##### 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, 2010
 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
    
    (I.R.S. Employer Identification No.)Incorporation or Organization)2441 Presidential Pkwy., Midlothian, Texas
    
    76065(Address of Principal Executive Offices)
    
    (Zip code)
 (972) 775-9801  (Registrants Telephone Number, Including Area Code)
 þ o
 o o
  Large accelerated Filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 TABLE OF CONTENTS
 PART I: FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    3Consolidated Balance Sheets at November 30, 2010 (unaudited) and February 28, 2010
    
    
    3Unaudited Consolidated Statements of Earnings for the three and nine months ended November
30, 2010 and 2009
    
    
    5Unaudited Consolidated Statements of Cash Flows for the nine months ended November 30, 2010
and 2009
    
    
    6Notes to the Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    20Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    37Item 4. Controls and Procedures
    
    
    38PART II: OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    38Item 1A. Risk Factors
    
    
    38Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    39Item 3. Defaults Upon Senior Securities
    
    
    39Item 4. Removed and Reserved
    
    
    39Item 5. Other Information
    
    
    39Item 6. Exhibits
    
    
    40SIGNATURES
    
    
    41EX-31.1EX-31.2EX-32.1EX-32.2
  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 28,2010
    
    
    2010(unaudited)AssetsCurrent assetsCash
    
    $
    18,308
    
    
    $
    21,063Accounts receivable, net of allowance for doubtful receivables
of $4,594 at November 30, 2010 and $4,446 at February 28, 2010
    
    
    54,333
    
    
    
    57,249Prepaid expenses
    
    
    4,499
    
    
    
    6,867Inventories
    
    
    98,898
    
    
    
    75,137Deferred income taxes
    
    
    5,319
    
    
    
    5,319Assets held for sale
    
    
    
    
    
    
    804Total current assets
    
    
    181,357
    
    
    
    166,439Property, plant and equipment, at costPlant, machinery and equipment
    
    
    154,351
    
    
    
    138,419Land and buildings
    
    
    70,094
    
    
    
    55,430Other
    
    
    22,591
    
    
    
    22,402Total property, plant and equipment
    
    
    247,036
    
    
    
    216,251Less accumulated depreciation
    
    
    156,971
    
    
    
    150,531Net property, plant and equipment
    
    
    90,065
    
    
    
    65,720Goodwill
    
    
    117,341
    
    
    
    117,341Trademarks and tradenames, net
    
    
    58,798
    
    
    
    58,897Customer lists, net
    
    
    18,112
    
    
    
    19,753Deferred finance charges, net
    
    
    756
    
    
    
    1,079Other assets
    
    
    3,353
    
    
    
    3,470Total assets
    
    $
    469,782
    
    
    $
    432,699
 See accompanying notes to consolidated financial statements.
 3




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ENNIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS  (Dollars in thousands, except for share amounts )
 November 30,
    
    
    February 28,2010
    
    
    2010(unaudited)Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable
    
    $
    21,210
    
    
    $
    27,463Accrued expensesEmployee compensation and benefits
    
    
    16,497
    
    
    
    14,374Taxes other than income
    
    
    280
    
    
    
    1,539Federal and state income taxes payable
    
    
    6,160
    
    
    
    705Other
    
    
    8,018
    
    
    
    5,720Total current liabilities
    
    
    52,165
    
    
    
    49,801Long-term debt
    
    
    50,908
    
    
    
    41,817Liability for pension benefits
    
    
    8,609
    
    
    
    7,132Deferred income taxes
    
    
    20,298
    
    
    
    19,821Other liabilities
    
    
    116
    
    
    
    868Total liabilities
    
    
    132,096
    
    
    
    119,439Commitments and contingenciesShareholders equityPreferred stock $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, 2010
    
    
    75,134
    
    
    
    75,134Additional paid in capital
    
    
    121,527
    
    
    
    121,978Retained earnings
    
    
    228,834
    
    
    
    206,062Accumulated other comprehensive income (loss):Foreign currency translation, net of taxes
    
    
    527
    
    
    
    267Unrealized loss on derivative instruments, net of taxes
    
    
    (576
    )
    
    
    (1,154
    )Minimum pension liability, net of taxes
    
    
    (12,376
    )
    
    
    (12,376
    )Total accumulated other comprehensive income (loss)
    
    
    (12,425
    )
    
    
    (13,263
    )Treasury stockCost of 4,221,127 shares at November 30, 2010 and
4,292,080 shares at February 28, 2010
    
    
    (75,384
    )
    
    
    (76,651
    )Total shareholders equity
    
    
    337,686
    
    
    
    313,260Total liabilities and shareholders equity
    
    $
    469,782
    
    
    $
    432,699
 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 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net sales
    
    $
    134,817
    
    
    $
    127,756
    
    
    $
    418,592
    
    
    $
    396,353Cost of goods sold
    
    
    98,298
    
    
    
    93,456
    
    
    
    300,185
    
    
    
    295,247Gross profit margin
    
    
    36,519
    
    
    
    34,300
    
    
    
    118,407
    
    
    
    101,106Selling, general and administrative
    
    
    20,971
    
    
    
    19,006
    
    
    
    62,494
    
    
    
    58,417(Gain) loss from disposal of assets
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    (1
    )Income from operations
    
    
    15,548
    
    
    
    15,292
    
    
    
    55,913
    
    
    
    42,690Other income (expense)Interest expense
    
    
    (214
    )
    
    
    (662
    )
    
    
    (972
    )
    
    
    (2,082
    )Other, net
    
    
    (148
    )
    
    
    (40
    )
    
    
    (119
    )
    
    
    (334
    )(362
    )
    
    
    (702
    )
    
    
    (1,091
    )
    
    
    (2,416
    )Earnings before income taxes
    
    
    15,186
    
    
    
    14,590
    
    
    
    54,822
    
    
    
    40,274Provision for income taxes
    
    
    5,543
    
    
    
    5,399
    
    
    
    20,010
    
    
    
    14,902Net earnings
    
    $
    9,643
    
    
    $
    9,191
    
    
    $
    34,812
    
    
    $
    25,372Weighted average common shares
outstandingBasic
    
    
    25,857,544
    
    
    
    25,763,840
    
    
    
    25,839,289
    
    
    
    25,745,886Diluted
    
    
    25,907,168
    
    
    
    25,825,800
    
    
    
    25,884,606
    
    
    
    25,788,579Per share amountsNet earnings  basic
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    1.35
    
    
    $
    0.99Net earnings  diluted
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    1.34
    
    
    $
    0.98Cash 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 30,2010
    
    
    2009Cash flows from operating activities:Net earnings
    
    $
    34,812
    
    
    $
    25,372Adjustments to reconcile net earnings to net cash provided
by operating activities:Depreciation
    
    
    6,175
    
    
    
    6,830Amortization of deferred finance charges
    
    
    323
    
    
    
    330Amortization of tradenames and customer lists
    
    
    1,800
    
    
    
    1,803Gain from disposal of assets
    
    
    
    
    
    
    (1
    )Bad debt expense
    
    
    1,367
    
    
    
    1,768Stock based compensation
    
    
    794
    
    
    
    803Deferred income taxes
    
    
    
    
    
    
    (15
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    2,895
    
    
    
    (1,680
    )Prepaid expenses
    
    
    2,478
    
    
    
    4,447Inventories
    
    
    (22,641
    )
    
    
    26,101Other assets
    
    
    107
    
    
    
    (1,065
    )Accounts payable and accrued expenses
    
    
    1,807
    
    
    
    5,185Other liabilities
    
    
    (752
    )
    
    
    (666
    )Liability for pension benefits
    
    
    1,477
    
    
    
    2,257Net cash provided by operating activities
    
    
    30,642
    
    
    
    71,469Cash flows from investing activities:Capital expenditures
    
    
    (28,914
    )
    
    
    (11,739
    )Purchase of businesses, net of cash acquired
    
    
    (2,237
    )
    
    
    Proceeds from disposal of plant and property
    
    
    4
    
    
    
    8Net cash used in investing activities
    
    
    (31,147
    )
    
    
    (11,731
    )Cash flows from financing activities:Borrowings on debt
    
    
    10,000
    
    
    
    Repayment of debt
    
    
    
    
    
    
    (34,171
    )Dividends
    
    
    (12,040
    )
    
    
    (11,999
    )Purchase of treasury stock
    
    
    (2
    )
    
    
    (405
    )Proceeds from exercise of stock options
    
    
    24
    
    
    
    Net cash used in financing activities
    
    
    (2,018
    )
    
    
    (46,575
    )Effect of exchange rate changes on cash
    
    
    (232
    )
    
    
    145Net change in cash
    
    
    (2,755
    )
    
    
    13,308Cash at beginning of period
    
    
    21,063
    
    
    
    9,286Cash at end of period
    
    $
    18,308
    
    
    $
    22,594
 See accompanying notes to consolidated financial statements.
 6




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ENNIS, INC. AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 1. Significant Accounting Policies and General Matters
 Basis of Presentation
  Recent Accounting Pronouncements
  2. Accounts Receivable and Allowance for Doubtful Receivables
   7




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 2. Accounts Receivable and Allowance for Doubtful Receivables-continued
  Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Balance at beginning of period
    
    $
    4,900
    
    
    $
    4,068
    
    
    $
    4,446
    
    
    $
    3,561Bad debt expense
    
    
    63
    
    
    
    240
    
    
    
    1,367
    
    
    
    1,768Recoveries
    
    
    11
    
    
    
    239
    
    
    
    46
    
    
    
    257Accounts written off
    
    
    (380
    )
    
    
    (74
    )
    
    
    (1,265
    )
    
    
    (1,141
    )Foreign currency translation
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    18Balance at end of period
    
    $
    4,594
    
    
    $
    4,463
    
    
    $
    4,594
    
    
    $
    4,463
 3. Inventories
   November 30,
    
    
    February 28,2010
    
    
    2010Raw material
    
    $
    12,719
    
    
    $
    11,089Work-in-process
    
    
    13,564
    
    
    
    14,280Finished goods
    
    
    72,615
    
    
    
    49,768$
    98,898
    
    
    $
    75,137
 4. Goodwill and Other Intangible Assets
   8




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 4. Goodwill and Other Intangible Assets-continued
  GrossCarrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    NetAs of November 30, 2010Amortized intangible assets (in thousands)Tradenames
    
    $
    1,234
    
    
    $
    974
    
    
    $
    260Customer lists
    
    
    29,958
    
    
    
    11,846
    
    
    
    18,112Noncompete
    
    
    500
    
    
    
    493
    
    
    
    7$
    31,692
    
    
    $
    13,313
    
    
    $
    18,379As of February 28, 2010Amortized intangible assets (in thousands)Tradenames
    
    $
    1,234
    
    
    $
    875
    
    
    $
    359Customer lists
    
    
    29,908
    
    
    
    10,155
    
    
    
    19,753Noncompete
    
    
    500
    
    
    
    483
    
    
    
    17$
    31,642
    
    
    $
    11,513
    
    
    $
    20,129
 November 30,
    
    
    February 28,2010
    
    
    2010Non-amortizing intangible assets (in thousands)Trademarks
    
    $
    58,538
    
    
    $
    58,538
   2011
    
    $
    2,3992012
    
    
    2,3962013
    
    
    2,3522014
    
    
    2,2592015
    
    
    2,1412016
    
    
    2,083
  Print
    
    
    ApparelSegment
    
    
    SegmentTotal
    
    
    Total
    
    
    TotalBalance as of March 1, 2009
    
    $
    42,792
    
    
    $
    74,549
    
    
    $
    117,341Goodwill acquired
    
    
    
    
    
    
    
    
    
    
    Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    Balance as of March 1, 2010
    
    
    42,792
    
    
    
    74,549
    
    
    
    117,341Goodwill acquired
    
    
    
    
    
    
    
    
    
    
    Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    Balance as of November 30, 2010
    
    $
    42,792
    
    
    $
    74,549
    
    
    $
    117,341
 9




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 5. Other Accrued Expenses
  November 30, 2010
    
    
    February 28, 2010Accrued taxes
    
    $
    328
    
    
    $
    265Accrued legal and professional fees
    
    
    521
    
    
    
    392Accrued interest
    
    
    142
    
    
    
    114Accrued utilities
    
    
    1,136
    
    
    
    1,322Accrued repairs and maintenance
    
    
    650
    
    
    
    547Accrued construction retainer
    
    
    2,239
    
    
    
    582Accrued phantom stock obligation
    
    
    465
    
    
    
    422Accrued acquisition related obligations
    
    
    270
    
    
    
    594Other accrued expenses
    
    
    2,267
    
    
    
    1,482$
    8,018
    
    
    $
    5,720
 6. Derivative Instruments and Hedging Activities
   7. Fair Value of Financial Instruments
   Level 1 
    
    Inputs utilize quoted prices (unadjusted) in active markets for identical
assets or liabilities that the Company has the ability to access.Level 2 
    
    Inputs utilize data points that are observable such as quoted prices,
interest rates and yield curvesLevel 3 
    
    Inputs are unobservable data points for the asset or liability, and
include situations where there is little, if any, market activity for the asset or
liability.
  10




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 7. Fair Value of Financial Instruments-continued
  November 30,
    
    
    Fair Value MeasurementsDescription
    
    2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Derivative liability (Swap)
    
    $
    (908
    )
    
    $
    
    
    
    $
    (908
    )
    
    $
    $
    (908
    )
    
    $
    
    
    
    $
    (908
    )
    
    $
    
 February 28,
    
    
    Fair Value MeasurementsDescription
    
    2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Derivative liability (Swap)
    
    $
    (1,817
    )
    
    $
    
    
    
    $
    (1,817
    )
    
    $
    $
    (1,817
    )
    
    $
    
    
    
    $
    (1,817
    )
    
    $
    
 8. Long-Term Debt
  November 30,
    
    
    February 28,2010
    
    
    2010Revolving credit facility
    
    $
    50,000
    
    
    $
    40,000Interest rate swap
    
    
    908
    
    
    
    1,817Long-term debt
    
    $
    50,908
    
    
    $
    41,817
   11




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 9. Shareholders Equity
  Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net earnings
    
    $
    9,643
    
    
    $
    9,191
    
    
    $
    34,812
    
    
    $
    25,372Foreign currency translation adjustment,
net of deferred taxes
    
    
    774
    
    
    
    283
    
    
    
    260
    
    
    
    1,256Unrealized gain (loss) on derivative instruments,
net of deferred taxes
    
    
    232
    
    
    
    (20
    )
    
    
    578
    
    
    
    74Comprehensive income
    
    $
    10,649
    
    
    $
    9,454
    
    
    $
    35,650
    
    
    $
    26,702
  AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury StockShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Amount
    
    
    TotalBalance February 28, 2010
    
    
    30,053,443
    
    
    $
    75,134
    
    
    $
    121,978
    
    
    $
    206,062
    
    
    $
    (13,263
    )
    
    
    (4,292,080
    )
    
    $
    (76,651
    )
    
    $
    313,260Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,812
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,812Foreign currency translation,
net of deferred tax of $149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    260
    
    
    
    
    
    
    
    
    
    
    
    260Unrealized gain on
derivative instruments, net
of deferred tax benefit of $332
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    578
    
    
    
    
    
    
    
    
    
    
    
    578Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,650Dividends declared
($.465 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,040
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,040
    )Stock based compensation
    
    
    
    
    
    
    
    
    
    
    794
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    794Exercise of stock options
and restricted stock grants
    
    
    
    
    
    
    
    
    
    
    (1,245
    )
    
    
    
    
    
    
    
    
    
    
    71,044
    
    
    
    1,269
    
    
    
    24Stock repurchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (91
    )
    
    
    (2
    )
    
    
    (2
    )Balance November 30, 2010
    
    
    30,053,443
    
    
    $
    75,134
    
    
    $
    121,527
    
    
    $
    228,834
    
    
    $
    (12,425
    )
    
    
    (4,221,127
    )
    
    $
    (75,384
    )
    
    $
    337,686
  10. Stock Option Plan and Stock Based Compensation
  12




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 10. Stock Option Plan and Stock Based Compensation-continued
   Stock Options
  WeightedNumber
    
    
    Weighted
    
    
    Average
    
    
    Aggregateof
    
    
    Average
    
    
    Remaining
    
    
    IntrinsicShares
    
    
    Exercise
    
    
    Contractual
    
    
    Value(a)(exact quantity)
    
    
    Price
    
    
    Life(in years)
    
    
    (in thousands)Outstanding at February 28, 2010
    
    
    250,200
    
    
    $
    12.09
    
    
    
    6.0
    
    
    $
    1,003Granted
    
    
    62,500
    
    
    
    18.46Terminated
    
    
    (11,300
    )
    
    
    10.18Exercised
    
    
    (3,010
    )
    
    
    7.90Outstanding at November 30, 2010
    
    
    298,390
    
    
    $
    13.54
    
    
    
    6.1
    
    
    $
    1,223Exercisable at November 30, 2010
    
    
    164,640
    
    
    $
    13.66
    
    
    
    3.8
    
    
    $
    644
 
 (a)
    
    Intrinsic value is measured as the excess fair market value of the Companys Common Stock as
reported on the New York Stock Exchange over the applicable exercise price.  November 30,2010
    
    
    2009Expected volatility
    
    
    34.63
    %
    
    
    32.35
    %Expected term (years)
    
    
    3
    
    
    
    4Risk free interest rate
    
    
    1.58
    %
    
    
    2.01
    %Dividend yield
    
    
    4.24
    %
    
    
    4.74
    %Weighted average grant-date fair value
    
    $
    3.348
    
    
    $
    1.583
 13




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 10. Stock Option Plan and Stock Based Compensation-continued
  Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Total cash received
    
    $
    24
    
    
    $
    
    
    
    $
    24
    
    
    $
    Income tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total grant-date fair value
    
    
    3
    
    
    
    
    
    
    
    3
    
    
    
    Intrinsic value
    
    
    28
    
    
    
    
    
    
    
    28
    
    
    
    
  WeightedAverageNumber
    
    
    Grant Dateof Options
    
    
    Fair ValueUnvested at February 28, 2010
    
    
    110,000
    
    
    $
    1.64New grants
    
    
    62,500
    
    
    
    3.35Vested
    
    
    (31,250
    )
    
    
    1.79Forfeited
    
    
    (7,500
    )
    
    
    1.58Unvested at November 30, 2010
    
    
    133,750
    
    
    $
    2.41
  Restricted Stock
  WeightedAverageNumber of
    
    
    Grant DateShares
    
    
    Fair ValueOutstanding at February 28, 2010
    
    
    91,470
    
    
    $
    15.38Granted
    
    
    57,655
    
    
    
    17.34Terminated
    
    
    (268
    )
    
    
    15.49Vested
    
    
    (68,034
    )
    
    
    16.79Outstanding at November 30, 2010
    
    
    80,823
    
    
    $
    15.59
  14




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 11. Employee Benefit Plans
   Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Components of net periodic benefit costService cost
    
    $
    304
    
    
    $
    284
    
    
    $
    911
    
    
    $
    854Interest cost
    
    
    654
    
    
    
    686
    
    
    
    1,963
    
    
    
    2,056Expected return on plan assets
    
    
    (765
    )
    
    
    (606
    )
    
    
    (2,296
    )
    
    
    (1,818
    )Amortization of:Prior service cost
    
    
    (37
    )
    
    
    (37
    )
    
    
    (109
    )
    
    
    (109
    )Unrecognized net loss
    
    
    336
    
    
    
    425
    
    
    
    1,008
    
    
    
    1,274Net periodic benefit cost
    
    $
    492
    
    
    $
    752
    
    
    $
    1,477
    
    
    $
    2,257
  12. Earnings per share
   15




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 12. Earnings per share-continued
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Basic weighted average
common shares outstanding
    
    
    25,857,544
    
    
    
    25,763,840
    
    
    
    25,839,289
    
    
    
    25,745,886Effect of dilutive options
    
    
    49,624
    
    
    
    61,960
    
    
    
    45,317
    
    
    
    42,693Diluted weighted average
common shares outstanding
    
    
    25,907,168
    
    
    
    25,825,800
    
    
    
    25,884,606
    
    
    
    25,788,579Per share amounts:Net earnings  basic
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    1.35
    
    
    $
    0.99Net earnings  diluted
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    1.34
    
    
    $
    0.98Cash dividends
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.465
    
    
    $
    0.465
 13. Segment Information and Geographic Information
   ® ® ® SM SM ® ® SM SM ® ® ® ® SM SM ® ® ® ®
    16




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 13. Segment Information and Geographic Information-continued
  Print
    
    
    Apparel
    
    
    
    
    
    
    ConsolidatedSegment
    
    
    Segment
    
    
    Corporate
    
    
    TotalsThree months ended November 30, 2010:Net sales
    
    $
    69,516
    
    
    $
    65,301
    
    
    $
    
    
    
    $
    134,817Depreciation
    
    
    1,356
    
    
    
    480
    
    
    
    187
    
    
    
    2,023Amortization of identifiable intangibles
    
    
    232
    
    
    
    367
    
    
    
    
    
    
    
    599Segment earnings (loss) before
income tax
    
    
    11,342
    
    
    
    8,240
    
    
    
    (4,396
    )
    
    
    15,186Segment assets
    
    
    139,228
    
    
    
    311,284
    
    
    
    19,270
    
    
    
    469,782Capital expenditures
    
    
    476
    
    
    
    5,189
    
    
    
    7
    
    
    
    5,672Three months ended November 30, 2009:Net sales
    
    $
    70,590
    
    
    $
    57,166
    
    
    $
    
    
    
    $
    127,756Depreciation
    
    
    1,490
    
    
    
    522
    
    
    
    209
    
    
    
    2,221Amortization of identifiable intangibles
    
    
    234
    
    
    
    367
    
    
    
    
    
    
    
    601Segment earnings (loss) before
income tax
    
    
    12,695
    
    
    
    6,015
    
    
    
    (4,120
    )
    
    
    14,590Segment assets
    
    
    146,321
    
    
    
    252,586
    
    
    
    25,889
    
    
    
    424,796Capital expenditures
    
    
    317
    
    
    
    5,607
    
    
    
    15
    
    
    
    5,939Nine months ended November 30, 2010:Net sales
    
    $
    206,452
    
    
    $
    212,140
    
    
    $
    
    
    
    $
    418,592Depreciation
    
    
    4,144
    
    
    
    1,467
    
    
    
    564
    
    
    
    6,175Amortization of identifiable intangibles
    
    
    700
    
    
    
    1,100
    
    
    
    
    
    
    
    1,800Segment earnings (loss) before
income tax
    
    
    35,705
    
    
    
    32,363
    
    
    
    (13,246
    )
    
    
    54,822Segment assets
    
    
    139,228
    
    
    
    311,284
    
    
    
    19,270
    
    
    
    469,782Capital expenditures
    
    
    1,859
    
    
    
    27,035
    
    
    
    20
    
    
    
    28,914Nine months ended November 30, 2009:Net sales
    
    $
    216,215
    
    
    $
    180,138
    
    
    $
    
    
    
    $
    396,353Depreciation
    
    
    4,532
    
    
    
    1,654
    
    
    
    644
    
    
    
    6,830Amortization of identifiable intangibles
    
    
    703
    
    
    
    1,100
    
    
    
    
    
    
    
    1,803Segment earnings (loss) before
income tax
    
    
    36,215
    
    
    
    15,638
    
    
    
    (11,579
    )
    
    
    40,274Segment assets
    
    
    146,321
    
    
    
    252,586
    
    
    
    25,889
    
    
    
    424,796Capital expenditures
    
    
    1,671
    
    
    
    9,933
    
    
    
    135
    
    
    
    11,739
  17




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 13. Segment Information and Geographic Information-continued
 United States
    
    
    Canada
    
    
    Mexico
    
    
    TotalThree months ended November 30, 2010:Net sales to unaffiliated customersPrint Segment
    
    $
    69,516
    
    
    $
    
    
    
    $
    
    
    
    $
    69,516Apparel Segment
    
    
    58,819
    
    
    
    6,067
    
    
    
    415
    
    
    
    65,301$
    128,335
    
    
    $
    6,067
    
    
    $
    415
    
    
    $
    134,817Identifiable long-lived assetsPrint Segment
    
    $
    36,799
    
    
    $
    
    
    
    $
    
    
    
    $
    36,799Apparel Segment
    
    
    23,664
    
    
    
    32
    
    
    
    25,520
    
    
    
    49,216Corporate
    
    
    4,050
    
    
    
    
    
    
    
    
    
    
    
    4,050$
    64,513
    
    
    $
    32
    
    
    $
    25,520
    
    
    $
    90,065Three months ended November 30, 2009:Net sales to unaffiliated customersPrint Segment
    
    $
    70,590
    
    
    $
    
    
    
    $
    
    
    
    $
    70,590Apparel Segment
    
    
    52,607
    
    
    
    4,096
    
    
    
    463
    
    
    
    57,166$
    123,197
    
    
    $
    4,096
    
    
    $
    463
    
    
    $
    127,756Identifiable long-lived assetsPrint Segment
    
    $
    38,598
    
    
    $
    
    
    
    $
    
    
    
    $
    38,598Apparel Segment
    
    
    6,199
    
    
    
    35
    
    
    
    9,583
    
    
    
    15,817Corporate
    
    
    4,825
    
    
    
    
    
    
    
    
    
    
    
    4,825$
    49,622
    
    
    $
    35
    
    
    $
    9,583
    
    
    $
    59,240Nine months ended November 30, 2010:Net sales to unaffiliated customersPrint Segment
    
    $
    206,452
    
    
    $
    
    
    
    $
    
    
    
    $
    206,452Apparel Segment
    
    
    192,141
    
    
    
    18,282
    
    
    
    1,717
    
    
    
    212,140$
    398,593
    
    
    $
    18,282
    
    
    $
    1,717
    
    
    $
    418,592Nine months ended November 30, 2009:Net sales to unaffiliated customersPrint Segment
    
    $
    216,215
    
    
    $
    
    
    
    $
    
    
    
    $
    216,215Apparel Segment
    
    
    166,181
    
    
    
    11,840
    
    
    
    2,117
    
    
    
    180,138$
    382,396
    
    
    $
    11,840
    
    
    $
    2,117
    
    
    $
    396,353
 14. Supplemental Cash Flow Information
  Nine months endedNovember 30,2010
    
    
    2009Interest paid
    
    $
    944
    
    
    $
    2,084Income taxes paid
    
    $
    14,578
    
    
    $
    9,914
 15. Concentrations of Risk
  18




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ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 15. Concentrations of Risk-continued
    16. Subsequent Events
  19




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 
 Item 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Overview
  Business Segment Overview
  Print Segment
  ® ® ® SM SM ® ® SM SM ® ® ® ® SM SM ® ® ® ®
   20




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
      Our Print Business Challenges 
 
    
    Transformation of our portfolio of products
    
    Excess production capacity and price competition within our industry
    
    Economic uncertainties
  Transformation of our portfolio of products
 Excess production capacity and price competition within our industry
  21




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
  Economic uncertainties
 Apparel Segment
 ® ®
       22




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
    Our Apparel Business Challenges 
 
    
    Cotton prices
    
    Completion of our new manufacturing facility
    
    Economic uncertainties
 Cotton prices
 Completion of our new manufacturing facility
  23




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
  Economic uncertainties
 Risk Factors
  Our results and financial condition are affected by global and local market conditions, and
competitors pricing strategies, which can adversely affect our sales, margins, and net income.
  
    
    Our ability to manage upward pressure on commodity prices and the impact of
government actions to manage national economic conditions such as consumer spending,
inflation rates and unemployment levels, particularly given the current volatility in
the global financial markets;
    
    The impact on our margins of labor costs given our labor-intensive business model,
the trend toward higher wages in both mature and developing markets and the potential
impact of union organizing efforts on day-to-day operations of our manufacturing
facilities.
 Declining economic conditions could negatively impact our business.
  24




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
   The terms and conditions of our credit facility impose certain restrictions on our operations. We
may not be able to raise additional capital, if needed, for proposed expansion projects.
   Declining financial market conditions could adversely impact the funding status of our pension
plan.
  We may be required to write down goodwill and other intangible assets which could cause our
financial condition and results of operations to be negatively affected in the future.
  Digital technologies will continue to erode the demand for our printed business documents.
  25




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
   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 or
material shortages could have a material adverse effect on us.
  26




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
   We face 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.
  The apparel industry is heavily influenced by general economic cycles.
  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.
  27




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Our apparel products are subject to foreign competition, which in the past have been faced with
significant U.S. government import restrictions.
      Environmental regulations may impact our future operating results.
  Our construction of a new apparel manufacturing facility in Mexico is subject to multiple approvals
and uncertainties that could affect our ability to complete the project on schedule or at budgeted
cost.
  28




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
  We are exposed to the risk of non-payment by our customers on a significant amount of our sales.
  Our business incurs significant freight and transportation costs.
  The price of energy is prone to significant fluctuations and volatility.
  We rely on independent contract production for a portion of our apparel production.
  We depend upon the talents and contributions of a limited number of individuals, many of whom would
be difficult to replace.
  Cautionary Statements
  29




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
   Critical Accounting Policies and Estimates
     30




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
       31




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Results of Operations
  
    
    Consolidated Summary this section provides an overview of our consolidated results of
operations for the three and nine months ended November 30, 2010 and 2009.
    
    Segment Operating Results this section provides an analysis of our net sales, gross
profit margin and operating income by segment.
 Consolidated Summary
 Consolidated
    
    Three Months Ended November 30,
    
    
    Nine Months Ended November 30,Statements of Earnings - Data
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Net sales
    
    $
    134,817
    
    
    
    100.0
    %
    
    $
    127,756
    
    
    
    100.0
    %
    
    $
    418,592
    
    
    
    100.0
    %
    
    $
    396,353
    
    
    
    100.0
    %Cost of goods sold
    
    
    98,298
    
    
    
    72.9
    
    
    
    93,456
    
    
    
    73.2
    
    
    
    300,185
    
    
    
    71.7
    
    
    
    295,247
    
    
    
    74.5Gross profit margin
    
    
    36,519
    
    
    
    27.1
    
    
    
    34,300
    
    
    
    26.8
    
    
    
    118,407
    
    
    
    28.3
    
    
    
    101,106
    
    
    
    25.5Selling, general and administrative
    
    
    20,971
    
    
    
    15.6
    
    
    
    19,006
    
    
    
    14.8
    
    
    
    62,494
    
    
    
    14.9
    
    
    
    58,417
    
    
    
    14.7(Gain) loss from disposal of assets
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    Income from operations
    
    
    15,548
    
    
    
    11.5
    
    
    
    15,292
    
    
    
    12.0
    
    
    
    55,913
    
    
    
    13.4
    
    
    
    42,690
    
    
    
    10.8Other expense, net
    
    
    (362
    )
    
    
    (0.2
    )
    
    
    (702
    )
    
    
    (0.6
    )
    
    
    (1,091
    )
    
    
    (0.3
    )
    
    
    (2,416
    )
    
    
    (0.6
    )Earnings before income taxes
    
    
    15,186
    
    
    
    11.3
    
    
    
    14,590
    
    
    
    11.4
    
    
    
    54,822
    
    
    
    13.1
    
    
    
    40,274
    
    
    
    10.2Provision for income taxes
    
    
    5,543
    
    
    
    4.1
    
    
    
    5,399
    
    
    
    4.2
    
    
    
    20,010
    
    
    
    4.8
    
    
    
    14,902
    
    
    
    3.8Net earnings
    
    $
    9,643
    
    
    
    7.2
    %
    
    $
    9,191
    
    
    
    7.2
    %
    
    $
    34,812
    
    
    
    8.3
    %
    
    $
    25,372
    
    
    
    6.4
    %
 Three Months ended November 30, 2010 compared to Three Months ended November 30, 2009
 Net Sales.
 Cost of Goods Sold.
 Selling, general and administrative expense.
 32




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Gain/Loss from disposal of assets.
 Income from operations.
 Other income and expense.
 Provision for income taxes.
 Net earnings.
 Nine months ended November 30, 2010 compared to Nine months ended November 30, 2009
 Net Sales.
 Cost of Goods Sold.
 Selling, general and administrative expense.
 Gain from disposal of assets.
 33




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ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Income from operations.
 Other income and expense.
 Provision for income taxes.
 Net earnings.
 Segment Operating Results
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Net Sales by Segment (in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Print
    
    $
    69,516
    
    
    $
    70,590
    
    
    $
    206,452
    
    
    $
    216,215Apparel
    
    
    65,301
    
    
    
    57,166
    
    
    
    212,140
    
    
    
    180,138Total
    
    $
    134,817
    
    
    $
    127,756
    
    
    $
    418,592
    
    
    $
    396,353
 Print Segment
 Apparel Segment
 34




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Gross Profit by Segment (in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Print
    
    $
    19,375
    
    
    $
    20,111
    
    
    $
    59,386
    
    
    $
    60,217Apparel
    
    
    17,144
    
    
    
    14,189
    
    
    
    59,021
    
    
    
    40,889Total
    
    $
    36,519
    
    
    $
    34,300
    
    
    $
    118,407
    
    
    $
    101,106
 Print Segment
 Apparel Segment
 Three months ended
    
    
    Nine months endedNovember 30,
    
    
    November 30,Profit by Segment (in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Print
    
    $
    11,342
    
    
    $
    12,695
    
    
    $
    35,705
    
    
    $
    36,215Apparel
    
    
    8,240
    
    
    
    6,015
    
    
    
    32,363
    
    
    
    15,638Total
    
    
    19,582
    
    
    
    18,710
    
    
    
    68,068
    
    
    
    51,853Less corporate expenses
    
    
    4,396
    
    
    
    4,120
    
    
    
    13,246
    
    
    
    11,579Earnings before income taxes
    
    $
    15,186
    
    
    $
    14,590
    
    
    $
    54,822
    
    
    $
    40,274
 Print Segment
 Apparel Segment
 35




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 Liquidity and Capital Resources
 November 30,
    
    
    February 28,(Dollars in thousands)
    
    2010
    
    
    2010
    
    
    ChangeWorking Capital
    
    $
    129,192
    
    
    $
    116,638
    
    
    
    10.8
    %Cash
    
    $
    18,308
    
    
    $
    21,063
    
    
    
    -13.1
    %
 Working Capital.
 Nine months ended November 30,(Dollars in thousands)
    
    2010
    
    
    2009
    
    
    ChangeNet Cash provided by operating activities
    
    $
    30,642
    
    
    $
    71,469
    
    
    
    -57.1
    %Net Cash used in investing activities
    
    $
    (31,147
    )
    
    $
    (11,731
    )
    
    
    165.5
    %Net Cash used in financing activities
    
    $
    (2,018
    )
    
    $
    (46,575
    )
    
    
    -95.7
    %
 Cash flows from operating activities.
 Cash flows from investing activities.
 Cash flows from financing activities.
 Credit Facility.
   36




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
   Pension 
 Inventories 
 Capital Expenditures 
  Contractual Obligations & Off-Balance Sheet Arrangements 
 
 Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Market Risk
 Cash
  Interest Rates
  37




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
  Foreign Exchange
   
 Item 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures.
  
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  38




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 
 
 Items 3, 4 and 5 are not applicable and have been omitted
 39




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 
 Item 6. Exhibits
  Exhibit Number
    
    DescriptionExhibit 3.1(a)
    
    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 3.1(b)
    
    Amendment to Articles of Incorporation dated June 17, 2004 incorporated herein
by reference to Exhibit 3.1(b) to the Registrants Form 10-K Annual Report for
the fiscal year ended February 28, 2007.Exhibit 3.2(a)
    
    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 3.2(b)
    
    First amendment to Bylaws of the Registrant dated December 20, 2007
incorporated herein by reference to Exhibit 3.1 to the Registrants Form 8-K
Current Report filed on December 20, 2007.Exhibit 10.1
    
    Employee Agreement between Ennis, Inc. and Keith S. Walters dated December 19,
2008 incorporated herein by reference to Exhibit 10.1 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.2
    
    Employee Agreement between Ennis, Inc. and Michael D. Magill dated December
19, 2008 incorporated herein by reference to Exhibit 10.2 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.3
    
    Employee Agreement between Ennis, Inc. and Ronald M. Graham dated December 19,
2008 incorporated herein by reference to Exhibit 10.3 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.4
    
    Employee Agreement between Ennis, Inc. and Richard L. Travis, Jr. dated
December 19, 2008 incorporated herein by reference to Exhibit 10.4 to the
Registrants Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.5
    
    Employee Agreement between Ennis, Inc. and Irshad Ahmad, Vice
President-Apparel Group and CTO dated December 19, 2008 incorporated herein by
reference to Exhibit 10.5 to the Registrants Current Report on Form 8-K filed
on January 20, 2009.Exhibit 10.6
    
    2004 Long-Term Incentive Plan as amended and restated effective May 14, 2008
incorporated herein by reference to Appendix A of the Registrants Form DEF
14A filed on May 23, 2008.Exhibit 10.7
    
    Second Amended and Restated Credit Agreement between Ennis, Inc., each of the
other co-borrowers who are parties, Bank of America, N.A. as Administrative
Agent, Swing Line Lender and L/C Issuer, Compass Bank, as Syndication Agent,
Wells Fargo Bank, N.A., as Documentation Agent, the other lenders who are
parties and Banc of America Securities, LLC, as Sole Lead Arranger and Sole
Book Manager, dated as of August 18, 2009 herein incorporated by reference to
Exhibit 10.1 to the Registrants Form 8-K filed on August 20, 2009.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




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE PERIOD ENDED NOVEMBER 30, 2010
 
   ENNIS, INC.Date: December 22, 2010
    /s/ Keith S. WaltersKeith S. WaltersChairman, Chief Executive Officer and
PresidentDate: December 22, 2010
    /s/ Richard L. Travis, Jr.Richard L. Travis, Jr.V.P.  Finance and CFO, Secretary and
Principal Financial and Accounting Officer 41




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##### Table of Contents



INDEX TO EXHIBITS
 Exhibit Number
    
    DescriptionExhibit 3.1(a)
    
    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 3.1(b)
    
    Amendment to Articles of Incorporation dated June 17, 2004 incorporated herein
by reference to Exhibit 3.1(b) to the Registrants Form 10-K Annual Report for
the fiscal year ended February 28, 2007.Exhibit 3.2(a)
    
    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 3.2(b)
    
    First amendment to Bylaws of the Registrant dated December 20, 2007
incorporated herein by reference to Exhibit 3.1 to the Registrants Form 8-K
Current Report filed on December 20, 2007.Exhibit 10.1
    
    Employee Agreement between Ennis, Inc. and Keith S. Walters dated December 19,
2008 incorporated herein by reference to Exhibit 10.1 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.2
    
    Employee Agreement between Ennis, Inc. and Michael D. Magill dated December
19, 2008 incorporated herein by reference to Exhibit 10.2 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.3
    
    Employee Agreement between Ennis, Inc. and Ronald M. Graham dated December 19,
2008 incorporated herein by reference to Exhibit 10.3 to the Registrants
Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.4
    
    Employee Agreement between Ennis, Inc. and Richard L. Travis, Jr. dated
December 19, 2008 incorporated herein by reference to Exhibit 10.4 to the
Registrants Current Report on Form 8-K filed on January 20, 2009.Exhibit 10.5
    
    Employee Agreement between Ennis, Inc. and Irshad Ahmad, Vice
President-Apparel Group and CTO dated December 19, 2008 incorporated herein by
reference to Exhibit 10.5 to the Registrants Current Report on Form 8-K filed
on January 20, 2009.Exhibit 10.6
    
    2004 Long-Term Incentive Plan as amended and restated effective May 14, 2008
incorporated herein by reference to Appendix A of the Registrants Form DEF
14A filed on May 23, 2008.Exhibit 10.7
    
    Second Amended and Restated Credit Agreement between Ennis, Inc., each of the
other co-borrowers who are parties, Bank of America, N.A. as Administrative
Agent, Swing Line Lender and L/C Issuer, Compass Bank, as Syndication Agent,
Wells Fargo Bank, N.A., as Documentation Agent, the other lenders who are
parties and Banc of America Securities, LLC, as Sole Lead Arranger and Sole
Book Manager, dated as of August 18, 2009 herein incorporated by reference to
Exhibit 10.1 to the Registrants Form 8-K filed on August 20, 2009.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