School Photo Marketing assets on November 30, 2022, which had approximately $10 million in sales in the preceding twelve months [30]. - Acquisitions during the fiscal year constituted approximately 3.8% of total assets and 5.0% of total revenues as of February 29, 2024 [163]. - The company acquired Stylecraft, UMC, Eagle, and Diamond, which constituted approximately 3.8% of assets and 5% of net sales as of February 29, 2024 [197]. Financial Performance - Net sales for fiscal year 2024 were $420.1 million, a decrease of $11.7 million or 2.7% from $431.8 million in fiscal year 2023, primarily due to a $32.9 million decrease in volume demand, partially offset by a $21.2 million increase from recent acquisitions [126]. - Cost of goods sold decreased by $6.0 million or 2.0% from $300.8 million in fiscal year 2023 to $294.8 million in fiscal year 2024, resulting in a gross profit margin of 29.8% compared to 30.3% in the previous year [128]. - Selling, general and administrative expenses were $68.8 million in fiscal year 2024, a decrease of $2.0 million or 2.8% from $70.8 million in fiscal year 2023, maintaining a consistent percentage of sales at 16.4% [130]. - Income from operations decreased by $9.7 million to $56.5 million or 13.4% of net sales in fiscal year 2024, down from $66.2 million or 15.3% in fiscal year 2023 [133]. - Net earnings for fiscal year 2024 were $42.6 million, or $1.64 per diluted share, compared to $47.3 million, or $1.82 per diluted share in fiscal year 2023, impacted by decreased revenues [137]. - Cash provided by operating activities increased to $69.1 million in fiscal year 2024, up $22.3 million from $46.8 million in fiscal year 2023 [142]. - Working capital increased by approximately $12.2 million or 7.9% from $155.4 million at February 28, 2023, to $167.6 million at February 29, 2024, with a current ratio rising from 4.8 to 1.0 to 6.0 to 1.0 [140]. - Cash used in investing activities was $55.0 million in fiscal year 2024, compared to $11.5 million in fiscal year 2023, primarily due to net purchases of short-term investments and increased costs to acquire businesses [145]. - Total assets increased to $399,190,000 as of February 29, 2024, compared to $393,835,000 as of February 28, 2023, reflecting a growth of approximately 1.1% [209]. - Current assets rose to $201,382,000, up from $196,626,000, marking an increase of about 2.8% year-over-year [209]. - Cash decreased to $81,597,000 from $93,968,000, a decline of approximately 13.1% [209]. - Accounts receivable decreased to $47,209,000 from $53,507,000, representing a reduction of about 11.7% [209]. - Total liabilities decreased to $49,349,000 from $62,403,000, a significant decline of approximately 20.9% [212]. - Shareholders' equity increased to $349,841,000 from $331,432,000, reflecting a growth of about 5.5% [212]. - Retained earnings rose to $236,196,000, up from $219,459,000, indicating an increase of approximately 7.6% [212]. Operational Challenges - The company faces intense competition, particularly from office supply superstores, which may require price reductions or incentives to maintain market share [63][66]. - Digital technologies are expected to continue eroding demand for printed business documents, necessitating a shift towards custom and full-color products [54][56]. - Economic downturns may lead to increased customer bankruptcies, heightening the risk of non-payment on sales [70]. - Transportation costs are significant, and increases in freight expenses could adversely affect operational results [71]. - Environmental regulations may impose additional liabilities or obligations that could impact future operating results [67]. - Labor costs are increasing due to economic factors, with approximately 8% of employees represented by labor unions, which could lead to potential labor disputes and increased operational costs [64][65]. - The company relies on a limited number of suppliers for raw materials, with a significant portion of paper products sourced from one major supplier, which poses risks related to price fluctuations and supply disruptions [57][58]. - The company faces challenges including product obsolescence and increased pricing due to supply chain imbalances, impacting traditional business forms and documents [110]. Employee and Labor Relations - Ennis employs 1,941 individuals, with 156 represented by labor unions under collective bargaining agreements [45]. - Approximately 12% of employees are covered by a noncontributory defined benefit retirement plan, which may be impacted by fluctuations in market values and interest rates [59]. - Employee health benefits costs are significant and have risen in recent years, potentially impacting financial results and cash flow [77]. - The company has various cost control measures in place to manage rising healthcare costs, which are expected to continue impacting financial results [77]. Environmental Commitment - The company recycled 20.9 million pounds of paper and 1.7 million pounds of cardboard and cores in 2024, demonstrating its commitment to environmental stewardship [38]. Cybersecurity - The company experienced a ransomware attack on November 30, 2022, which resulted in a brief disruption but incurred no material expenses and is not expected to have a significant financial impact [76]. - The company has not identified any material cybersecurity risks affecting business operations or financial conditions during the fiscal year ended February 29, 2024 [82]. - The company has implemented a cybersecurity risk management program based on best practices and guidelines from the National Institute of Standards and Technology [80]. Shareholder Returns - A dividend of $0.25 per share was paid in each quarter of fiscal years 2023 and 2024, reflecting the company's commitment to returning value to shareholders [98]. - The company has authorized a stock repurchase program of up to $60.0 million, with $23.4 million remaining available for repurchases as of February 29, 2024 [101]. - The cumulative total shareholder return for Ennis, Inc. from February 28, 2019, to February 29, 2024, shows a performance of $121.81 on an initial $100 investment, compared to $199.09 for the S&P 500 and $139.56 for the Russell 2000 [103][104]. Pension and Retirement Plans - The Pension Plan was 100% funded on a projected benefit obligation basis and 107% on an accumulated benefit obligation basis as of February 29, 2024 [59]. - The discount rate for pension obligations increased to 5.15% in fiscal year 2024 from 5.00% in fiscal year 2023, impacting the pension plan's funded status [118]. - The company anticipates future contributions to its Pension Plan will be between $1.0 million and $3.0 million per year, depending on the plan's funding status [150]. - Estimated pension benefit payments to participants total $38.7 million, with $3.2 million due in less than one year [154].

Acquisitions - Ennis, Inc. acquired Eagle Graphics, Inc. and Diamond Graphics, Inc. on October 11, 2023, which generated approximately $8.7 million in sales for the fiscal year ended December 31, 2022[126][128]. - The acquisition of UMC Print on June 2, 2023, added strategic locations and capabilities, with UMC Print generating approximately $16 million in sales for the fiscal year ended December 31, 2022[129]. - Ennis, Inc. acquired Stylecraft Printing Company on May 23, 2023, which generated approximately $7.0 million in sales for the fiscal year ended December 31, 2022[130]. - The company acquired School Photo Marketing on November 30, 2022, which generated approximately $5.9 million in sales for the fiscal year ended December 31, 2021[131]. - $19.9 million was used to acquire businesses in the nine months ended November 30, 2023, compared to $8.8 million in the same period of the previous year[166]. Financial Performance - Net sales for the three months ended November 30, 2023, were $104.6 million, a decrease of $5.6 million or -5.1% compared to $110.2 million in the same quarter of 2022[143]. - For the nine months ended November 30, 2023, net sales were $322.7 million, a decrease of $6.5 million or 2.0% compared to $329.1 million in the same period last year[153]. - Income from operations for the three months ended November 30, 2023, was $13.1 million, or 12.5% of net sales, down from $16.2 million or 14.7% in the same quarter of 2022[147]. - Net earnings for the three months ended November 30, 2023, were $9.9 million, compared to $11.3 million in the same quarter of the prior year, with diluted earnings per share of $0.38[150]. - Gross profit margin for the nine-month period was 30.3%, down from 31.2% in the prior year, attributed to lower volumes shipped[154]. Cost Management - Cost of goods sold decreased by $2.7 million or 3.5%, from $76.8 million in Q3 2022 to $74.1 million in Q3 2023, resulting in a gross profit margin of 29.2%, down from 30.4% in the prior year[144]. - Selling, general, and administrative expenses increased slightly by $0.1 million or 0.6% to $17.4 million, representing 16.6% of net sales for the current quarter[145]. - Ennis, Inc. aims to manage operational costs and maintain margins despite pressures from weak volumes and competitive pricing in the industry[134]. Market Challenges - Ennis, Inc. faces challenges from inflation and potential recessionary concerns, which could impact demand for its products[132]. - The printing industry is experiencing consolidation, with many distributors being acquired, which may affect Ennis, Inc.'s margins and sales[136]. - The company is focused on transforming its product offerings to adapt to digital technologies and changing market demands[133]. Cash Flow and Investments - Cash provided by operating activities was $52.5 million for the nine months ended November 30, 2023, compared to $34.0 million in the same period of 2022[165]. - Cash used in investing activities increased to $43.2 million for the nine months ended November 30, 2023, compared to $12.1 million for the same period in 2022[166]. - Capital expenditures for equipment were $4.9 million for the nine months ended November 30, 2023, up from $3.3 million in the prior year[166]. - The company spent approximately $4.9 million on capital expenditures for the nine months ended November 30, 2023, and expects capital requirements for the current fiscal year to be between $3.0 million and $6.0 million[172]. - The company purchased approximately $18.4 million of U.S. government treasury bills with staggered maturities during the current period[166]. Working Capital and Liabilities - The company reported a working capital increase of $9.7 million or 6.2%, from $155.4 million at February 28, 2023, to $165.0 million at November 30, 2023[164]. - As of November 30, 2023, the company had an unfunded pension liability of $0.6 million recorded on its balance sheet[170]. - The company expects future contributions to its Pension Plan to be between $1.0 million and $3.0 million per year, with a required contribution of approximately $1.2 million anticipated before the end of the current fiscal year[170]. - The company had no outstanding long-term debt as of November 30, 2023, and anticipates sufficient cash and operating cash flows to fund future expenses[168]. Tax and Interest Rate - The effective tax rate for the three months ended November 30, 2023, was 28.3%, compared to 28.0% for the same period in 2022[149]. - The company is exposed to interest rate risk on financial instruments with variable interest rates, although it had no outstanding debt at the end of the reporting period[176].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FORM 10-Q (Mark One) For the Transition Period from to Commission File Number 1-5807 ENNIS, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organiza ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended May 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 1-5807 ENNIS, INC. Incorporation or Organization) 2441 Presidential Pkwy., Midlothian, Texas 76065 (Address of Principal Executive Off ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended February 28, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number 1-5807 ENNIS, INC. (Exact Name of Registrant as Specified in Its Charter) | Texas | | 75-0256410 | | --- | --- | --- | | (Stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended November 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 1-5807 ENNIS, INC. (Exact Name of Registrant as Specified in Its Charter) Texas 75-0256410 (State or Other Jurisdiction of Incorp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $2.50 per share EBF New York Stock Exchange FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $2.50 per share EBF New York Stock Exchange Non-accelerated filer ☐ Smaller reporting company ☐ FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended May 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act ...