8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): December 22, 2008

Ennis, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Texas	1-5807	75-0256410
(State or Other	(Commission	(IRS Employer
Jurisdiction of	File Number)	Identification No.)
Incorporation)

2441 Presidential Pkwy
Midlothian, Texas	76065
(Address of Principal	(Zip Code)
Executive Offices)

Registrant’s Telephone Number, Including Area Code: (972) 775-9801

N/A
(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. Results of Operations and Financial Condition. *

On December 22, 2008, Ennis, Inc. issued a press release announcing its financial results for the three and nine months ended November 30, 2008. A copy of the press release is attached hereto as Exhibit 99.1.

* The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01. Financial Statements and Exhibits

(c) Exhibits.

Exhibit No.	Description
99.1	Ennis, Inc. press release dated December 22, 2008 announcing its financial results for the three and nine months ended November 30, 2008 (furnished pursuant to Item 2.02 of Form 8-K).

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Ennis, Inc.
Date: December 22, 2008	By:	/s/ Richard L. Travis, Jr.
		Richard L. Travis, Jr.
		Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Ennis, Inc. press release dated December 22, 2008 announcing its financial results for the three and nine months ended November 30, 2008 (furnished pursuant to Item 2.02 of Form 8-K).

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

ENNIS, INC. REPORTS RESULTS
FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 2008

     Midlothian, Texas December 22, 2008 — Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the three and nine months ended November 30, 2008.

Highlights

§	Consolidated revenues increased $5.6 million or 1.2% for the nine month period, but declined $15.7 million, or 9.9% for the quarter.
§	Apparel Segment revenues increased $9.8 million or 4.8% for the nine month period, but declined $9.6 million or 13.8% for the quarter.
§	Print Segment revenues decreased $4.1 million or 1.6% for the nine month period and $6.1 million or 6.9% for the quarter.

Financial Overview

     Our consolidated net sales decreased by $15.7 million, or 9.9%, from $158.2 million for the quarter ended November 30, 2007 to $142.5 million for the quarter ended November 30, 2008. Our Print sales were $82.6 million, compared to $88.7 million for the same quarter last year, or a decrease of 6.9%. Apparel sales were $59.9 million, compared to $69.5 million for the same quarter last year, or a decrease of 13.8%. Our overall gross profit margins (“margins”) were 26.6% for both current and prior year third quarters. Our Print margins decreased slightly from 26.8% to 26.4%, while our Apparel margins increased from 26.2% to 26.9%. Our earnings decreased from $11.6 million, or $.45 per diluted share, for the quarter ended November 30, 2007 to $9.9 million, or $.38 per diluted share, for the quarter ended November 30, 2008.

     Net sales increased from $461.1 million for the nine months ended November 30, 2007 to $466.7 million for the nine months ended November 30, 2008, or 1.2%. Our Print sales for the period were $253.3 million, compared to $257.4 million for the same period last year. Apparel sales for the period were $213.4 million, compared to $203.6 million for the same period last year. Our overall margins were 25.2% for the period, compared to 27.1% for the same period last year. For the period, our Print margins decreased slightly from 27.0% to 26.8%, while our Apparel margins decreased from 27.1% to 23.3% due to higher cotton and commodity prices. Net earnings decreased from $33.5 million, or $1.30 per diluted share, for the nine months ended November 30, 2007 to $30.2 million, or $1.17 per diluted share, for the nine months ended November 30, 2008.

     The Company, during the quarter ended November 30, 2008, generated $19.5 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $23.4 million for the comparable quarter last year. For the nine month period, the Company generated $59.9 million in EBITDA, compared to $68.7 million for the comparable period last year. Cash flow from operations increased from $17.6 million for the nine months ended November 30, 2007 to $36.2 million for the same period this year.

     Reconciliation of Non-GAAP to GAAP measure (dollars in thousands):

	Three months ended				Nine months ended
	November 30,				November 30,
	2008		2007		2008		2007
Earnings before income taxes	$	15,554	$	18,360	$	47,486	$	53,177
Interest expense		778		1,398		2,703		4,283
Depreciation/amortization		3,123		3,643		9,716		11,226
EBITDA (non-GAAP)	$	19,455	$	23,401	$	59,905	$	68,686

     Keith Walters, Chairman, President and CEO, commented by saying, “fiscal year 2009 continues to be a challenging year given the general economic climate, competitors’ pricing strategies, volatility of commodity prices, etc. Our Print Segment’s top-line has been, and is continuing to be, impacted by the general economic climate; however, we are now starting to see this impact spill over into our Apparel Segment. Since mid-October overall economic conditions, consumer confidence and consumer/corporate spending have dramatically deteriorated. T-shirt demand, which we had believed to be somewhat recession proof and had been through mid-October, has been significantly impacted by the rapid and unprecedented change in the macro environment. We are encouraged by the fact that our apparel margins returned to prior year levels, and we were able to maintain our print margins, even while both these segments experienced sales declines during the quarter. We continue to be cautious about our ability to sustain these levels, given the economic environment and the speed at which market conditions have been changing, and recent pricing pressures initiated by competitors’ discounting strategies. Given the current level of market uncertainty and volatility, we continue to believe the remainder of this fiscal year and the next will be extremely difficult for all companies. We are encouraged however, by how we have navigated these waters to date and look forward to the challenge that lies ahead.”

About Ennis

Ennis, Inc. (www.ennis.com) is primarily engaged in the production of and sale of business forms, apparel and other business products. The Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, the Company has production and distribution facilities strategically located throughout the United States of America, Mexico and Canada, to serve the Company’s national network of distributors. The Company, together with its subsidiaries, operates in two business segments: the Print Segment (“Print”) and Apparel Segment (“Apparel”). The Print Segment is primarily engaged in the business of manufacturing and selling business forms, other printed business products, printed and electronic media, presentation products, flex-o-graphic printing, advertising specialties and Post-it^® Notes, internal bank forms, secure and negotiable documents, envelopes and other custom products. The Apparel Segment manufactures T-Shirts and

distributes T-Shirts and other active-wear apparel through six distribution centers located throughout North America.

Safe Harbor Under The Private Securities Litigation Reform Act of 1995

Certain statements 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 the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such 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 terms of the safe harbor, 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 such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the Company’s ability to effectively manage its business functions while growing its business in a rapidly changing environment, the Company’s ability to adapt and expand its services in such an environment, the variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company’s future performance is included in the public reports that the Company files with the Securities and Exchange Commission. The Company undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. Readers 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 such statement are material.

For Further Information Contact:

Mr. Keith Walters, Chairman, Chief Executive Officer and President
Mr. Michael Magill, Executive Vice President
Mr. Richard L. Travis, Jr., Chief Financial Officer
Ennis, Inc.
2441 Presidential Parkway
Midlothian, Texas 76065
Phone: (972) 775-9801
Fax: (972) 775-9820
www.ennis.com

Ennis, Inc.
Condensed Financial Information
(In thousands, except per share amounts)

	Three months ended				Nine months ended
	November 30,				November 30,
Condensed Operating Results	2008		2007		2008		2007
Revenues	$	142,453	$	158,215	$	466,703	$	461,075
Cost of goods sold		104,596		116,181		349,156		336,344
Gross profit		37,857		42,034		117,547		124,731
Operating expenses		21,862		22,147		67,522		67,058
Operating income		15,995		19,887		50,025		57,673
Other expense		441		1,527		2,539		4,496
Income tax expense		5,678		6,792		17,333		19,675
Net earnings	$	9,876	$	11,568	$	30,153	$	33,502
Earnings per share
Basic	$	0.38	$	0.45	$	1.17	$	1.31
Diluted	$	0.38	$	0.45	$	1.17	$	1.30

	November 30,		February 29,
Condensed Balance Sheet Information	2008		2008
Assets
Current assets
Cash	$	2,972	$	3,393
Accounts receivable, net		67,679		72,278
Inventories, net		104,028		98,570
Other		14,095		11,578
		188,774		185,819
Property, plant & equipment		54,857		58,988
Other		265,859		268,324
	$	509,490	$	513,131
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	29,237	$	29,658
Accrued expenses		23,978		21,913
Current portion of long-term debt		227		255
		53,442		51,826
Long-term debt		70,859		90,710
Deferred credits		20,116		22,116
Total liabilities		144,417		164,652
Shareholders’ equity		365,073		348,479
	$	509,490	$	513,131

	Nine months ended
	November 30,
Condensed Cash Flow Information	2008			2007
Cash provided by operating activities	$	36,203		$	17,615
Cash used in investing activities		(3,137	)		(16,243	)
Cash used in financing activities		(32,956	)		(2,987	)
Effect of exchange rates on cash		(531	)		189
Change in cash		(421	)		(1,426	)
Cash at beginning of period		3,393			3,582
Cash at end of period	$	2,972		$	2,156