FY2024 Annual Report

ENNIS BOARD OF DIRECTORS

Keith S. Walters	Troy L. Priddy
Chairman of the Board, CEO and President of Ennis, Inc.	President of Troy Priddy Custom Homes
John R. Blind	Alejandro Quiroz
Retired and Former Vice President of the Printing and Carbonless	Chairman of the Board, President and CEO of InveStore
Division of the Specialty Papers Business Unit of Glatfelter	Michael J. Schaefer
Aaron Carter
Retired and Former Executive Vice President, CFO and Treasurer of
Assistant Regional Vice President for Ross Stores, Inc.	Methodist Health Systems
Barbara T. Clemens	Margaret A. Walters
Retired and Former Vice President of Sales and Customer Service	Retired Educator
for Boise Paper, a division of Packaging Corporation of America
Gary S. Mozina
Chief Executive Officer of Stevenson Holdings, Inc.

ENNIS CORPORATE EXECUTIVE OFFICERS

Keith S. Walters	Dan Gus
Chairman of the Board, CEO and President	General Counsel and Secretary
Vera Burnett	Ronald M. Graham
Chief Financial Officer and Treasurer	Vice President - Administration
Wade Brewer	Terry Pennington
Chief Operating Officer	Chief Revenue Officer

CONTENTS

3 Message to Shareholders

8 Financial Highlights Form 10-K Corporate Info

Keith S. Walters

Chairman, CEO & President

LETTER TO

SHAREHOLDERS

Ennis is celebrating our 115th year in business. We believe this long tenure is a testament to the strength and reputation of our company. We continue to focus on fundamentals such as conservative financials, and business integrity. Those principals have allowed us to deliver a dividend to our shareholders two hundred and three quarters (203) in a row. Our successful acquisition program has brought us four new companies the past year. We are continually looking for new acquisition opportunities and there appear to still be many opportunities as smaller printers look to exit the business. Our positive reputation in the marketplace is very key to our success rate. It is not unusual for a past seller to offer a recommendation to a future seller in Ennis' behalf. I'll expand on these acquisitions later in my"letter.

Ennis is celebrating our 115th year in business. We believe this long tenure

is a testament to the strength and" reputation of our company.

This past fiscal year has challenged us to adjust to the softening of our market. There was excess inventory in the market from customers overstocking during the paper supply shortages. We started seeing a softening of orders in some of our product lines in the fourth quarter of FY 2023. That unfortunately foreshadowed the trends we would see for FY 2024. The anticipated decline of our backlogs during the year required a refocused level of attention on our fundamental operating practices such as inventory costs, labor costs and pricing accuracy. We will share some of the operational accomplishments to offset the impacts caused by the market imbalances.

Market Conditions

The largest impact on sales this past year was the destocking or reduction of inventories by a majority of customers in our segments. The main cause of this was the industry's inability to predict where the paper market was going. The changing ownership in many of the paper mills will make this an evolving story for the foreseeable future.

ennis.com | 3

We expected this to occur as we witnessed many distributors in 2022 placing orders for

1.5 to 2 times their normal order patterns due to concerns of running out of product. We certainly had concerns they were hoarding compared to their 2022 volumes. Those apprehensions became reality as distributors' ordering behavior started to change in the fourth quarter as the lead times and prices on paper leveled. The lack of reorders impacted our first and second quarters of 2023. This slowdown then induced some of our customers to move any work they could produce in-house to fill open capacities in their plants. Of course, these actions impacted our overall demand. Fortunately, we continue to have many products that are unique to Ennis and those orders remained.

This volume will shift back to Ennis we believe as the market normalizes as it has in the past market ups and downs. The price of paper has remained elevated from the high level of the paper shortages. This continues to be a risk factor in driving some customers to alternatives such as electronic solutions versus paper-based options. One example is the Internal Revenue Service no longer offers printed tax forms to individuals and small businesses since the beginning of

2023. This decision negatively impacted our past year's sales due to our supply contract with the IRS. These are certainly not new risk factors but a slowly developing reality. We are well aware and try to use the acquisition of less threatened product lines to slow this decline.

Ennis was able to generate gains of more than $11 million in sales growth with our expanded market share.

4

Ennis was able to generate gains of more than $11 million in sales growth with our expanded market share with many distributors and the acquisition program. Such a contract signed this year was with one of the largest U.S.-based insurance companies. The contract is for pre- printed data roll products. Another contract was with a customer who provides critical communication documents both domestic and internationally. Our broad geographic footprint of manufacturing locations, ability to utilize existing equipment, willingness to invest in new capital, and our industry expertise are the primary reasons these customers selected to partner with Ennis.

Ennis offers our distributors a technology advantage that makes transactions seamless and increases efficiencies.

Leveraging our technology systems gives us a significant advantage compared to our smaller competitors. End-use companies often require their suppliers to support an electronic transfer of orders and the return of pertinent order data. Ennis offers our distributors a technology advantage that makes transactions seamless and increases efficiencies. This advantage allowed us to capture additional business through our more advanced distributor customers.

Operational

Our fiscal year saw the continuation of our backlog decline from the highs of 2022 and 2023. Our backlogs for tag, label and pressure seal products held steady for the first half of the past year but have softened since then. Other product backlogs declined but are still in line with our historical averages.

We saw some stabilization of the labor market during the past year, allowing us to fill critical positions. There continues to be upward pressure on wages at most of our locations. We will continue to monitor these trends as demand softens.

A goal last year was returning our inventory levels back to our historic level of nine turns. Yes, even our General Managers caught the panic of buying paper in excess of needs from fear of running out of paper! We have accomplished this goal which certainly put us in a better situation as the market slowed. Our goal now is to maintain this level of inventory through our real-time information system. Our operating management team did a good job of bringing this back under control and our goal is to avoid a reoccurrence in the future.

Acquisitions

During this past year, Ennis acquired four companies. On May 23, 2023, we acquired the assets of StyleCraft Printing, located in Canton, Michigan. StyleCraft is a trade-only printer since 1967 specializing in business forms, integrated products and commercial printing.

On June 2, 2023, we acquired the assets of UMC Print in Overland Park, Kansas. UMC Print has been a leading trade-only printer and provider of commercial printing services since 1936. This was not an operation with many of the basic systems and procedures we are used to seeing in a printing plant. We actually passed on this a couple of times in the past but the price became attractive as the numbers were presented. It has been more troublesome than expected but it is small enough to not have a major impact. As they say, "sometimes you get what you pay for". We will get this turned around and

ennis.com | 5

brought into the current printing era. We are installing our system currently.

We continue to maintain a strong financial position with $110.9 million in cash and short-term investments, Working Capital

of $167.6 million and no debt.

On October 13, 2023, we acquired the assets of Eagle Graphics, Inc. in Annville, Pennsylvania, and the assets of Diamond Graphics, Inc. in Bensalem, Pennsylvania. Eagle Graphics has specialized in fulfilling commercial printing needs since 1976. Capabilities include 8-color UV web printing, digital printing, security printing, jumbo rolls, traditional forms and direct mail. Diamond Graphics was founded in 1999 and specializes in direct mail printing. All of these companies add to Ennis' products and geographic capabilities. We've already started the process of integrating them into Ennis and our systems. Our ERP has already been installed at StyleCraft and UMC giving the managers further insight into their businesses and the implementation team is currently working on the rollout at Eagle and Diamond. We are delighted to welcome these employees to the Company.

Financial Results

The Company's net sales for the fourth quarter ended February 29, 2024, were $97.4 million compared to $102.7 million for the same quarter last year, a decrease of 5.2%. Our gross profit margin was $27.7 million, or 28.4% as compared to $28.4 million, or 27.6% for the same quarter last year. Net earnings for the quarter were $10.1 million, or $0.39 per diluted share as compared to $12.2 million, or $0.47 per diluted share for the same quarter last year.

The Company's net sales for the fiscal year ended February 29, 2024, were $420.1 million compared to $431.8 million for fiscal year 2023, a decrease of 2.7%. Gross profit margin was $125.3 million, or 29.8% as compared to $131.1 million, or 30.3% for the prior fiscal year. Net earnings for the fiscal year were $42.6 million or $1.64 per diluted share, compared to $47.3 million, or $1.82 per diluted share for the prior fiscal year.

The print market overall continues to be fairly soft with competitive pricing, resulting in a decline in the volume of products sold and downward pressure on operating margin. Our acquisitions partially offset the sales volume decline by $21.2 million and positively impacted $0.03 per diluted share for the year. We are in the early stages of completing the implementations of our ERP systems of our recent acquisitions and when fully implemented, we believe the margins of the acquired businesses will improve to expected levels. During the prior year's fourth quarter, we sold an unused manufacturing facility and recognized a $5.8 million gain, which increased the Company's prior year's diluted earnings per share by $0.17.

With our culture and our systems, I am confident in our people's ability to meet these challenges.

We continue to maintain a strong financial position with $110.9 million in cash and short-term investments, Working Capital of $167.6 million and no debt. Our current ratio, calculated by dividing our current assets by our current liabilities, increased from 4.8 to 1.0 for fiscal year 2023 to 6.1 to 1.0 for fiscal year 2024. We strategically reduced inventory by $6.8 million improving

6

our cash flow and repurchased over 29,000 shares of our common stock in the market at an average price of $19.96 per share during the fourth quarter ended February 29, 2024. Our profitability and strong financial condition will allow us to continue operations and take advantage of 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.

Closing Comments

Fiscal 2023 was an outstanding year for our Company. Demand was strong and we had the capacity, material and labor to service customers. With demand declining and costs escalating, fiscal 2024 was a different story. We had to be responsive to these changes to accomplish the results reported. We continue to be challenged by inflation on both the supply side and the selling side. With our culture and our systems, I am confident in our people's ability to meet these challenges.

This is a presidential election year with the potential to create distractions in the marketplace. We will maintain our focus and vigilance in our duty to the shareholders to accomplish our goals. We appreciate your continued confidence and support for our Company.

We hope to see some of you at our Annual Meeting in July.

7

FINANCIAL HIGHLIGHTS

WORKING CAPITAL	LONG-TERM DEBT
- in millions -	- in millions -

CURRENT RATIO	LONG-TERM DEBT TO EQUITY RATIO
- to 1.0 -	- to 1.0 -

SELECTED CONSOLIDATED FINANCIAL DATA

Fiscal Year Ended

(Dollars and shares in thousands, except per share amounts)

	2024	2023	2022
Net Sales	$420,109	$431,837	$400,014
Gross profit margin	125,342	131,050	114,723
Earnings before taxes	59,123	64,930	41,944
Net earnings	42,597	47,300	28,982
Earnings and dividends per share:
Basic	1.65	1.83	1.11
Diluted	1.64	1.82	1.11
Dividends	1.00	1.00	.975
Weighted average common shares outstanding:
Basic	25,843	25,819	26,026
Diluted	25,940	25,951	26,109

8

mt

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 29, 2024

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 Incorporation or Organization)	(I.R.S. Employer Identification No.)
2441 Presidential Pkwy., Midlothian, Texas	76065
(Address of Principal Executive Offices)	(Zip code)

(Registrant's Telephone Number, Including Area Code) [phone]

Securities registered pursuant to Section 12(b) of the Act:

	Trading
Title of each class	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

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90

days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated Filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company.	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-a(b).☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of voting stock held by non-affiliates of the Registrant as of August 31, 2023 was approximately $536 million. Shares of voting stock held by executive officers, directors and holders of more than 10% of the outstanding voting stock have been excluded from this calculation because such persons may be deemed to be affiliates. Exclusion of such shares should not be construed to indicate that any of such persons possesses the power, direct or indirect, to control the Registrant, or that any such person is controlled by or under common control with the Registrant.

The number of shares of the Registrant's Common Stock, par value $2.50, outstanding at May 9, 2024 was 25,984,014.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant's Proxy Statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report.

	ENNIS, INC. AND SUBSIDIARIES
	FORM 10-K
	FOR THE PERIOD ENDED FEBRUARY 29, 2024
	TABLE OF CONTENTS
PART I:
Item 1	Business	4
Item 1A	Risk Factors	8
Item 1B	Unresolved Staff Comments	13
Item 1C	Cybersecurity	13
Item 2	Properties	13
Item 3	Legal Proceedings	16
Item 4	Mine Safety Disclosures	16
PART II:
Item 5	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer
	Purchases of Equity Securities	16
Item 7	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 7A	Quantitative and Qualitative Disclosures about Market Risk	26
Item 8	Consolidated Financial Statements and Supplementary Data	26
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	26
Item 9A	Controls and Procedures	26
Item 9B	Other Information	27
Item 9C	Disclosure Regarding Foreign Jurisdiction that Prevent Inspections	27
PART III:
Item 10	Directors, Executive Officers and Corporate Governance	28
Item 11	Executive Compensation	28
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related
	Stockholder Matters	28
Item 13	Certain Relationships and Related Transactions, and Director Independence	28
Item 14	Principal Accountant Fees and Services	28
PART IV:
Item 15	Exhibits and Financial Statement Schedules	29
	Signatures	30