##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
  þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
 For the Quarterly Period Ended November 30, 2007
 OR
 o
    
    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.
  Texas
    
    75-0256410(State or Other Jurisdiction of Incorporation or
    
    (I.R.S. Employer Identification No.)Organization)2441 Presidential Pkwy., Midlothian, Texas
    
    76065(Address of Principal Executive Offices)
    
    (Zip code)
 (972) 775-9801
 þ o
  o þ o
 o þ




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##### 



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 TABLE OF CONTENTS
 PART I: FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    3Consolidated Balance Sheets at November 30, 2007 (unaudited) and February 28, 2007
    
    
    3Unaudited Consolidated Statements of Earnings for the three and nine months ended November
30, 2007 and 2006
    
    
    5Unaudited Consolidated Statements of Cash Flows for the nine months ended November 30, 2007
and 2006
    
    
    6Notes to the Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    21Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    36Item 4. Controls and Procedures
    
    
    36PART II: OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    38Item 1A. Risk Factors
    
    
    38Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    38Item 3. Defaults Upon Senior Securities
    
    
    38Item 4. Submission of Matters to a Vote of Security Holders
    
    
    38Item 5. Other Information
    
    
    38Item 6. Exhibits
    
    
    38SIGNATURES
    
    
    39Certification Pursuant to Rule 13a-14(a)/15d-14(a) of CEOCertification Pursuant to Rule 13a-14(a)/15d-14(a) of CFOSection 1350 Certification of CEOSection 1350 Certification of CFO
  2




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##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. FINANCIAL STATEMENTS
 ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS  (Dollars in thousands )
 November 30,
    
    
    February 28,2007
    
    
    2007(unaudited)AssetsCurrent assetsCash and cash equivalents
    
    $
    2,156
    
    
    $
    3,582Accounts receivable, net of allowance for doubtful receivables
of $3,653 at November 30, 2007 and $2,698 at February 28, 2007
    
    
    70,791
    
    
    
    47,285Prepaid expenses
    
    
    4,182
    
    
    
    5,628Inventories
    
    
    101,760
    
    
    
    85,696Deferred income taxes
    
    
    7,780
    
    
    
    7,444Assets held for sale
    
    
    441
    
    
    
    1,881Total current assets
    
    
    187,110
    
    
    
    151,516Property, plant and equipment, at costPlant, machinery and equipment
    
    
    129,123
    
    
    
    127,521Land and buildings
    
    
    43,727
    
    
    
    40,680Other
    
    
    22,465
    
    
    
    22,506Total property, plant and equipment
    
    
    195,315
    
    
    
    190,707Less accumulated depreciation
    
    
    134,316
    
    
    
    127,650Net property, plant and equipment
    
    
    60,999
    
    
    
    63,057Goodwill
    
    
    178,964
    
    
    
    178,314Trademarks and tradenames, net
    
    
    64,310
    
    
    
    63,052Customer lists, net
    
    
    23,392
    
    
    
    20,287Deferred finance charges, net
    
    
    1,046
    
    
    
    1,382Other assets
    
    
    614
    
    
    
    620Total assets
    
    $
    516,435
    
    
    $
    478,228
 See accompanying notes to consolidated financial statements.
 3




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS  (Dollars in thousands, except for share amounts )
 November 30,
    
    
    February 28,2007
    
    
    2007(unaudited)Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable
    
    $
    28,654
    
    
    $
    25,597Accrued expensesEmployee compensation and benefits
    
    
    16,319
    
    
    
    15,799Taxes other than income
    
    
    813
    
    
    
    611Federal and state income taxes payable
    
    
    970
    
    
    
    973Other
    
    
    7,213
    
    
    
    5,615Current installments of long-term debt
    
    
    305
    
    
    
    652Total current liabilities
    
    
    54,274
    
    
    
    49,247Long-term debt, less current installments
    
    
    97,265
    
    
    
    88,971Liability for pension benefits
    
    
    3,914
    
    
    
    2,702Deferred income taxes
    
    
    20,067
    
    
    
    19,603Other liabilities
    
    
    868
    
    
    
    1,302Total liabilities
    
    
    176,388
    
    
    
    161,825Commitments and contingenciesShareholders equitySeries A junior participating preferred stock of $10 par value,
Authorized 1,000,000 shares; none issued
    
    
    
    
    
    
    Common stock $2.50 par value, authorized 40,000,000 shares;
issued 30,053,443 shares at November 30 and
February 28, 2007
    
    
    75,134
    
    
    
    75,134Additional paid in capital
    
    
    122,463
    
    
    
    122,305Retained earnings
    
    
    228,523
    
    
    
    207,190Accumulated other comprehensive income (loss):Foreign currency translation
    
    
    814
    
    
    
    25Minimum pension liability
    
    
    (7,396
    )
    
    
    (7,396
    )(6,582
    )
    
    
    (7,371
    )419,538
    
    
    
    397,258Treasury stockCost of 4,400,413 shares at November 30, 2007 and
4,475,962 shares at February 28, 2007
    
    
    (79,491
    )
    
    
    (80,855
    )Total shareholders equity
    
    
    340,047
    
    
    
    316,403Total liabilities and shareholders equity
    
    $
    516,435
    
    
    $
    478,228
 See accompanying notes to consolidated financial statements.
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ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF EARNINGS
 ( Dollars in thousands except share and per share amounts )
(Unaudited)
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    158,215
    
    
    $
    151,743
    
    
    $
    461,075
    
    
    $
    448,574Cost of goods sold
    
    
    118,971
    
    
    
    113,770
    
    
    
    344,644
    
    
    
    334,545Gross profit
    
    
    39,244
    
    
    
    37,973
    
    
    
    116,431
    
    
    
    114,029Selling, general and administrative
    
    
    19,323
    
    
    
    18,450
    
    
    
    57,054
    
    
    
    54,850Income from operations
    
    
    19,921
    
    
    
    19,523
    
    
    
    59,377
    
    
    
    59,179Other income (expense)Interest expense
    
    
    (1,398
    )
    
    
    (1,853
    )
    
    
    (4,283
    )
    
    
    (5,363
    )Other income (expense), net
    
    
    (163
    )
    
    
    (493
    )
    
    
    (1,917
    )
    
    
    (174
    )(1,561
    )
    
    
    (2,346
    )
    
    
    (6,200
    )
    
    
    (5,537
    )Earnings before income taxes
    
    
    18,360
    
    
    
    17,177
    
    
    
    53,177
    
    
    
    53,642Provision for income taxes
    
    
    6,792
    
    
    
    6,355
    
    
    
    19,675
    
    
    
    19,847Net earnings
    
    $
    11,568
    
    
    $
    10,822
    
    
    $
    33,502
    
    
    $
    33,795Weighted average common shares
outstandingBasic
    
    
    25,653,030
    
    
    
    25,555,460
    
    
    
    25,613,143
    
    
    
    25,517,901Diluted
    
    
    25,887,798
    
    
    
    25,799,890
    
    
    
    25,867,564
    
    
    
    25,744,187Per share amountsNet earnings  basic
    
    $
    0.45
    
    
    $
    0.42
    
    
    $
    1.31
    
    
    $
    1.32Net earnings  diluted
    
    $
    0.45
    
    
    $
    0.42
    
    
    $
    1.30
    
    
    $
    1.31Cash dividends per share
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.465
    
    
    $
    0.465
 See accompanying notes to consolidated financial statements.
 5




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ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Dollars in thousands)  (Unaudited)
 Nine months endedNovember 30,2007
    
    
    2006Cash flows from operating activities:Net earnings
    
    $
    33,502
    
    
    $
    33,795Adjustments to reconcile net earnings to net cash provided
by operating activities:Depreciation
    
    
    9,402
    
    
    
    11,207Amortization of deferred finance charges
    
    
    336
    
    
    
    339Amortization of trademarks and customer lists
    
    
    1,488
    
    
    
    1,502Gain on the sale of equipment
    
    
    (332
    )
    
    
    (257
    )Bad debt expense
    
    
    1,431
    
    
    
    884Stock based compensation
    
    
    527
    
    
    
    213Excess tax benefit of stock option exercises
    
    
    (337
    )
    
    
    (55
    )Changes in operating assets and liabilities, net of the
effects of acquisition:Accounts receivable
    
    
    (20,842
    )
    
    
    (5,351
    )Prepaid expenses
    
    
    1,542
    
    
    
    (1,474
    )Inventories
    
    
    (13,442
    )
    
    
    1,490Other current assets
    
    
    
    
    
    
    53Other assets
    
    
    (5
    )
    
    
    (1,864
    )Accounts payable and accrued expenses
    
    
    4,729
    
    
    
    (3,261
    )Other liabilities
    
    
    (1,596
    )
    
    
    (1,473
    )Liability for pension benefits
    
    
    1,212
    
    
    
    1,380Net cash provided by operating activities
    
    
    17,615
    
    
    
    37,128Cash flows from investing activities:Capital expenditures
    
    
    (2,471
    )
    
    
    (3,245
    )Purchase of business, net of cash acquired
    
    
    (14,543
    )
    
    
    (17,617
    )Proceeds from disposal of plant and property
    
    
    771
    
    
    
    2,802Net cash used in investing activities
    
    
    (16,243
    )
    
    
    (18,060
    )Cash flows from financing activities:Borrowings on debt
    
    
    18,000
    
    
    
    15,000Repayment of debt
    
    
    (10,053
    )
    
    
    (28,882
    )Dividends
    
    
    (11,929
    )
    
    
    (11,870
    )Proceeds from exercise of stock options
    
    
    658
    
    
    
    461Excess tax benefit of stock option exercises
    
    
    337
    
    
    
    55Net cash used in financing activities
    
    
    (2,987
    )
    
    
    (25,236
    )Effect of exchange rate changes on cash
    
    
    189
    
    
    
    (106
    )Net change in cash and cash equivalents
    
    
    (1,426
    )
    
    
    (6,274
    )Cash and cash equivalents at beginning of period
    
    
    3,582
    
    
    
    13,860Cash and cash equivalents at end of period
    
    $
    2,156
    
    
    $
    7,586
 See accompanying notes to consolidated financial statements.
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ENNIS, INC. AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 1. Basis of Presentation
  Recent Accounting Pronouncements
 FIN 48
   FAS 157 .
 FAS 159 .
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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 1. Significant Accounting Policies and General Matters-continued
  FAS 141R.
 FAS 160.
 2. Due From Factors
     8




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 2. Due From Factors-continued
 November 30,
    
    
    February 28,2007
    
    
    2007Outstanding factored receivables
without recourse
    
    $
    7,054
    
    
    $
    18,766Advances from factors
    
    
    (5,560
    )
    
    
    (15,683
    )Due from factors
    
    $
    1,494
    
    
    $
    3,083
 3. Accounts Receivable and Allowance for Doubtful Receivables
    Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Balance at beginning of period
    
    $
    3,376
    
    
    $
    3,226
    
    
    $
    2,698
    
    
    $
    3,001Bad debt expense
    
    
    535
    
    
    
    429
    
    
    
    1,431
    
    
    
    884Recoveries
    
    
    21
    
    
    
    
    
    
    
    24
    
    
    
    99Accounts written off
    
    
    (279
    )
    
    
    (521
    )
    
    
    (500
    )
    
    
    (850
    )Balance at end of period
    
    $
    3,653
    
    
    $
    3,134
    
    
    $
    3,653
    
    
    $
    3,134
 4. Inventories
   9




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 4. Inventories-continued
 November 30,
    
    
    February 28,2007
    
    
    2007Raw material
    
    $
    16,344
    
    
    $
    11,074Work-in-process
    
    
    17,320
    
    
    
    16,694Finished goods
    
    
    68,096
    
    
    
    57,928$
    101,760
    
    
    $
    85,696
 5. Acquisitions
   Accounts receivable
    
    $
    2,713Inventories
    
    
    1,711Other assets
    
    
    66Property, plant & equipment
    
    
    3,467Customer lists
    
    
    4,425Goodwill
    
    
    521Accounts payable and accrued liabilities
    
    
    (443
    )$
    12,460
   Accounts receivable
    
    $
    974Inventories
    
    
    346Property, plant & equipment
    
    
    363Tradenames
    
    
    1,415Goodwill
    
    
    55Accounts payable and accrued liabilities
    
    
    (171
    )$
    2,982
  10




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 5. Acquisitions-continued
   Accounts receivable
    
    $
    2,492Inventories
    
    
    1,864Property, plant & equipment
    
    
    7,398Other assets
    
    
    152Deferred income taxes
    
    
    2,166Trademarks
    
    
    1,260Accounts payable and accrued liabilities
    
    
    (2,292
    )$
    13,040
   Accounts receivable
    
    $
    826Inventories
    
    
    579Property, plant & equipment
    
    
    3,689Other assets
    
    
    5Deferred income taxes
    
    
    1,780Noncompete
    
    
    25Accounts payable and accrued liabilities
    
    
    (2,316
    )$
    4,588
  Three months ended
    
    Nine months endedNovember 30,
    
    November 30,2007
    
    2006
    
    2007
    
    2006Pro forma net sales
    
    $
    161,136
    
    
    $
    160,696
    
    
    $
    482,214
    
    
    $
    493,105Pro forma net earnings
    
    
    11,661
    
    
    
    11,164
    
    
    
    34,155
    
    
    
    34,567Pro forma earnings per share  diluted
    
    
    0.45
    
    
    
    0.43
    
    
    
    1.32
    
    
    
    1.34
  11




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 6. Goodwill and Other Intangible Assets
    GrossCarrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    NetAs of November 30, 2007Amortized intangible assets (in thousands)Tradenames
    
    $
    2,634
    
    
    $
    584
    
    
    $
    2,050Customer lists
    
    
    28,482
    
    
    
    5,090
    
    
    
    23,392Noncompete
    
    
    482
    
    
    
    442
    
    
    
    40$
    31,598
    
    
    $
    6,116
    
    
    $
    25,482As of February 28, 2007Amortized intangible assets (in thousands)Tradenames
    
    $
    1,234
    
    
    $
    442
    
    
    $
    792Customer lists
    
    
    24,057
    
    
    
    3,770
    
    
    
    20,287Noncompete
    
    
    467
    
    
    
    417
    
    
    
    50$
    25,758
    
    
    $
    4,629
    
    
    $
    21,129
 November 30, 2007
    
    
    February 28, 2007Unamortized intangible assets (in thousands)Trademarks
    
    $
    62,260
    
    
    $
    62,260
   2008
    
    $
    2,121,0002009
    
    
    2,418,0002010
    
    
    2,403,0002011
    
    
    2,399,0002012
    
    
    2,396,0002013
    
    
    2,353,000
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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 6. Goodwill and Other Intangible Assets-continued
  Print
    
    
    ApparelSegment
    
    
    SegmentTotal
    
    
    Total
    
    
    TotalBalance as of March 1, 2006
    
    $
    40,580
    
    
    $
    137,700
    
    
    $
    178,280Goodwill
    
    
    34
    
    
    
    
    
    
    
    34Impairment losses
    
    
    
    
    
    
    
    
    
    
    Balance as of March 1, 2007
    
    
    40,614
    
    
    
    137,700
    
    
    
    178,314Goodwill
    
    
    650
    
    
    
    
    
    
    
    650Impairment losses
    
    
    
    
    
    
    
    
    
    
    Balance as of November 30, 2007
    
    $
    41,264
    
    
    $
    137,700
    
    
    $
    178,964
 7. Other Accrued Expenses
  November 30, 2007
    
    
    February 28, 2007Accrued interest
    
    $
    749
    
    
    $
    975Accrued taxes
    
    
    384
    
    
    
    424Accrued legal and professional fees
    
    
    397
    
    
    
    267Accrued utilities
    
    
    1,237
    
    
    
    786Accrued repairs and maintenance
    
    
    239
    
    
    
    137Accrued contract labor
    
    
    911
    
    
    
    355Factored receivables with recourse
    
    
    594
    
    
    
    772Other accrued expenses
    
    
    2,702
    
    
    
    1,899$
    7,213
    
    
    $
    5,615
 8. Long-Term Debt
  November 30, 2007
    
    
    February 28, 2007Revolving credit facility
    
    $
    97,000
    
    
    $
    88,500Capital lease obligations
    
    
    528
    
    
    
    784Note payable to finance companies
    
    
    29
    
    
    
    314Other
    
    
    13
    
    
    
    2597,570
    
    
    
    89,623Less current installments
    
    
    305
    
    
    
    652Long-term debt
    
    $
    97,265
    
    
    $
    88,971
  13




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 8. Long-Term Debt-continued
    9. Shareholders Equity
  Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net earnings
    
    $
    11,568
    
    
    $
    10,822
    
    
    $
    33,502
    
    
    $
    33,795Foreign currency translation adjustment,
net of deferred taxes
    
    
    312
    
    
    
    (216
    )
    
    
    789
    
    
    
    (247
    )Comprehensive income
    
    $
    11,880
    
    
    $
    10,606
    
    
    $
    34,291
    
    
    $
    33,548
 14




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 9. Shareholders Equity-continued
  AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
 
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    
    
    
    Treasury StockShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Amount
    
    
    TotalBalance February 28, 2007
    
    
    30,053,443
    
    
    
    75,134
    
    
    
    122,305
    
    
    
    207,190
    
    
    
    (7,371
    )
    
    
    (4,475,962
    )
    
    
    (80,855
    )
    
    
    316,403Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,502
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,502Foreign currency
translation, net
of deferred taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    789
    
    
    
    
    
    
    
    
    
    
    
    789Comprehensive
income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,291Cumulative impact
of a change
in accounting
for income tax
uncertainties
pursuant to
FIN 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (240
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (240
    )Dividend declared
($.465 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,929
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,929
    )Excess tax benefit of
stock option
exercises and
restricted
stock grants
    
    
    
    
    
    
    
    
    
    
    337
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    337Stock based
compensation, net
of deferred taxes
    
    
    
    
    
    
    
    
    
    
    527
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    527Exercise of stock
options and
restricted
stock grants
    
    
    
    
    
    
    
    
    
    
    (706
    )
    
    
    
    
    
    
    
    
    
    
    75,549
    
    
    
    1,364
    
    
    
    658Balance November 30,
2007
    
    
    30,053,443
    
    
    $
    75,134
    
    
    $
    122,463
    
    
    $
    228,523
    
    
    $
    (6,582
    )
    
    
    (4,400,413
    )
    
    $
    (79,491
    )
    
    $
    340,047
 10. Stock Option Plans and Stock Based Compensation
   15




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 10. Stock Option Plans and Stock Based Compensation-continued
    WeightedNumber
    
    Weighted
    
    Average
    
    Aggregateof
    
    Average
    
    Remaining
    
    IntrinsicShares
    
    Exercise
    
    Contractual
    
    Value (a)(exact quantity)
    
    Price
    

Life (in years)
    
    (in thousands)Outstanding at February 28, 2007
    
    
    553,513
    
    
    $
    11.08Granted
    
    
    
    
    
    
    Terminated
    
    
    (20,500
    )
    
    
    15.15Exercised
    
    
    (62,250
    )
    
    
    10.58Outstanding at November 30, 2007
    
    
    470,763
    
    
    $
    10.97
    
    
    
    3.2
    
    
    $
    3,530Exercisable at November 30, 2007
    
    
    425,163
    
    
    $
    10.47
    
    
    
    2.8
    
    
    $
    3,406
  Three months ended
    
    Nine months endedNovember 30,
    
    November 30,2007
    
    2006
    
    2007
    
    2006Total cash received
    
    $
    
    
    
    $
    21
    
    
    $
    658
    
    
    $
    461Income tax benefits
    
    
    
    
    
    
    1
    
    
    
    337
    
    
    
    55Total grant-date fair value
    
    
    
    
    
    
    3
    
    
    
    81
    
    
    
    81Intrinsic value
    
    
    
    
    
    
    23
    
    
    
    605
    
    
    
    1,050
  WeightedAverageNumber
    
    Grant Dateof Options
    
    Fair ValueUnvested at February 28, 2007
    
    
    99,025
    
    
    $
    2.52New grants
    
    
    
    
    
    
    Vested
    
    
    (33,425
    )
    
    
    2.35Forfeited
    
    
    (20,000
    )
    
    
    2.53Unvested at November 30, 2007
    
    
    45,600
    
    
    
    2.64
  16




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 10. Stock Option Plans and Stock Based Compensation-continued
   WeightedAverageNumber of
    
    Grant DateShares
    
    Fair ValueOutstanding at February 28, 2007
    
    
    39,919
    
    
    $
    19.67Granted
    
    
    56,600
    
    
    
    26.79Terminated
    
    
    (1,334
    )
    
    
    19.64Exercised
    
    
    (13,299
    )
    
    
    19.67Outstanding at November 30, 2007
    
    
    81,886
    
    
    $
    24.59Exercisable at November 30, 2007
    
    
    
    
    
    $
    
  11. Employee Benefit Plans
   Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Components of net periodic benefit cost
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    358
    
    
    $
    362
    
    
    $
    1,073
    
    
    $
    1,080Interest cost
    
    
    626
    
    
    
    609
    
    
    
    1,879
    
    
    
    1,829Expected return on plan assets
    
    
    (769
    )
    
    
    (712
    )
    
    
    (2,309
    )
    
    
    (2,136
    )Amortization of:Prior service cost
    
    
    (37
    )
    
    
    (37
    )
    
    
    (109
    )
    
    
    (109
    )Unrecognized net loss
    
    
    226
    
    
    
    238
    
    
    
    678
    
    
    
    716Net periodic benefit cost
    
    $
    404
    
    
    $
    460
    
    
    $
    1,212
    
    
    $
    1,380
  17




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 12. Earnings per share
  Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Basic weighted average common shares outstanding
    
    
    25,653,030
    
    
    
    25,555,460
    
    
    
    25,613,143
    
    
    
    25,517,901Effect of dilutive options
    
    
    234,768
    
    
    
    244,430
    
    
    
    254,421
    
    
    
    226,286Diluted weighted average common shares outstanding
    
    
    25,887,798
    
    
    
    25,799,890
    
    
    
    25,867,564
    
    
    
    25,744,187Per share amounts:Net earnings  basic
    
    $
    0.45
    
    
    $
    0.42
    
    
    $
    1.31
    
    
    $
    1.32Net earnings  diluted
    
    $
    0.45
    
    
    $
    0.42
    
    
    $
    1.30
    
    
    $
    1.31Cash dividends
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.465
    
    
    $
    0.465
 13. Segment Information and Geographic Information
    ® TM TM TM TM ®
   18




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 13. Segment Information and Geographic Information-continued
   Print
    
    Apparel
    
    
    
    
    
    ConsolidatedSegment
    
    Segment
    
    Corporate
    
    TotalsThree months ended November 30, 2007:Net sales
    
    $
    88,734
    
    
    $
    69,481
    
    
    $
    
    
    
    $
    158,215Depreciation
    
    
    1,975
    
    
    
    772
    
    
    
    225
    
    
    
    2,972Amortization of identifiable intangibles
    
    
    193
    
    
    
    366
    
    
    
    
    
    
    
    559Segment earnings (loss) before
income tax
    
    
    14,172
    
    
    
    8,072
    
    
    
    (3,884
    )
    
    
    18,360Segment assets
    
    
    164,080
    
    
    
    345,649
    
    
    
    6,706
    
    
    
    516,435Capital expenditures
    
    
    533
    
    
    
    156
    
    
    
    5
    
    
    
    694Three months ended November 30, 2006:Net sales
    
    $
    85,665
    
    
    $
    66,078
    
    
    $
    
    
    
    $
    151,743Depreciation
    
    
    2,122
    
    
    
    1,363
    
    
    
    162
    
    
    
    3,647Amortization of identifiable intangibles
    
    
    98
    
    
    
    404
    
    
    
    
    
    
    
    502Segment earnings (loss) before
income tax
    
    
    12,681
    
    
    
    8,271
    
    
    
    (3,775
    )
    
    
    17,177Segment assets
    
    
    167,546
    
    
    
    323,517
    
    
    
    10,465
    
    
    
    501,528Capital expenditures
    
    
    858
    
    
    
    377
    
    
    
    199
    
    
    
    1,434Nine months ended November 30, 2007:Net sales
    
    $
    257,432
    
    
    $
    203,643
    
    
    $
    
    
    
    $
    461,075Depreciation
    
    
    6,069
    
    
    
    2,660
    
    
    
    673
    
    
    
    9,402Amortization of identifiable intangibles
    
    
    388
    
    
    
    1,100
    
    
    
    
    
    
    
    1,488Segment earnings (loss) before
income tax
    
    
    41,168
    
    
    
    24,046
    
    
    
    (12,037
    )
    
    
    53,177Segment assets
    
    
    164,080
    
    
    
    345,649
    
    
    
    6,706
    
    
    
    516,435Capital expenditures
    
    
    1,456
    
    
    
    982
    
    
    
    33
    
    
    
    2,471Nine months ended November 30, 2006:Net sales
    
    $
    245,016
    
    
    $
    203,558
    
    
    $
    
    
    
    $
    448,574Depreciation
    
    
    6,187
    
    
    
    4,557
    
    
    
    463
    
    
    
    11,207Amortization of identifiable intangibles
    
    
    290
    
    
    
    1,212
    
    
    
    
    
    
    
    1,502Segment earnings (loss) before
income tax
    
    
    35,336
    
    
    
    28,601
    
    
    
    (10,295
    )
    
    
    53,642Segment assets
    
    
    167,546
    
    
    
    323,517
    
    
    
    10,465
    
    
    
    501,528Capital expenditures
    
    
    1,869
    
    
    
    1,029
    
    
    
    347
    
    
    
    3,245
  19




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 13. Segment Information and Geographic Information-continued
 United States
    
    
    Canada
    
    
    Mexico
    
    
    TotalThree months ended November 30, 2007:Net sales to unaffiliated customersPrint Segment
    
    $
    88,734
    
    
    $
    
    
    
    $
    
    
    
    $
    88,734Apparel Segment
    
    
    65,269
    
    
    
    4,212
    
    
    
    
    
    
    
    69,481$
    154,003
    
    
    $
    4,212
    
    
    $
    
    
    
    $
    158,215Identifiable long-lived assetsPrint Segment
    
    $
    44,510
    
    
    $
    
    
    
    $
    
    
    
    $
    44,510Apparel Segment
    
    
    7,916
    
    
    
    85
    
    
    
    2,187
    
    
    
    10,188Corporate
    
    
    6,301
    
    
    
    
    
    
    
    
    
    
    
    6,301$
    58,727
    
    
    $
    85
    
    
    $
    2,187
    
    
    $
    60,999Three months ended November 30, 2006:Net sales to unaffiliated customersPrint Segment
    
    $
    85,665
    
    
    $
    
    
    
    $
    
    
    
    $
    85,665Apparel Segment
    
    
    62,204
    
    
    
    3,874
    
    
    
    
    
    
    
    66,078$
    147,869
    
    
    $
    3,874
    
    
    $
    
    
    
    $
    151,743Identifiable long-lived assetsPrint Segment
    
    $
    45,635
    
    
    $
    
    
    
    $
    
    
    
    $
    45,635Apparel Segment
    
    
    9,990
    
    
    
    105
    
    
    
    2,926
    
    
    
    13,021Corporate
    
    
    6,154
    
    
    
    
    
    
    
    
    
    
    
    6,154$
    61,779
    
    
    $
    105
    
    
    $
    2,926
    
    
    $
    64,810
 United States
    
    
    Canada
    
    
    Mexico
    
    
    TotalNine months ended November 30, 2007:Net sales to unaffiliated customersPrint Segment
    
    $
    257,432
    
    
    $
    
    
    
    $
    
    
    
    $
    257,432Apparel Segment
    
    
    190,063
    
    
    
    13,580
    
    
    
    
    
    
    
    203,643$
    447,495
    
    
    $
    13,580
    
    
    $
    
    
    
    $
    461,075Identifiable long-lived assetsPrint Segment
    
    $
    44,510
    
    
    $
    
    
    
    $
    
    
    
    $
    44,510Apparel Segment
    
    
    7,916
    
    
    
    85
    
    
    
    2,187
    
    
    
    10,188Corporate
    
    
    6,301
    
    
    
    
    
    
    
    
    
    
    
    6,301$
    58,727
    
    
    $
    85
    
    
    $
    2,187
    
    
    $
    60,999Nine months ended November 30, 2006:Net sales to unaffiliated customersPrint Segment
    
    $
    245,016
    
    
    $
    
    
    
    $
    
    
    
    $
    245,016Apparel Segment
    
    
    188,796
    
    
    
    14,762
    
    
    
    
    
    
    
    203,558$
    433,812
    
    
    $
    14,762
    
    
    $
    
    
    
    $
    448,574Identifiable long-lived assetsPrint Segment
    
    $
    45,635
    
    
    $
    
    
    
    $
    
    
    
    $
    45,635Apparel Segment
    
    
    9,990
    
    
    
    105
    
    
    
    2,926
    
    
    
    13,021Corporate
    
    
    6,154
    
    
    
    
    
    
    
    
    
    
    
    6,154$
    61,779
    
    
    $
    105
    
    
    $
    2,926
    
    
    $
    64,810
 20




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 14. Supplemental Cash Flow Information
  Three months ended
    
    Nine months endedNovember 30,
    
    November 30,
    
    November 30,
    
    November 30,2007
    
    2006
    
    2007
    
    2006Interest paid
    
    $
    1,523
    
    
    $
    1,863
    
    
    $
    4,509
    
    
    $
    5,030Income taxes paid
    
    $
    6,125
    
    
    $
    6,482
    
    
    $
    19,854
    
    
    $
    21,081
 15. Assets Held for Sale
  16. Subsequent Events
  
 Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Overview
    21




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Business Segment Overview
  Print Segment
  ® TM TM TM TM ®
    22




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
    Apparel Segment
 ® ® ® ® ® ®
       23




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
    Risk Factors
  We may be required to write down goodwill and other intangible assets in the future, which could
cause our financial condition and results of operations to be negatively affected
 .
 Printed business forms may be superceded over time by paperless business forms or otherwise
affected by technological obsolescence and changing customer preferences, which could reduce our
sales and profits.
  24




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Our distributors face increased competition from various sources, such as office supply
superstores. Increased competition may require us to reduce prices or to offer other incentives in
order to enable our distributors to attract new customers and retain existing customers.
  Technological improvements may reduce our competitive advantage over some of our competitors, which
could reduce our profits.
  We could experience labor disputes that could disrupt our business in the future.
  We obtain our raw materials from a limited number of suppliers and any disruption in our
relationships with these suppliers, or any substantial increase in the price of raw materials,
material shortages, or an increase in transportation costs, could have a material adverse effect on
us.
    25




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Alstyle faces intense competition to gain market share, which may lead some competitors to sell
substantial amounts of goods at prices against which we cannot profitably compete.
  Apparel business is subject to cyclical trends.
  Our apparel foreign operations could be subject to unexpected changes in regulatory requirements,
tariffs and other market barriers and political and economic instability in the countries where it
operates, which could negatively impact our operating results.
  Our apparel products are subject to foreign competition, which in the past have been faced with
significant U.S. government import restrictions.
    26




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
    Environmental regulations may impact our future operating results.
  We depend upon the talents and contributions of a limited number of individuals, many of whom would
be difficult to replace.
  Cautionary Statements
  27




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Results of Operations
 Consolidated Statements of Earnings  Data
 Three Months Ended November 30,
    
    
    Nine Months Ended November 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    158,215
    
    
    
    100.0
    %
    
    $
    151,743
    
    
    
    100.0
    %
    
    $
    461,075
    
    
    
    100.0
    %
    
    $
    448,574
    
    
    
    100.0
    %Cost of goods sold
    
    
    118,971
    
    
    
    75.2
    
    
    
    113,770
    
    
    
    75.0
    
    
    
    344,644
    
    
    
    74.7
    
    
    
    334,545
    
    
    
    74.6Gross profit
    
    
    39,244
    
    
    
    24.8
    
    
    
    37,973
    
    
    
    25.0
    
    
    
    116,431
    
    
    
    25.3
    
    
    
    114,029
    
    
    
    25.4Selling,
general and administrative
    
    
    19,323
    
    
    
    12.2
    
    
    
    18,450
    
    
    
    12.1
    
    
    
    57,054
    
    
    
    12.4
    
    
    
    54,850
    
    
    
    12.2Income from operations
    
    
    19,921
    
    
    
    12.6
    
    
    
    19,523
    
    
    
    12.9
    
    
    
    59,377
    
    
    
    12.9
    
    
    
    59,179
    
    
    
    13.2Other income (expense)
    
    
    (1,561
    )
    
    
    (1.0
    )
    
    
    (2,346
    )
    
    
    (1.5
    )
    
    
    (6,200
    )
    
    
    (1.3
    )
    
    
    (5,537
    )
    
    
    (1.2
    )Earnings before income taxes
    
    
    18,360
    
    
    
    11.6
    
    
    
    17,177
    
    
    
    11.4
    
    
    
    53,177
    
    
    
    11.6
    
    
    
    53,642
    
    
    
    12.0Provision for income taxes
    
    
    6,792
    
    
    
    4.3
    
    
    
    6,355
    
    
    
    4.3
    
    
    
    19,675
    
    
    
    4.3
    
    
    
    19,847
    
    
    
    4.5Net earnings
    
    $
    11,568
    
    
    
    7.3
    %
    
    $
    10,822
    
    
    
    7.1
    %
    
    $
    33,502
    
    
    
    7.3
    %
    
    $
    33,795
    
    
    
    7.5
    %
 Critical Accounting Policies and Judgments
     28




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
        Results of Operations  Consolidated
 Three Months ended November 30, 2007 compared to Three Months ended November 30, 2006
 Net Sales.
 29




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 Gross profit.
 Selling, general and administrative expenses.
 Income from operations.
 Other income and expense.
 Earnings before income taxes.
 Provision for income taxes.
 Net earnings.
 Nine months ended November 30, 2007 compared to Nine months ended November 30, 2006.
 Net Sales.
 Gross profit.
 Selling, general and administrative expenses.
 30




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Income from operations.
 Other income and expense.
 Earnings before income taxes.
 Provision for income taxes.
 Net earnings.
 Results of Operations  Segments
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Net Sales by Segment (in thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Print
    
    $
    88,734
    
    
    $
    85,665
    
    
    $
    257,432
    
    
    $
    245,016Apparel
    
    
    69,481
    
    
    
    66,078
    
    
    
    203,643
    
    
    
    203,558Total
    
    $
    158,215
    
    
    $
    151,743
    
    
    $
    461,075
    
    
    $
    448,574
 Print Segment
 31




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 Apparel Segment
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Gross Profit by Segment (in thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Print
    
    $
    23,797
    
    
    $
    21,973
    
    
    $
    69,590
    
    
    $
    61,785Apparel
    
    
    15,447
    
    
    
    16,000
    
    
    
    46,841
    
    
    
    52,244Total
    
    $
    39,244
    
    
    $
    37,973
    
    
    $
    116,431
    
    
    $
    114,029
 Print Segment
 Apparel Segment
 32




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Profit by Segment (in thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Print
    
    $
    14,172
    
    
    $
    12,681
    
    
    $
    41,168
    
    
    $
    35,336Apparel
    
    
    8,072
    
    
    
    8,271
    
    
    
    24,046
    
    
    
    28,601Total
    
    
    22,244
    
    
    
    20,952
    
    
    
    65,214
    
    
    
    63,937Less corporate expenses
    
    
    3,884
    
    
    
    3,775
    
    
    
    12,037
    
    
    
    10,295Earnings before income taxes
    
    $
    18,360
    
    
    $
    17,177
    
    
    $
    53,177
    
    
    $
    53,642
 Print Segment
 Apparel Segment
 Liquidity and Capital Resources
 November 30,
    
    February 28,(Dollars in thousands)
    
    2007
    
    2007
    
    ChangeWorking Capital
    
    $
    132,836
    
    
    $
    102,269
    
    
    
    29.9
    %Cash and cash equivalents
    
    $
    2,156
    
    
    $
    3,582
    
    
    
    -39.8
    %
 Working Capital.
 Cash and cash equivalents.
 Nine months ended November 30,(Dollars in thousands)
    
    2007
    
    2006
    
    ChangeNet cash provided by operating activities
    
    $
    17,615
    
    
    $
    37,128
    
    
    
    -52.5
    %Net cash used in investing activities
    
    $
    (16,243
    )
    
    $
    (18,060
    )
    
    
    -10.1
    %Net cash used in financing activities
    
    $
    (2,987
    )
    
    $
    (25,236
    )
    
    
    -88.2
    %
 Cash flows from operating activities.
 33




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  Cash flows from investing activities.
 Cash flows from financing activities.
 Credit Facility -
   Pension 
 Inventories -
 Capital Expenditures -
 34




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 Contractual Obligations & Off-Balance Sheet Arrangements -
 Recent Accounting Pronouncements
 FIN 48
   FAS 157 .
 FAS 159 .
 FAS 141R.
 35




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
  FAS 160.
 
 Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Market Risk
 Interest Rates
  Foreign Exchange
   
 Item 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures.
 36




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
   37




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  Items 2, 3 and 5 are not applicable and have been omitted
 
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 6. Exhibits
  Exhibit 3.1
    
    Restated Articles of Incorporation as amended through June 23, 1983 with
attached amendments dated June 20, 1985, July 31, 1985 and June 16, 1988
incorporated herein by reference to Exhibit 5 to the Registrants Form 10-K
Annual Report for the fiscal year ended February 28, 1993.Exhibit 3.2
    
    Bylaws of the Registrant as amended through October 15, 1997 incorporated
herein by reference to Exhibit 3(ii) to the registrants Form 10-Q Quarterly
Report for the quarter ended November 30, 1997.Exhibit 3.3
    
    Articles of Amendment to the Articles of Incorporation of Ennis Business
Forms, Inc. filed on June 17, 2004 incorporated herein by reference to Exhibit
3.3 to the registrants Form 10-Q Quarterly Report for the quarter ended
November 30, 2004.Exhibit 31.1
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) of Chief Executive Officer.*Exhibit 31.2
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) of Chief Financial Officer.*Exhibit 32.1
    
    Section 1350 Certification of Chief Executive Officer.**Exhibit 32.2
    
    Section 1350 Certification of Chief Financial Officer.**
 
 *
    
    Filed herewith**
    
    Furnished herewith 38




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 
   ENNIS, INC.Date: December 28, 2007
    
    /s/ Keith S. WaltersKeith S. WaltersChairman, Chief Executive Officer and
PresidentDate: December 28, 2007
    
    /s/ Richard L. Travis, Jr.Richard L. Travis, Jr.V.P.  Finance and CFO, Secretary and
Principal Financial and Accounting Officer 39




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007
 
 INDEX TO EXHIBITS
 Exhibit Number
    
    DescriptionExhibit 3.1
    
    Restated Articles of Incorporation as amended through June 23, 1983 with
attached amendments dated June 20, 1985, July 31, 1985 and June 16, 1988
incorporated herein by reference to Exhibit 5 to the Registrants Form 10-K
Annual Report for the fiscal year ended February 28, 1993.Exhibit 3.2
    
    Bylaws of the Registrant as amended through October 15, 1997 incorporated
herein by reference to Exhibit 3(ii) to the registrants Form 10-Q Quarterly
Report for the quarter ended November 30, 1997.Exhibit 3.3
    
    Articles of Amendment to the Articles of Incorporation of Ennis Business
Forms, Inc. filed on June 17, 2004 incorporated herein by reference to Exhibit
3.3 to the registrants Form 10-Q Quarterly Report for the quarter ended
November 30, 2004.Exhibit 31.1
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) of Chief Executive Officer.*Exhibit 31.2
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) of Chief Financial Officer.*Exhibit 32.1
    
    Section 1350 Certification of Chief Executive Officer.**Exhibit 32.2
    
    Section 1350 Certification of Chief Financial Officer.**
 
 *
    
    Filed herewith**
    
    Furnished herewith 40