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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-K
 Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended February 29, 2008
 Commission File Number 1-5807
 
 ENNIS, INC.
  Texas
    
    75-0256410(State or Other Jurisdiction of Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)2441 Presidential Pkwy., Midlothian, Texas
    
    76065(Address of Principal Executive Offices)
    
    (Zip code)
 (Registrants Telephone Number, Including Area Code) (972) 775-9801
 Securities registered pursuant to Section 12(b) of the Act:
 Title of each class
    
    Name of each exchange on which registeredCommon Stock, par value $2.50 per share
    
    New York Stock Exchange
 Securities registered pursuant to Section 12(g) of the Act: None
 o þ
 o þ
 þ 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
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



ENNIS, INC. AND SUBSIDIARIES
FORM 10-K
FOR THE PERIOD ENDED FEBRUARY 29, 2008
  
 TABLE OF CONTENTS
 PART I:Item 1 Business
    
    
    3Item 1A Risk Factors
    
    
    7Item 1B Unresolved Staff Comments
    
    
    10Item 2 Properties
    
    
    10Item 3 Legal Proceedings
    
    
    12Item 4 Submission of Matters to a Vote of Security Holders
    
    
    12PART II:Item 5 Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    
    
    12Item 6 Selected Financial Data
    
    
    14Item 7 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 7A Quantitative and Qualitative Disclosures about Market Risk
    
    
    24Item 8 Consolidated Financial Statements and Supplementary Data
    
    
    24Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    24Item 9A Controls and Procedures
    
    
    24Item 9B Other Information
    
    
    25PART III:Item 10 Directors, Executive Officers and Corporate Governance
    
    
    25Item 11 Executive Compensation
    
    
    26Item 12 Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
    
    
    26Item 13 Certain Relationships and Related Transactions, and Director Independence
    
    
    26Item 14 Principal Accountant Fees and Services
    
    
    27PART IV:Item 15 Exhibits and Financial Statement Schedules
    
    
    27Signatures
    
    
    28Subsidiaries of RegistrantConsent of Independent Registered Public Accounting FirmCertification Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Executive Officer)Certification Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Financial Officer)Certification Pursuant to Section 906Certification Pursuant to Section 906
  2




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PART I
 
 ITEM 1. BUSINESS
 Overview
       3




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Business Segment Overview
  Print Segment
  ® TM TM TM TM ®
       4




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Apparel Segment
 ® ® ® ® ® ®
        5




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Patents, Licenses, Franchises and Concessions
  Intellectual Property
  Customers
  Backlog
  Research and Development
  Environment
  Employees
  6




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Available Information
 www.ennis.com www.sec.gov
 
 ITEM 1A. 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 in the future.
 .
 Printed business forms may be superseded over time by paperless business forms or otherwise
affected by technological obsolescence and changing customer preferences, which could reduce our
sales and profits.
  7




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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.
     8




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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 has been faced with
significant U.S. government import restrictions.
     9




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##### Table of Contents



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.
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  
 ITEM 2. PROPERTIES
  ®
    10




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Approximate Square FootageLocation
    
    General Use
    
    Owned
    
    LeasedPrint SegmentEnnis, Texas
    
    Three Manufacturing Facilities
    
    
    325,118
    
    
    
    Chatham, Virginia
    
    Two Manufacturing Facilities
    
    
    127,956
    
    
    
    Paso Robles, California
    
    Manufacturing
    
    
    94,120
    
    
    
    DeWitt, Iowa
    
    Two Manufacturing Facilities
    
    
    95,000
    
    
    
    Knoxville, Tennessee
    
    Manufacturing
    
    
    48,057
    
    
    
    Ft. Scott, Kansas
    
    Manufacturing
    
    
    86,660
    
    
    
    Portland, Oregon
    
    Manufacturing
    
    
    
    
    
    
    139,330Wolfe City, Texas
    
    Two Manufacturing Facilities
    
    
    119,259
    
    
    
    Moultrie, Georgia
    
    Manufacturing
    
    
    25,000
    
    
    
    Coshocton, Ohio
    
    Manufacturing
    
    
    24,750
    
    
    
    Macomb, Michigan
    
    Manufacturing
    
    
    56,350
    
    
    
    Anaheim, California
    
    Three Manufacturing Facilities
    
    
    
    
    
    
    63,750Bellville, Texas
    
    Manufacturing
    
    
    70,196
    
    
    
    Denver, Colorado
    
    Four Manufacturing Facilities & Warehouse
    
    
    60,000
    
    
    
    105,200San Antonio, Texas
    
    Manufacturing
    
    
    47,426
    
    
    
    Brooklyn Park, Minnesota
    
    Manufacturing
    
    
    94,800
    
    
    
    Roseville, Minnesota
    
    Manufacturing
    
    
    
    
    
    
    42,500Arden Hills, Minnesota
    
    Warehouse
    
    
    
    
    
    
    31,684Nevada, Iowa
    
    Manufacturing
    
    
    232,000
    
    
    
    Bridgewater, Virginia
    
    Manufacturing
    
    
    
    
    
    
    27,000Columbus, Kansas
    
    Manufacturing
    
    
    201,000
    
    
    
    Leipsic, Ohio
    
    Manufacturing
    
    
    83,216
    
    
    
    El Dorado Springs, Missouri
    
    Manufacturing
    
    
    70,894
    
    
    
    Princeton, Illinois
    
    Manufacturing
    
    
    
    
    
    
    74,340Arlington, Texas
    
    Manufacturing and Warehouse
    
    
    88,235
    *
    
    
    33,120Mechanicsburg, Pennsylvania
    
    Warehouse
    
    
    
    
    
    
    7,500Sacramento, California
    
    Administrative Offices
    
    
    
    
    
    
    414Tullahoma, Tennessee
    
    Two Manufacturing Facilities**
    
    
    24,950
    
    
    
    25,000Caledonia, New York
    
    Manufacturing
    
    
    138,730
    
    
    
    Sun City, California
    
    Manufacturing
    
    
    52,617
    
    
    
    Sparks, Nevada
    
    Sublease
    
    
    
    
    
    
    18,589Carol Stream, Illinois
    
    Manufacturing
    
    
    
    
    
    
    14,400Phoenix, Arizona
    
    Manufacturing and Warehouse
    
    
    
    
    
    
    82,8002,166,334
    
    
    
    665,627Apparel SegmentAnaheim, California
    
    Office and Distribution Center
    
    
    
    
    
    
    200,000Anaheim, California
    
    Manufacturing***
    
    
    
    
    
    
    450,315Chicago, Illinois
    
    Distribution Center
    
    
    
    
    
    
    120,000Atlanta, Georgia
    
    Distribution Center
    
    
    
    
    
    
    31,958Carrollton, Texas
    
    Distribution Center
    
    
    
    
    
    
    26,136Bensalem, Pennsylvania
    
    Distribution Center
    
    
    
    
    
    
    60,848Mississauga, Canada
    
    Distribution Center
    
    
    
    
    
    
    53,982Los Angeles, California
    
    Distribution Center
    
    
    
    
    
    
    31,600Ensenada, Mexico
    
    Two Manufacturing Facilities
    
    
    112,622
    
    
    
    53,820Ensenada, Mexico
    
    Car Parking
    
    
    
    
    
    
    22,000Ensenada, Mexico
    
    Warehouse
    
    
    
    
    
    
    2,583Hermosillo, Mexico
    
    Administrative Offices
    
    
    
    
    
    
    215Hermosillo, Mexico
    
    Three Manufacturing Facilities
    
    
    
    
    
    
    126,263
 11




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Approximate Square FootageLocation
    
    General Use
    
    Owned
    
    LeasedHermosillo, Mexico
    
    Yard Space
    
    
    
    
    
    
    19,685Hermosillo, Mexico
    
    Vacant
    
    
    
    
    
    
    8,432Hermosillo, Mexico
    
    Storage for Machines
    
    
    
    
    
    
    1,640112,622
    
    
    
    1,209,477Corporate OfficesEnnis, Texas
    
    Administrative Offices
    
    
    9,300
    
    
    
    Midlothian, Texas
    
    Executive and Administrative Offices
    
    
    28,000
    
    
    
    37,300
    
    
    
    Totals
    
    
    2,316,256
    
    
    
    1,875,104
 
 *
    
    18,300 square foot is classified as an asset held for sale.**
    
    The envelope production currently being performed in a leased facility in Tullahoma,
Tennessee is being moved into the company owned facility in Tullahoma, Tennessee at the end of
the lease term July 1, 2008.***
    
    Apparel Segment  150,000 square feet of the manufacturing facilities in Anaheim, California
is subleased. 
 ITEM 3. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 PART II
 
 ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
                PURCHASES OF EQUITY SECURITIES
  Common Stock
    
    DividendsTrading Volume
    
    per share ofCommon Stock Price Range
    
    (number of shares
    
    CommonHigh
    
    Low
    
    in thousands)
    
    StockFiscal Year Ended February 29, 2008First Quarter
    
    $
    28.12
    
    
    $
    22.41
    
    
    
    6,700
    
    
    $
    0.155Second Quarter
    
    
    25.53
    
    
    
    18.36
    
    
    
    8,183
    
    
    $
    0.155Third Quarter
    
    
    22.92
    
    
    
    16.46
    
    
    
    5,442
    
    
    $
    0.155Fourth Quarter
    
    
    20.28
    
    
    
    14.93
    
    
    
    6,018
    
    
    $
    0.155Fiscal Year Ended February 28, 2007First Quarter
    
    $
    20.16
    
    
    $
    18.57
    
    
    
    6,684
    
    
    $
    0.155Second Quarter
    
    
    20.87
    
    
    
    18.52
    
    
    
    6,185
    
    
    $
    0.155Third Quarter
    
    
    23.37
    
    
    
    19.99
    
    
    
    6,850
    
    
    $
    0.155Fourth Quarter
    
    
    27.11
    
    
    
    22.19
    
    
    
    4,801
    
    
    $
    0.155
  12




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Stock Performance Graph
  
 
 *
    
    $100 invested on 2/28/03 in stock or index-including reinvestment of dividends.
Fiscal year ending February 28 or February 29. ©
 2003
    
    2004
    
    2005
    
    2006
    
    2007
    
    2008Ennis, Inc.
    
    
    100.00
    
    
    
    155.44
    
    
    
    163.06
    
    
    
    195.04
    
    
    
    262.73
    
    
    
    167.31S&P 500
    
    
    100.00
    
    
    
    138.52
    
    
    
    148.19
    
    
    
    160.63
    
    
    
    179.86
    
    
    
    173.39Russell 2000
    
    
    100.00
    
    
    
    164.41
    
    
    
    180.08
    
    
    
    209.95
    
    
    
    230.67
    
    
    
    201.98
 The stock price performance included in this graph is not necessarily indicative of future
stock price performance.
 13




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ITEM 6. SELECTED FINANCIAL DATA
  Fiscal Years Ended2008
    
    2007
    
    2006
    
    2005
    
    2004(Dollars and shares in thousands, except per share amounts)Operating results:Net sales
    
    $
    610,610
    
    
    $
    584,713
    
    
    $
    559,397
    
    
    $
    365,353
    
    
    $
    259,360Gross profit
    
    
    152,647
    
    
    
    145,937
    
    
    
    142,090
    
    
    
    90,757
    
    
    
    68,548SG&A expenses
    
    
    77,624
    
    
    
    72,736
    
    
    
    69,953
    
    
    
    51,100
    
    
    
    38,922Net earnings
    
    
    44,590
    
    
    
    41,601
    
    
    
    40,537
    
    
    
    22,959
    
    
    
    17,951Earnings and dividends per share:Basic
    
    $
    1.74
    
    
    $
    1.63
    
    
    $
    1.59
    
    
    $
    1.21
    
    
    $
    1.10Diluted
    
    
    1.72
    
    
    
    1.62
    
    
    
    1.58
    
    
    
    1.19
    
    
    
    1.08Dividends
    
    
    0.62
    
    
    
    0.62
    
    
    
    0.62
    
    
    
    0.62
    
    
    
    0.62Weighted average shares outstanding:Basic
    
    
    25,623
    
    
    
    25,531
    
    
    
    25,453
    
    
    
    18,936
    
    
    
    16,358Diluted
    
    
    25,860
    
    
    
    25,759
    
    
    
    25,728
    
    
    
    19,260
    
    
    
    16,602Financial Position:Working capital
    
    $
    133,993
    
    
    $
    102,269
    
    
    $
    94,494
    
    
    $
    70,247
    
    
    $
    38,205Current assets
    
    
    185,819
    
    
    
    151,516
    
    
    
    158,455
    
    
    
    151,630
    
    
    
    63,605Total assets
    
    
    513,131
    
    
    
    478,228
    
    
    
    494,401
    
    
    
    497,246
    
    
    
    154,043Current liabilities
    
    
    51,826
    
    
    
    49,247
    
    
    
    63,961
    
    
    
    81,383
    
    
    
    25,400Long-term debt
    
    
    90,710
    
    
    
    88,971
    
    
    
    102,916
    
    
    
    112,342
    
    
    
    7,800Total liabilities
    
    
    164,652
    
    
    
    161,825
    
    
    
    197,066
    
    
    
    225,515
    
    
    
    43,461Equity
    
    
    348,479
    
    
    
    316,403
    
    
    
    297,335
    
    
    
    271,731
    
    
    
    110,582Current ratio
    
    3.59 to 1.0
    
    
    3.08 to 1.0
    
    
 2.48 to 1.0
    
    
 1.86 to 1.0
    
    
 2.50 to 1.0Long-term debt to
equity
    
 .26 to 1.0
    
    
 .28 to 1.0
    
    
 .35 to 1.0
    
    
 .41 to 1.0
    
    
 .07 to 1.0
 
 ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Cautionary Statements
  14




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Results of Operations
 Consolidated
    
    Fiscal Years EndedStatements of Earnings - Data
    
    2008
    
    
    2007
    
    
    2006Net sales
    
    $
    610,610
    
    
    
    100.0
    %
    
    $
    584,713
    
    
    
    100.0
    %
    
    $
    559,397
    
    
    
    100.0
    %Cost of goods sold
    
    
    457,963
    
    
    
    75.0
    
    
    
    438,776
    
    
    
    75.0
    
    
    
    417,307
    
    
    
    74.6Gross profit
    
    
    152,647
    
    
    
    25.0
    
    
    
    145,937
    
    
    
    25.0
    
    
    
    142,090
    
    
    
    25.4Selling, general and
administrative
    
    
    77,624
    
    
    
    12.7
    
    
    
    72,736
    
    
    
    12.4
    
    
    
    69,953
    
    
    
    12.5Gain from disposal of assets
    
    
    (757
    )
    
    
    (0.1
    )
    
    
    (258
    )
    
    
    0.0
    
    
    
    (188
    )
    
    
    0.0Income from operations
    
    
    75,780
    
    
    
    12.4
    
    
    
    73,459
    
    
    
    12.6
    
    
    
    72,325
    
    
    
    12.9Other expense, net
    
    
    (5,995
    )
    
    
    (1.0
    )
    
    
    (7,094
    )
    
    
    (1.2
    )
    
    
    (8,354
    )
    
    
    (1.5
    )Earnings before income taxes
    
    
    69,785
    
    
    
    11.4
    
    
    
    66,365
    
    
    
    11.4
    
    
    
    63,971
    
    
    
    11.4Provision for income taxes
    
    
    25,195
    
    
    
    4.1
    
    
    
    24,764
    
    
    
    4.2
    
    
    
    23,434
    
    
    
    4.2Net earnings
    
    $
    44,590
    
    
    
    7.3
    %
    
    $
    41,601
    
    
    
    7.2
    %
    
    $
    40,537
    
    
    
    7.2
    %
 Critical Accounting Policies and Judgments
     15




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Results of Operations  Consolidated
 Net Sales.
 16




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Cost of Goods Sold.
  Selling, general, and administrative expenses.
  Gain from disposal of assets.
 Income from operations.
  Other income and expense
 17




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Provision for income taxes.
 Net earnings.
  Results of Operations  Segments
 Fiscal Years EndedNet Sales by Segment (in thousands)
    
    2008
    
    
    2007
    
    
    2006Print
    
    $
    345,042
    
    
    $
    325,679
    
    
    $
    321,410Apparel
    
    
    265,568
    
    
    
    259,034
    
    
    
    237,987Total
    
    $
    610,610
    
    
    $
    584,713
    
    
    $
    559,397
 Print Segment
   Apparel Segment
 18




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Fiscal Years EndedGross Profit by Segment (in thousands)
    
    2008
    
    
    2007
    
    
    2006Print
    
    $
    93,767
    
    
    $
    81,986
    
    
    $
    79,859Apparel
    
    
    58,880
    
    
    
    63,951
    
    
    
    62,231Total
    
    $
    152,647
    
    
    $
    145,937
    
    
    $
    142,090
 Print Segment.
 Apparel Segment
   19




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##### Table of Contents



Fiscal Years EndedProfit by Segment (in thousands)
    
    2008
    
    
    2007
    
    
    2006Print
    
    $
    56,012
    
    
    $
    46,077
    
    
    $
    45,121Apparel
    
    
    29,367
    
    
    
    33,321
    
    
    
    30,085Total
    
    
    85,379
    
    
    
    79,398
    
    
    
    75,206Less corporate expenses
    
    
    15,594
    
    
    
    13,033
    
    
    
    11,235Earnings before income taxes
    
    $
    69,785
    
    
    $
    66,365
    
    
    $
    63,971
 Print Segment
 Apparel Segment.
 Liquidity and Capital Resources
 Fiscal Years Ended(Dollars in thousands)
    
    2008
    
    2007
    
    ChangeWorking Capital
    
    $
    133,993
    
    
    $
    102,269
    
    
    
    31.0
    %Cash and cash equivalents
    
    $
    3,393
    
    
    $
    3,582
    
    
    
    -5.3
    %
 Working Capital.
 Cash and cash equivalents.
 20




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Fiscal Years Ended(Dollars in thousands)
    
    2008
    
    2007
    
    ChangeNet Cash provided by operating activities
    
    $
    30,444
    
    
    $
    49,517
    
    
    
    -38.5
    %Net Cash used in investing activities
    
    $
    (17,285
    )
    
    $
    (19,825
    )
    
    
    -12.8
    %Net Cash used in financing activities
    
    $
    (13,516
    )
    
    $
    (39,978
    )
    
    
    -66.2
    %
 Cash flows from operating activities.
 Cash flows from investing activities.
 Cash flows from financing activities.
 Credit Facility -
   21




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Pension 
 Inventories -
 Capital Expenditures -
 Contractual Obligations & Off-Balance Sheet Arrangements -
 2013 toTotal
    
    
    2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2018Debt:Revolving credit facility
    
    $
    90,500
    
    
    $
    
    
    
    $
    
    
    
    $
    90,500
    
    
    $
    
    
    
    $
    Notes to finance companies
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Capital leases
    
    
    452
    
    
    
    242
    
    
    
    210
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    13
    
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Debt subtotal
    
    
    90,965
    
    
    
    255
    
    
    
    210
    
    
    
    90,500
    
    
    
    
    
    
    
    Interest on capital leases
    
    
    22
    
    
    
    17
    
    
    
    5
    
    
    
    
    
    
    
    
    
    
    
    Debt and interest total
    
    
    90,987
    
    
    
    272
    
    
    
    215
    
    
    
    90,500
    
    
    
    
    
    
    
    Other contractual commitments:Estimated pension benefit payments
    
    
    38,670
    
    
    
    3,620
    
    
    
    3,080
    
    
    
    4,025
    
    
    
    4,225
    
    
    
    23,720Letters of credit
    
    
    4,473
    
    
    
    4,473
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Operating leases
    
    
    18,736
    
    
    
    8,293
    
    
    
    4,346
    
    
    
    3,101
    
    
    
    1,727
    
    
    
    1,269Total other contractual commitments
    
    
    61,879
    
    
    
    16,386
    
    
    
    7,426
    
    
    
    7,126
    
    
    
    5,952
    
    
    
    24,989Total
    
    $
    152,866
    
    
    $
    16,658
    
    
    $
    7,641
    
    
    $
    97,626
    
    
    $
    5,952
    
    
    $
    24,989
  New Accounting Pronouncements
 FIN 48
  22




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##### Table of Contents



FAS 157 .
 FAS 159 .
 FAS 141R.
 FAS 160.
 23




---



##### Table of Contents



ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Market Risk
 Interest Rates
  Foreign Exchange
   
 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  
 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures.
 24




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##### Table of Contents



MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
   i.
    
    Pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of
assets of the Company;ii.
    
    Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; andiii.
    
    Provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or dispositions of the Companys
assets that could have a material effect on the financial statements.
  Internal ControlIntegrated Framework
  
 ITEM 9B. OTHER INFORMATION
  
 PART III
 
 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
  25




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##### Table of Contents



ITEM 11. EXECUTIVE COMPENSATION
  
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
  Number ofsecuritiesavailable forfuture issuancesNumber of
    
    
    
    
    
    
    under equitysecurities to be
    
    
    Weighted
    
    
    compensationissued upon
    
    
    average
    
    
    plans (excludingexercise of
    
    
    exercise price
    
    
    securitiesoutstanding
    
    
    of outstanding
    
    
    reflected inoptions
    
    
    options
    
    
    column (a))Plan Category
    
    (a)
    
    
    (b)
    
    
    ( c )Equity compensation plans approved by the security
holders (1)
    
    
    543,429
    
    
    $
    10.97
    
    
    
    258,276Equity compensation plans not approved by security holders
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    543,429
    
    
    $
    10.97
    
    
    
    258,276
 
 
 (1)
    
    Includes the 1998 Option and Restricted Stock Plan, amended and restated as of June 17, 2004
and the 1991 Incentive Stock Option Plan. Includes 73,916 shares of restricted stock. 
 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
  26




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##### Table of Contents



ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
  
 PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)
    
    Documents filed as a part of the report:
 (1)
    
    Index to Consolidated Financial Statements of the CompanyAn Index to Consolidated Financial Statements has been filed as a part of this Report
beginning on page F-1 hereof.(2)
    
    All schedules for which provision is made in the applicable accounting regulation
of the SEC have been omitted because of the absence of the conditions under which they
would be required or because the information required is included in the consolidated
financial statements of the Registrant or the notes thereto.(3)
    
    ExhibitsAn Index to Exhibits has been filed as a part of this Report beginning on page E-1 and
is herein incorporated by reference.
 27




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##### Table of Contents



SIGNATURES
  ENNIS, INC.Date: May 9, 2008
    
    BY:
    
    /s/ KEITH S. WALTERSKeith S. Walters,
 Chairman of the Board,Chief Executive Officer and PresidentDate: May 9, 2008
    
    BY:
    
    /s/ RICHARD L. TRAVIS, JR.Richard L. Travis, Jr. 

Vice President  Finance and CFO, Secretary and
Principal Financial and Accounting Officer
  Date: May 9, 2008
    
    BY:
    
    /s/ KEITH S. WALTERSKeith S. Walters, ChairmanDate: May 9, 2008
    
    BY:
    
    /s/ RONALD M. GRAHAMRonald M. Graham, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ JAMES B. GARDNERJames B. Gardner, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ GODFREY M. LONG, JR.Godfrey M. Long, Jr., DirectorDate: May 9, 2008
    
    BY:
    
    /s/ THOMAS R. PRICEThomas R. Price, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ KENNETH G. PRITCHETTKenneth G. Pritchett, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ ALEJANDRO QUIROZAlejandro Quiroz, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ MICHAEL J. SCHAEFERMichael J. Schaefer, DirectorDate: May 9, 2008
    
    BY:
    
    /s/ JAMES C. TAYLORJames C. Taylor, Director
 28




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
Index to Consolidated Financial Statements
 Report of Independent Registered Public Accounting Firm
    
    
    F-2Report of Independent Registered Public Accounting Firm
    
    
    F-3Consolidated Balance Sheets  February 29, 2008 and February 28, 2007
    
    
    F-4Consolidated Statements of Earnings  Fiscal years ended 2008, 2007 and 2006
    
    
    F-6Consolidated Statements of Changes in Shareholders Equity and Comprehensive Income  Fiscal years ended 2008, 2007 and 2006
    
    
    F-7Consolidated Statements of Cash Flows  Fiscal years ended 2008, 2007 and 2006
    
    
    F-8Notes to Consolidated Financial Statements
    
    
    F-9
 F-1




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
    Share-Based Payment Employers Accounting for Defined Benefit Pension and Other Postretirement Plans: An Amendment
of FASB Statements No. 87, 88, 106, and 132R
 Internal ControlIntegrated Framework
 /s/ Grant Thornton LLPDallas, TexasMay 9, 2008
 F-2




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
 Internal ControlIntegrated
Framework
    Internal Control-Integrated Framework .
  /s/ Grant Thornton LLPDallas, TexasMay 9, 2008
 F-3




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 Fiscal Years Ended2008
    
    
    2007AssetsCurrent assetsCash and cash equivalents
    
    $
    3,393
    
    
    $
    3,582Accounts receivable, net of allowance for doubtful receivables
of $3,954 at February 29, 2008 and $2,698 at February 28, 2007
    
    
    72,278
    
    
    
    47,285Prepaid expenses
    
    
    3,500
    
    
    
    5,628Inventories
    
    
    98,570
    
    
    
    85,696Deferred income taxes
    
    
    7,786
    
    
    
    7,444Assets held for sale
    
    
    292
    
    
    
    1,881Total current assets
    
    
    185,819
    
    
    
    151,516Property, plant and equipment, at costPlant, machinery and equipment
    
    
    130,214
    
    
    
    127,521Land and buildings
    
    
    42,793
    
    
    
    40,680Other
    
    
    22,586
    
    
    
    22,506Total property, plant and equipment
    
    
    195,593
    
    
    
    190,707Less accumulated depreciation
    
    
    136,605
    
    
    
    127,650Net property, plant and equipment
    
    
    58,988
    
    
    
    63,057Goodwill
    
    
    178,388
    
    
    
    178,314Trademarks and tradenames, net
    
    
    63,880
    
    
    
    63,052Customer lists, net
    
    
    24,260
    
    
    
    20,287Deferred finance charges, net
    
    
    934
    
    
    
    1,382Prepaid pension asset
    
    
    260
    
    
    
    Other assets
    
    
    602
    
    
    
    620Total assets
    
    $
    513,131
    
    
    $
    478,228
  F-4




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS  (Dollars in thousands, except for share amounts)
 Fiscal Years Ended2008
    
    
    2007Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable
    
    $
    29,658
    
    
    $
    25,597Accrued expensesEmployee compensation and benefits
    
    
    14,840
    
    
    
    15,799Taxes other than income
    
    
    989
    
    
    
    611Federal and state income taxes payable
    
    
    501
    
    
    
    973Other
    
    
    5,583
    
    
    
    5,615Current installments of long-term debt
    
    
    255
    
    
    
    652Total current liabilities
    
    
    51,826
    
    
    
    49,247Long-term debt, less current installments
    
    
    90,710
    
    
    
    88,971Liability for pension benefits
    
    
    
    
    
    
    2,702Deferred income taxes
    
    
    20,775
    
    
    
    19,603Other liabilities
    
    
    1,341
    
    
    
    1,302Total liabilities
    
    
    164,652
    
    
    
    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 in 2008 and 2007
    
    
    75,134
    
    
    
    75,134Additional paid in capital
    
    
    122,566
    
    
    
    122,305Retained earnings
    
    
    235,624
    
    
    
    207,190Accumulated other comprehensive income (loss):Foreign currency translation
    
    
    929
    
    
    
    25Minimum pension liability
    
    
    (6,450
    )
    
    
    (7,396
    )(5,521
    )
    
    
    (7,371
    )427,803
    
    
    
    397,258Treasury stockCost of 4,391,193 shares in 2008 and 4,475,962 shares in 2007
    
    
    (79,324
    )
    
    
    (80,855
    )Total shareholders equity
    
    
    348,479
    
    
    
    316,403Total liabilities and shareholders equity
    
    $
    513,131
    
    
    $
    478,228
  F-5




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Dollars in thousands, except share and per share amounts)
 Fiscal Years Ended2008
    
    
    2007
    
    
    2006Net sales
    
    $
    610,610
    
    
    $
    584,713
    
    
    $
    559,397Cost of goods sold
    
    
    457,963
    
    
    
    438,776
    
    
    
    417,307Gross profit
    
    
    152,647
    
    
    
    145,937
    
    
    
    142,090Selling, general and administrative
    
    
    77,624
    
    
    
    72,736
    
    
    
    69,953Gain from disposal of assets
    
    
    (757
    )
    
    
    (258
    )
    
    
    (188
    )Income from operations
    
    
    75,780
    
    
    
    73,459
    
    
    
    72,325Other income (expense)Interest expense
    
    
    (5,678
    )
    
    
    (6,936
    )
    
    
    (8,331
    )Other expense, net
    
    
    (317
    )
    
    
    (158
    )
    
    
    (23
    )(5,995
    )
    
    
    (7,094
    )
    
    
    (8,354
    )Earnings before income taxes
    
    
    69,785
    
    
    
    66,365
    
    
    
    63,971Provision for income taxes
    
    
    25,195
    
    
    
    24,764
    
    
    
    23,434Net earnings
    
    $
    44,590
    
    
    $
    41,601
    
    
    $
    40,537Weighted average common shares outstandingBasic
    
    
    25,623,325
    
    
    
    25,530,732
    
    
    
    25,452,582Diluted
    
    
    25,860,358
    
    
    
    25,758,948
    
    
    
    25,728,299Per share amountsNet earnings  basic
    
    $
    1.74
    
    
    $
    1.63
    
    
    $
    1.59Net earnings  diluted
    
    $
    1.72
    
    
    $
    1.62
    
    
    $
    1.58Cash dividends per share
    
    $
    0.62
    
    
    $
    0.62
    
    
    $
    0.62
  F-6




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY AND
 COMPREHENSIVE INCOME FOR THE FISCAL YEARS ENDED 2006, 2007, AND 2008
 (Dollars in thousands, except share and per share amounts)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury StockShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Shares
    
    
    Amount
    
    
    TotalBalance March 1, 2005
    
    
    30,053,443
    
    
    $
    75,134
    
    
    $
    123,640
    
    
    $
    156,666
    
    
    $
    6
    
    
    
    (4,635,444
    )
    
    $
    (83,715
    )
    
    $
    271,731Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,537
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,537Foreign currency translation,
net of deferred tax of $270
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    455
    
    
    
    
    
    
    
    
    
    
    
    455Unrealized loss on
derivative instruments, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    (1
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,991Dividends declared
$(.62 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,780
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,780
    )Exercise of stock options
and restricted stock grants
    
    
    
    
    
    
    
    
    
    
    (718
    )
    
    
    
    
    
    
    
    
    
    
    79,369
    
    
    
    1,434
    
    
    
    716Treasury stock purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,254
    )
    
    
    (323
    )
    
    
    (323
    )Balance February 28, 2006
    
    
    30,053,443
    
    
    
    75,134
    
    
    
    122,922
    
    
    
    181,423
    
    
    
    460
    
    
    
    (4,574,329
    )
    
    
    (82,604
    )
    
    
    297,335Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,601
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,601Foreign currency translation,
net of deferred tax of $255
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (435
    )
    
    
    
    
    
    
    
    
    
    
    (435
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,166Adjustment to initially apply
FAS 158, net of tax of $4,739
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,396
    )
    
    
    
    
    
    
    
    
    
    
    (7,396
    )Dividends declared
$(.62 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,834
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,834
    )Excess tax benefit of stock
option exercises and restricted
stock grants
    
    
    
    
    
    
    
    
    
    
    169
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    169Stock based compensation
    
    
    
    
    
    
    
    
    
    
    302
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    302Exercise of stock options
and restricted stock grants
    
    
    
    
    
    
    
    
    
    
    (1,088
    )
    
    
    
    
    
    
    
    
    
    
    98,367
    
    
    
    1,749
    
    
    
    661Balance February 28, 2007
    
    
    30,053,443
    
    
    
    75,134
    
    
    
    122,305
    
    
    
    207,190
    
    
    
    (7,371
    )
    
    
    (4,475,962
    )
    
    
    (80,855
    )
    
    
    316,403Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,590
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,590Foreign currency translation,
net of deferred tax of $526
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    904
    
    
    
    
    
    
    
    
    
    
    
    904Adjustment to pension
net of deferred tax of $584
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    946
    
    
    
    
    
    
    
    
    
    
    
    946Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,440Cumulative impact of a change in
accounting for income tax
uncertainties pursuant to FIN 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (240
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (240
    )Dividends declared
$(.62 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,916
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,916
    )Excess tax benefit of stock
option exercises and restricted
stock grants
    
    
    
    
    
    
    
    
    
    
    385
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    385Stock based compensation
    
    
    
    
    
    
    
    
    
    
    734
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    734Exercise of stock options
and restricted stock grants
    
    
    
    
    
    
    
    
    
    
    (858
    )
    
    
    
    
    
    
    
    
    
    
    84,769
    
    
    
    1,531
    
    
    
    673Balance February 29, 2008
    
    
    30,053,443
    
    
    $
    75,134
    
    
    $
    122,566
    
    
    $
    235,624
    
    
    $
    (5,521
    )
    
    
    (4,391,193
    )
    
    $
    (79,324
    )
    
    $
    348,479
  F-7




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
  Fiscal Years Ended2008
    
    
    2007
    
    
    2006Cash flows from operating activities:Net earnings
    
    $
    44,590
    
    
    $
    41,601
    
    
    $
    40,537Adjustments to reconcile net earnings to net cash provided
by operating activities:Depreciation
    
    
    12,217
    
    
    
    14,670
    
    
    
    15,474Amortization of deferred finance charges
    
    
    448
    
    
    
    451
    
    
    
    495Amortization of trademarks and customer lists
    
    
    2,062
    
    
    
    1,957
    
    
    
    2,337Gain on the sale of equipment
    
    
    (757
    )
    
    
    (258
    )
    
    
    (188
    )Bad debt expense
    
    
    1,970
    
    
    
    1,390
    
    
    
    317Stock based compensation
    
    
    734
    
    
    
    302
    
    
    
    Excess tax benefit of stock option exercises
    
    
    (385
    )
    
    
    (169
    )
    
    
    Deferred income taxes
    
    
    682
    
    
    
    (4,963
    )
    
    
    456Changes in operating assets and liabilities, net of the
effects of acquisitions:Accounts receivable
    
    
    (22,854
    )
    
    
    (3,762
    )
    
    
    4,633Prepaid expenses
    
    
    2,239
    
    
    
    (1,225
    )
    
    
    761Inventories
    
    
    (10,148
    )
    
    
    5,797
    
    
    
    (9,332
    )Other current assets
    
    
    
    
    
    
    
    
    
    
    334Other assets
    
    
    16
    
    
    
    (482
    )
    
    
    (2,320
    )Accounts payable and accrued expenses
    
    
    2,348
    
    
    
    (8,313
    )
    
    
    (7,227
    )Other liabilities
    
    
    (701
    )
    
    
    (734
    )
    
    
    1,144Liability for pension benefits
    
    
    (2,017
    )
    
    
    3,255
    
    
    
    6Net cash provided by operating activities
    
    
    30,444
    
    
    
    49,517
    
    
    
    47,427Cash flows from investing activities:Capital expenditures
    
    
    (4,294
    )
    
    
    (4,999
    )
    
    
    (9,040
    )Purchase of businesses, net of cash acquired
    
    
    (14,638
    )
    
    
    (17,637
    )
    
    
    (1,196
    )Proceeds from disposal of plant and property
    
    
    1,647
    
    
    
    2,811
    
    
    
    294Net cash used in investing activities
    
    
    (17,285
    )
    
    
    (19,825
    )
    
    
    (9,942
    )Cash flows from financing activities:Borrowings on debt
    
    
    18,000
    
    
    
    15,647
    
    
    
    9,000Repayment of debt
    
    
    (16,658
    )
    
    
    (40,621
    )
    
    
    (28,508
    )Dividends
    
    
    (15,916
    )
    
    
    (15,834
    )
    
    
    (15,780
    )Proceeds from exercise of stock options
    
    
    673
    
    
    
    661
    
    
    
    393Excess tax benefit of stock option exercises
    
    
    385
    
    
    
    169
    
    
    
    Net cash used in financing activities
    
    
    (13,516
    )
    
    
    (39,978
    )
    
    
    (34,895
    )Effect of exchange rate changes on cash
    
    
    168
    
    
    
    8
    
    
    
    576Net change in cash and cash equivalents
    
    
    (189
    )
    
    
    (10,278
    )
    
    
    3,166Cash and cash equivalents at beginning of period
    
    
    3,582
    
    
    
    13,860
    
    
    
    10,694Cash and cash equivalents at end of period
    
    $
    3,393
    
    
    $
    3,582
    
    
    $
    13,860
  F-8




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Significant Accounting Policies and General Matters
 Nature of Operations.
 Basis of Consolidation.
 Cash and Cash Equivalents.
 Accounts Receivable.
  Inventories.
 Property, Plant and Equipment
 F-9




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Significant Accounting Policies and General Matters-continued
 Goodwill and Other Intangible Assets.
 Long-Lived Assets
 Fair Value of Financial Instruments
 Deferred Finance Charges
 Revenue Recognition
 Advertising Expenses
 Income Taxes.
 Earnings Per Share
 F-10




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Significant Accounting Policies and General Matters-continued
 Accumulated Other Comprehensive Income (Loss)
 Foreign Currency Translation.
  Estimates.
 Reclassifications.
 Shipping and Handling Costs.
 Stock Based Compensation.
  F-11




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Significant Accounting Policies and General Matters-continued
  2006Net earnings as reported
    
    $
    40,537Deduct: Stock-based employee compensation expense
not included in reported earnings, net of related
tax effect of $85.
    
    
    (134
    )Pro forma earnings
    
    $
    40,403Net earnings per shareBasic  as reported
    
    $
    1.59Basic  pro forma
    
    $
    1.59Diluted  as reported
    
    $
    1.58Diluted  pro forma
    
    $
    1.57
  New Accounting Pronouncements
 FIN 48
   FAS 157 .
 F-12




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Significant Accounting Policies and General Matters-continued
  FAS 159 .
 FAS 141R.
 FAS 160.
 Concentrations of Risk
   F-13




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (2) Due From Factors
     February 29,
    
    
    February 28,2008
    
    
    2007Outstanding factored receivables without recourse
    
    $
    2,315
    
    
    $
    18,766Advances from factors
    
    
    (1,467
    )
    
    
    (15,683
    )Due from factors
    
    $
    848
    
    
    $
    3,083
 (3) Accounts Receivable and Allowance for Doubtful Receivables
    2008
    
    
    2007
    
    
    2006Balance at beginning of period
    
    $
    2,698
    
    
    $
    3,001
    
    
    $
    3,567Bad debt expense
    
    
    1,970
    
    
    
    1,390
    
    
    
    317Other
    
    
    
    
    
    
    
    
    
    
    3Recoveries
    
    
    29
    
    
    
    101
    
    
    
    67Accounts written off
    
    
    (743
    )
    
    
    (1,794
    )
    
    
    (953
    )Balance at end of period
    
    $
    3,954
    
    
    $
    2,698
    
    
    $
    3,001
 F-14




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (4) Inventories
  2008
    
    
    2007Raw material
    
    $
    14,711
    
    
    $
    11,074Work-in-process
    
    
    15,467
    
    
    
    16,694Finished goods
    
    
    68,392
    
    
    
    57,928$
    98,570
    
    
    $
    85,696
  (5) Acquisitions and Disposal
   Accounts receivable
    
    $
    2,713Inventories
    
    
    1,711Other assets
    
    
    66Property, plant & equipment
    
    
    2,662Customer lists
    
    
    5,084Trademarks
    
    
    671Noncompete
    
    
    18Accounts payable and accrued liabilities
    
    
    (443
    )$
    12,482
  F-15




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (5) Acquisitions and Disposal-continued
  Accounts receivable
    
    $
    974Inventories
    
    
    346Property, plant & equipment
    
    
    419Customer lists
    
    
    767Trademarks
    
    
    306Noncompete
    
    
    15Accounts payable and accrued liabilities
    
    
    (171
    )$
    2,656
   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
  F-16




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (5) Acquisitions and Disposal-continued
 Unaudited2008
    
    2007Pro forma net sales
    
    $
    631,786
    
    
    $
    638,371Pro forma net earnings
    
    
    44,979
    
    
    
    42,217Pro forma earnings per share  diluted
    
    
    1.74
    
    
    
    1.64
  (6) Goodwill and Other Intangible Assets
    GrossCarrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    NetAs of February 29, 2008Amortized intangible assets (in thousands)Tradenames
    
    $
    1,234
    
    
    $
    592
    
    
    $
    642Customer lists
    
    
    29,908
    
    
    
    5,648
    
    
    
    24,260Noncompete
    
    
    500
    
    
    
    451
    
    
    
    49$
    31,642
    
    
    $
    6,691
    
    
    $
    24,951As 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
 Fiscal Years Ended2008
    
    
    2007Non-amortizing intangible assets (in thousands)
Trademarks
    
    $
    63,238
    
    
    $
    62,260
  F-17




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (6) Goodwill and Other Intangible Assets-continued
  2009
    
    $
    2,344,0002010
    
    
    2,329,0002011
    
    
    2,323,0002012
    
    
    2,317,0002013
    
    
    2,273,000
  Print
    
    
    ApparelSegment
    
    
    SegmentTotal
    
    
    Total
    
    
    TotalBalance as of March 1, 2006
    
    $
    40,580
    
    
    $
    137,700
    
    
    $
    178,280Goodwill
    
    
    34
    
    
    
    
    
    
    
    34Balance as of March 1, 2007
    
    
    40,614
    
    
    
    137,700
    
    
    
    178,314Goodwill
    
    
    74
    
    
    
    
    
    
    
    74Balance as of February 29, 2008
    
    $
    40,688
    
    
    $
    137,700
    
    
    $
    178,388
  (7) Other Accrued Expenses
  February 29,
    
    
    February 28,2008
    
    
    2007Accrued interest
    
    $
    604
    
    
    $
    975Accrued taxes
    
    
    405
    
    
    
    424Accrued legal and professional fees
    
    
    244
    
    
    
    267Accrued utilities
    
    
    1,358
    
    
    
    786Accrued repairs and maintenance
    
    
    274
    
    
    
    137Accrued contract labor
    
    
    280
    
    
    
    355Factored receivables with recourse
    
    
    539
    
    
    
    772Other accrued expenses
    
    
    1,879
    
    
    
    1,899$
    5,583
    
    
    $
    5,615
 (8) Long-Term Debt
  February 29,
    
    
    February 28,2008
    
    
    2007Revolving credit facility
    
    $
    90,500
    
    
    $
    88,500Capital lease obligations
    
    
    452
    
    
    
    784Note payable to finance companies
    
    
    
    
    
    
    314Other
    
    
    13
    
    
    
    2590,965
    
    
    
    89,623Less current installments
    
    
    255
    
    
    
    652Long-term debt
    
    $
    90,710
    
    
    $
    88,971
 F-18




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (8) Long-Term Debt-continued
     CapitalDebt
    
    
    Leases
    
    
    Total2009
    
    $
    13
    
    
    $
    259
    
    
    $
    2722010
    
    
    
    
    
    
    215
    
    
    
    2152011
    
    
    90,500
    
    
    
    
    
    
    
    90,50090,513
    
    
    
    474
    
    
    
    90,987Less amount representing interest
    
    
    
    
    
    
    22
    
    
    
    22$
    90,513
    
    
    $
    452
    
    
    $
    90,965
 (9) Shareholders Equity
   F-19




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (10) Stock Option Plans and Stock Based Compensation
    WeightedNumber
    
    Weighted
    
    Average
    
    Aggregateof
    
    Average
    
    Remaining
    
    IntrinsicShares
    
    Exercise
    
    Contractual
    
    Value(a)(exact quantity)
    
    Price
    
    Life (in years)
    
    (in thousands)Outstanding at March 1, 2005
    
    
    695,575
    
    
    $
    9.67
    
    
    
    4.9Granted
    
    
    72,700
    
    
    
    18.51Terminated
    
    
    (750
    )
    
    
    10.25Exercised
    
    
    (79,675
    )
    
    
    9.02Outstanding at February 28, 2006
    
    
    687,850
    
    
    $
    10.63
    
    
    
    4.6Granted
    
    
    
    
    
    
    Terminated
    
    
    (22,500
    )
    
    
    11.13Exercised
    
    
    (111,837
    )
    
    
    8.33Outstanding at February 28, 2007
    
    
    553,513
    
    
    $
    11.08
    
    
    
    3.9Granted
    
    
    
    
    
    
    Terminated
    
    
    (20,500
    )
    
    
    15.15Exercised
    
    
    (63,500
    )
    
    
    10.60Outstanding at February 29, 2008
    
    
    469,513
    
    
    $
    10.97
    
    
    
    2.9
    
    
    $
    2,503Exercisable at February 29, 2008
    
    
    423,913
    
    
    $
    10.46
    
    
    
    2.5
    
    
    $
    2,477
 
   F-20




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (10) Stock Option Plans and Stock Based Compensation-continued
 2006Expected volatility
    
    
    23.85
    %Expected term (years)
    
    
    5Risk free interest rate
    
    
    4.37
    %Dividend yield
    
    
    3.64
    %Weighted average grant-date fair value
    
    $
    3.52
  Fiscal years ended2008
    
    2007
    
    2006Total cash received
    
    $
    673
    
    
    $
    661
    
    
    $
    393Income tax benefits
    
    
    385
    
    
    
    169
    
    
    
    86Total grant-date fair value
    
    
    83
    
    
    
    102
    
    
    
    87Intrinsic value
    
    
    611
    
    
    
    1,364
    
    
    
    593
  WeightedAverageNumber
    
    Grant Dateof Options
    
    Fair ValueUnvested at March 1, 2007
    
    
    99,025
    
    
    $
    2.52New grants
    
    
    
    
    
    
    Vested
    
    
    (33,425
    )
    
    
    2.35Forfeited
    
    
    (20,000
    )
    
    
    2.53Unvested at February 29, 2008
    
    
    45,600
    
    
    
    2.64
   Options Outstanding
    
    Options ExercisableWeighted AverageRemaining
    
    Weighted
    
    
    
    
    
    WeightedNumber
    
    Contractual
    
    Average
    
    Number
    
    AverageExercise Prices
    
    Outstanding
    
    Life (in Years)
    
    Exercise Price
    
    Exercisable
    
    Exercise Price$7.0625 to $8.6875
    
    
    224,613
    
    
    
    1.8
    
    
    $
    8.08
    
    
    
    224,613
    
    
    $
    8.0810.0625 to 11.6700
    
    
    119,750
    
    
    
    1.2
    
    
    
    10.27
    
    
    
    114,750
    
    
    
    10.2113.2800 to 16.4200
    
    
    87,450
    
    
    
    6.0
    
    
    
    15.56
    
    
    
    46,850
    
    
    
    15.0719.6900
    
    
    37,700
    
    
    
    8.0
    
    
    
    19.69
    
    
    
    37,700
    
    
    
    19.69469,513
    
    
    
    2.9
    
    
    
    10.97
    
    
    
    423,913
    
    
    
    10.46
 F-21




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (10) Stock Option Plans and Stock Based Compensation-continued
  WeightedAverageNumber of
    
    Grant DateShares
    
    Fair ValueOutstanding at March 1, 2005
    
    
    Granted
    
    
    23,919
    
    
    $
    18.51Terminated
    
    
    Exercised
    
    
    Outstanding at February 28, 2006
    
    
    23,919
    
    
    $
    19.69Granted
    
    
    16,000
    
    
    
    19.64Terminated
    
    
    Exercised
    
    
    Outstanding at February 28, 2007
    
    
    39,919
    
    
    $
    19.67Granted
    
    
    56,600
    
    
    
    26.79Terminated
    
    
    (1,334
    )
    
    
    19.64Exercised
    
    
    (21,269
    )
    
    
    19.68Outstanding at February 29, 2008
    
    
    73,916
    
    
    $
    25.12Exercisable at February 29, 2008
    
    
    
    
    
    $
    
  (11) Employee Benefit Plans
   2008
    
    2007Equity securities
    
    
    49
    %
    
    
    47
    %Debt securities
    
    
    44
    %
    
    
    44
    %Cash and cash equivalents
    
    
    7
    %
    
    
    9
    %Total
    
    
    100
    %
    
    
    100
    %
  Asset Class
    
    Target Allocation
 PercentageMoney Market
    
    
    0 - 3
    %Bonds
    
    
    43 - 47
    %Stocks
    
    
    45 - 50
    %
 F-22




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (11) Employee Benefit Plans-continued
    2008
    
    
    2007
    
    
    2006Components of net periodic benefit costService cost
    
    $
    1,430
    
    
    $
    1,440
    
    
    $
    1,422Interest cost
    
    
    2,505
    
    
    
    2,440
    
    
    
    2,443Expected return on plan assets
    
    
    (3,079
    )
    
    
    (2,848
    )
    
    
    (2,771
    )Amortization of:Prior service cost
    
    
    (145
    )
    
    
    (145
    )
    
    
    (145
    )Unrecognized net loss
    
    
    905
    
    
    
    956
    
    
    
    1,057Net periodic benefit cost
    
    $
    1,616
    
    
    $
    1,843
    
    
    $
    2,006
  2008
    
    2007
    
    2006Weighted average discount rate (net periodic pension cost)
    
    
    6.00
    %
    
    
    6.00
    %
    
    
    6.00
    %Earnings progression (net periodic pension cost)
    
    
    3.00
    %
    
    
    3.50
    %
    
    
    3.50
    %Expected long-term rate of return on plan assets
    
    
    8.00
    %
    
    
    8.00
    %
    
    
    8.00
    %Weighted average discount rate (benefit obligations)
    
    
    6.40
    %
    
    
    6.00
    %
    
    
    6.00
    %Earnings progression (benefit obligations)
    
    
    3.00
    %
    
    
    3.00
    %
    
    
    3.50
    %
 F-23




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (11) Employee Benefit Plans-continued
  2008
    
    
    2007Change in benefit obligationProjected benefit obligation at beginning of year
    
    $
    42,860
    
    
    $
    42,542Service cost
    
    
    1,430
    
    
    
    1,440Interest cost
    
    
    2,505
    
    
    
    2,440Actuarial loss
    
    
    (1,970
    )
    
    
    (763
    )Benefits paid
    
    
    (2,514
    )
    
    
    (2,799
    )Projected benefit obligation at end of year
    
    $
    42,311
    
    
    $
    42,860Change in plan assets:Fair value of plan assets at beginning of year
    
    $
    40,158
    
    
    $
    37,607Company contributions
    
    
    3,000
    
    
    
    3,000Gains on plan assets
    
    
    1,927
    
    
    
    2,350Benefits paid
    
    
    (2,514
    )
    
    
    (2,799
    )Fair value of plan assets at end of year
    
    $
    42,571
    
    
    $
    40,158Funded status (benefit obligation less plan assets)
    
    $
    260
    
    
    $
    (2,702
    )Accumulated benefit obligation at end of year
    
    $
    36,895
    
    
    $
    36,902
   ProjectedYear
    
    Payments2008
    
    $
    3,6202009
    
    
    3,0802010
    
    
    4,0252011
    
    
    4,2252012
    
    
    4,6852013  2017
    
    
    19,035
   F-24




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (12) Income Taxes
  2008
    
    
    2007
    
    
    2006Current:Federal
    
    $
    20,144
    
    
    $
    19,611
    
    
    $
    20,517State and local
    
    
    2,787
    
    
    
    3,849
    
    
    
    2,900Foreign
    
    
    2,147
    
    
    
    1,624
    
    
    
    1,237Deferred
    
    
    117
    
    
    
    (320
    )
    
    
    (1,220
    )Total provision for income taxes
    
    $
    25,195
    
    
    $
    24,764
    
    
    $
    23,434
  2008
    
    2007
    
    2006Statutory rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %Provision for state income taxes, net of
Federal income tax benefit
    
    
    2.6
    
    
    
    3.9
    
    
    
    3.0Other
    
    
    (1.5
    )
    
    
    (1.6
    )
    
    
    (1.4
    )36.1
    %
    
    
    37.3
    %
    
    
    36.6
    %
  2008
    
    
    2007Current deferred tax assets related to:Allowance for doubtful receivables
    
    $
    1,517
    
    
    $
    1,052Inventories
    
    
    4,100
    
    
    
    4,454Employee compensation and benefits
    
    
    1,715
    
    
    
    1,800Other
    
    
    454
    
    
    
    138$
    7,786
    
    
    $
    7,444Noncurrent deferred tax liability related to:Property, plan and equipment
    
    $
    4,960
    
    
    $
    4,718Goodwill and other intangible assets
    
    
    18,944
    
    
    
    18,238Pension and noncurrent employee compensation benefits
    
    
    (1,471
    )
    
    
    (1,949
    )Net operating loss and foreign tax credits
    
    
    (2,365
    )
    
    
    (1,503
    )Other
    
    
    707
    
    
    
    99$
    20,775
    
    
    $
    19,603
  F-25




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (12) Income Taxes-continued
   2008Balance at March 1, 2007
    
    $
    202Additions based on tax positions related to the current year
    
    
    67Reductions due to lapes of statues of limitations
    
    
    (68
    )Balance at February 29, 2008
    
    $
    201
 (13) Earnings per Share
  2008
    
    
    2007
    
    
    2006Basic weighted average common shares outstanding
    
    
    25,623,325
    
    
    
    25,530,732
    
    
    
    25,452,582Effect of dilutive options
    
    
    237,033
    
    
    
    228,216
    
    
    
    275,717Diluted weighted average common shares outstanding
    
    
    25,860,358
    
    
    
    25,758,948
    
    
    
    25,728,299Per share amounts:Net earnings  basic
    
    $
    1.74
    
    
    $
    1.63
    
    
    $
    1.59Net earnings  diluted
    
    $
    1.72
    
    
    $
    1.62
    
    
    $
    1.58Cash dividends
    
    $
    0.62
    
    
    $
    0.62
    
    
    $
    0.62
 (14) Segment Information and Geographic Information
    F-26




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (14) Segment Information and Geographic Information-continued
  ® TM TM TM TM ®
      Print
    
    Apparel
    
    
    
    
    
    ConsolidatedSegment
    
    Segment
    
    Corporate
    
    TotalsFiscal year ended February 29, 2008:Net sales
    
    $
    345,042
    
    
    $
    265,568
    
    
    $
    
    
    
    $
    610,610Depreciation
    
    
    8,009
    
    
    
    3,306
    
    
    
    902
    
    
    
    12,217Amortization of identifiable intangibles
    
    
    595
    
    
    
    1,467
    
    
    
    
    
    
    
    2,062Segment earnings (loss) before
income tax
    
    
    56,012
    
    
    
    29,367
    
    
    
    (15,594
    )
    
    
    69,785Segment assets
    
    
    157,979
    
    
    
    347,861
    
    
    
    7,291
    
    
    
    513,131Capital expenditures
    
    
    2,939
    
    
    
    1,275
    
    
    
    80
    
    
    
    4,294
 F-27




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (14) Segment Information and Geographic Information-continued
 Print
    
    Apparel
    
    
    
    
    
    ConsolidatedSegment
    
    Segment
    
    Corporate
    
    TotalsFiscal year ended February 28, 2007:Net sales
    
    $
    325,679
    
    
    $
    259,034
    
    
    $
    
    
    
    $
    584,713Depreciation
    
    
    8,275
    
    
    
    5,745
    
    
    
    650
    
    
    
    14,670Amortization of identifiable intangibles
    
    
    384
    
    
    
    1,573
    
    
    
    
    
    
    
    1,957Segment earnings (loss) before
income tax
    
    
    46,077
    
    
    
    33,321
    
    
    
    (13,033
    )
    
    
    66,365Segment assets
    
    
    151,746
    
    
    
    313,716
    
    
    
    12,766
    
    
    
    478,228Capital expenditures
    
    
    2,647
    
    
    
    1,038
    
    
    
    1,314
    
    
    
    4,999Fiscal year ended February 28, 2006:Net sales
    
    $
    321,410
    
    
    $
    237,987
    
    
    $
    
    
    
    $
    559,397Depreciation
    
    
    7,226
    
    
    
    7,604
    
    
    
    644
    
    
    
    15,474Amortization of identifiable intangibles
    
    
    361
    
    
    
    1,976
    
    
    
    
    
    
    
    2,337Segment earnings (loss) before
income tax
    
    
    45,121
    
    
    
    30,085
    
    
    
    (11,235
    )
    
    
    63,971Segment assets
    
    
    155,457
    
    
    
    320,113
    
    
    
    18,831
    
    
    
    494,401Capital expenditures
    
    
    2,977
    
    
    
    5,061
    
    
    
    1,002
    
    
    
    9,040
  United States
    
    
    Canada
    
    
    Mexico
    
    
    Total2008Net sales to unaffiliated customersPrint Segment
    
    $
    345,042
    
    
    $
    
    
    
    $
    
    
    
    $
    345,042Apparel Segment
    
    
    248,431
    
    
    
    17,137
    
    
    
    
    
    
    
    265,568$
    593,473
    
    
    $
    17,137
    
    
    $
    
    
    
    $
    610,610Identifiable long-lived assetsPrint Segment
    
    $
    43,004
    
    
    $
    
    
    
    $
    
    
    
    
    43,004Apparel Segment
    
    
    7,698
    
    
    
    74
    
    
    
    2,092
    
    
    
    9,864Corporate
    
    
    6,120
    
    
    
    
    
    
    
    
    
    
    
    6,120$
    56,822
    
    
    $
    74
    
    
    $
    2,092
    
    
    $
    58,9882007Net sales to unaffiliated customersPrint Segment
    
    $
    325,679
    
    
    $
    
    
    
    $
    
    
    
    $
    325,679Apparel Segment
    
    
    241,477
    
    
    
    17,557
    
    
    
    
    
    
    
    259,034$
    567,156
    
    
    $
    17,557
    
    
    $
    
    
    
    $
    584,713Identifiable long-lived assetsPrint Segment
    
    $
    44,291
    
    
    $
    
    
    
    $
    
    
    
    
    44,291Apparel Segment
    
    
    9,002
    
    
    
    102
    
    
    
    2,721
    
    
    
    11,825Corporate
    
    
    6,941
    
    
    
    
    
    
    
    
    
    
    
    6,941$
    60,234
    
    
    $
    102
    
    
    $
    2,721
    
    
    $
    63,057
 F-28




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (14) Segment Information and Geographic Information-continued
 United States
    
    
    Canada
    
    
    Mexico
    
    
    Total2006Net sales to unaffiliated customersPrint Segment
    
    $
    321,410
    
    
    $
    
    
    
    $
    
    
    
    $
    321,410Apparel Segment
    
    
    220,090
    
    
    
    17,897
    
    
    
    
    
    
    
    237,987$
    541,500
    
    
    $
    17,897
    
    
    $
    
    
    
    $
    559,397Identifiable long-lived assetsPrint Segment
    
    $
    40,903
    
    
    $
    
    
    
    $
    
    
    
    $
    40,903Apparel Segment
    
    
    12,814
    
    
    
    102
    
    
    
    3,720
    
    
    
    16,636Corporate
    
    
    6,264
    
    
    
    
    
    
    
    
    
    
    
    6,264$
    59,981
    
    
    $
    102
    
    
    $
    3,720
    
    
    $
    63,803
 (15) Commitments and Contingencies
  OperatingLease
    
    
    SubleaseCommitments
    
    
    Income
    
    
    Net2009
    
    $
    8,293
    
    
    $
    (808
    )
    
    $
    7,4852010
    
    
    4,346
    
    
    
    (67
    )
    
    
    4,2792011
    
    
    3,101
    
    
    
    
    
    
    
    3,1012012
    
    
    1,727
    
    
    
    
    
    
    
    1,7272013
    
    
    1,006
    
    
    
    
    
    
    
    1,006Thereafter
    
    
    263
    
    
    
    
    
    
    
    263$
    18,736
    
    
    $
    (875
    )
    
    $
    17,861
    (16) Supplemental Cash Flow Information
  2008
    
    2007
    
    2006Interest paid
    
    $
    6,048
    
    
    $
    6,646
    
    
    $
    8,038Income taxes paid
    
    $
    25,208
    
    
    $
    26,657
    
    
    $
    22,957
 F-29




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (16) Supplemental Cash Flow Information-continued
  2008
    
    2007
    
    2006Fair value of assets acquired in acquisitions
    
    $
    15,752
    
    
    $
    22,236
    
    
    $
    1,226Liabilities assumed in acquisitions
    
    $
    614
    
    
    $
    4,608
    
    
    $
    104
 (17) Quarterly Consolidated Financial Information (Unaudited)
  For the Three Months Ended
    
    May 31
    
    August 31
    
    November 30
    
    February 29Fiscal year ended 2008:Net sales
    
    $
    152,774
    
    
    $
    150,086
    
    
    $
    158,215
    
    
    $
    149,535Gross profit
    
    
    38,567
    
    
    
    38,620
    
    
    
    39,244
    
    
    
    36,216Net earnings
    
    
    10,796
    
    
    
    11,138
    
    
    
    11,568
    
    
    
    11,088Dividends paid
    
    
    3,967
    
    
    
    3,976
    
    
    
    3,986
    
    
    
    3,987Per share of common stock:Basic net earnings
    
    $
    0.42
    
    
    $
    0.44
    
    
    $
    0.45
    
    
    $
    0.43Diluted net earnings
    
    $
    0.42
    
    
    $
    0.43
    
    
    $
    0.45
    
    
    $
    0.43Dividends
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.155Fiscal year ended 2007:Net sales
    
    $
    145,113
    
    
    $
    151,718
    
    
    $
    151,743
    
    
    $
    136,139Gross profit
    
    
    37,815
    
    
    
    38,241
    
    
    
    37,973
    
    
    
    31,908Net earnings
    
    
    11,330
    
    
    
    11,643
    
    
    
    10,822
    
    
    
    7,806Dividends paid
    
    
    3,949
    
    
    
    3,959
    
    
    
    3,962
    
    
    
    3,964Per share of common stock:Basic net earnings
    
    $
    0.44
    
    
    $
    0.46
    
    
    $
    0.42
    
    
    $
    0.31Diluted net earnings
    
    $
    0.44
    
    
    $
    0.45
    
    
    $
    0.42
    
    
    $
    0.30Dividends
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.155
    
    
    $
    0.155
 Current Quarter Compared to Same Quarter Last Year
    F-30




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##### Table of Contents



ENNIS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (18) Subsequent Events
 1 2
 F-31




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##### Table of Contents



INDEX TO EXHIBITS
 Exhibit Number
    
    Description of DocumentExhibit 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 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 April 21,
2006 incorporated herein by reference to Exhibit 10.1 to the Registrants
Current Report on Form 8-K filed on April 25, 2006.Exhibit 10.2
    
    Employee Agreement between Ennis, Inc. and Michael D. Magill dated April
21, 2006 incorporated herein by reference to Exhibit 10.2 to the
Registrants Current Report on Form 8-K filed on April 25, 2006.Exhibit 10.3
    
    Employee Agreement between Ennis, Inc. and Ronald M. Graham dated April 21,
2006 incorporated herein by reference to Exhibit 10.3 to the Registrants
Current Report on Form 8-K filed on April 25, 2006.Exhibit 10.4
    
    Employee Agreement between Ennis, Inc. and Richard L. Travis, Jr. dated
April 21, 2006 incorporated herein by reference to Exhibit 10.4 to the
Registrants Current Report on Form 8-K filed on April 25, 2006.Exhibit 10.5
    
    Employee Agreement between Ennis, Inc. and David Todd Scarborough dated
April 21, 2006 incorporated herein by reference to Exhibit 10.5 to the
Registrants Current Report on Form 8-K filed on April 25, 2006.Exhibit 10.6
    
    2004 Long-Term Incentive Plan incorporated herein by reference to Exhibit
4.1 of the Registrants Form S-8 filed on January 5, 2005.Exhibit 10.7
    
    Form of Executive Incentive and Non-Qualified Stock Option Agreement
granted February 27, 2006 incorporated herein by reference to Exhibit 10.2
to the Registrants Current Report on Form 8-K filed on March 1, 2006.Exhibit 10.8
    
    Form of Executive Restricted Stock Agreement granted February 27, 2006
incorporated herein by reference to Exhibit 10.2 to the Registrants
Current Report on Form 8-K filed on March 1, 2006.Exhibit 10.9
    
    Indemnity Agreement dated as of June 25, 2004, by and among Laurence
Ashkin, Roger Brown, John McLinden, Arthur Slaven, Ennis, Inc. and
Midlothian Holdings LLC incorporated herein by reference to Exhibit 10.7 to
the Registrants Form S-4 filed on September 3, 2004.Exhibit 10.10
    
    UPS Ground, Air Hundredweight and Sonicair Incentive Program Carrier
Agreement incorporated herein by reference to Exhibit 10 to the
Registrants Form 10-K Annual Report for the fiscal year ended February 28,
2003.Exhibit 10.11
    
    Addendum to UPS Ground, Air and Sonicair Incentive Program Carrier
Agreement dated as of August 9, 2004, between Ennis, Inc. and United Parcel
Service, Inc. incorporated herein by reference to Exhibit 10.10 to the
Registrants Form S-4 filed on September 3, 2004.*
 E-1




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##### Table of Contents



INDEX TO EXHIBITS
 Exhibit Number
    
    Description of DocumentExhibit 10.12
    
    Carbonless Paper Agreement dated as of July 13, 2004 between Ennis, Inc &
MeadWestvaco Corporation incorporated herein by reference to Exhibit 10.11
to the Registrants Form S-4 filed on September 3, 2004.*Exhibit 10.13
    
    Amended and Restated Credit Agreement dated as of March 31, 2006 among
Ennis, Inc., various other parties that sign and become a party to the
security agreement and LaSalle Bank National Association, as the
Administrative Agent incorporated herein by reference to Exhibit 10.18 to
the Registrants Form 10-K Annual Report for the fiscal year ended February
28, 2006.Exhibit 10.14
    
    Amended and Restated Security Agreement dated as of March 31, 2006 among
Ennis, Inc. various other parties that sign and become a party to the
security agreement and LaSalle Bank National Association, as the
Administrative Agent incorporated herein by reference to Exhibit 10.19 to
the Registrants Form 10-K Annual Report for the fiscal year ended February
28, 2006.Exhibit 21
    
    Subsidiaries of RegistrantExhibit 23
    
    Consent of Independent Registered Public Accounting FirmExhibit 31.1
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Executive Officer)Exhibit 31.2
    
    Certification Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Financial Officer)Exhibit 32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002Exhibit 32.2
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
 
 *
    
    Portions of Exhibit have been omitted pursuant to a request for confidential treatment filed with
the SEC. E-2