Ennis, Inc. (EBF) SEC Filing 10-K Annual report for the fiscal year ending Monday, February 29, 2016

Exhibit 99.1

FOR IMMEDIATE RELEASE

ENNIS, INC. REPORTS RESULTS

FOR THE YEAR AND QUARTER ENDED FEBRUARY 29, 2016 AND SETS RECORD DATE FOR ANNUAL SHAREHOLDER MEETING

Midlothian, TX. May 10, 2016 — Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the quarter and fiscal year ended February 29, 2016. Highlights include:

Financial Overview

The Company’s consolidated net sales for the quarter ended February 29, 2016 were $128.2 million compared to $140.2 million for the same quarter last year, a decrease of 8.6%. Print sales decreased 5.5% from $96.5 million to $91.2 million and apparel sales decreased 15.5% from $43.8 million to $37.0 million. Consolidated gross profit margin (“margin”) was $34.0 million for the quarter, or 26.5%, compared to $35.4 million, or 25.2% for the same quarter last year. Print margin was 27.7% for the quarter compared to 29.2% for the same quarter last year, while apparel margin increased 700 basis points from 16.6% for the comparable quarter last year to 23.6%. Print margin during the quarter was impacted by the move of its folder operations from Omaha, Nebraska to Columbus, Kansas and a one-time earn-out payment associated with the previous acquisition of Kay Toledo Tag. Without these costs, the Company estimates that print margin for the quarter would have been in-line with prior fiscal year’s results. Apparel margin improvement resulted from lower input costs, improved manufacturing efficiencies and stable selling prices. An impairment charge of approximately $4.1 million was recorded during the quarter related to apparel segment’s trademarks. As a result, consolidated net earnings for the quarter were $4.8 million, or $0.19 per diluted share. Excluding the impairment charge, consolidated non-GAAP net earnings for the quarter would have been approximately $7.5 million, or approximately $0.29 per diluted share compared to $8.6 million, or $0.34 per diluted share for the same quarter last year.

For the fiscal year ended February 29, 2016, consolidated net sales decreased from $580.2 million for the previous fiscal year to $569.0 million, or a decrease of 1.9%. Print sales were $385.9 million compared to $380.4 million for the prior fiscal year, an increase of $5.5 million, or 1.4%. Apparel sales were $183.0 million compared to $199.9 million for the prior fiscal year, a decrease of $16.9 million, or 8.5%. Consolidated margin for the period was $152.7 million, or 26.8%, compared to $145.5 million, or 25.1% for the prior fiscal year. Print margin for the year decreased slightly from 30.3% to 30.1%, due to the same factors that impacted the fourth quarter, while apparel margin increased 470 basis points from 15.2% to 19.9% due to lower input costs, stable selling prices and improved manufacturing efficiencies. An impairment charge of approximately $4.1 million was recorded during the quarter related to apparel segment’s trademarks which also negatively impacted our results for the year. As a result, consolidated net earnings increased from a GAAP loss of $(44.5) million, or (7.7)% of net sales, for the fiscal year ended February 28, 2015 to earnings of $35.7 million, or 6.3% of net sales, for the fiscal year ended February 29, 2016. Diluted earnings per share increased from a loss of $(1.72) to $1.39 for the fiscal year. Excluding impairment charges in both fiscal years, consolidated non-GAAP net earnings would have been approximately $38.4 million, or approximately $1.49 per diluted share for fiscal 2016, compared to $34.6 million, or $1.34 per diluted share for fiscal 2015.