Tue, May 13, 7:57 PM (36 days ago)
**Ennis, Inc. (EBF) - 2025 Annual Report Summary** **Financial Performance:** - **Revenue:** $394.6 million (2025), down 6.1% from 2024 due to decreased volume demand, partially offset by acquisitions. - **Net Income:** $40.2 million (2025), down from $42.6 million (2024) due to decreased revenues. - **Earnings per Share (EPS):** $1.54 (diluted, 2025), down from $1.64 (2024). - **Operating Expenses:** Selling, General & Administrative (SG&A) expenses were $65.4 million (2025), down 5.0% from 2024. - **Cash Flow:** $65.9 million from operations (2025), down from $69.1 million (2024). **Strategic Overview:** - **Market Position:** Largest provider of business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders to independent distributors in the U.S. - **Acquisitions:** Recent acquisitions include Printing Technologies, Eagle Graphics, Diamond Graphics, UMC Print, and Stylecraft Printing. - **Product Diversification:** Expansion into 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. **Future Outlook:** - **Growth Strategy:** Continued focus on acquisitions and strategic investments in technology. - **Market Challenges:** Industry consolidation, product obsolescence, and increased pricing competition. - **Operational Efficiency:** Focus on managing product costs, reducing fixed costs, and maintaining margins. **Risk Factors:** - **Market Risks:** Volatility in stock market, economic uncertainty, and competitive pricing pressures. - **Operational Risks:** Labor disputes, supply chain disruptions, and environmental regulations. - **Financial Risks:** Interest rate changes, pension plan funding, and credit risks. **Financial Condition:** - **Liquidity:** Strong cash position with $67.0 million in cash and short-term investments (2025). - **Capital Expenditures:** Expected to be between $4.0 million and $7.0 million (2025). - **Debt:** No significant debt, with $0.3 million outstanding under a standby letter of credit arrangement. **Market Position Changes:** - **Stock Performance:** Cumulative 5-year total shareholder return on common stock matched with S&P 500 and Russell 2000 indices. - **Dividends:** Paid $0.25 per share quarterly, with a special dividend of $2.50 per share in Q3 2025. **Note:** Amounts are in thousands, 000s.