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): June 27, 2006 (June 26, 2006)

Ennis, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

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

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 June 26, 2006, Ennis, Inc. issued a press release announcing its financial results for the three months ended May 31, 2006. 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 June 26, 2006 announcing its financial results for the three months ended May 31, 2006 (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: June 27, 2006	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 June 26, 2006 announcing its financial results for the three months ended May 31, 2006 (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 FIRST QUARTER ENDED MAY 31, 2006

     Midlothian, Texas June 26, 2006 — Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the first quarter ended May 31, 2006.

Highlights

§	Net earnings increased 7.3% over the same quarter last year, from approximately $10.6 million to approximately $11.3 million.
§	Diluted EPS increased by 7.3% over the same quarter last year, from $.41 per share to $.44 per share for the year.

Financial Overview

     For the quarter, net sales decreased by $4.0 million, or 2.7% from $149.1 million for the quarter ended May 31, 2005 to $145.1 million for the quarter ended May 31, 2006. Sales in the Print Solutions segment for the period were $77.1 million, compared to $80.7 million for the same period last year. The Apparel Solutions segment sales for the period were $68.0 million, compared to $68.4 million for the same period last year. Due mainly to improved margins realized at the Apparel Group during the quarter, the Company’s overall margins improved from 25.1% to 26.1% for the quarters ended May 31, 2005 and 2006, respectively. Net earnings for the quarter increased by $772,000, or 7.3%, from $10.6 million for the quarter ended May 31, 2005 to $11.3 million for the quarter ended May 31, 2006. Diluted earnings increased from $.41 per share to $.44 per share for the quarters ended May 31, 2005 and 2006, respectively. The decline in the Print Solutions segment’s revenues during the quarter is primarily due to the impact associated with a large promotional customer which the Company ceased doing business with during the fourth quarter of fiscal year 2006, approximately $4.0 million, and the impact of the two print plants closings, which were in 2005, approximately $2.0 million. Without these items, the Print Solutions segment’s revenues for the quarter actually increased by approximately 3% quarter over quarter.

     The Company generated approximately $24.3 million in EBITDA (earnings before interest, taxes, depreciation and amortization) during the quarter, compared to $24.2 million for the comparable quarter last year. Reconciliation of Non-GAAP to GAAP measure (dollars in thousands):

	Three months ended
	May 31,
	2006		2005
Earnings before income taxes		17,983		17,308
Interest expense		1,792		2,243
Depreciation/amortization		4,483		4,629
EBITDA (non-GAAP)		24,258		24,180

     Keith Walters, Chairman, President & CEO, commented by saying, “We are extremely pleased with our results for the quarter. We realized that our closing of the two print plants last fiscal year and our decision to cease doing business with a major promotional customer would most likely impact our top-line in the short-term; however being true to our stated focus on profit versus revenue growth, we felt that these moves were in the best interest of our stakeholders. In addition, while we recently completed two acquisitions in the print sector, due to the timing of these acquisitions, neither of these had a significant impact on our operational results during the reported quarter. While we will continue to look for strategic acquisitions in both the print and apparel sectors, we will, as in the past, continue to manage our business with an eye on the bottom line.”

About Ennis

Ennis, Inc. (www.ennis.com) (formerly Ennis Business Forms, Inc.) 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 Solutions Segment and Apparel Solutions Segment. There are three groups within the Printing Solutions Segment: the Forms Solutions Group, Promotional Solutions Group, and Financial Solutions Group. The Apparel Solutions Segment consists entirely of the Apparel Solutions Group. The Forms Solutions Group is primarily engaged in the business of manufacturing and selling business forms and other printed business products. The Promotional Solutions Group is primarily engaged in the business of design, production and distribution of printed and electronic media, presentation products, flex-o-graphic printing, advertising specialties and Post-it^® Notes. The Financial Solutions Group designs, manufactures and markets printed forms and specializes in internal bank forms, secure and negotiable documents and custom products. The Apparel Solutions Group 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
	May 31,
	2006		2005
Condensed Operating Results
Revenues	$	145,113	$	149,113
Cost of goods sold		107,298		111,635
Gross profit		37,815		37,478
Operating expenses		18,078		17,837
Operating income		19,737		19,641
Other expense		1,754		2,333
Income tax expense		6,653		6,750
Net earnings	$	11,330	$	10,558
Earnings per share
Basic	$	0.44	$	0.42
Diluted	$	0.44	$	0.41

	May 31,		February 28,
	2006		2006
Condensed Balance Sheet Information
Current assets:
Cash	$	9,322	$	13,860
Accounts receivables, net		46,750		41,686
Inventories, net		89,227		89,155
Other		15,673		13,754
		160,972		158,455
Property, plant & equipment		65,859		63,803
Other		271,612		272,143
	$	498,443	$	494,401
Current liabilities
Accounts payable	$	24,485	$	26,589
Accrued expenses		32,117		25,752
Current portion of long-term debt		11,255		11,620
		67,857		63,961
Long-term debt		95,814		102,916
Deferred credits		29,971		30,189
Total liabilities		193,642		197,066
Shareholders’ equity		304,801		297,335
	$	498,443	$	494,401

	Three months ended
	May 31,
	2006			2005
Condensed Cash Flow Information
Cash provided by operating activities	$	12,181		$	18,775
Cash used in investing activities		(5,260	)		(4,880	)
Cash used in financing activities		(11,408	)		(17,674	)
Effect of exchange rates on cash		(51	)		(21	)
Change in cash		(4,538	)		(3,800	)
Cash at beginning of period		13,860			10,694
Cash at end of period	$	9,322		$	6,894