Midlothian, Texas.Ennis, Inc. (the “Company”), (NYSE: EBF), today announced its financial results for the first quarter ended May 31, 2021. Highlights include:

– The income was $ 96.9 million for the quarter compared to $ 89.0 million for the same quarter last year, an increase of $ 7.9 million or 8.9%.

– Diluted earnings per share for the current quarter was $ 0.28 compared to $ 0.16 for the comparative quarter of last year, an increase of 75%.

– Our gross profit margin for the quarter was 30.1% compared to 26.9% for the comparative quarter of last year, an increase of 12%.

Financial overview

Company revenues for the first quarter ended May 31, 2021 have been $ 96.9 million compared to $ 89.0 million for the same quarter last year, an increase of $ 7.9 million, or 8.9%. Excluding sales of our Information seal acquisition, organic sales increased $ 2.7 million, or 3.0%. The gross profit margin was $ 29.2 million, or 30.1%, compared to $ 23.9 million, or 26.9%, for the same quarter last year. Net profit for the quarter was $ 7.3 million, or $ 0.28 per diluted share, compared to $ 4.2 million, or $ 0.16 per diluted share, for the same quarter last year.

Keith Walters, Chairman of the Board, CEO and President, commented, stating, “Our results for the quarter were in line with our expectations and our management team continued to successfully meet the challenges posed by the COVID-19 pandemic. Our gross profit margin improved in the sequential quarter. rising from 29.6% to 30.1%. Our EBITDA increased in the sequential quarter, $ 12.4 million at $ 15.1 million, representing respectively 13.8% and 15.5% of sales. As our revenues continue to be impacted by the COVID-19 pandemic, some of our customers are seeing their sales return to normalized levels. We continue to monitor incoming order volumes so that we can proactively adjust our costs accordingly. Our recent acquisition of Information seal increased our sales by $ 5.2 million and added $ 0.02 to our diluted earnings per share. We are seeing a tight labor market and inflationary pressures from increasing prices from our suppliers, but we intend to attempt to adjust customer prices over time to maintain our gross profit margin. Our strong relationship with our paper supplier allows us to meet customer demand for their commercial product needs, although paper production in the Print & Writing segment has declined nationally in recent months.

We continued to invest in our business during the quarter, including our most recent acquisition of the assets and operations of Ameriprint Company, a printer specializing in custom printed documents, barcodes, integrated products and business forms. Ameriprint, strategically located in the Chicago field, brings 30 years of printing industry experience and additional capabilities and expertise to our expanding product offering, including barcodes and variable imaging May 31, 2021.

Our financial strength, including a current ratio (current assets divided by current liabilities) of 4.0, a cash balance of $ 81.3 million, and the available line of credit $ 99.4 million allows us to be well positioned for the future in order to be able to face unforeseen adversities and take advantage of acquisition opportunities. Our strong balance sheet and strong cash flow allow us to continue our long history of returning shareholder value through our quarterly dividends, which we recently increased to twenty-five cents ($ 0.25) per share for our quarterly dividend payable August 9, 2021, against twenty-two hundred and a half ($ 0.225) per share in recent quarters, an increase of 11.1%. “Non-GAAP reconciliations

In order to provide important additional information to management and investors regarding financial and business trends used in the evaluation of its operating results, the Company from time to time presents the non-GAAP financial measure of EBITDA ( EBITDA is calculated as net profit before interest expense, tax expense, depreciation and amortization). The Company may also report adjusted gross profit, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.

Management believes that these non-GAAP financial measures provide useful information to investors in addition to the published GAAP financial information. Management regularly reviews these non-GAAP financial measures and uses them to assess and manage the performance of the Company’s operations. In addition, EBITDA is a component of financial covenants and a measure of the interest rate in the Company’s credit agreement. Other companies may calculate non-GAAP financial measures differently from the Company, which limits the usefulness of the Company’s non-GAAP measures for comparison with those other companies. Although management believes that the Company’s non-GAAP financial measures are useful in evaluating the Company, when this information is published, it should be regarded as an addition in nature and not as a substitute or an alternative, or superior to , the related financial information prepared in accordance with GAAP. These measures should only be evaluated in conjunction with the Company’s comparable GAAP financial measures.

The following table reconciles EBITDA, a non-GAAP financial measure, for the three months ended May 31, 2021 to the most comparable GAAP measure, net income (in thousands of dollars).

Three months ended May 31, 2021 May 31, 2020 Net profit $ 7,304 $ 4,185 Tax expense 3,130 1,470 Interest expense 2 3 Depreciation and amortization 4,634 4,416 EBITDA (non-GAAP) $ 15,070 $ 10,074 % of sales 15.5% 11.3% About Ennis

Founded in 1909, the company is one of the largest suppliers of private label printed products in United States. Based at Midlothian, Texas, Ennis has production and distribution facilities strategically located throughout the United States to serve the Company’s national network of distributors. Ennis manufactures and sells business forms, other printed business products, printed and electronic media, integrated forms and labels, presentation products, flexo-graphic prints, specialty advertising and Post-it®, banking forms internal, plastic cards, secure and negotiable documents, specialty packaging, direct mail, envelopes, labels and other personalized products. For more information, visit www.ennis.com. Safe Harbor under the Private Securities Litigation Reform Act of 1995

Certain statements that may be contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause actual results to occur. , the performances or achievements of the Company are materially different from the future results, performances or achievements expressed or implied by these forward-looking statements. The words “anticipate”, “preliminary”, “expect”, “believe”, “intend” and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the Safe Harbor terms, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. These statements are subject to many uncertainties, including, but not limited to, the severity and duration of the COVID-19 pandemic and the associated economic repercussions, erosion of demand for our business document printers due to digital technologies, the risks or uncertainties associated with making and integrating acquisitions, the limited number of available suppliers and variability in the prices of paper and other raw materials, and the operational challenges associated with the COVID pandemic -19 and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, and potential plant closures. Other important information regarding factors that may affect the future performance of the Company is included in the public reports that the Company files with the Security and Trade Commission, including, but not limited to its annual report on Form 10-K for the year ending February 28, 2021. The Company does not undertake, and hereby disclaims any obligation or obligation to update or otherwise revise forward-looking statements to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unforeseen events, although his situation and circumstances may change in the future. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in this statement are material. For more information, contact:

Mr. Keith S. Walters, Chairman of the Board, Chief Executive Officer and President

M / s. Vera burnett, interim financial director

Mr. Michael D. Magill, executive vice-president and secretary

Ennis, Inc.

2441 Presidential Parkway

Midlothian, Texas 76065

Telephone: (972) 775-9801

Fax: (972) 775-9820




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