Ennis elects new director and reports annual shareholder meeting results

Ennis, Inc. (NYSE:EBF), a financially healthy company with an impressive InvestingPro Overall Health Score of "GOOD", announced the election of Michael D. Magill as a director, filling the seat previously held by Michael J. Schaefer. The company’s board made the appointment on Thursday after its nominating and governance committee decided earlier this year not to recommend Mr. Schaefer for re-election at the end of his term in July. The board stated that due to the timing of this decision, it was unable to screen and approve a third director candidate before the proxy statement was prepared. Mr. Magill will serve as a temporary appointee. The board anticipates presenting four director candidates for election next year, including one to complete the remaining two years of the term for the seat currently filled by Mr. Magill.

On Thursday, Ennis held its annual meeting of shareholders. Out of 25,795,161 eligible votes, 22,628,463 shares were voted, representing 87.7% participation. All director nominees listed in the proxy statement were elected. Barbara T. Clemens received 18,887,446 votes in favor, 1,147,974 against, and 26,995 abstentions. Walter D. Gruenes received 19,733,291 votes in favor, 297,410 against, and 31,714 abstentions. There were 2,566,048 broker non-votes for each nominee. The terms of Aaron Carter, Gary S. Mozina, Troy L. Priddy, Alejandro Quiroz, Margaret A. Walters, and Keith S. Walters continue following the meeting. According to InvestingPro data, Ennis currently trades near its 52-week low and maintains a notable 5.61% dividend yield, having consistently paid dividends for 53 consecutive years.

Shareholders also approved the selection of CohnReznick, LLP as the company’s independent registered public accounting firm for the fiscal year ending 2025. The proposal received 22,477,198 votes in favor, 126,027 against, and 25,238 abstentions.

A non-binding advisory vote on executive compensation was also held. The results were 17,897,208 votes in favor, 2,007,619 against, 157,588 abstentions, and 2,566,048 broker non-votes.

All information is based on a statement provided in the company’s recent SEC filing.

In other recent news, Ennis, Inc. reported fourth-quarter earnings that fell short of analyst expectations. The company posted earnings per share of $0.35, missing the consensus estimate of $0.37, with revenue reaching $92.7 million, below the expected $95.6 million and down 4.8% from the previous year. Despite these results, Ennis noted an improvement in its gross profit margin, increasing to 29.5% from 28.4% the previous year. For the full fiscal year 2025, Ennis reported revenue of $394.6 million, a decrease from $420.1 million in fiscal 2024, with full-year earnings per diluted share at $1.54 compared to $1.64 the previous year.

Additionally, Ennis announced a significant change to its Board of Directors, with Michael Schaefer not being nominated for re-election. Schaefer’s decision to sell 30,000 shares was attributed to personal family circumstances, and the company stated that this decision was not due to concerns about its financial health. Ennis plans to nominate Wally Gruenes, a former National Managing Partner at Grant Thornton, to the board, with expectations for him to chair the Audit Committee. The company also highlighted its intention to resume its share repurchase program when appropriate, following Schaefer’s share sale.

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