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 ...

PART I: FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial position weakened slightly with decreased year-over-year sales and net earnings Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Items | Aug 31, 2020 | Feb 29, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $83,906 | $68,258 | | Accounts receivable, net | $33,523 | $43,086 | | Total current assets | $155,186 | $149,884 | | Goodwill | $82,527 | $82,527 | | **Total assets** | **$360,201** | **$365,699** | | **Liabilities & Equity** | | | | Total current liabilities | $34,608 | $37,969 | | Total liabilities | $65,889 | $71,370 | | **Total shareholders' equity** | **$294,312** | **$294,329** | Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Aug 31, 2020 | Three Months Ended Aug 31, 2019 | Six Months Ended Aug 31, 2020 | Six Months Ended Aug 31, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $86,612 | $108,816 | $175,608 | $216,849 | | Gross profit margin | $25,155 | $32,458 | $49,062 | $65,154 | | Income from operations | $8,920 | $12,814 | $14,816 | $25,807 | | Net earnings | $6,421 | $9,533 | $10,606 | $19,165 | | Diluted EPS | $0.25 | $0.37 | $0.41 | $0.74 | Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended Aug 31, 2020 | Six Months Ended Aug 31, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $28,154 | $27,718 | | Net cash used in investing activities | ($353) | ($20,264) | | Net cash used in financing activities | ($12,153) | ($43,396) | | **Net change in cash** | **$15,648** | **($35,942)** | | Cash at end of period | $83,906 | $52,500 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Key notes detail the pandemic's impact, recent acquisitions, credit facility status, and stock repurchase activity - The COVID-19 pandemic led to reduced demand, resulting in the **furlough of 320 employees** and facility closures[103](index=103&type=chunk) - The company acquired The Flesh Company for approximately **$9.9 million** and Integrated Print & Graphics for **$8.9 million**[51](index=51&type=chunk)[53](index=53&type=chunk) - As of August 31, 2020, the company had **no outstanding long-term debt** and **$99.3 million** in available borrowing capacity[78](index=78&type=chunk)[79](index=79&type=chunk) - The company repurchased **26,472 shares for $0.42 million**, with **$10.7 million** remaining available under the repurchase program[81](index=81&type=chunk)[192](index=192&type=chunk) - On September 18, 2020, the Board declared a quarterly dividend of **$0.225 per share**[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the pandemic's impact on sales, improved margins from cost controls, and strong liquidity Results of Operations Comparison (Three Months Ended Aug 31) | Metric | 2020 | 2019 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $86.6M | $108.8M | ($22.2M) | (20.4%) | | Gross Profit Margin | 29.0% | 29.8% | (0.8 pts) | - | | Income from Operations | $8.9M | $12.8M | ($3.9M) | (30.5%) | | Net Earnings | $6.4M | $9.5M | ($3.1M) | (32.6%) | - The company's liquidity position is strong, with **$83.9 million in cash** and **$99.3 million** available under its credit facility[129](index=129&type=chunk)[168](index=168&type=chunk) - Key business challenges include the COVID-19 pandemic, product portfolio transformation, and **intense price competition**[127](index=127&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Cash flow from operations remained strong at **$28.2 million** for the six-month period, slightly up from $27.7 million[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk is limited to interest rates on its credit facility, which currently has no outstanding debt - The company is exposed to interest rate risk on its variable-rate Credit Facility, but had **no outstanding debt** as of August 31, 2020[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of August 31, 2020[183](index=183&type=chunk) - There have been **no material changes** in internal control over financial reporting during the quarter[187](index=187&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material legal proceedings outside of ordinary business litigation - There are **no material pending legal proceedings**, other than ordinary routine litigation incidental to the business[189](index=189&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported during the quarter - **No material changes** in Risk Factors were reported from previous filings[190](index=190&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its stock repurchase program, leaving $10.7 million available for future buybacks - The Board authorized a stock repurchase program of up to **$40.0 million**, with **$10.7 million** remaining available[191](index=191&type=chunk)[192](index=192&type=chunk) Issuer Purchases of Equity Securities (Six Months Ended Aug 31, 2020) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 1, 2020 - May 31, 2020 | 26,472 | $16.00 | | **Total** | **26,472** | **$16.00** | [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company's CFO retired for personal reasons and an interim CFO was appointed from within the company - On September 28, 2020, CFO and Treasurer **Richard L. Travis, Jr. retired** for personal reasons[194](index=194&type=chunk) - **Vera Burnett**, the company's accounting manager since 1997, was appointed as Interim CFO and Treasurer[197](index=197&type=chunk)[198](index=198&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists standard filed exhibits, including corporate documents, certifications, and XBRL data files - The report includes standard exhibits such as corporate governance documents, CEO/CFO certifications, and XBRL data files[200](index=200&type=chunk) Signatures [Signatures](index=33&type=section&id=Signatures) The report was duly signed and authorized by the CEO and the newly appointed Interim CFO on October 7, 2020 - The report was signed on October 7, 2020, by **Keith S. Walters (CEO)** and **Vera Burnett (Interim CFO)**[204](index=204&type=chunk)