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MIDLOTHIAN, Texas - Ennis, Inc. (NYSE:EBF), a major supplier of printed business products with a market capitalization of $472 million and an impressive 53-year history of consecutive dividend payments, has announced that Michael Schaefer, a member of its Board of Directors and current chair of the Audit Committee, will not be nominated for re-election at the upcoming annual shareholders meeting in July. This development follows Mr. Schaefer’s decision to sell 30,000 shares of the company’s common stock, a move he attributes to personal family circumstances.
On April 25, 2025, Schaefer filed a Form 144 with the Securities and Exchange Commission, indicating his plan to sell the shares. The company clarified that his decision was not influenced by any doubts about Ennis’s financial health or operational performance. At the time of the filing, the stock was trading near its 52-week low of $17.15, with InvestingPro analysis suggesting the stock is currently undervalued based on its Fair Value calculations.
Ennis, which often buys back shares when it believes they are undervalued, was unable to do so during this period due to Schaefer’s sales. The company expressed that it could not engage in repurchases without potentially appearing to manipulate the stock price for Schaefer’s benefit. The company intends to resume its share repurchase program when appropriate.
The company’s nominating and governance committee has decided not to endorse Schaefer for another term, citing the circumstances surrounding his share sale. Instead, Ennis will nominate Wally Gruenes, a former National Managing Partner of Consumer and Industrial Products at Grant Thornton, to its Board of Directors. If elected, Gruenes is expected to take over as chair of the Audit Committee. The company maintains strong financial health with a current ratio of 4.59 and minimal debt, according to InvestingPro data, which shows several more positive indicators available to subscribers.
Ennis, founded in 1909 and headquartered in Midlothian, Texas, operates production and distribution facilities across the United States. It offers a wide range of products, including business forms, printed media, labels, and custom products, to a national distributor network.
The company’s future performance could be influenced by various factors, such as market demand for printed documents and the cost of raw materials, as noted in the press release statement. With a healthy dividend yield of 5.55% and analysts projecting continued profitability, investors seeking detailed analysis can access comprehensive metrics and additional insights through InvestingPro. Ennis has not updated forward-looking statements to reflect events after the release date, emphasizing caution against relying on these statements.
In other recent news, Ennis, Inc. reported its fourth-quarter earnings, revealing results that fell short of analyst expectations. The company announced earnings per share of $0.35, slightly below the projected $0.37. Revenue for the quarter was reported at $92.7 million, missing the anticipated $95.6 million and marking a 4.8% decrease from the previous year’s $97.4 million. Despite the revenue shortfall, Ennis highlighted an improvement in its gross profit margin, which increased to 29.5% from 28.4% in the same quarter last year. For the full fiscal year 2025, Ennis reported revenue of $394.6 million, a decrease of 6.1% from the prior fiscal year. The company’s earnings per diluted share for the year were $1.54, down from $1.64 the previous year. Ennis maintained a robust financial standing with $72.5 million in cash and short-term investments and no debt at the end of the quarter. Additionally, the company returned $92 million to shareholders through dividends, including a special dividend of $2.50 per share.
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