EBF — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-10-05

• Production capacity and price competition within our industry – Industry supply of paper products is subject to fluctuation as changing industry conditions have and will continue to influence producers to idle or permanently close individual machines or mills, convert them to different product lines…

• The only mill located in the United States that produced rolls of carbonless paper ceased production on a permanent basis. In response to this supply disruption, we increased inventory as buffer stock while transitioning to alternative sources of carbonless paper. We have received shipments from alt…

• Margins remain under pressure due to weak volumes in parts of the market, volatile input costs and price competition. To protect results, we continue to manage and control product costs through forecasting, production and costing models; strengthening supplier relationships; negotiating favorable pr…

• Net Sales. Our net sales were $102.0 million for the quarter ended August 31, 2026, compared to $98.7 million for the same quarter in the prior year, an increase of $3.3 million, or 3.3%. Our acquisitions completed during fiscal year 2026 contributed approximately $2.3 million in revenue during the …

• Cost of Goods Sold and Gross Profit Margin. Our cost of goods sold increased $2.9 million, or 4.2%, from $68.6 million for the three months ended August 31, 2025 to $71.5 million for the three months ended August 31, 2026. Our gross profit was $30.5 million or 29.9% of revenue for the quarter ended …

Text removed vs the prior filing · source: 10-Q · 2026-07-01

• Production capacity and price competition within our industry – Industry supply of paper products continues to fluctuate as market conditions influence producers to idle, permanently close, or convert paper machines and mills to alternative product lines. These actions, together with ongoing demand …

• During fiscal year 2026, the sole domestic producer of carbonless paper permanently closed its manufacturing facility. In response, we increased inventory levels and developed alternative supply sources. While we continue to transition to these alternative suppliers and do not currently anticipate d…

• Margins continue to be affected by volume variability in certain markets, input cost inflation and pricing competition. We seek to mitigate these impacts through disciplined pricing practices, strategic sourcing initiatives, operational efficiency improvements and effective management of our manufac…

• Net Sales. Our net sales were $98.6 million for the quarter ended May 31, 2026, compared to $97.2 million for the same quarter in the prior year, an increase of $1.4 million, or 1.4%. Organic sales volume decreased $3.1 million due to weaker customer demand and ongoing industry-wide pressure in the …

• Cost of Goods Sold and Gross Profit Margin. Our cost of goods sold increased $0.5 million, or 0.7%, from $67.0 million for the three months ended May 31, 2025 to $67.5 million for the three months ended May 31, 2026. Gross profit was $31.1 million or 31.5% of revenue for the quarter ended May 31, 20…

Text added vs the prior filing · source: 10-Q · 2026-10-05

• Ennis and one of its subsidiaries are defendants in a lawsuit in Arizona concerning the lease of the former B&D Litho facility that was closed in 2019. The plaintiff landlord generally alleges that the defendants failed to maintain the leased premises in good condition. The landlord sought more than…

• There was a non-jury trial of the case in March 2026 at which the judge dismissed the landlord’s claim that the Company failed to maintain the premises during the tenancy due to a lack of damages. The landlord’s other breach of contract claim that the Company failed to surrender the property in good…

• On September 9, 2026, the trial court issued preliminary findings that the Ennis subsidiary had failed to repair and maintain the premises during the tenancy even though the court had already dismissed the repair and maintenance claim at trial. The Court then

• made a preliminary finding that the landlord should recover $2.3 million in claimed diminished property value given the property’s condition in 2023 that the landlord had allowed to deteriorate in the four years since Ennis surrendered possession to the landlord in 2019.

• Due to what the Company believes are significant legal and factual errors in the Court’s preliminary findings, Ennis will seek further review in the trial court and, if necessary, pursue appellate remedies. Based on consultation with outside legal counsel, management concluded that the $2.3 million …

Text removed vs the prior filing · source: 10-Q · 2026-07-01

• Ennis and one of its subsidiaries are defendants in a lawsuit in Arizona concerning the lease of the former B&D Litho facility that was closed in 2019. The plaintiff landlord generally alleges that the defendants failed to maintain the leased premises in good condition. The landlord sought more than…