ENNIS, INC.
For the period ended May 31, 2026. Filed Jul 1, 2026.
View on SEC.govAbout this filing
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.
May 31, 2026 · Filed Jul 1, 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 2025-11-30; filed 2026-01-07.
0001193125-26-005532
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-05-31; filed 2026-07-01.
0001193125-26-291652
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 63 previous paragraphs and 56 current paragraphs.
34 unchanged; 18 reworded; 4 added; 8 removed; 3 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 (4)
Current report
Production capacity and price competition within our industry – Industry supply of paper products continues to fluctuate as market conditions influence producers to idle, permanently close, or convert paper machines and mills to alternative product lines. These actions, together with ongoing demand declines in certain paper grades, have contributed to supply constraints and pricing volatility across portions of the industry.
Current report
During fiscal year 2026, the sole domestic producer of carbonless paper permanently closed its manufacturing facility. In response, we increased inventory levels and developed alternative supply sources. While we continue to transition to these alternative suppliers and do not currently anticipate disruptions to customer service, product availability or product quality, changes in industry supply conditions could result in continued supply constraints and input cost volatility for certain paper grades. In addition, changes in tariff policies, trade regulations and transportation costs may increase raw material, freight and product sourcing costs. Industry conditions continue to reflect ongoing capacity rationalization and pricing actions within certain paper grades.
Current report
Margins continue to be affected by volume variability in certain markets, input cost inflation and pricing competition. We seek to mitigate these impacts through disciplined pricing practices, strategic sourcing initiatives, operational efficiency improvements and effective management of our manufacturing cost structure.
Current report
Cash flows from investing activities. Cash used in investing activities decreased to $0.3 million in the current quarter from $30.8 million in the prior-year quarter, primarily because the prior-year quarter included $34.9 million of acquisition spending while the current quarter did not.
Removed paragraphs (8)
Previous report
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 report
Nine months ended November 30, 2025 compared to nine months ended November 30, 2024
Previous 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.
Previous report
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 report
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 report
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 report
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 report
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.
Reworded paragraphs (18)
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®, 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.
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 & Mail SM, Block Graphics®, ColorWorx®, Enfusion®, Uncompromised Check Solutions®, VersaSeal®, Ad Concepts SM, FormSource Limited SM, Star Award Ribbon Company®, Witt Printing®, Genforms®, PrintGraphics®, Calibrated Forms®, PrintXcel®, Printegra®, Forms Manufacturers SM, Mutual Graphics®, TRI-C Business Forms SM, Major Business Systems SM, Independent Printing SM, Hayes Graphics®, Wright Business Graphics SM, Wright 360 SM, Integrated Print & Graphics SM, the Flesh Company SM, AmeriPrint SM; Stylecraft SM, UMC Print SM; Eagle Graphics SM, Diamond Graphics SM and Printing Technologies SM. 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 & Label SM (which provides custom printed, high performance labels and custom and stock tags); Allen-Bailey Tag & Label SM, 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 Company SM, Envelope Superstore SM and National Imprint Corporation® (which provide custom and imprinted envelopes); Northstar® and General Financial Supply® (which provide financial and security documents); Infoseal SM 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
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 wording
On November 14, 2025, the Company acquired the net assets and business of CFC which is based in Grand Prairie, Texas. 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.
Previous 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.
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 products, or are being devalued by advances in digital technologies, resulting in continued declines in demand for a portion of our product line. Transforming our product offerings in order to provide innovative, value-added solutions on a proactive basis requires ongoing investments in new and existing technologies, as well as the development of key strategic business relationships, including print-on-demand services and product offerings that support customers transitioning to digital business environments. We continue to evaluate new market opportunities and niches, including through acquisitions, and to expand our offerings in areas such as envelopes, tags, folders, healthcare wristbands, specialty packaging, direct mail, pressure seal products, secure document, in-mold labels, and long-run integrated high color web print, which provide opportunities for growth and further differentiate us from our competition. Our ability to make such investments or pursue acquisitions is dependent on our liquidity, capital resources, and operating results.
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 nine months ended November 30, 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 months ended May 31, 2026 and the comparative period for 2025 are set forth in the tables below.
Previous 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.
Current wording
Net Sales. Our net sales were $98.6 million for the quarter ended May 31, 2026, compared to $97.2 million for the same quarter in the prior year, an increase of $1.4 million, or 1.4%. Organic sales volume decreased $3.1 million due to weaker customer demand and ongoing industry-wide pressure in the U.S. printing market. This decline was offset by more than $4.5 million of incremental revenues from acquisitions, primarily reflecting revenues generated during periods not owned in the comparable prior-year quarter. We continue to focus on providing our customers with quality products and responsive customer service.
Previous 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.
Current wording
Cost of Goods Sold and Gross Profit Margin. Our cost of goods sold increased $0.5 million, or 0.7%, from $67.0 million for the three months ended May 31, 2025 to $67.5 million for the three months ended May 31, 2026. Gross profit was $31.1 million or 31.5% of revenue for the quarter ended May 31, 2026 compared to $30.2 million or 31.1% of revenue for the same quarter in the prior year. Gross margin improvement was primarily attributable to pricing discipline, product mix and the continued integration of acquired operations.
Previous 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.
Current wording
Selling, general, and administrative expense. For the three months ended May 31, 2026, our selling, general, and administrative ("SG&A") expenses were $17.5 million compared to $16.9 million for the three months ended May 31, 2025, an increase of $0.6 million, or 3.6%. As a percentage of net sales, SG&A expenses for the current quarter were 17.8% and 17.4% for the three months ended May 31, 2026 and May 31, 2025, respectively. The increase in SG&A expense is primarily attributable to expenses associated with prior year acquisitions not yet fully integrated, along with higher incentive compensation.
Previous 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.
Current wording
Gain and loss from disposal of assets. The $10,000 net gain from disposal of assets during the three-month period ended May 31, 2026 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 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.
Current wording
Income from operations. Primarily due to factors described above, our income from operations for the three months ended May 31, 2026 was $13.6 million, or 13.8% of net sales, as compared to $13.3 million, or 13.7% of net sales, for the three months ended May 31, 2025.
Previous wording
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 wording
Other income (expense). Other income was $0.1 million for the three months ended May 31, 2026 compared to other income of $0.2 million for the three months ended May 31, 2025.
Previous wording
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.
Current wording
Provision for income taxes. Our effective income tax rate was 28.0% and 27.5% for the three months ended May 31, 2026 and 2025, respectively. The effective tax rate for the three months ended May 31, 2026 was higher than the prior-year period primarily due to changes in state income taxes and nondeductible executive compensation.
Previous 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.
Current wording
Net earnings. Net earnings, due to the factors above, were $9.9 million for the three months ended May 31, 2026 as compared to $9.8 million for the comparable quarter in the prior year. Earnings per diluted share for the three months ended May 31, 2026 were $0.39, compared to $0.38 for the same quarter last year. Diluted earnings per share for the current quarter were positively impacted $0.02 per diluted share from our recent acquisitions.
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 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.
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 May 31, 2026, we had a cash balance of $49.1 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 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.
Current wording
Working Capital. During the three months ended May 31, 2026, our working capital increased $6.4 million or 6.6%, from $96.4 million at February 28, 2026 to $102.8 million at May 31, 2026. The increase in working capital primarily reflects an increase in cash and cash equivalents of $14.5 million, offset by a decrease in accounts receivables of $4.1 million and an increase in income tax payable of $3.8 million. Our current ratio, calculated by dividing current assets by current liabilities, 3.7 to 1.0 at February 28, 2026, decreased slightly to 3.5 to 1.0 at May 31, 2026.
Previous wording
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.
Current wording
Cash flows from operating activities. Cash provided by operating activities was $21.2 million for the three months ended May 31, 2026, compared to $8.0 million in the prior comparative period, an increase of $13.3 million. The increase was primarily due to $10.6 million less in cash used for inventories and a favorable $11.3 million change in accounts receivables and other receivables, partially offset by an $8.5 million smaller increase in accounts payables and accrued expenses compared to the prior period.
Previous 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.
Current wording
Cash flows from financing activities. Cash used in financing activities was $6.4 million in the three months ended May 31, 2026 compared to the cash used of $11.5 million in the prior comparative period, primarily due to the lack of share repurchases of $5.0 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 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.
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 2027. 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 May 31, 2026, we had a funded pension asset of $2.2 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 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.
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 three months ended May 31, 2026, we spent approximately $0.4 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.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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.