ENNIS, INC.
For the period ended Nov 30, 2025. Filed Jan 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2025 · Filed Jan 7, 2026
EBF$20.85-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-08-31; filed 2025-10-03.
0001193125-25-229282
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-30; filed 2026-01-07.
0001193125-26-005532
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 63 current paragraphs.
31 unchanged; 27 reworded; 5 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
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.
Current report
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.
Current report
Nine months ended November 30, 2025 compared to nine months ended November 30, 2024
Current report
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.
Current report
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.
Removed paragraphs (4)
Previous report
Six months ended August 31, 2025 compared to six months ended August 31, 2024
Previous report
Cost of Goods Sold and Gross Profit Margin. Our cost of goods sold decreased $6.0 million, or -4.2%, from $141.5 million for the six months ended August 31, 2024 to $135.5 million for the six months ended August 31, 2025. Our gross profit was $60.3 million for the six month period ended August 31, 2025 compared to $60.7 million for the same period in the prior year. Our gross profit margin of 30.8% for the current six month period, increased from the prior year six month period of 30.0%. We continue to pursue cost management measures and target pricing actions intended to mitigate the effects of persistent market weakness and increased price competition on our results.
Previous report
Other income (expense). Other income was $6.0 million for the six months ended August 31, 2025 compared to $2.0 million for the six months ended August 31, 2024. During the period we received cash proceeds of $5.7 million in actual damages, exemplary damages and attorney’s fees in a case against Wright Printing Company, its owners Mark Wright, and CEO Mardra Sikora. This amount included $0.4 million of interest income. Interest income for the period ended August 31, 2025 and 2024 were $1.3 million and $2.7 million. Our decrease in interest income was primarily from lower cash, cash equivalent and investment balances.
Previous report
Cash flows from operating activities. Cash provided by operating activities was $18.4 million in the six months ended August 31, 2025 compared to $34.9 million in the comparative period ended August 31, 2024. Our net earnings increased $2.0 million for the six months ended August 31, 2025 compared to the six months ended August 31, 2024. An increase in accounts receivable used cash of $2.0 million in the current period compared to cash provided by a decrease in accounts receivable of $4.6 million in the prior year. An increase in inventories used cash of $20.8 million in the six months ended August 31, 2025 compared to a decrease in inventory providing cash of $0.2 million in the prior year. An increase in accounts payable and accrued expenses provided cash of $7.3 million in the six months ended August 31, 2025 compared to a decrease in accounts payable and accrued expenses using cash of $0.1 million in the six months ended August 31, 2024. The increase in inventory, accounts payable and accrued expenses during the current period was primarily due to an increase in purchasing activities as stated above. The increase in receivables is primarily from vendor rebates.
Reworded paragraphs (27)
Previous wording
Ennis, Inc. (formerly Ennis Business Forms, 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.
Current wording
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.
Previous wording
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 August 31, 2025, we operate 55 manufacturing plants throughout the United States in 20 strategically located states as one reportable segment: printing services. Approximately 96% 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.
Current wording
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.
Previous wording
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®, 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.
Current wording
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.
Previous wording
Our industry is currently experiencing consolidation of traditional supply channels, product obsolescence, paper supplier capacity adjustments, and increased pricing and potential supply allocations due to demand/supply curve imbalance. Technology advances have made electronic distribution of documents, internet hosting, digital printing and print-on-demand valid, cost-effective alternatives to traditional custom-printed documents and customer communications. Improved equipment has become more accessible to our 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:
Current wording
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:
Previous wording
Transformation of our portfolio of products– While traditional business documents are essential in order to conduct business, many are being replaced through the use of cheaper paper grades or imported paper, or devalued with advances in digital technologies, causing steady declines in demand for a portion of our current product line. Transforming our product offerings in order to continue to provide innovative, valuable solutions through lower labor and fixed charges to our customers on a proactive basis will require us to make investments in new and existing technology and to develop 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 will continue to look for new market opportunities and niches through acquisitions, such as the addition of our envelope offerings, tag offerings, folder offerings, healthcare wristbands, specialty packaging, direct mail, pressure seal products, secure document solutions, innovative in-mold label offerings and long-run integrated products with high color web printing, which provide us with an opportunity for growth and differentiate us from our competition. The ability to make investments in new and existing technology and/or to acquire new market opportunities through acquisitions is dependent on the Company’s liquidity and operational results.
Current wording
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.
Previous wording
Production capacity and price competition within our industry – Industry supply of paper products is subject to fluctuation as changing industry conditions have and will continue to influence producers to idle or permanently close individual machines or mills, or convert them to different product lines, such as packaging to offset a decline in demand. Recently, there have been several major mill closures and consolidations, which could lead to substantial paper price fluctuations in the near future. The only mill located in the United States that produces rolls of carbonless paper has ceased production on a permanent basis. In response to this supply disruption, we have invested in additional inventory as buffer stock in response to the transition to alternative sources of carbonless paper. Margins remain under pressure due to weak volumes in parts of the market as well as rising input costs. 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 will continue to look for ways to reduce and leverage our fixed costs and focus on maintaining our margins.
Current wording
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.
Previous wording
Continued consolidation of our customers – Our customers are distributors, many of which are consolidating or are being acquired by competitors. We continue to maintain a high volume of the business with our customers but it is possible that these consolidations and acquisitions, which we expect to continue in the future, ultimately will impact our margins and sales.
Current wording
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.
Previous wording
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 six months ended August 31, 2025 and the comparative period for 2024 are set forth in the tables below.
Current wording
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.
Previous wording
Net Sales. Our net sales were $98.7 million for the quarter ended August 31, 2025, compared to $99.0 million for the same quarter in the prior year, a decrease of $0.3 million, or -0.3%. Sales volume decreased $5.9 million due to weaker volume demand and was offset by an approximately $5.5 million increase in revenues generated from our recent acquisitions.
Current wording
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.
Previous wording
Cost of Goods Sold and Gross Profit Margin. As a result of decreased sales volume, our cost of goods sold decreased $0.7 million, or -1.0%, from $69.3 million for the three months ended August 31, 2024 to $68.6 million for the three months ended August 31, 2025. Our gross profit was $30.1 million or 30.5% of revenue for the quarter ended August 31, 2025 compared to $29.8 million or 30.1% of revenue for the same quarter in the prior year. We continue to pursue cost management measures and target pricing actions intended to mitigate the effects of persistent market weakness and increased price competition on our results.
Current wording
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.
Previous wording
Selling, general, and administrative expense. For the three months ended August 31, 2025, our selling, general, and administrative ("SG&A") expenses were $17.7 million compared to $16.6 million for the three months ended August 31, 2024, an increase of $1.1 million, or 6.6%. As a percentage of net sales, SG&A expenses for the current quarter were 18.0% and 16.7% for the three months ended August 31, 2025 and August 31, 2024, respectively. The increase in SG&A expenses primarily reflects higher variable incentive compensation tied to profitability and inclusion of SG&A expenses from our recent acquisition.
Current wording
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.
Previous wording
Gain and loss from disposal of assets. The $39,000 net loss from disposal of assets during the three month period ended August 31, 2024, was primarily attributed to the sale of equipment. There was no gain or loss in the three month period ended August 31, 2025.
Current wording
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.
Previous wording
Income from operations. Primarily due to factors described above, our income from operations for the three months ended August 31, 2025 was $12.4 million, or 12.5% of net sales, as compared to $13.2 million, or 13.3% of net sales, for the three months ended August 31, 2024.
Current wording
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.
Previous wording
Net earnings. Net earnings, due to the factors above, were $13.2 million for the three months ended August 31, 2025 as compared to $10.3 million for the comparable quarter in the prior year. After-tax earnings per diluted share for the three months ended August 31, 2025 were $0.51, compared to $0.40 for the same quarter last year. Diluted earnings per share for the current quarter were positively impacted $0.03 per diluted share from our recent acquisition and approximately $0.14 per diluted share from the lawsuit settlement proceeds.
Current wording
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.
Previous wording
Net Sales. Our net sales were $195.9 million for the six month period ended August 31, 2025, compared to $202.1 million for the same period last year, a decrease of $6.2 million, or -3.1%. Sales volume decreased $17.3 million due to weaker volume demand and was partially offset by an approximately $11.0 million increase in revenues generated from our recent acquisitions.
Current wording
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.
Previous wording
Selling, general, and administrative expense. For the six months ended August 31, 2025, our SG&A expenses were $34.7 million compared to $33.7 million for the six months ended August 31, 2024, an increase of $1.0 million, or 3.0%. As a percentage of net sales, SG&A expenses for the period were 17.7% and 16.7% for the six months ended August 31, 2025 and 2024, respectively. The increase in SG&A expenses reflects higher variable incentive compensation tied to profitability and inclusion of SG&A expenses from our recent acquisitions.
Current wording
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.
Previous wording
Gain and loss from disposal of assets. The $43,000 net loss from disposal of assets during the six month period ended August 31, 2024, respectively, was primarily attributed to the sale of equipment. There was no gain or loss in the six month period ended August 31, 2025.
Current wording
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.
Previous wording
Income from operations. Primarily due to factors described above, our income from operations for the six months ended August 31, 2025 was $25.7 million, or 13.1% of net sales, as compared to $26.9 million, or 13.3% of net sales, for the six months ended August 31, 2024.
Current wording
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.
Previous wording
Other income (expense). Other income was $5.8 million for the three months ended August 31, 2025 compared to $1.0 million for the three months ended August 31, 2024. During the quarter we received cash proceeds of $5.7 million in actual damages, exemplary damages and attorney’s fees in a case against Wright Printing Company its owners Mark Wright, and CEO Mardra Sikora. This amount included $0.4 million of interest income. Interest income for the three months ended August 31, 2025 and 2024 were $0.8 and $1.4 million. Our decrease in interest income was primarily from lower cash, cash equivalent, and investment balances.
Current wording
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.
Previous wording
Provision for income taxes. Our effective tax rate was 27.5% for the six months ended August 31, 2025 and remained flat compared to the period ended August 31, 2024.
Current wording
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.
Previous wording
Net earnings. Net earnings, due to the factors above, were $23.0 million for the six months ended August 31, 2025 as compared to $21.0 million for the comparable period in the prior year, an increase of $2.0 million. Net earnings per diluted share for the six months ended August 31, 2025 was $0.89, compared to $0.80 for the same period in the prior year. Diluted earnings per share for the current quarter were positively impacted $0.03 per diluted share from our recent acquisition and approximately $0.14 per diluted share from the lawsuit settlement proceeds.
Current wording
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.
Previous wording
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 August 31, 2025, we had a cash balance of $31.9 million. We expect operating cash flows to be consistent with prior periods, and we anticipate reduced purchasing needs over the next several quarters. 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.
Current wording
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.
Previous wording
Working Capital. During the six months ended August 31, 2025, our working capital decreased $21.6 million or -18.1%, from $119.4 million at February 28, 2025 to $97.8 million at August 31, 2025. The decline was due primarily to our acquisition of NEC and ESS for approximately $34.9 million, as well as our strategic decision to increase inventory levels in response to the closure of the only domestic producer of carbonless paper. Our current ratio, calculated by dividing current assets by current liabilities, decreased from 4.6 to 1.0 at February 28, 2025 to 3.4 to 1.0 at August 31, 2025. The decrease in working capital primarily reflects a reduction in cash, cash equivalents and short-term investments of $40.6 million, an increase in other receivables of $8.8 million, and an increase in inventory of $23.3 million, partially offset by the increase in accounts payable of $5.8 million.
Current wording
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.
Previous wording
Cash flows from investing activities. Cash used in investing activities was $32.0 million in the six months ended August 31, 2025 compared to cash used in investing activities of $1.8 million in the six months ended August 31, 2024. Capital expenditures primarily of equipment was $2.8 million and $3.6 million for the six months ended August 31, 2025 and August 31, 2024, respectively. In the six months ended August 31, 2025, $34.9 million was used to acquire a business compared to $5.6 million in the same period last year. During the current period, approximately $5.5 million of U.S. government treasury bills matured and invested in money market funds. During the six months ended August 31, 2024 we purchased approximately $10.1 million of U.S. government treasury bills, which was partially offset by $17.5 million in matured treasury bills and invested in money market funds.
Current wording
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.
Previous wording
Cash flows from financing activities. We used $6.8 million more cash in financing activities during the six months ended August 31, 2025 compared to the same period in the prior year. During the six months ended August 31, 2025 and August 31, 2024, we purchased $8.6 million and $1.8 million, respectively in common stock under our stock repurchase program. We made dividend payments of $13.1 million and $13.0 million for the six months ended August 31, 2025 and August 31, 2024, respectively.
Current wording
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.
Previous wording
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 make a contribution to the pension plan for fiscal year 2026. We made a contribution of $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 August 31, 2025, we had a funded pension asset of $1.4 million.
Current wording
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.
Previous wording
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 six months ended August 31, 2025, we spent approximately $2.8 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.
Current wording
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.