On this page of StockholderLetter.com we present the latest annual shareholder letter from ENNIS, INC. — ticker symbol EBF. Reading current and past EBF letters to shareholders can bring important insights into the investment thesis.

CONTENTS 3 Message to Shareholders 10 Financial Highlights Form 10-K Corporate Info Ennis Board of Directors Keith S. Walters Chairman of the Board, CEO and President of Ennis, Inc. Aaron Carter Regional Vice President for Ross Stores, Inc. Barbara T. Clemens Retired and Former Vice President of Sales and Customer Service for Boise Paper, a division of Packaging Corporation of America Walter D. Gruenes Retired and Former Executive Director at Grant Thornton LLP Michael D. Magill Retired and Former Executive Vice President, and Treasurer of Ennis, Inc. Gary S. Mozina Chief Executive Officer of Stevenson Holdings, Inc. Troy L. Priddy President of Troy Priddy Custom Homes Alejandro Quiroz Chairman of the Board, President and CEO of InveStore Margaret A. Walters Retired Educator Ennis Corporate Executive Officers Keith S. Walters Chairman of the Board, CEO and President Vera Burnett Chief Financial Officer and Treasurer Wade Brewer Chief Operations Officer Dan Gus General Counsel and Secretary
Fiscal 2026 was a year defined by disciplined execution in a challenging and evolving market. While overall industry demand continued to decline, our focus on pricing, operational efficiency, and targeted acquisitions allowed us to maintain strong margins and deliver consistent profitability. Our scale, operating structure, financial strength, and technology investments continue to differentiate Keith S. Walters Ennis within a consolidating industry. Chairman, CEO & President The following results reflect the strength of our business model and our ability to adapt to changing market conditions. Financial Results The Company s net sales for the fourth quarter ended February 28, 2026, were $96.4 million compared to $92.7 million for the same quarter last year, an increase of 4.0%. Our gross profit was $28.1 million, or 29.2%, compared to $27.4 million, or 29.5%, for the same quarter last year. Net earnings for the quarter were $8.8 million, or $0.35 per diluted share, compared to $9.0 million, or $0.35 per diluted share, for the same quarter last year. The Company s net sales for the fiscal year ended February 28, 2026, were $392.4 million compared to $394.6 million for fiscal year 2025, a decrease of 0.6%. Gross profit was $120.4 million, or 30.7%, compared to $117.3 million, or 29.7%, for the prior fiscal year. Net earnings for the fiscal year were $42.6 million or $1.66 per diluted share, compared to $40.2 million, or $1.54 per diluted share, for the prior fiscal year. Competitive pricing and continued softness in portions of the print market placed downward pressure on volumes, resulting in a decline of approximately $25.0 million. Our acquisitions largely offset this decline, contributing approximately $22.8 million in revenue and positively impacting diluted earnings per share results for the year. We have completed the integration of our recent acquisitions into our ERP systems and are seeing improved margin performance driven by pricing discipline, product mix, and ongoing cost management initiatives. We continue to maintain a solid financial position with $34.6 million in cash and no long-term debt. Working Capital totaled $96.4 million, with a current ratio of 3.7 to 1.0, calculated by dividing our current assets by our current liabilities. During the fiscal year, we returned capital to shareholders through $14.5 million of share repurchases, acquiring approximately 793,000 shares of our common stock while also paying $25.9 million in dividends. Our profitability and strong financial condition allow us to operate and pursue acquisitions without incurring debt. Given those strengths, we also anticipate timely access to credit should larger acquisition opportunities materialize. We continue to focus on returning value to shareholders by delivering profitability and through our quarterly dividends. Our results in fiscal 2026 reflect the continued strength of our business model, supported by pricing discipline, operational 3
efficiencies, and the successful integration of acquisitions. During fiscal year 2026, we completed the acquisition and integration of Northeastern Envelope Company. Northeastern enhances our manufacturing and distribution capabilities in a key geographic region and further strengthens our position in the envelope market. In addition, we continued to invest in our operations, including the purchase of a facility we previously leased, which is expected to reduce future lease expense and support longterm operating efficiency. Our letter reports Ennis one hundred and seventeenth year as a printing company. It also marks my twenty-ninth year at the helm of our company. We believe this reflects the strength and consistency of Ennis. Throughout its history, Ennis has navigated the technological changes of the print market, World War I, the Depression, World War II, and a myriad of other challenges. We emerged with a sound balance sheet and no long-term debt. We have never missed a dividend payment and have even delivered a couple of special dividend payments to our shareholders. We believe this history has prepared us well for the future. Last year in my letter, we introduced our shareholders to the men and women of our executive team. We will build on that theme this year by asking those same executives to share more details of their plans for the coming year. One of Ennis strengths is the stability of our workforce, as demonstrated at the executive level. It might appear that we deal with little change from one year to the next, with all that stability. That has certainly not been the case. We face new challenges each year; the past year was no exception. It is our people who have always been up to the task of meeting those obstacles. They have always found solutions that continue to deliver industry-leading profitability. Situations like that test a company s systems, financial strength, supplier relationships, and people. One of those challenges was the announcement that our main paper supplier was closing its paper mill in Chillicothe, Ohio. The paper mill was the only domestic source for carbonless paper. There was no advance warning, and it 4 threw the entire printing market into a difficult situation. That closure created significant disruption throughout the carbonless forms market. Paper shortages and long lead times have caused both manufacturers and the end users to make major adjustments to their supply chain. Ennis was fortunate to have a strong balance sheet that allowed us to stock a large supply of carbonless inventory. That inventory has allowed us to deliver to our customer base without the long lead times that much of our competition has faced. While carbonless paper is important to Ennis, it represents only a portion of our overall paper purchases. Pixelle will continue to be our largest supplier due to those other paper grades. Pixelle will supply us from other paper mills they continue to operate. Wade Brewer, our COO, will go into detail in his section on operations. We continue to have success in our acquisition program. This year, we added three additional operations to our portfolio of companies. They are Northeastern Envelope in Old Forge, Pennsylvania; Envelope Superstore in Hiram, Georgia; and CFC Print & Mail in Arlington, Texas. All three companies are meeting our pre-acquisition targets. Those facilities are either fully integrated into our internal systems or nearing completion at the time of this report. Dan Gus, our attorney and head of our Human Resources area, will report on the acquisition program, as well as our legal settlements or cases, healthcare, and other items. Vera Burnett has transitioned successfully into our CFO position. Vera actually performed many of the same duties in her previous position at Ennis. She will give a brief review of our financial status, but the details are already available in our filed 10-K. Wayne Leaks, our IT Director, will discuss the critical security of our systems. He will also expand on our ongoing efforts to implement and upgrade those systems in new facilities, and the role of AI we envision for Ennis. We have developed an approach to AI and its related counterpart, automation. Our executives will review job openings as they are required as a team to look for an AI or automation solution. We believe this approach is less disruptive to our workforce and gives us time to evaluate the practical results of an AI solution. Steve Osterloh has settled into the important role, VP of sales and marketing. Steve is working directly with Wade Brewer, our COO. We felt that the close coordination
would give them both additional insights and experience in different segments of the company. We are pleased to report that this has worked very well. Steve has spent a lot of time on the road with our salespeople and customers. I am sure he will have an interesting perspective to share. He has spent a considerable amount of time in the field explaining the paper situation. Wade Brewer Chief Operations Officer Ennis delivered another year of strong operational performance despite continued disruption across the print industry. Our General Managers, Business Unit Directors, Sales, and Marketing teams operated with a high degree of alignment. We maintained consistent execution across all facilities. Each location managed costs while optimizing efficiency. Sustained profitable growth continues to be our top priority. Below are key operational highlights from the past year and the initiatives we will carry forward. Paper supply remained a central industry challenge. The industry continues to deal with ongoing and anticipated mill closures. The largest impact resulted from the Chillicothe carbonless mill closure as outlined in last year s letter. We have proactively developed alternative sourcing strategies to ensure continuity of quality and competitive pricing since the Chillicothe closure. Our previously built inventory has allowed us to maintain an uninterrupted supply for our customers. Ennis remains well-positioned to navigate this environment. We have made significant progress in qualifying alternative carbonless suppliers. We are now in the final stages of new supplier evaluation. We have identified supply partners aligned with our quality standards and service expectations through our global sourcing efforts. Ennis has maintained consistent turnaround performance while the broader industry continues to experience extended lead times. Our strong supply position and stable pricing environment have enabled us to retain business that might otherwise have shifted to competing technologies. We expect continued stability within the traditional print market. We completed three strategic acquisitions during the year: Northeastern Envelope Company (Old Forge, PA), Envelope Superstore (Hiram, GA), and CFC Print & Mail (Arlington, TX). Each enhances our capabilities, expands market share, and strengthens our position in key segments. Customer response has been positive. All three businesses are performing in line with expectations. Integration efforts are well underway. Implementation of the Ennis operating system across our three recent acquisitions is either complete or actively underway. This platform provides real-time cost visibility and operational analytics, enabling improved performance and scalability across our network. Leased facility costs remain a pressure point in select markets in the western U.S. and major metropolitan areas. We have experienced increases exceeding 40% in certain cases. We are actively managing these pressures through disciplined lease negotiations. We will continue to reassess our footprint as market conditions evolve. Our legal team has been effective in mitigating cost escalation on these issues. We continue to invest in our facilities to ensure operational reliability and long-term efficiency. Capital deployment remains focused on safety, infrastructure, and productivity enhancements. Utility costs and property taxes have remained relatively stable. Ennis has maintained consistent turnaround performance while the broader industry continues to experience extended lead times. We continued to expand our statement mailing capabilities. Last year, we completed the expansion of added capacity in South Elgin, IL. We identified underutilized equipment through acquisition integrations that we redeployed internally. This allowed increased mailing capacity without incremental capital investment. The additional installations in South Elgin, IL, and Roanoke, VA, will further support growth in this product line. Demand remains solid across packaging, labels, and tags. Our pressure seal product line also performed well, particularly in roll-based offerings. Ennis year-end results reflect our core operations ability to deliver another year of strong margin performance. Rigorous cost control and consistent oversight continue to drive strong results. Our reporting processes ensure accountability and operational discipline across all platforms. Ennis continues to sustain profitable growth by adapting to evolving market conditions. We remain well positioned as we enter the new fiscal year to lead the industry in margin stability. 5
 • shareholder letter icon 6/5/2026 Letter Continued (Full PDF)
 • stockholder letter icon 6/20/2024 EBF Stockholder Letter
 • stockholder letter icon 6/9/2025 EBF Stockholder Letter
 • stockholder letter icon More "Publishing & Printing" Category Stockholder Letters
 • Benford's Law Stocks icon EBF Benford's Law Stock Score = 30


EBF Shareholder/Stockholder Letter Transcript:


CONTENTS
3 Message to Shareholders
10 Financial Highlights
Form 10-K
Corporate Info
Ennis Board of Directors
Keith S. Walters
Chairman of the Board, CEO and President of Ennis, Inc.
Aaron Carter
Regional Vice President for Ross Stores, Inc.
Barbara T. Clemens
Retired and Former Vice President of Sales and Customer Service for
Boise Paper, a division of Packaging Corporation of America
Walter D. Gruenes
Retired and Former Executive Director at Grant Thornton LLP
Michael D. Magill
Retired and Former Executive Vice President, and Treasurer of Ennis, Inc.
Gary S. Mozina
Chief Executive Officer of Stevenson Holdings, Inc.
Troy L. Priddy
President of Troy Priddy Custom Homes
Alejandro Quiroz
Chairman of the Board, President and CEO of InveStore
Margaret A. Walters
Retired Educator
Ennis Corporate Executive Officers
Keith S. Walters
Chairman of the Board, CEO and President
Vera Burnett
Chief Financial Officer and Treasurer
Wade Brewer
Chief Operations Officer
Dan Gus
General Counsel and Secretary

Fiscal 2026 was a year defined
by disciplined execution in a
challenging and evolving market.
While overall industry demand
continued to decline, our focus
on pricing, operational efficiency,
and targeted acquisitions allowed
us to maintain strong margins
and deliver consistent profitability.
Our scale, operating structure,
financial strength, and technology
investments continue to differentiate
Keith S. Walters Ennis within a consolidating industry.
Chairman, CEO & President
The following results reflect the
strength of our business model and our ability to adapt to
changing market conditions.
Financial Results
The Company   s net sales for the fourth quarter ended February 28,
2026, were $96.4 million compared to $92.7 million for the same
quarter last year, an increase of 4.0%. Our gross profit was $28.1
million, or 29.2%, compared to $27.4 million, or 29.5%, for the same
quarter last year. Net earnings for the quarter were $8.8 million,
or $0.35 per diluted share, compared to $9.0 million, or $0.35 per
diluted share, for the same quarter last year.
The Company   s net sales for the fiscal year ended February 28,
2026, were $392.4 million compared to $394.6 million for fiscal
year 2025, a decrease of 0.6%. Gross profit was $120.4 million,
or 30.7%, compared to $117.3 million, or 29.7%, for the prior fiscal
year. Net earnings for the fiscal year were $42.6 million or $1.66
per diluted share, compared to $40.2 million, or $1.54 per diluted
share, for the prior fiscal year.
Competitive pricing and continued softness in portions of the
print market placed downward pressure on volumes, resulting in
a decline of approximately $25.0 million. Our acquisitions largely
offset this decline, contributing approximately $22.8 million in
revenue and positively impacting diluted earnings per share
results for the year. We have completed the integration of our
recent acquisitions into our ERP systems and are seeing improved
margin performance driven by pricing discipline, product mix, and
ongoing cost management initiatives.
We continue to maintain a solid financial position with $34.6
million in cash and no long-term debt. Working Capital totaled
$96.4 million, with a current ratio of 3.7 to 1.0, calculated by
dividing our current assets by our current liabilities. During the
fiscal year, we returned capital to shareholders through $14.5
million of share repurchases, acquiring approximately 793,000
shares of our common stock while also paying $25.9 million in
dividends. Our profitability and strong financial condition allow us
to operate and pursue acquisitions without incurring debt. Given
those strengths, we also anticipate timely access to credit should
larger acquisition opportunities materialize. We continue to focus
on returning value to shareholders by delivering profitability and
through our quarterly dividends.
Our results in fiscal 2026 reflect the continued strength of our
business model, supported by pricing discipline, operational
3

efficiencies, and the successful integration of acquisitions.
During fiscal year 2026, we completed the acquisition
and integration of Northeastern Envelope Company.
Northeastern enhances our manufacturing and distribution
capabilities in a key geographic region and further
strengthens our position in the envelope market. In
addition, we continued to invest in our operations, including
the purchase of a facility we previously leased, which is
expected to reduce future lease expense and support longterm operating efficiency.
Our letter reports Ennis    one hundred and seventeenth year
as a printing company. It also marks my twenty-ninth year
at the helm of our company. We believe this reflects the
strength and consistency of Ennis. Throughout its history,
Ennis has navigated the technological changes of the print
market, World War I, the Depression, World War II, and a
myriad of other challenges. We emerged with a sound
balance sheet and no long-term debt. We have never
missed a dividend payment and have even delivered a
couple of special dividend payments to our shareholders.
We believe this history has prepared us well for the future.
Last year in my letter, we introduced our shareholders to
the men and women of our executive team. We will build
on that theme this year by asking those same executives
to share more details of their plans for the coming year.
One of Ennis    strengths is the stability of our workforce, as
demonstrated at the executive level.
It might appear that we deal with little change from one
year to the next, with all that stability. That has certainly
not been the case. We face new challenges each year;
the past year was no exception. It is our people who have
always been up to the task of meeting those obstacles.
They have always found solutions that continue to deliver
industry-leading profitability.
Situations like that test a
company   s systems, financial
strength, supplier relationships,
and people.
One of those challenges was the announcement that our
main paper supplier was closing its paper mill in Chillicothe,
Ohio. The paper mill was the only domestic source for
carbonless paper. There was no advance warning, and it
4
threw the entire printing market into a difficult situation.
That closure created significant disruption throughout the
carbonless forms market. Paper shortages and long lead
times have caused both manufacturers and the end users
to make major adjustments to their supply chain. Ennis
was fortunate to have a strong balance sheet that allowed
us to stock a large supply of carbonless inventory. That
inventory has allowed us to deliver to our customer base
without the long lead times that much of our competition
has faced. While carbonless paper is important to Ennis, it
represents only a portion of our overall paper purchases.
Pixelle will continue to be our largest supplier due to those
other paper grades. Pixelle will supply us from other paper
mills they continue to operate. Wade Brewer, our COO, will
go into detail in his section on operations.
We continue to have success in our acquisition program.
This year, we added three additional operations to our
portfolio of companies. They are Northeastern Envelope
in Old Forge, Pennsylvania; Envelope Superstore in Hiram,
Georgia; and CFC Print & Mail in Arlington, Texas. All three
companies are meeting our pre-acquisition targets. Those
facilities are either fully integrated into our internal systems
or nearing completion at the time of this report. Dan Gus,
our attorney and head of our Human Resources area, will
report on the acquisition program, as well as our legal
settlements or cases, healthcare, and other items.
Vera Burnett has transitioned successfully into our CFO
position. Vera actually performed many of the same duties
in her previous position at Ennis. She will give a brief review
of our financial status, but the details are already available
in our filed 10-K.
Wayne Leaks, our IT Director, will discuss the critical
security of our systems. He will also expand on our ongoing
efforts to implement and upgrade those systems in new
facilities, and the role of AI we envision for Ennis. We have
developed an approach to AI and its related counterpart,
automation. Our executives will review job openings as they
are required as a team to look for an AI or automation
solution. We believe this approach is less disruptive to
our workforce and gives us time to evaluate the practical
results of an AI solution.
Steve Osterloh has settled into the important role, VP of
sales and marketing. Steve is working directly with Wade
Brewer, our COO. We felt that the close coordination

would give them both additional insights and experience
in different segments of the company. We are pleased to
report that this has worked very well. Steve has spent a lot
of time on the road with our salespeople and customers. I
am sure he will have an interesting perspective to share.
He has spent a considerable amount of time in the field
explaining the paper situation.
Wade Brewer
Chief Operations Officer
Ennis delivered another year of strong operational
performance despite continued disruption across the print
industry. Our General Managers, Business Unit Directors,
Sales, and Marketing teams operated with a high degree
of alignment. We maintained consistent execution across
all facilities. Each location managed costs while optimizing
efficiency. Sustained profitable growth continues to be our
top priority. Below are key operational highlights from the
past year and the initiatives we will carry forward.
Paper supply remained a central industry challenge. The
industry continues to deal with ongoing and anticipated mill
closures. The largest impact resulted from the Chillicothe
carbonless mill closure as outlined in last year   s letter. We
have proactively developed alternative sourcing strategies
to ensure continuity of quality and competitive pricing
since the Chillicothe closure. Our previously built inventory
has allowed us to maintain an uninterrupted supply for
our customers. Ennis remains well-positioned to navigate
this environment. We have made significant progress in
qualifying alternative carbonless suppliers. We are now in
the final stages of new supplier evaluation.
We have identified supply partners aligned with our
quality standards and service expectations through our
global sourcing efforts. Ennis has maintained consistent
turnaround performance while the broader industry
continues to experience extended lead times. Our strong
supply position and stable pricing environment have
enabled us to retain business that might otherwise have
shifted to competing technologies. We expect continued
stability within the traditional print market.
We completed three strategic acquisitions during the year:
Northeastern Envelope Company (Old Forge, PA), Envelope
Superstore (Hiram, GA), and CFC Print & Mail (Arlington, TX).
Each enhances our capabilities, expands market share, and
strengthens our position in key segments.
Customer response has been positive. All three businesses
are performing in line with expectations. Integration efforts
are well underway. Implementation of the Ennis operating
system across our three recent acquisitions is either
complete or actively underway. This platform provides
real-time cost visibility and operational analytics, enabling
improved performance and scalability across our network.
Leased facility costs remain a pressure point in select
markets in the western U.S. and major metropolitan areas.
We have experienced increases exceeding 40% in certain
cases. We are actively managing these pressures through
disciplined lease negotiations. We will continue to reassess
our footprint as market conditions evolve. Our legal team
has been effective in mitigating cost escalation on these
issues. We continue to invest in our facilities to ensure
operational reliability and long-term efficiency. Capital
deployment remains focused on safety, infrastructure,
and productivity enhancements. Utility costs and property
taxes have remained relatively stable.
Ennis has maintained consistent
turnaround performance while
the broader industry continues to
experience extended lead times.
We continued to expand our statement mailing capabilities.
Last year, we completed the expansion of added capacity
in South Elgin, IL. We identified underutilized equipment
through acquisition integrations that we redeployed
internally. This allowed increased mailing capacity without
incremental capital investment. The additional installations
in South Elgin, IL, and Roanoke, VA, will further support
growth in this product line. Demand remains solid across
packaging, labels, and tags. Our pressure seal product line
also performed well, particularly in roll-based offerings.
Ennis    year-end results reflect our core operations    ability
to deliver another year of strong margin performance.
Rigorous cost control and consistent oversight continue
to drive strong results. Our reporting processes ensure
accountability and operational discipline across all
platforms. Ennis continues to sustain profitable growth by
adapting to evolving market conditions. We remain well
positioned as we enter the new fiscal year to lead the
industry in margin stability.
5


shareholder letter icon 6/5/2026 Letter Continued (Full PDF)
 

EBF Stockholder/Shareholder Letter (ENNIS, INC.) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.