# Ennis, Inc.: Form 10-Q for the period ended Nov 30, 2025

- Company: [Ennis, Inc.](/companies/ebf.md) (CIK 33002)
- Form: 10-Q
- Filed: 2026-01-07
- Accepted by EDGAR: Jan 7, 2026, 14:13 ET
- Period: 2025-11-30
- Accession: 0001193125-26-005532
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/33002/000119312526005532/ebf-20251130.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/33002/000119312526005532/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-11-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-09-01 to 2025-11-30 | $100.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2025-03-01 to 2025-11-30 | $296.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-09-01 to 2025-11-30 | $68.2m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2025-03-01 to 2025-11-30 | $203.8m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-09-01 to 2025-11-30 | $32.0m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2025-03-01 to 2025-11-30 | $92.3m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-09-01 to 2025-11-30 | $17.0m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 9 months, 2025-03-01 to 2025-11-30 | $51.7m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-09-01 to 2025-11-30 | $15.0m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2025-03-01 to 2025-11-30 | $40.6m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-09-01 to 2025-11-30 | $4.1m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2025-03-01 to 2025-11-30 | $12.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-09-01 to 2025-11-30 | $10.8m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2025-03-01 to 2025-11-30 | $33.8m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-09-01 to 2025-11-30 | $0.42 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2025-03-01 to 2025-11-30 | $1.31 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-09-01 to 2025-11-30 | $0.43 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2025-03-01 to 2025-11-30 | $1.31 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-09-01 to 2025-11-30 | 25,526,261 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2025-03-01 to 2025-11-30 | 25,783,285 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2025-03-01 to 2025-11-30 | $34.9m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2025-03-01 to 2025-11-30 | $3.5m | us-gaap:PaymentsToAcquireProductiveAssets |
| Dividends paid | 9 months, 2025-03-01 to 2025-11-30 | $19.5m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 9 months, 2025-03-01 to 2025-11-30 | $14.5m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-11-30 | $31.3m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-11-30 | $132.6m | us-gaap:AssetsCurrent |
| Total assets | at 2025-11-30 | $354.3m | us-gaap:Assets |
| Current liabilities | at 2025-11-30 | $35.0m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-11-30 | $49.5m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-11-30 | $304.8m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 32,797 characters.

### Cautionary Statement Regarding Forward-Looking Statements

*The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read together with the unaudited consolidated financial statements and related notes of Ennis, Inc. (collectively with its subsidiaries, the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”), included in Part 1, Item 1 of this report, and with the audited consolidated financial statements and the related notes of the Company included in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025.*

*All of the statements in this report, other than historical facts, are forward-looking statements, including, without limitation, the statements made in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As a general matter, forward-looking statements are those focused upon anticipated events or trends, expectations, and beliefs relating to matters that are not historical in nature. The words “could,” “should,” “feel,” “anticipate,” “aim,” “preliminary,” “expect,” “believe,” “estimate,” “intend,” “intent,” “plan,” “will,” “foresee,” “project,” “forecast,” or the negative thereof or variations thereon, and similar expressions identify forward-looking statements.*

*The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for these forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that forward-looking statements are subject to known and unknown risks, uncertainties and other factors relating to its operations and business environment, all of which are difficult to predict and many of which are beyond the control of the Company. These known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those matters expressed in, anticipated by or implied by such forward-looking statements.*

*These statements reflect the current views and assumptions of management with respect to future events. The Company does not undertake, and hereby disclaims, any duty to update these forward-looking statements, even though its situation and circumstances may change in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. The inclusion of any statement in this report does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.*

*We believe these forward-looking statements are based upon reasonable assumptions. All such statements involve risks and uncertainties, and as a result, actual results could differ materially from those projected, anticipated or implied by these statements. Such forward-looking statements involve known and unknown risks, including but not limited to: general economic, business and labor conditions and the potential adverse effects of potential recessionary concerns, inflationary issues, U.S. import tariffs and supply chain disruptions and the potential impact on our operations; our ability to implement our strategic initiatives and control our operational costs; dependence on a limited number of key suppliers; our ability to recover the rising cost of raw materials and other costs (including energy, freight, labor and benefit costs) in markets that are highly price competitive and volatile; uninsured losses, including those from natural disasters, catastrophes, pandemics, theft, sabotage; the impact of future pandemics on the U.S. and local economies, our business operations, our workforce, our supply chain and our customer base; our ability to timely or adequately respond to technological changes in the industry; cybersecurity risks, the impact of the internet and other electronic media on the demand for forms and printed materials; the impact of foreign competition, tariffs, trade regulations and import restrictions; customer credit risk; competitors’ pricing strategies; a decline in business volume and profitability could result in an impairment in our reported goodwill negatively impacting our operational results; our ability to retain key management personnel; our ability to identify, manage or integrate acquisitions.; In addition to the factors indicated above, you should carefully consider the risks described in and incorporated by reference herein and in the risk factors in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025 before making an investment in our common stock.*

### Overview

Ennis, Inc. (collectively with its subsidiaries, “the “Company,” “Registrant,” Ennis,” or “we,” “us,” or “our”) was organized under the laws of Texas in 1909. We print and manufacture a broad line of business forms and other business products. We distribute business products and forms throughout the United States primarily through independent distributors. This distributor channel encompasses independent print distributors, commercial printers, direct mail, fulfillment companies, payroll and accounts payable software companies, and advertising agencies, among others. We also sell products to many of our competitors to satisfy their customers’ needs.

### Business Overview

Our management believes we are the largest provider of business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders to independent distributors in the United States.

We are in the business of manufacturing, designing, and selling business forms and other printed business products primarily to distributors located in the United States. As of November 30, 2025, we operate approximately 50 manufacturing plants throughout the United States in 20 strategically located states as one reportable segment: printing services. Approximately 95% of the business products we manufacture are custom and semi-custom products, constructed in a wide variety of sizes, colors, number of parts, and quantities on an individual job basis, depending upon the customers’ specifications.

The products we sell include snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive products in short, medium and long runs under the following labels: Ennis®, Royal Business Forms®, CFC Print & MailSM, Block Graphics®, ColorWorx®, Enfusion®, Uncompromised Check Solutions®, VersaSeal®, Ad ConceptsSM, FormSource LimitedSM, Star Award Ribbon Company®, Witt Printing®, Genforms®, PrintGraphics®, Calibrated Forms®, PrintXcel®, Printegra®, Forms ManufacturersSM, Mutual Graphics®, TRI-C Business FormsSM, Major Business SystemsSM, Independent PrintingSM, Hayes Graphics®, Wright Business GraphicsSM, Wright 360SM, Integrated Print & GraphicsSM, the Flesh CompanySM, AmeriPrintSM; StylecraftSM, UMC PrintSM; Eagle GraphicsSM, Diamond GraphicsSM and Printing TechnologiesSM. We also sell the Adams McClure® brand (which provides Point of Purchase advertising); the Admore®, Folder Express®, and Independent Folders® brands (which provide presentation folders and document folders); Ennis Tag & LabelSM (which provides custom printed, high performance labels and custom and stock tags); Allen-Bailey Tag & LabelSM, Atlas Tag & Label®, Kay Toledo Tag®, and Special Service Partners® (SSP) (which provides custom and stock tags and labels); Trade Envelopes®, Block Graphics®, Wisco®, Northeastern Envelope CompanySM, Envelope SuperstoreSM and National Imprint Corporation® (which provide custom and imprinted envelopes); Northstar® and General Financial Supply® (which provide financial and security documents); InfosealSM and PrintXcel® (which provide custom and stock pressure seal documents). School Photo Marketing and National School Forms are a one-stop shop for over 1,400 school portrait photographers and professional photo labs nationwide, providing them with a complete array of products and services that reach over 15 million families and 30,000 schools, primarily in the K-8 market. We sell predominantly through independent distributors, as well as to many of our competitors. Northstar Computer Forms, Inc., one of our wholly-owned subsidiaries, also sells direct to a small number of customers, generally large banking organizations (where a distributor is not acceptable or available to the end-user). Adams McClure, LP, a wholly-owned subsidiary, also sells direct to a small number of customers, where sales are generally through advertising agencies.

The printing industry generally sells its products either predominantly to end users, a market dominated by a few large manufacturers, such as R.R. Donnelley and Taylor Corporation, or, like the Company, through a variety of independent distributors and distributor groups. While it is not possible, because of the lack of adequate public statistical information, to determine the Company’s share of the total business products market, management believes the Company is the largest producer of business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders in the United States distributing primarily through independent distributors.

There are a number of competitors that operate in this segment. We believe our strategic locations and buying power permit us to compete on a favorable basis within the distributor market on factors such as service, quality and price.

Our products are sold throughout the United States primarily by independent distributors, including business forms distributors, resellers, direct mail, commercial printers, software companies, and advertising agencies.

Raw materials principally consist of a wide variety of weights, widths, colors, sizes, and qualities of paper for business products purchased primarily from one major supplier at favorable prices based on our high volume of business with that supplier relative to our competitors.

Business products usage in the printing industry is generally not seasonal. Acquisitions of new business, general economic conditions and contraction of the traditional business forms industry are the predominant factors in quarterly volume fluctuations.

### Recent Acquisitions

On November 14, 2025, the Company acquired the CFC Print & Mail (“CFC”) net assets and business from CFC Print Solutions, LLC which is based in Grand Prairie, Texas for approximately $3.9 million in cash. Prior to the acquisition, CFC generated approximately $7.1 million in sales for its fiscal year ended December 31, 2024. CFC specializes in serving a national distributor network with business-document printing and mailing services, offering industry-leading turnaround times and automation.

On April 11, 2025, the Company acquired the net assets and business of NEC, which is based in Old Forge, Pennsylvania and ESS, which is based in Hiram, Georgia. The acquisition of NEC and ESS, which prior to the acquisition generated approximately $26.0 million in sales for its fiscal year ended December 31, 2024, strengthens our production capabilities to serve our customers in the Northeast United States.

### Our Business Challenges

Our industry is currently experiencing consolidation of traditional supply channels, ongoing product obsolescence, paper supplier capacity adjustments, and increased pricing and potential supply allocations resulting from demand and supply imbalance. Technological advances have enabled electronic document distribution, web-based hosting, digital printing and print-on-demand solutions to serve as viable and cost-effective alternatives to traditional custom-printed documents and customer communications. Improved equipment has become more accessible to both existing and new competitors. We face highly competitive conditions throughout our supply chain in an already over-supplied, price-competitive print industry. The challenges of our business include the following:

**Transformation of our portfolio of products –** While traditional business documents remain essential to conducting business, many are being replaced through the use of lower-cost paper grades or imported paper, or devalued by advances in digital technologies, resulting in steady declines in demand for a portion of our current product line. Transforming our product offerings in order to continue to provide innovative, value-added solutions through lower labor and fixed costs to our customers on a proactive basis requires ongoing investments in new and existing technology and the development of key strategic business relationships, such as print-on-demand services and product offerings that assist customers in their transition to digital business environments. In addition, we continue to evaluate new market opportunities and niches through acquisitions, including the expansion of our envelope, tag, folder, healthcare wristbands, specialty packaging, direct mail, pressure seal products, secure document, in-mold label, and long-run integrated high color web printing offerings, which provide opportunities for growth and further differentiate us from our competition. The ability to make investments in new and existing technology and/or pursue acquisitions is dependent on the Company’s liquidity and operational results.

**Production capacity and price competition within our industry –** Industry supply of paper products continues to fluctuate as changing market conditions have influenced, and are expected to continue to influence, producers to idle or permanently close individual machines or mills, or convert capacity to alternative product lines, such as packaging to offset a decline in demand for certain paper grades. Recent industry activity has included temporary idling of machines, permanent closures and limited increases in specialty paper capacity, reflecting ongoing adjustments in response to shifts in demand. During the current fiscal year, the only domestic producer of carbonless paper permanently closed its mill which has contributed to ongoing supply constraints. As previously reported, we invested in additional inventory to serve as buffer stock while transitioning to alternative sources of carbonless paper. Margins remain under pressure due to weak volumes in certain parts of the market, elevated input costs and ongoing pricing competition. To protect results, we continue to manage and control product costs through the use of forecasting, production and costing models; strengthening supplier relationships; negotiating favorable procurement terms; and increasing operational efficiency. We continue to evaluate opportunities to reduce and better leverage our fixed cost structure while focusing on maintaining our margins.

**Continued consolidation of our customers –** Our customers are primarily distributors, many of which are consolidating or are being acquired by competitors. We continue to maintain a high volume of the business with these customers but such consolidations and acquisitions, which we expect to continue, could ultimately affect our sales volumes and margins.

For further information, please see “Cautionary Statement Regarding Forward-Looking Statements,” above and “Risk Factors” contained within our Annual Report on Form 10-K for the fiscal year ended February 28, 2025.

### Critical Accounting Estimates

Our Annual Report on Form 10-K for the year ended February 28, 2025, includes a description of certain critical accounting estimates, including those with respect to the pension plan, impairment assessments on goodwill and other intangible assets, allowance for credit losses and accounts receivable, and allowance for excess and obsolete inventories, which we believe are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates. During the quarter ended November 30, 2025, there have been no material changes to the critical accounting estimates described in our Annual Report on Form 10-K for the year ended February 28, 2025.

### Recent Accounting Pronouncements

See Note 1 of the accompanying unaudited condensed consolidated financial statements for a discussion of recent accounting pronouncements.

### Results of Operations

The following discussion provides information which we believe is relevant to understanding our results of operations and financial condition. The discussion and analysis should be read in conjunction with the accompanying interim unaudited consolidated financial statements and notes included in this filing. The operating results of the Company for the three and nine months ended November 30, 2025 and the comparative period for 2024 are set forth in the tables below.

### Consolidated Summary

*Unaudited Condensed Consolidated Statements of*

| Operations - Data (in thousands) | Three Months Ended November 30, 2025 |  | 2024 |  | Nine Months Ended November 30, 2025 |  | 2024 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net sales | $100,167 | 100.0% | $99,771 | 100.0% | $296,039 | 100.0% | $301,917 | 100.0% |
| Cost of goods sold | 68,215 | 68.1 | 70,522 | 70.7 | 203,757 | 68.8 | 211,985 | 70.2 |
| Gross profit margin | 31,952 | 31.9 | 29,249 | 29.3 | 92,282 | 31.2 | 89,932 | 29.8 |
| Selling, general and administrative | 16,990 | 17.0 | 16,341 | 16.4 | 51,656 | 17.4 | 50,068 | 16.6 |
| (Gain) loss from disposal of assets | (19) | — | (138) | — | (19) | — | (95) | — |
| Income from operations | 14,981 | 15.0 | 13,046 | 13.1 | 40,645 | 13.7 | 39,959 | 13.2 |
| Other (expense) income | (47) | — | 1,029 | 1.0 | 5,946 | 2.0 | 3,074 | 1.0 |
| Earnings before income taxes | 14,934 | 14.9 | 14,075 | 14.1 | 46,591 | 15.7 | 43,033 | 14.2 |
| Provision for income taxes | 4,107 | 4.1 | 3,871 | 3.9 | 12,812 | 4.3 | 11,834 | 3.9 |
| Net earnings | $10,827 | 10.8% | $10,204 | 10.2% | $33,779 | 11.4% | $31,199 | 10.3% |

### Three months ended November 30, 2025 compared to three months ended November 30, 2024

*Net Sales.* Our net sales were $100.2 million for the quarter ended November 30, 2025, compared to $99.8 million for the same quarter in the prior year, an increase of $0.4 million, or 0.4%. Organic sales volume decreased $5.4 million due to weaker customer demand and ongoing industry-wide pressure in the U.S. printing market. This decline was offset by more than $5.8 million of incremental revenues from acquisitions completed during the current fiscal year.

*Cost of Goods Sold and Gross Profit Margin.* Our cost of goods sold decreased $2.3 million, or 3.3%, from $70.5 million for the three months ended November 30, 2024 to $68.2 million for the three months ended November 30, 2025. Gross profit was $32.0 million or 31.9% of revenue for the quarter ended November 30, 2025 compared to $29.2 million or 29.3% of revenue for the same quarter in the prior year. The improvement in margin reflects operational efficiencies and the favorable margin contribution from recent acquisitions. We continue to implement cost management and pricing initiatives to help offset the impact of ongoing market softness and competitive pricing pressures.

*Selling, general, and administrative expense.* For the three months ended November 30, 2025, our selling, general, and administrative ("SG&A") expenses were $17.0 million compared to $16.3 million for the three months ended November 30, 2024, an increase of $0.7 million, or 4.3%. As a percentage of net sales, SG&A expenses for the current quarter were 17.0% and 16.4% for the three months ended November 30, 2025 and November 30, 2024, respectively. The increase in SG&A expense is primarily attributable to higher incentive compensation tied to improved profitability and other operating costs, partially offset by operational efficiencies.

*Gain and loss from disposal of assets.* The $19,000 and $138,000 net gain from disposal of assets during the three-month period ended November 30, 2025 and November 30, 2024 was primarily attributed to the sale of unused equipment.

*Income from operations.* Primarily due to factors described above, our income from operations for the three months ended November 30, 2025 was $15.0 million, or 15.0% of net sales, as compared to $13.0 million, or 13.1% of net sales, for the three months ended November 30, 2024.

*Other income (expense).* Other income (expense) was not material for the three months ended November 30, 2025 compared to other income of $1.0 million for the three months ended November 30, 2024. Interest income for the three months ended November 30, 2025 and 2024 were $0.3 and $1.4 million, respectively. The decrease in interest income was primarily attributable to lower average cash, cash equivalent, and investment balances. Other expense was consistent between periods.

*Provision for income taxes.* Our effective income tax rate was 27.5% for the three months ended November 30, 2025 and remained flat compared to the three months ended November 30, 2024.

*Net earnings.* Net earnings, due to the factors above, were $10.8 million for the three months ended November 30, 2025 as compared to $10.2 million for the comparable quarter in the prior year. After-tax earnings per diluted share for the three months ended November 30, 2025 were $0.42, compared to $0.39 for the same quarter last year. Diluted earnings per share for the current quarter were positively impacted $0.05 per diluted share from our recent acquisitions completed in the current and prior year.

### Nine months ended November 30, 2025 compared to nine months ended November 30, 2024

*Net Sales.* Our net sales were $296.0 million for the nine-month period ended November 30, 2025, compared to $301.9 million for the same period last year, a decrease of $5.9 million, or 2.0%. Organic sales volume decreased $22.3 million due to weaker customer demand and ongoing industry-wide pressure in the U.S. printing market. This decline was offset by more than $16.4 million of incremental revenues from acquisitions completed in the current and prior year and reflecting partial-period results where applicable.

*Cost of Goods Sold and Gross Profit Margin.* Our cost of goods sold decreased $8.2 million, or 3.9%, from $212.0 million for the nine months ended November 30, 2024 to $203.8 million for the nine months ended November 30, 2025. Gross profit was $92.3 million for the nine month period ended November 30, 2025 compared to $89.9 million for the same period in the prior year. Gross profit margin increased to 31.2% from 29.8% in the prior-year period. The improvement in margin reflects operational efficiencies and the favorable margin contribution from recent acquisitions. We continue to implement cost management and pricing initiatives to mitigate the impact of ongoing market softness and competitive pricing pressures.

*Selling, general, and administrative expense.* For the nine months ended November 30, 2025, our SG&A expenses were $51.7 million compared to $50.1 million for the nine months ended November 30, 2024, an increase of $1.6 million, or 3.2%. As a percentage of net sales, SG&A expenses for the period were 17.4% and 16.6% for the nine months ended November 30, 2025 and 2024, respectively. The increase in SG&A expenses is primarily attributable to higher incentive compensation tied to improved profitability and other operating costs, partially offset by operational efficiencies.

*Gain and loss from disposal of assets.* The $19,000 and $95,000 net gain from disposal of assets during the nine month period ended November 30, 2025 and November 30, 2024, respectively, was primarily attributed to the sale of unused equipment.

*Income from operations.* Primarily due to factors described above, our income from operations for the nine months ended November 30, 2025 was $40.6 million, or 13.7% of net sales, as compared to $40.0 million, or 13.2% of net sales, for the nine months ended November 30, 2024.

*Other income (expense).* Other income was $5.9 million for the nine months ended November 30, 2025 compared to $3.1 million for the nine months ended November 30, 2024. The increase was primarily attributable to the recognition of $5.3 million related to proceeds received in connection with a legal matter against Wright Printing Company, its owners mark Wright, and CEO Mardra Sikora, which includes $0.4 million of interest income. Interest income for the nine months ended November 30, 2025 and 2024 were $1.6 million and $4.1 million, respectively. The decrease in interest income was primarily due to lower average cash, cash equivalent and investment balances.

*Provision for income taxes.* Our effective tax rate was 27.5% for the nine months ended November 30, 2025 and remained flat compared to the period ended November 30, 2024.

*Net earnings.* Net earnings, due to the factors above, were $33.8 million for the nine months ended November 30, 2025 as compared to $31.2 million for the comparable period in the prior year, an increase of $2.6 million. Net earnings per diluted share for the nine months ended November 30, 2025 was $1.31, compared to $1.19 for the same period in the prior year. Diluted earnings per share for the current quarter were positively impacted $0.11 per diluted share from our recent acquisitions completed in the current and prior year and approximately $0.14 per diluted share from the lawsuit settlement proceeds.

### Liquidity and Capital Resources

We fund our operations primarily through cash generated from operating activities. Our principal cash requirements include payments to vendors in the ordinary course of business, capital expenditures, employee compensation and benefits, and dividends to shareholders. As of November 30, 2025, we had a cash balance of $31.3 million. We expect operating cash flows to be consistent with prior periods, and we anticipate reduced purchasing needs over the next several quarters due to our recent strategic stockpiling of carbonless paper inventory. Based on these factors, we believe our cash on hand, together with anticipated cash flows from operations, will be sufficient to meet our operating and capital requirements the next twelve months. Our capital expenditures to maintain our manufacturing facilities are expected to range between $4.0 million and $7.0 million over the next twelve months, consistent with historical spending levels.

*(Dollars in thousands)*

|  | November 30, 2025 | February 28, 2025 |
| --- | ---: | ---: |
| Working capital | $97,553 | $119,436 |
| Cash and cash equivalents | $31,283 | $67,000 |
| Short-term investments | $- | $5,475 |

***Working Capital.*** During the nine months ended November 30, 2025, our working capital decreased $21.9 million or 18.3%, from $119.4 million at February 28, 2025 to $97.6 million at November 30, 2025. The decrease in working capital primarily reflects a reduction in cash, cash equivalents and short-term investments of $41.2 million. The decline in cash resulted primarily from cash used for the acquisitions of NEC and CFC of approximately $38.9 million and stock repurchases of $14.5 million, and inventory purchases during the period, partially offset by cash collection on receivables. Our current ratio, calculated by dividing current assets by current liabilities, decreased from 4.6 to 1.0 at February 28, 2025 to 3.8 to 1.0 at November 30, 2025.

*(Dollars in thousands)*

|  | Nine months ended November 30, 2025 | 2024 |
| --- | ---: | ---: |
| Net cash provided by operating activities | $34,859 | $53,097 |
| Net cash provided by (used in) investing activities | $(36,653) | $7,919 |
| Net cash used in financing activities | $(33,923) | $(86,909) |

***Cash flows from operating activities.*** Cash provided by operating activities was $34.9 million for the nine months ended November 30, 2025, compared to $53.1 million in the prior-year period, a decrease of $18.2 million. The decline was primarily driven by a $21.2 million increase in cash used for inventory purchases, reflecting higher purchasing activity during the current year. This increase was partially offset by a $2.6 million increase in net earnings compared to the prior year period. Cash collections on accounts receivable and other receivables declined by $4.2 million, partially offset by a $2.8 million reduction in cash outflows for accounts payable and accrued expenses. In addition, cash outflows decreased by $1.2 million related to pension plan contributions and $1.5 million related to stock-based compensation.

***Cash flows from investing activities.*** Cash used in investing activities was $36.7 million in the nine months ended November 30, 2025 compared to cash provided by investing activities of $7.9 million in the nine months ended November 30, 2024. The change was primarily driven by increased cash used for business acquisitions which totaled $38.9 million during the nine months ended November 30, 2025 compared to $5.5 million in the prior period. In addition, during the nine months ended November 30, 2025, approximately $5.5 million of U.S. government treasury bills matured and invested in money market funds, compared to net maturities and repurchases of approximately $17.4 million during the nine months ended November 30, 2024.

***Cash flows from financing activities.*** Cash used in financing activities was $33.9 million in the nine months ended November 30, 2025 compared to the cash used of $86.9 million in the prior period, primarily due to lower dividend payments. During the nine months ended November 30, 2025 and November 30, 2024, we repurchased $14.5 million and $1.8 million of common stock, respectively, under our stock repurchase program. Dividend payments totaled $19.5 million in 2025, compared to $85.3 million in 2024, which included a one-time special dividend of $2.50 per share or $65.0 million.

***Credit Facility –*** As of November 30, 2025, we had $0.2 million outstanding under a standby letter of credit arrangement secured by a cash collateral bank account. It is anticipated that our cash, short-term investments and funds from operating cash flows will be sufficient to fund anticipated future expenditures, including acquisitions.

***Pension Plan –*** The funded status of our Pension Plan is dependent on many factors, including returns on invested assets, the level of market interest rates and the level of funding. We are not required to contribute to the pension plan for fiscal year 2026. We contributed $1.2 million to the pension plan for fiscal year 2025. As our pension assets are invested in marketable securities, changes in actual investment returns or in discount rates could change funding status and requirements significantly. At November 30, 2025, we had a funded pension asset of $1.4 million.

***Inventories –*** We believe our inventory levels are sufficient to satisfy customer demand, and we expect to maintain adequate access to raw materials to support future business requirements. Recent consolidation within the paper industry and the closure of the sole U.S. mill producing rolls of carbonless paper are expected to create volatility in paper pricing and supply availability. In anticipation of this disruption, we made a strategic decision to increase inventory levels to mitigate the risk of shortages and ensure continuity of supply. We maintain long-term supply agreements with key paper vendors that establish pricing parameters but do not impose minimum purchase obligations. Certain rebate programs, however, are contingent on achieving minimum purchase volumes and management currently expects to meet those requirements.

***Capital Expenditures –*** We continue to make capital expenditures for operational maintenance purposes, as may be required. Additionally, we will carefully review and make capital expenditures for additional equipment to the extent such additions make economic sense by improving our operations and not jeopardizing our strong liquidity position. We expect our capital requirements for our current fiscal year, exclusive of capital required for possible acquisitions, will be within our historical levels of between $4.0 million and $7.0 million. For the nine months ended November 30, 2025, we spent approximately $3.5 million on capital expenditures that was funded out of our cash balance. We expect to generate sufficient cash flows from our operating activities to cover our operating and other normal capital requirements for the foreseeable future.

***Contractual Obligations –*** There have been no significant changes in our contractual obligations since February 28, 2025 that have, or are reasonably likely to have, a material impact on our results of operations or financial condition. We do not have off-balance sheet arrangements or special-purpose entities.

## Market risk

As filed, 720 characters.

### Market Risk

### Interest Rates

From time to time, we are exposed to interest rate risk on short-term and long-term financial instruments carrying variable interest rates. We may from time to time utilize interest rate swaps to manage overall borrowing costs and reduce exposure to adverse fluctuations in interest rates. We do not use derivative instruments for trading purposes. While we had no outstanding debt at November 30, 2025, we will be exposed to interest rate risk if we borrow in the future.

This market risk discussion contains forward-looking statements. Actual results may differ materially from this discussion based upon general market conditions and changes in domestic and global financial markets.

## Controls and procedures

As filed, 2,880 characters.

**Evaluation of Disclosure Controls and Procedures.** We maintain “disclosure controls and procedures” as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosures. Our controls and procedures are tested and evaluated at regular intervals to confirm that they are adequate and followed by our personnel to prevent misstatement of the Company’s financial statements. Due to the inherent limitations of control systems, not all misstatements may be detected. Those inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Additionally, controls could be circumvented by the individual acts of some persons or by collusion of two or more people. Our controls and procedures can only provide reasonable, not absolute, assurance that the above objectives have been met. Our management, with the participation of our Chairman of the Board, President and Chief Executive Officer (“CEO”) and Chief Financial Officer and Treasurer (“CFO”), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO have concluded that, as of November 30, 2025, our disclosure controls and procedures are effective to provide reasonable assurance that information relating to us (including our consolidated subsidiaries), which is required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a–15(f) or Rule 15d–15(f) of the Exchange Act) that occurred during the three and nine months ended November 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 151 characters.

There have been no material changes in our Risk Factors as previously discussed in our Annual Report on Form 10-K for the year ended February 28, 2025.

Filed Jan 7, 2026.
Source: SEC EDGAR, the filing index for accession 0001193125-26-005532. Last ingested by Listed: Oct 24, 2026, 14:52 ET. No prices; not investment advice.