Part I [Business](index=4&type=section&id=Item%201.%20Business) Ennis, Inc. is a leading US manufacturer and distributor of custom and semi-custom printed products, serving independent distributors, with growth supported by acquisitions and a focus on environmental and social responsibility - Ennis, Inc. operates as a leading provider of business forms and products, distributing primarily through independent channels across the United States[16](index=16&type=chunk)[17](index=17&type=chunk) - The company operates **54 manufacturing plants** in **20 states**, with approximately **95%** of its products being custom or semi-custom[18](index=18&type=chunk) - On November 30, 2022, the company acquired School Photo Marketing ("SPM"), which generated approximately **$5.9 million** in sales in its prior fiscal year, expanding services to school photographers[25](index=25&type=chunk) - The company's backlog of firm orders increased to approximately **$46.7 million** at February 28, 2023, from **$38.4 million** at February 28, 2022[32](index=32&type=chunk) - As of February 28, 2023, the company had **1,919 employees**, with **167** represented by labor unions[42](index=42&type=chunk) - Ennis demonstrates environmental responsibility by recycling significant amounts of materials, including **23.1 million pounds** of paper and **2.2 million pounds** of cardboard and cores in 2023[35](index=35&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from declining demand for printed documents, supply chain dependencies, pension funding volatility, acquisition integration challenges, cybersecurity threats, and economic downturns - The demand for traditional printed business documents is eroding due to the increasing sophistication and adoption of software, internet technologies, and digital equipment[52](index=52&type=chunk)[53](index=53&type=chunk) - The company relies on a limited number of suppliers for raw materials, particularly paper, making it vulnerable to price increases, supply disruptions, and quality fluctuations, with the majority of paper products purchased from one major supplier[55](index=55&type=chunk)[56](index=56&type=chunk) - The company's defined benefit pension plan is subject to market risks, with the plan **99% funded** on a PBO basis as of February 28, 2023, and fluctuations in market values, interest rates, and mortality assumptions could negatively impact its funded status[57](index=57&type=chunk)[58](index=58&type=chunk) - Acquisitions are a key part of the company's strategy to offset print attrition, but there are risks related to identifying suitable targets and successfully integrating acquired businesses[59](index=59&type=chunk) - The company was targeted with an encryption ransomware attack on November 30, 2022, which, while immediately addressed and not significantly financially impactful, highlights ongoing cybersecurity risks[75](index=75&type=chunk)[76](index=76&type=chunk) [Properties](index=13&type=section&id=Item%202.%20Properties) Ennis, Inc. operates approximately **2.6 million square feet** of owned and **1.0 million square feet** of leased properties across the US, all in good condition with no major expansions planned Owned vs. Leased Property Square Footage | Property Type | Approximate Square Footage | | :--- | :--- | | Owned | 2,589,702 | | Leased | 1,031,734 | - The company operates manufacturing facilities across the U.S., with specialized production for various products like business forms, presentation products, envelopes, and financial forms[81](index=81&type=chunk) - All facilities are believed to be in good condition, and management does not anticipate the need for substantial expansion or re-equipping in the near future[83](index=83&type=chunk) [Legal Proceedings](index=15&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, with no material adverse effects expected, though a subsidiary was awarded **$5.0 million** in damages in April 2023 not yet reflected in FY2023 financials - In April 2023, a subsidiary was awarded **$5.0 million** in actual and punitive damages in a case against Wright Printing Company, with the financial impact not included in the FY2023 statements[87](index=87&type=chunk) Part II [Market for Common Equity and Related Matters](index=15&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ennis, Inc. common stock trades on NYSE (EBF), paid **$0.250** quarterly dividends in FY2023, and repurchased **64,082** shares under a **$40.0 million** program with **$23.9 million** remaining Fiscal Year 2023 Quarterly Stock and Dividend Data | Quarter | High Price | Low Price | Dividends per Share | | :--- | :--- | :--- | :--- | | First | $19.24 | $16.94 | $0.250 | | Second | $22.67 | $16.55 | $0.250 | | Third | $23.44 | $19.81 | $0.250 | | Fourth | $23.48 | $20.55 | $0.250 | - During fiscal year 2023, the company repurchased **64,082 shares** of common stock at an average price of **$17.46 per share**[94](index=94&type=chunk) - As of February 28, 2023, **$23.9 million** remained available under the company's stock repurchase program[94](index=94&type=chunk) - The company's 5-year cumulative total shareholder return was **135.05%**, outperforming the Russell 2000 (**130.92%**) but underperforming the S&P 500 (**157.71%**) for the period ending February 28, 2023[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 saw **8%** net sales growth to **$431.8 million**, gross profit margin improved to **30.3%**, net earnings rose to **$47.3 million** (aided by a **$5.9 million** asset disposal gain), and liquidity remained strong with **$155.4 million** working capital [Overview](index=17&type=section&id=Overview) Management addresses challenges like supply channel consolidation, digital obsolescence, and price competition by transforming the product portfolio through technology and acquisitions while managing costs - The company's sales have recovered in fiscal years 2022 and 2023 after being impacted by the COVID-19 pandemic in fiscal year 2021[105](index=105&type=chunk) - Key business challenges include the transformation of the product portfolio away from traditional documents, managing production capacity amid industry price competition, and the ongoing consolidation of customers[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [Critical Accounting Estimates](index=18&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include the Pension Plan (discount rates, asset returns), Goodwill (annual impairment testing), Revenue Recognition (credit losses), and Inventories (obsolescence based on demand) - The discount rate for the Pension Plan obligation increased to **5.00%** in FY2023 from **3.10%** in FY2022, with each **10 basis point** change impacting the pension liability by about **$0.53 million**[113](index=113&type=chunk) - Goodwill is assessed for impairment annually as of December 1, with no impairment charge required for fiscal years 2023 or 2022[116](index=116&type=chunk) - Revenue from 'print and store' arrangements, where products are manufactured for future delivery, amounted to **$17.1 million** in FY2023, up from **$14.6 million** in FY2022[118](index=118&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) FY2023 net sales grew **8%** to **$431.8 million**, gross profit margin improved to **30.3%**, income from operations surged **51.8%** to **$66.2 million**, and net earnings increased to **$47.3 million** (**$1.82** diluted EPS) Consolidated Results of Operations (in thousands) | | 2023 | % of Sales | 2022 | % of Sales | 2021 | % of Sales | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $431,837 | 100.0% | $400,014 | 100.0% | $357,973 | 100.0% | | Cost of goods sold | 300,787 | 69.7% | 285,291 | 71.3% | 254,207 | 71.0% | | Gross profit margin | 131,050 | 30.3% | 114,723 | 28.7% | 103,766 | 29.0% | | SG&A | 70,793 | 16.4% | 71,410 | 17.9% | 68,270 | 19.1% | | Income from operations | 66,153 | 15.3% | 43,584 | 10.9% | 35,901 | 10.0% | | Net earnings | $47,300 | 11.0% | $28,982 | 7.2% | $24,094 | 6.7% | - Net sales for FY2023 increased by **8%** year-over-year, driven by **$3.3 million** from recent acquisitions as well as price and volume increases[121](index=121&type=chunk) - Gross profit margin improved from **28.7%** in FY2022 to **30.3%** in FY2023 due to improved operational efficiencies and pricing adjustments to cover inflationary costs[123](index=123&type=chunk) - A **$5.9 million** gain from the disposal of assets was recognized in FY2023, primarily from the sale of an unused manufacturing facility for **$5.8 million**[127](index=127&type=chunk) - Net earnings for FY2023 were **$47.3 million** (**$1.82 per diluted share**), compared to **$29.0 million** (**$1.11 per diluted share**) for FY2022, with the increase impacted by higher revenues and a **$5.8 million** gain from asset disposal, which added **$0.17 per share**[131](index=131&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with working capital up **21.5%** to **$155.4 million** and **$46.8 million** cash from operations, no long-term debt, and anticipates funding **$3.0-5.0 million** in FY2024 capital expenditures from existing cash Working Capital and Cash (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Working Capital | $155,379 | $127,839 | $113,022 | | Cash | $93,968 | $85,606 | $75,190 | Cash Flow Components (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $46,776 | $50,678 | $52,817 | | Net cash used in investing activities | $(11,457) | $(10,052) | $(21,183) | | Net cash used in financing activities | $(26,957) | $(30,210) | $(24,702) | - The company did not renew its Credit Agreement which expired in November 2021 and has had no outstanding long-term debt since August 2019[143](index=143&type=chunk) - A contribution of **$2.0 million** was made to the Pension Plan in fiscal year 2023, with future contributions anticipated to be between **$1.0 million** and **$3.0 million** per year[144](index=144&type=chunk) - Capital expenditure requirements for fiscal year 2024 are expected to be between **$3.0 million** and **$5.0 million**, funded by existing cash flows[146](index=146&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on variable-rate financial instruments, though it had no outstanding debt as of February 28, 2023, and does not use derivatives for trading - The company had no outstanding debt as of February 28, 2023, but would be exposed to interest rate risk if it borrows under a credit facility in the future[149](index=149&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of February 28, 2023, with a previously identified IT material weakness remediated following a November 2022 ransomware attack - Management concluded that disclosure controls and procedures were effective as of February 28, 2023[153](index=153&type=chunk) - A material weakness related to IT controls, which permitted a ransomware attack on November 30, 2022, was identified, but the company has since taken corrective action and remediated the material weakness as of February 28, 2023[158](index=158&type=chunk) - Management's assessment of internal control over financial reporting excluded the recently acquired SPM, which constituted less than **1%** of consolidated assets and revenues[157](index=157&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=26&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, and corporate governance, is incorporated by reference from the 2023 Annual Meeting of Shareholders Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Registrant's Proxy Statement for the 2023 Annual Meeting of Shareholders[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=27&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed with the Form 10-K, including an index to Consolidated Financial Statements and various exhibits like corporate governance documents and certifications - This section provides an index to the Consolidated Financial Statements and lists all exhibits filed with the report, including corporate governance documents and executive certifications[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) Consolidated Financial Statements [Reports of Independent Registered Public Accounting Firm](index=30&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) CohnReznick LLP issued unqualified opinions on the consolidated financial statements and the effectiveness of internal control over financial reporting for the year ended February 28, 2023 - CohnReznick LLP issued an unqualified opinion, stating the financial statements present fairly, in all material respects, the financial position of the Company as of February 28, 2023[182](index=182&type=chunk) - The firm also issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of February 28, 2023[189](index=189&type=chunk) [Consolidated Financial Statements Tables](index=34&type=section&id=Consolidated%20Financial%20Statements%20Tables) Consolidated financial statements show total assets of **$393.8 million** and shareholders' equity of **$331.4 million** as of February 28, 2023, with FY2023 net sales of **$431.8 million** and net earnings of **$47.3 million** Consolidated Balance Sheet Highlights (in thousands) | | Feb 28, 2023 | Feb 28, 2022 | | :--- | :--- | :--- | | Total current assets | $196,626 | $165,029 | | Total assets | $393,835 | $368,844 | | Total current liabilities | $41,247 | $37,190 | | Total liabilities | $62,403 | $65,029 | | Total shareholders' equity | $331,432 | $303,815 | Consolidated Statement of Operations Highlights (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net sales | $431,837 | $400,014 | $357,973 | | Gross profit | $131,050 | $114,723 | $103,766 | | Income from operations | $66,153 | $43,584 | $35,901 | | Net earnings | $47,300 | $28,982 | $24,094 | | Diluted EPS | $1.82 | $1.11 | $0.93 | Consolidated Statement of Cash Flows Highlights (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $46,776 | $50,678 | $52,817 | | Net cash used in investing activities | $(11,457) | $(10,052) | $(21,183) | | Net cash used in financing activities | $(26,957) | $(30,210) | $(24,702) | | Net change in cash | $8,362 | $10,416 | $6,932 | | Cash at end of period | $93,968 | $85,606 | $75,190 | [Notes to Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, acquisitions (SPM in FY2023), benefit plans (pension **99%** funded), and an effective tax rate of **27.2%** for FY2023, highlighting key financial details - The company operates as a single reportable segment, with all assets located in the United States[222](index=222&type=chunk) - On November 30, 2022, the company acquired School Photo Marketing (SPM) for **$8.8 million**, adding **$3.1 million** to goodwill[259](index=259&type=chunk) - The company's noncontributory defined benefit pension plan covered approximately **13%** of employees, and as of year-end, the plan had a funded status deficit of **$0.6 million**, a significant improvement from a **$5.7 million** deficit in the prior year[303](index=303&type=chunk)[313](index=313&type=chunk) - The effective income tax rate was **27.2%** for FY2023, compared to **30.9%** for FY2022 and **27.6%** for FY2021[317](index=317&type=chunk) - The company has a significant concentration of risk with one third-party vendor, from which it purchased **50%** of its materials in fiscal year 2023[331](index=331&type=chunk)

PART I: FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Presents Ennis, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, operations, and cash flows, for periods ended November 30, 2022 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$386.7 million** by November 30, 2022, driven by inventories and goodwill, with shareholders' equity also rising Condensed Consolidated Balance Sheet Highlights (in $M) | Account | Nov 30, 2022 | Feb 28, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $87.0M | $85.6M | | Inventories, net | $49.9M | $38.5M | | Total current assets | $185.1M | $165.0M | | Goodwill | $93.4M | $88.7M | | **Total assets** | **$386.7M** | **$368.8M** | | **Liabilities & Equity** | | | | Total current liabilities | $39.4M | $37.2M | | Total liabilities | $65.2M | $65.0M | | Total shareholders' equity | $321.4M | $303.8M | | **Total liabilities and shareholders' equity** | **$386.7M** | **$368.8M** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales and earnings significantly increased for both Q3 and the nine months ended November 30, 2022, driven by strong performance Statements of Operations Highlights (in $M, except per share data) | Metric | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $110.2M | $103.0M | $329.1M | $300.3M | | Gross profit | $33.5M | $29.2M | $102.7M | $87.3M | | Income from operations | $16.2M | $11.7M | $49.8M | $33.0M | | Net earnings | $11.3M | $7.6M | $35.1M | $22.3M | | Diluted EPS | $0.44 | $0.29 | $1.36 | $0.85 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow slightly decreased to **$34.0 million** for the nine months ended November 30, 2022, while investing and financing activities used more cash Cash Flow Summary (in $M) | Cash Flow Activity | Nine months ended Nov 30, 2022 | Nine months ended Nov 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $34.0M | $34.3M | | Net cash used in investing activities | ($12.1M) | ($7.7M) | | Net cash used in financing activities | ($20.5M) | ($20.9M) | | **Net change in cash** | **$1.4M** | **$5.8M** | | Cash at end of period | $87.0M | $81.0M | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain significant accounting policies and financial statement items, covering revenue, acquisitions, goodwill, equity programs, pensions, and income taxes - On November 30, 2022, the Company acquired the assets of School Photo Marketing ("SPM") for **$8.8 million**, resulting in **$4.8 million** of goodwill and **$3.2 million** of definite-lived intangible assets[43](index=43&type=chunk) - As of November 30, 2022, the Company had an unfunded pension liability of approximately **$3.7 million**; a **$2.0 million** contribution was made in September 2022 to avoid a Pension Benefit Guaranty Corporation variable premium[79](index=79&type=chunk) - The Company's stock repurchase program has **$23.9 million** remaining available for repurchases as of November 30, 2022; during the first nine months of the fiscal year, **64,082 shares** were repurchased at an average price of **$17.46**[67](index=67&type=chunk) - The effective tax rate for the nine months ended November 30, 2022 was **28.0%**, compared to **30.0%** for the same period in 2021, primarily due to state income taxes and non-deductible compensation[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth from strong demand and pricing, improved margins, liquidity, capital resources, and business challenges [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Significant year-over-year growth in net sales and earnings for Q3 and the first nine months of fiscal 2023, driven by strong demand and pricing Q3 2022 vs Q3 2021 Performance (in $M) | Metric | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $110.2M | $103.0M | +7.0% | | Gross Profit Margin | 30.4% | 28.4% | +2.0 ppt | | Income from Operations | $16.2M | $11.7M | +38.5% | | Net Earnings | $11.3M | $7.6M | +48.7% | Nine Months 2022 vs 2021 Performance (in $M) | Metric | 9 Months 2022 | 9 Months 2021 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $329.1M | $300.3M | +9.6% | | Gross Profit Margin | 31.2% | 29.1% | +2.1 ppt | | Income from Operations | $49.8M | $33.0M | +50.9% | | Net Earnings | $35.1M | $22.3M | +57.4% | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$87.0 million** cash and **$145.7 million** working capital, with no outstanding long-term debt - Working capital increased by **14.0%** to **$145.7 million** at November 30, 2022, from **$127.8 million** at February 28, 2022[144](index=144&type=chunk) - The company has had no outstanding long-term debt since August 2019 and did not renew its credit agreement which expired in November 2021[150](index=150&type=chunk) - Expected capital expenditures for the fiscal year are between **$3.0 million** and **$5.0 million**, with **$3.3 million** spent in the first nine months[153](index=153&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) With no outstanding debt as of November 30, 2022, the company faces minimal interest rate risk, but future borrowing would introduce exposure - The company had no outstanding debt at November 30, 2022, and thus minimal exposure to interest rate risk[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) A ransomware attack on November 30, 2022, led to a material weakness in IT controls, rendering disclosure controls ineffective, though financial statements remain fairly presented - A ransomware attack on November 30, 2022, which encrypted some servers, revealed deficiencies in network access IT controls[158](index=158&type=chunk) - These IT control deficiencies were concluded to be a material weakness, rendering disclosure controls and procedures ineffective as of the end of the quarter[158](index=158&type=chunk)[159](index=159&type=chunk) - Despite the material weakness, management concluded that the financial statements in the Form 10-Q are fairly presented in all material respects, as the attack did not impair financial data in the ERP system[159](index=159&type=chunk)[160](index=160&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond routine litigation incidental to its business - There are no material pending legal proceedings against the company[166](index=166&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the last 10-K, but highlights increasing cybersecurity risks, noting the November 2022 ransomware attack had no material financial impact - The company was targeted by a ransomware attack on November 30, 2022, but it was detected in progress and immediate action was taken to isolate the network[169](index=169&type=chunk) - The company did not pay any ransom and incurred no material expense in connection with the attack, which is not expected to have a material impact on the business[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Update on the share repurchase program, with an additional **$20 million** authorized in July 2022, bringing the total to **$60 million**, and **$23.9 million** remaining - The Board authorized an additional **$20 million** for the share repurchase program in July 2022, for a cumulative total of **$60 million**[170](index=170&type=chunk) - During the nine months ended November 30, 2022, the company repurchased **64,082 shares** at an average price of **$17.46**[172](index=172&type=chunk) - As of November 30, 2022, **$23.9 million** remained available for future share repurchases under the program[172](index=172&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including articles of incorporation, bylaws, and CEO/CFO certifications

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 ...

t 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 Securities registered pursuant to Section 12(g) of the Act: None 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, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Ac ...

[PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This section presents Ennis, Inc.'s unaudited consolidated financial statements and related management discussion for the period ended November 30, 2021 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Ennis, Inc. as of November 30, 2021, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, and cash flows [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of November 30, 2021, total assets increased slightly to $369.7 million, driven by higher cash and inventories, while liabilities remained stable and equity grew Consolidated Balance Sheet Highlights (in thousands) | Account | Nov 30, 2021 | Feb 28, 2021 | | :--- | :--- | :--- | | **Total current assets** | $161,872 | $148,074 | | Cash | $80,969 | $75,190 | | Inventories | $40,365 | $32,906 | | **Total assets** | $369,699 | $364,388 | | **Total current liabilities** | $38,261 | $35,052 | | **Total liabilities** | $63,755 | $63,839 | | **Total shareholders' equity** | $305,944 | $300,549 | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) For the three months ended November 30, 2021, net sales increased to $103.0 million, but net earnings decreased to $7.6 million, while the nine-month period saw increased net sales and earnings Statements of Operations Summary (in thousands) | Metric | Three Months Ended Nov 30, 2021 | Three Months Ended Nov 30, 2020 | Nine Months Ended Nov 30, 2021 | Nine Months Ended Nov 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $102,968 | $92,443 | $300,349 | $268,051 | | Gross profit margin | $29,200 | $28,088 | $87,287 | $77,150 | | Income from operations | $11,686 | $11,557 | $33,039 | $26,373 | | Net earnings | $7,563 | $8,363 | $22,327 | $18,969 | Earnings Per Share (Diluted) | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months Ended Nov 30 | $0.29 | $0.32 | | Nine Months Ended Nov 30 | $0.85 | $0.73 | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended November 30, 2021, operating cash flow decreased due to inventory increases, while investing and financing activities used more cash Cash Flow Summary (in thousands) | Activity | Nine Months Ended Nov 30, 2021 | Nine Months Ended Nov 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $34,295 | $40,779 | | Net cash used in investing activities | ($7,658) | ($843) | | Net cash used in financing activities | ($20,858) | ($18,836) | | **Net change in cash** | **$5,779** | **$21,100** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail accounting policies, recent acquisitions, stock repurchase programs, and the impact of the COVID-19 pandemic on operations - On June 1, 2021, the Company acquired AmeriPrint Corporation for **$3.9 million** in cash, which generated approximately **$6.5 million** in sales in its prior fiscal year, and on October 15, 2021, it acquired a digital operation in Illinois for **$0.4 million**[51](index=51&type=chunk)[56](index=56&type=chunk) - During the nine months ended November 30, 2021, the Company repurchased **102,757 shares** of common stock for **$1.9 million** at an average price of **$18.90**, with **$7.9 million** remaining available under the repurchase program as of November 30, 2021[79](index=79&type=chunk)[23](index=23&type=chunk) - In response to the COVID-19 pandemic, the company reduced its workforce by approximately **350 employees** and consolidated several facilities, with management believing these cost-cutting measures will not materially impact its ability to service increased customer demand as economic conditions improve[104](index=104&type=chunk) - The Board declared a quarterly dividend of **$0.25 per share** on December 16, 2021, with an expected total payout of approximately **$6.5 million**[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting increased sales driven by economic recovery and acquisitions, while addressing challenges like supply chain disruptions and maintaining a strong liquidity position [Overview and Business Challenges](index=24&type=section&id=Overview%20and%20Business%20Challenges) Ennis, a leading manufacturer of business forms and printed products, faces industry consolidation, technological shifts, price competition, and significant paper supply constraints exacerbated by the COVID-19 pandemic - The company operates **57 manufacturing plants** in **20 states** and is a leading provider of business forms, labels, tags, and envelopes to independent distributors[120](index=120&type=chunk) - Key business challenges include: - The ongoing impact of the COVID-19 pandemic on demand and operations - Transformation of the product portfolio away from traditional documents towards digital and specialty products - Severe supply constraints and price inflation for paper, with uncoated papers up **20%** and coated papers up **25%** from the previous year - Continued consolidation of customers (distributors)[131](index=131&type=chunk)[142](index=142&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For the third quarter, sales rose 11.5% but gross margin declined, leading to a drop in net earnings, while the nine-month period saw sales increase 12.0% with improved gross margin and higher net earnings Q3 FY2022 vs Q3 FY2021 Performance (in millions) | Metric | Q3 2021 | Q3 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $103.0 | $92.4 | +11.5% | | Gross Profit | $29.2 | $28.1 | +3.9% | | Gross Margin % | 28.4% | 30.4% | -2.0 ppt | | Net Earnings | $7.6 | $8.4 | -9.5% | Nine Months FY2022 vs FY2021 Performance (in millions) | Metric | YTD 2021 | YTD 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $300.3 | $268.1 | +12.0% | | Gross Profit | $87.3 | $77.2 | +13.1% | | Gross Margin % | 29.1% | 28.8% | +0.3 ppt | | Net Earnings | $22.3 | $19.0 | +17.4% | - Acquisitions of Infoseal and AmeriPrint contributed **$7.8 million** in sales for the quarter and **$19.7 million** for the nine-month period[154](index=154&type=chunk)[164](index=164&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with increased working capital and cash, having no long-term debt, and expects operating cash flow to fund future needs - The company's cash position increased by **$5.8 million** during the period to **$81.0 million**[133](index=133&type=chunk) - The company did not renew its Credit Agreement, which expired on November 11, 2021, and has had no outstanding long-term debt since August 2019[179](index=179&type=chunk) - Cash from operations decreased to **$34.3 million** for the nine-month period, down from **$40.8 million** in the prior year, primarily due to a **$6.2 million** increase in inventories[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has minimal exposure to interest rate risk as it had no outstanding debt as of November 30, 2021, and does not use derivative instruments for trading - The company had no outstanding debt as of November 30, 2021, and therefore has minimal exposure to interest rate risk[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of November 30, 2021, with no material changes in internal control over financial reporting during the quarter - Based on a review and evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of November 30, 2021[188](index=188&type=chunk) [PART II: OTHER INFORMATION](index=34&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) This section provides updates on legal proceedings, risk factors, and the company's stock repurchase program [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings, other than ordinary routine litigation incidental to its business - There are no material pending legal proceedings against the company[191](index=191&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2021 - No material changes in Risk Factors were reported since the last Annual Report on Form 10-K[192](index=192&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company discusses its stock repurchase program, under which it repurchased 102,757 shares for approximately $1.9 million during the nine months ended November 30, 2021 Stock Repurchase Activity (Nine Months Ended Nov 30, 2021) | Metric | Value | | :--- | :--- | | Shares Repurchased | 102,757 | | Average Price Paid | $18.90 | | Remaining Authorization | $7.9 million |

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 August 31, 2021 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 Incorpor ...

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 May 31, 2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commissio ...

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, 2021 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. (Registrant's Telephone Number, Including Area Code) (972) 775-9801 | --- | --- | |------------------------ ...

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 November 30, 2020 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Comm ...