Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 31, 2019 | Jun. 28, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EBF | |
Entity Registrant Name | ENNIS, INC. | |
Entity Central Index Key | 0000033002 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 26,113,699 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-5807 | |
Entity Tax Identification Number | 750256410 | |
Entity Address, Address Line One | 2441 Presidential Pkwy | |
Entity Address, City or Town | Midlothian | |
Entity Address, State or Province | Texas | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 76065 | |
City Area Code | 972 | |
Local Phone Number | 775-9801 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 |
Current assets | ||
Cash | $ 87,365 | $ 88,442 |
Accounts receivable, net of allowance for doubtful receivables of $1,041 at May 31, 2019 and $1,020 at February 28, 2019 | 41,876 | 40,357 |
Prepaid expenses | 1,241 | 1,760 |
Prepaid income taxes | 195 | |
Inventories | 36,826 | 35,411 |
Total current assets | 167,308 | 166,165 |
Property, plant and equipment | ||
Plant, machinery and equipment | 149,678 | 146,001 |
Land and buildings | 57,013 | 56,394 |
Other | 23,993 | 23,838 |
Total property, plant and equipment | 230,684 | 226,233 |
Less accumulated depreciation | 175,397 | 173,099 |
Net property, plant and equipment | 55,287 | 53,134 |
Operating lease right-of-use assets | 18,653 | |
Goodwill | 82,527 | 81,634 |
Intangible assets, net | 61,185 | 61,272 |
Net pension asset | 580 | 580 |
Other assets | 303 | 300 |
Total assets | 385,843 | 363,085 |
Current liabilities | ||
Accounts payable | 15,029 | 13,728 |
Accrued expenses | 18,125 | 17,895 |
Current portion of operating lease liabilities | 5,005 | |
Total current liabilities | 38,159 | 31,623 |
Long-term debt | 30,000 | 30,000 |
Deferred income taxes | 10,959 | 10,898 |
Operating lease liabilities, net of current portion | 13,362 | |
Other liabilities | 1,099 | 1,437 |
Total liabilities | 93,579 | 73,958 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock $10 par value, authorized 1,000,000 shares; none issued | ||
Common stock $2.50 par value, authorized 40,000,000 shares; issued 30,053,443 shares at May 31, 2019 and February 28, 2019 | 75,134 | 75,134 |
Additional paid-in capital | 122,111 | 123,065 |
Retained earnings | 182,760 | 179,003 |
Accumulated other comprehensive loss: | ||
Minimum pension liability, net of taxes | (16,470) | (16,704) |
Total accumulated other comprehensive loss | (16,470) | (16,704) |
Treasury stock | (71,271) | (71,371) |
Total shareholders’ equity | 292,264 | 289,127 |
Total liabilities and shareholders' equity | $ 385,843 | $ 363,085 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful receivables | $ 1,041 | $ 1,020 |
Preferred stock, par value | $ 10 | $ 10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 30,053,443 | 30,053,443 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 108,033 | $ 93,419 |
Type of revenue [extensible list] | ebf:CommercialPrintedProductMember | ebf:CommercialPrintedProductMember |
Cost of goods sold | $ 75,337 | $ 63,228 |
Type of cost, good or service [extensible list] | ebf:CommercialPrintedProductMember | ebf:CommercialPrintedProductMember |
Gross profit margin | $ 32,696 | $ 30,191 |
Selling, general and administrative | 19,703 | 17,735 |
Gain from disposal of assets | (4) | |
Income from operations | 12,993 | 12,460 |
Other income (expense) | ||
Interest expense | (317) | (261) |
Other, net | 340 | 130 |
Total other income (expense) | 23 | (131) |
Earnings before income taxes | 13,016 | 12,329 |
Income tax expense | 3,384 | 3,082 |
Net earnings | $ 9,632 | $ 9,247 |
Weighted average common shares outstanding | ||
Basic | 26,028,337 | 25,333,673 |
Diluted | 26,028,337 | 25,363,772 |
Earnings per share | ||
Basic | $ 0.37 | $ 0.37 |
Diluted | 0.37 | 0.36 |
Cash dividends per share | $ 0.225 | $ 0.200 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 9,632 | $ 9,247 |
Adjustment to pension, net of taxes | 234 | 261 |
Comprehensive income | $ 9,866 | $ 9,508 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Beginning balance at Feb. 28, 2018 | $ 261,704 | $ 75,134 | $ 121,333 | $ 164,177 | $ (16,428) | $ (82,512) |
Beginning balance common stock, shares at Feb. 28, 2018 | 30,053,043 | |||||
Beginning balance, treasury stock, shares at Feb. 28, 2018 | (4,789,228) | |||||
Net earnings | 9,247 | 9,247 | ||||
Adjustment to pension, net of deferred tax of $78 | 261 | 261 | ||||
Dividends paid ($0.225 per share) | (5,083) | (5,083) | ||||
Stock based compensation | 327 | 327 | ||||
Exercise of stock options and restricted stock | (1,390) | $ 1,390 | ||||
Exercise of stock options and restricted stock, shares | 80,692 | |||||
Common stock repurchases | (680) | $ (680) | ||||
Common stock repurchases, shares | (37,943) | |||||
Ending balance at May. 31, 2018 | 265,776 | $ 75,134 | 120,270 | 168,341 | (16,167) | $ (81,802) |
Ending balance common stock, shares at May. 31, 2018 | 30,053,043 | |||||
Ending balance treasury stock, shares at May. 31, 2018 | (4,746,479) | |||||
Beginning balance at Feb. 28, 2019 | $ 289,127 | $ 75,134 | 123,065 | 179,003 | (16,704) | $ (71,371) |
Beginning balance common stock, shares at Feb. 28, 2019 | 30,053,443 | 30,053,443 | ||||
Beginning balance, treasury stock, shares at Feb. 28, 2019 | (4,097,099) | |||||
Net earnings | $ 9,632 | 9,632 | ||||
Adjustment to pension, net of deferred tax of $78 | 234 | 234 | ||||
Dividends paid ($0.225 per share) | (5,875) | (5,875) | ||||
Stock based compensation | 358 | 358 | ||||
Exercise of stock options and restricted stock | (1,312) | $ 1,312 | ||||
Exercise of stock options and restricted stock, shares | 83,095 | |||||
Common stock repurchases | $ (1,212) | $ (1,212) | ||||
Common stock repurchases, shares | (62,038) | (62,038) | ||||
Ending balance at May. 31, 2019 | $ 292,264 | $ 75,134 | $ 122,111 | $ 182,760 | $ (16,470) | $ (71,271) |
Ending balance common stock, shares at May. 31, 2019 | 30,053,443 | 30,053,443 | ||||
Ending balance treasury stock, shares at May. 31, 2019 | (4,076,042) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Deferred tax adjusted to pension | $ 78 | $ 87 |
Dividends paid per share | $ 0.225 | $ 0.200 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 9,632 | $ 9,247 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 2,477 | 2,035 |
Amortization of deferred finance charges | 28 | 28 |
Amortization of intangible assets | 1,904 | 1,415 |
Gain from disposal of assets | (4) | |
Bad debt expense, net of recoveries | 40 | 135 |
Stock based compensation | 358 | 327 |
Net pension expense | 295 | 329 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable | 412 | 453 |
Prepaid expenses and income taxes | 755 | 3,391 |
Inventories | (93) | (3,505) |
Accounts payable and accrued expenses | 487 | (1,964) |
Other liabilities | (624) | 3 |
Net cash provided by operating activities | 15,671 | 11,890 |
Cash flows from investing activities: | ||
Capital expenditures | (802) | (1,205) |
Purchase of businesses, net of cash acquired | (8,859) | (4,736) |
Proceeds from disposal of plant and property | 4 | |
Net cash used in investing activities | (9,661) | (5,937) |
Cash flows from financing activities: | ||
Dividends paid | (5,875) | (5,083) |
Common stock repurchases | (1,212) | (680) |
Net cash used in financing activities | (7,087) | (5,763) |
Net change in cash | (1,077) | 190 |
Cash at beginning of period | 88,442 | 96,230 |
Cash at end of period | $ 87,365 | $ 96,420 |
Significant Accounting Policies
Significant Accounting Policies and General Matters | 3 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and General Matters | 1. Significant Accounting Policies and General Matters Basis of Presentation These unaudited consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the period ended May 31, 2019 have been prepared in accordance with generally accepted accounting principles for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2019, from which the accompanying consolidated balance sheet at February 28, 2019 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to bad debts, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“ FASB ASU Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans ASU 2018-14 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies the lease recognition requirements and requires entities to recognize the assets and liabilities arising from leases on the balance sheet and to disclose key qualitative and quantitative information about the entity’s leasing arrangements. Based on the original guidance in ASU 2016-02, lessees and lessors would have been required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of practical expedients. In July 2018, the FASB issued ASU No. 2018-11, Leases (“ ASC 842 The Company adopted this guidance as of March 1, 2019, using the optional transition method and elected the option to not apply ASC 842 to comparative periods, which continue to be presented under the accounting standards in effect for those periods. The Company elected the ‘package of practical expedients’ as lessee, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company elected to treat lease and non-lease components as a single lease component. Adoption of the new standard resulted in the recording of operating lease right-of-use (“ROU”) assets of $18 million and operating lease liabilities of $18.2 million. The difference between the leased assets and lease liabilities represents the existing deferred rent liabilities balance at adoption, resulting from historical straight line recognition of operating leases, which was reclassified upon adoption to reduce the measurement of the leased assets. The adoption of the standard did not have an impact on the Company’s shareholders’ equity, statement of operations, or cash flows. |
Revenue
Revenue | 3 Months Ended |
May 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue On March 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ ASU 2014-09 The adoption did not have a significant effect on the Company’s consolidated results of operations, financial position or cash flows. Nature of Revenues Substantially all of the Company’s revenue from contracts with customers consist of the sale of commercial printing products in the continental United States and is primarily recognized at a point in time in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Revenue from the sale of commercial printing products, including shipping and handling fees billed to customers, is recognized upon the transfer of control to the customer, which is generally upon shipment to the customer when the terms of the sale are freight on board (“FOB”) shipping point, or, to a lesser extent, upon delivery to the customer if the terms of the sale are FOB destination. In a small number of cases and upon customer request, the Company prints and stores commercial printing product for customer specified future delivery, generally within the same year as the product is manufactured. In this case, revenue is recognized upon the transfer of control when manufacturing is complete and title and risk of ownership is passed to the customer, which for certain customers may be recognized over time rather than at a point in time. As the output method for measure of progress is determined to be appropriate, the Company recognizes revenue in the amount for which it has the right to invoice for revenue that is recognized over time and for which it demonstrates that the invoiced amount corresponds directly with the value to the customer for the performance completed to date. The Company does not disaggregate revenue and operates in one sales category consisting of commercial printed product revenue, which is reported as net sales on the consolidated statements of operations. The Company does not have material contract assets and contract liabilities as of May 31, 2019. Significant Judgments Generally, the Company’s contracts with customers are comprised of a written quote and customer purchase order or statement of work, and governed by the Company’s trade terms and conditions. In certain instances, it may be further supplemented by separate pricing agreements and customer incentive arrangements, which typically only affect the contract’s transaction price. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 90 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. Product returns are not significant. From time to time, the Company may offer incentives to its customers considered to be variable consideration including volume-based rebates or early payment discounts. Customer incentives considered to be variable consideration are recorded as a reduction to revenue as part of the transaction price at contract inception when there is a basis to reasonably estimate the amount of the incentive and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Customer incentives are allocated entirely to the single performance obligation of transferring printed product to the customer. For customers with terms of FOB shipping point, the Company accounts for shipping and handling activities performed after the control of the printed product has been transferred to the customer as a fulfillment cost. The Company accrues for the costs of shipping and handling activities if revenue is recognized before contractually agreed shipping and handling activities occur. The Company’s contracts with customers generally have a duration of one year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations nor the timing of revenue recognition. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Receivables | 3 Months Ended |
May 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Doubtful Receivables | 3. Accounts Receivable and Allowance for Doubtful Receivables Accounts receivable are reduced by an allowance for an estimate of amounts that are uncollectible. Substantially all of the Company’s receivables are due from customers in the United States. The Company extends credit to its customers based upon its evaluation of the following factors: (i) the customer’s financial condition, (ii) the amount of credit the customer requests, and (iii) the customer’s actual payment history (which includes disputed invoice resolution). The Company does not typically require its customers to post a deposit or supply collateral. The Company’s allowance for doubtful receivables is based on an analysis that estimates the amount of its total customer receivable balance that is not collectible. This analysis includes assessing a default probability to customers’ receivable balances, which is influenced by several factors including (i) current market conditions, (ii) periodic review of customer creditworthiness, and (iii) review of customer receivable aging and payment trends. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance in the period the payment is received. The following table presents the activity in the Company’s allowance for doubtful receivables (in thousands): Three months ended May 31, 2019 2018 Balance at beginning of period $ 1,020 $ 1,194 Bad debt expense, net of recoveries 40 135 Accounts written off (19 ) (31 ) Balance at end of period $ 1,041 $ 1,298 |
Inventories
Inventories | 3 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The Company uses the lower of last-in, first-out (“ LIFO FIFO The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Raw material $ 22,826 $ 21,717 Work-in-process 4,414 4,172 Finished goods 9,586 9,522 $ 36,826 $ 35,411 |
Acquisitions
Acquisitions | 3 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets and liabilities assumed, is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. On March 16, 2019, the Company, through one of its subsidiaries, acquired the assets of Integrated Print & Graphics (“ Integrated On July 31, 2018, the Company issued an aggregate of 829,126 shares of common stock to the former stockholders of Wright Business Forms, Inc., d/b/a Wright Business Graphics (“ Wright Merger Agreement The purchase price of Wright was as follows (in thousands): Ennis shares of common stock $ 16,218 Cash 22,653 Purchase price of Wright Business Graphics $ 38,871 The following is a summary of the preliminary purchase price allocation for Wright (in thousands): Accounts receivable $ 5,220 Prepaid expenses 427 Inventories 4,365 Other assets 88 Property, plant & equipment 10,331 Non-compete 447 Customer lists 12,900 Trade names 3,830 Goodwill 11,031 Accounts payable and accrued liabilities (4,226 ) Deferred income taxes (5,542 ) $ 38,871 The results of operations for Wright are included in the Company’s consolidated financial statements from the date of acquisition. The following table represents certain operating information on a pro forma basis as though all Wright operations had been acquired as of March 1, 2018, after the estimated impact of adjustments such as amortization of intangible assets, interest expense and related tax effects (in thousands, except per share amounts). Three months ended May 31, 2019 2018 Pro forma net sales $ 108,033 $ 107,321 Pro forma net earnings 9,632 9,810 Pro forma earnings per share - diluted 0.37 0.39 The pro forma results are not necessarily indicative of what would have occurred if the acquisition had been in effect for the period presented. On April 30, 2018, the Company acquired the assets of Allen-Bailey Tag & Label, a tag and label operation located in New York for $4.7 million in cash plus the assumption of trade payables, subject to a working capital adjustment. In addition, contingent consideration of up to $500,000 is payable to the sellers if certain sales levels are maintained over the next three years. Management considers this acquisition to be immaterial. |
Leases
Leases | 3 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases The Company leases certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally have terms of 1 – 5 years, with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. The Company currently does not have leases that include options to purchase or provisions that would automatically transfer ownership of the leased property to the Company. Operating lease expense is recognized on a straight-line basis over the lease term, and variable lease payments are expensed as incurred. The Company had no variable lease costs for the three months ended May 31, 2019. The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date as rates are not implicitly stated in most leases. Components of lease expense for the three months ended May 31, 2019 were as follows (in thousands): Operating lease cost $ 1,577 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,569 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — Weighted Average Remaining Lease Terms Operating leases 5 Years Weighted Average Discount Rate Operating leases 4.50 % Future minimum lease commitments under non-cancelable operating leases for each of the fiscal years ending are as follows (in thousands): Operating Lease Commitments 2020 (remaining 9 months) $ 4,424 2021 4,689 2022 3,851 2023 3,196 2024 2,341 2025 1,646 Thereafter 1,196 Total lease payments $ 21,343 Less imputed interest 2,976 Total lease payments $ 18,367 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses and is not amortized. Goodwill and other intangible assets are tested for impairment at a reporting unit level. The annual impairment test of goodwill and intangible assets is performed as of November 30 of each fiscal year. The Company considers qualitative factors to determine whether it is more likely than not (likelihood of more than 50%) that the fair value of a reporting unit exceeds its carrying amount, including goodwill. Some of the qualitative factors considered in applying this test include consideration of macroeconomic conditions, industry and market conditions, cost factors affecting the business, overall financial performance of the business, and performance of the share price of the Company. If qualitative factors are not deemed sufficient to conclude that the fair value of the reporting unit more likely than not exceeds its carrying value, then a one-step approach is applied in making an evaluation. The evaluation utilizes multiple valuation methodologies, including a market approach (market price multiples of comparable companies) and an income approach (discounted cash flow analysis). The computations require management to make significant estimates and assumptions, including, among other things, selection of comparable publicly traded companies, the discount rate applied to future earnings reflecting a weighted average cost of capital, and earnings growth assumptions. A discounted cash flow analysis requires management to make various assumptions about future sales, operating margins, capital expenditures, working capital, and growth rates. If the evaluation results in the fair value of the goodwill for the reporting unit being lower than the carrying value, an impairment charge is recorded. The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands): Weighted Average Remaining Gross Life Carrying Accumulated As of May 31, 2019 (in years) Amount Amortization Net Amortized intangible assets Trademarks and trade names 13.3 $ 25,281 $ 4,346 $ 20,935 Customer lists 8.0 72,765 32,907 39,858 Non-compete 2.4 747 355 392 Patent — 783 783 — Total 9.8 $ 99,576 $ 38,391 $ 61,185 As of February 28, 2019 Amortized intangible assets Trademarks and trade names 13.8 $ 24,385 $ 3,906 $ 20,479 Customer lists 8.2 71,869 31,498 40,371 Non-compete 2.5 722 300 422 Patent — 783 783 — Total 10.0 $ 97,759 $ 36,487 $ 61,272 Aggregate amortization expense for the three months ended May 31, 2019 and May 31, 2018 was $1.9 million and $1.4 million, respectively. The Company’s estimated amortization expense for the current and next four fiscal years is as follows (in thousands): 2020 $ 7,589 2021 7,472 2022 7,305 2023 6,459 2024 6,421 Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands): Balance as of March 1, 2018 $ 70,603 Goodwill acquired 11,031 Goodwill impairment — Balance as of February 28, 2019 81,634 Goodwill acquired 893 Goodwill impairment — Balance as of May 31, 2019 $ 82,527 During the three months ended May 31, 2019, $0.9 million was added to goodwill related to the acquisition of Integrated. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
May 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 8. Accrued Expenses The following table summarizes the components of accrued expenses as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Employee compensation and benefits $ 11,964 $ 15,950 Taxes other than income 966 583 Income taxes payable 3,432 — Accrued legal and professional fees 124 203 Accrued interest 187 188 Accrued utilities 90 90 Accrued acquisition related obligations 360 214 Accrued credit card fees 147 146 Other accrued expenses 855 521 $ 18,125 $ 17,895 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Revolving credit facility $ 30,000 $ 30,000 The Company is party to a Second Amended and Restated Credit Agreement, as amended, restated, supplemented or modified from time to time, pursuant to which a credit facility has been extended to the Company until August 11, 2020 (the “ Credit Facility The Credit Facility bears interest at the LIBOR rate plus a spread ranging from 1.0% to 2.0%, which rate was 3.5% (3 month LIBOR + 1.0%) at May 31, 2019 and 3.6% (3 month LIBOR + 1.0%) at February 28, 2019. The rate is determined by the Company’s fixed charge coverage ratio of total funded debt to earnings before interest, taxes, depreciation and amortization (“ EBITDA |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders’ Equity The Company’s board of directors has authorized the repurchase of the Company’s outstanding common stock through a stock repurchase program, which authorized amount is currently up to $40.0 million. Under the repurchase program, share purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice. During the three months ended May 31, 2019 the Company, under the program, repurchased 62,038 shares of common stock at an average price of $19.54 per share. Since the program’s inception in October 2008, there have been 1,752,062 common shares repurchased at an average price of $15.78 per share. As of May 31, 2019 there was $12.4 million available to repurchase shares of the Company’s common stock under the program. |
Stock Option Plan and Stock Bas
Stock Option Plan and Stock Based Compensation | 3 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plan and Stock Based Compensation | 11. Stock Option Plan and Stock Based Compensation The Company grants stock options and restricted stock to key executives, managerial employees and non-employee directors. At May 31, 2019, the Company had one stock option plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of June 30, 2011 (the “ Plan The Company recognizes compensation expense for stock options and restricted stock grants on a straight-line basis over the requisite service period. For the three months ended May 31, 2019 and May 31, 2018, the Company included compensation expense related to share-based compensation of $0.4 million and $0.3 million, respectively, in selling, general, and administrative expenses. Stock Options As of May 31, 2019, the Company had no outstanding vested or unvested stock options. The Company had the following stock option activity for the three months ended May 31, 2019: Weighted Weighted Average Aggregate Number Average Remaining Intrinsic of Shares Exercise Contractual Value(a) (exact quantity) Price Life (in years) (in Outstanding at March 1, 2019 61,590 $ 15.88 1.8 $ 327 Granted — — Terminated — — Exercised (61,590 ) $ 15.88 Outstanding at May 31, 2019 — — — — Exercisable at May 31, 2019 — — — — (a) Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price. No stock options were granted during the three months ended May 31, 2019 and May 31, 2018. A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands): Three months ended May 31, 2019 2018 Total cash received $ — $ — Income tax benefits — — Total grant-date fair value 201 — Intrinsic value 267 — The Company had no unvested stock options outstanding at any time during the three months ended May 31, 2019. Restricted Stock The Company had the following restricted stock activity for the three months ended May 31, 2019: Weighted Average Number of Grant Date Shares Fair Value Outstanding at March 1, 2019 155,105 $ 19.03 Granted 51,073 20.50 Terminated — — Vested (69,880 ) 18.69 Outstanding at May 31, 2019 136,298 $ 19.76 As of May 31, 2019, the total remaining unrecognized compensation cost related to unvested restricted stock granted under the Plan was approximately $2.4 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 2.1 years. |
Pension Plan
Pension Plan | 3 Months Ended |
May 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plan | 12. Pension Plan The Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the “ Pension Plan Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands): Three months ended May 31, 2019 2018 Components of net periodic benefit cost Service cost $ 272 $ 277 Interest cost 564 568 Expected return on plan assets (1,050 ) (1,027 ) Amortization of: Unrecognized net loss 509 511 Net periodic benefit cost $ 295 $ 329 The Company is required to make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ ERISA |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Basic earnings per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur if stock options or other contracts to issue common shares were exercised or converted into common stock. As of May 31, 2019, no options were outstanding. For the three months ended May 31, 2018, all options were included in the diluted earnings per share computation because the average fair market value of the Company’s stock exceeded the exercise price of the options. Three months ended May 31, 2019 2018 Basic weighted average common shares outstanding 26,028,337 25,333,673 Effect of dilutive options — 30,099 Diluted weighted average common shares outstanding 26,028,337 25,363,772 Earnings per share Net earnings - basic $ 0.37 $ 0.37 Net earnings - diluted $ 0.37 $ 0.36 Cash dividends $ 0.225 $ 0.200 |
Concentrations of Risk
Concentrations of Risk | 3 Months Ended |
May 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Risk | 14. Concentrations of Risk Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and trade receivables. Cash is placed with high-credit quality financial institutions. The Company believes its credit risk with respect to trade receivables is limited due to industry and geographic diversification. As disclosed on the consolidated balance sheets, the Company maintains an allowance for doubtful receivables to cover the Company’s estimate of credit losses associated with accounts receivable. The Company, for quality and pricing reasons, purchases its paper products from a limited number of suppliers. While other sources may be available to the Company to purchase these products, they may not be available at the cost or at the quality the Company has come to expect. For the purposes of the consolidated statements of cash flows, the Company considers cash to include cash on hand and in bank accounts. The Federal Deposit Insurance Corporation insures accounts up to $250,000. At May 31, 2019, cash balances included $85.3 million that was not federally insured because it represented amounts in individual accounts above the federally insured limit for each such account. This at-risk amount is subject to fluctuation on a daily basis. While management does not believe there is significant risk with respect to such deposits, no assurance can be made that the Company will not experience losses on the Company’s deposits. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On June 21, 2019, the Company’s board of directors declared a quarterly dividend on the Company’s common stock of 22.5 cents per share, which will be paid on August 12, 2019 to shareholders of record as of July 12, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies and General Matters (Policies) | 3 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the period ended May 31, 2019 have been prepared in accordance with generally accepted accounting principles for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2019, from which the accompanying consolidated balance sheet at February 28, 2019 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to bad debts, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“ FASB ASU Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans ASU 2018-14 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies the lease recognition requirements and requires entities to recognize the assets and liabilities arising from leases on the balance sheet and to disclose key qualitative and quantitative information about the entity’s leasing arrangements. Based on the original guidance in ASU 2016-02, lessees and lessors would have been required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of practical expedients. In July 2018, the FASB issued ASU No. 2018-11, Leases (“ ASC 842 The Company adopted this guidance as of March 1, 2019, using the optional transition method and elected the option to not apply ASC 842 to comparative periods, which continue to be presented under the accounting standards in effect for those periods. The Company elected the ‘package of practical expedients’ as lessee, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company elected to treat lease and non-lease components as a single lease component. Adoption of the new standard resulted in the recording of operating lease right-of-use (“ROU”) assets of $18 million and operating lease liabilities of $18.2 million. The difference between the leased assets and lease liabilities represents the existing deferred rent liabilities balance at adoption, resulting from historical straight line recognition of operating leases, which was reclassified upon adoption to reduce the measurement of the leased assets. The adoption of the standard did not have an impact on the Company’s shareholders’ equity, statement of operations, or cash flows. |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Doubtful Receivables (Tables) | 3 Months Ended |
May 31, 2019 | |
Receivables [Abstract] | |
Allowance for Doubtful Receivables | The following table presents the activity in the Company’s allowance for doubtful receivables (in thousands): Three months ended May 31, 2019 2018 Balance at beginning of period $ 1,020 $ 1,194 Bad debt expense, net of recoveries 40 135 Accounts written off (19 ) (31 ) Balance at end of period $ 1,041 $ 1,298 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Raw material $ 22,826 $ 21,717 Work-in-process 4,414 4,172 Finished goods 9,586 9,522 $ 36,826 $ 35,411 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
May 31, 2019 | |
Business Acquisition [Line Items] | |
Summary of Purchase Price | The purchase price of Wright was as follows (in thousands): Ennis shares of common stock $ 16,218 Cash 22,653 Purchase price of Wright Business Graphics $ 38,871 |
Summary of Operating Information on a Pro Forma Basis | The following table represents certain operating information on a pro forma basis as though all Wright operations had been acquired as of March 1, 2018, after the estimated impact of adjustments such as amortization of intangible assets, interest expense and related tax effects (in thousands, except per share amounts). Three months ended May 31, 2019 2018 Pro forma net sales $ 108,033 $ 107,321 Pro forma net earnings 9,632 9,810 Pro forma earnings per share - diluted 0.37 0.39 |
Wright Business Graphics, Inc [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation | The following is a summary of the preliminary purchase price allocation for Wright (in thousands): Accounts receivable $ 5,220 Prepaid expenses 427 Inventories 4,365 Other assets 88 Property, plant & equipment 10,331 Non-compete 447 Customer lists 12,900 Trade names 3,830 Goodwill 11,031 Accounts payable and accrued liabilities (4,226 ) Deferred income taxes (5,542 ) $ 38,871 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense for the three months ended May 31, 2019 were as follows (in thousands): Operating lease cost $ 1,577 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,569 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — Weighted Average Remaining Lease Terms Operating leases 5 Years Weighted Average Discount Rate Operating leases 4.50 % |
Summary of Future Minimum Lease Commitments Under Non-cancelable Operating Leases | Future minimum lease commitments under non-cancelable operating leases for each of the fiscal years ending are as follows (in thousands): Operating Lease Commitments 2020 (remaining 9 months) $ 4,424 2021 4,689 2022 3,851 2023 3,196 2024 2,341 2025 1,646 Thereafter 1,196 Total lease payments $ 21,343 Less imputed interest 2,976 Total lease payments $ 18,367 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount and Accumulated Amortization of Intangible Assets | The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands): Weighted Average Remaining Gross Life Carrying Accumulated As of May 31, 2019 (in years) Amount Amortization Net Amortized intangible assets Trademarks and trade names 13.3 $ 25,281 $ 4,346 $ 20,935 Customer lists 8.0 72,765 32,907 39,858 Non-compete 2.4 747 355 392 Patent — 783 783 — Total 9.8 $ 99,576 $ 38,391 $ 61,185 As of February 28, 2019 Amortized intangible assets Trademarks and trade names 13.8 $ 24,385 $ 3,906 $ 20,479 Customer lists 8.2 71,869 31,498 40,371 Non-compete 2.5 722 300 422 Patent — 783 783 — Total 10.0 $ 97,759 $ 36,487 $ 61,272 |
Estimated Amortization Expense | The Company’s estimated amortization expense for the current and next four fiscal years is as follows (in thousands): 2020 $ 7,589 2021 7,472 2022 7,305 2023 6,459 2024 6,421 |
Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands): Balance as of March 1, 2018 $ 70,603 Goodwill acquired 11,031 Goodwill impairment — Balance as of February 28, 2019 81,634 Goodwill acquired 893 Goodwill impairment — Balance as of May 31, 2019 $ 82,527 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
May 31, 2019 | |
Payables And Accruals [Abstract] | |
Components of Accrued Expenses | The following table summarizes the components of accrued expenses as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Employee compensation and benefits $ 11,964 $ 15,950 Taxes other than income 966 583 Income taxes payable 3,432 — Accrued legal and professional fees 124 203 Accrued interest 187 188 Accrued utilities 90 90 Accrued acquisition related obligations 360 214 Accrued credit card fees 147 146 Other accrued expenses 855 521 $ 18,125 $ 17,895 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated (in thousands): May 31, February 28, 2019 2019 Revolving credit facility $ 30,000 $ 30,000 |
Stock Option Plan and Stock B_2
Stock Option Plan and Stock Based Compensation (Tables) | 3 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | As of May 31, 2019, the Company had no outstanding vested or unvested stock options. The Company had the following stock option activity for the three months ended May 31, 2019: Weighted Weighted Average Aggregate Number Average Remaining Intrinsic of Shares Exercise Contractual Value(a) (exact quantity) Price Life (in years) (in Outstanding at March 1, 2019 61,590 $ 15.88 1.8 $ 327 Granted — — Terminated — — Exercised (61,590 ) $ 15.88 Outstanding at May 31, 2019 — — — — Exercisable at May 31, 2019 — — — — (a) Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price. |
Summary of Stock Options Exercised and Tax Benefits Realized from Stock Based Compensation | A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands): Three months ended May 31, 2019 2018 Total cash received $ — $ — Income tax benefits — — Total grant-date fair value 201 — Intrinsic value 267 — |
Restricted Stock Activity | The Company had the following restricted stock activity for the three months ended May 31, 2019: Weighted Average Number of Grant Date Shares Fair Value Outstanding at March 1, 2019 155,105 $ 19.03 Granted 51,073 20.50 Terminated — — Vested (69,880 ) 18.69 Outstanding at May 31, 2019 136,298 $ 19.76 |
Pension Plan (Tables)
Pension Plan (Tables) | 3 Months Ended |
May 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Pension Expense Composed of Components Included in Cost of Goods Sold and Selling, General and Administrative Expenses | Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands): Three months ended May 31, 2019 2018 Components of net periodic benefit cost Service cost $ 272 $ 277 Interest cost 564 568 Expected return on plan assets (1,050 ) (1,027 ) Amortization of: Unrecognized net loss 509 511 Net periodic benefit cost $ 295 $ 329 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation for Basic and Diluted Earnings (loss) Per Share | The following table sets forth the computation for basic and diluted earnings (loss) per share for the periods indicated: Three months ended May 31, 2019 2018 Basic weighted average common shares outstanding 26,028,337 25,333,673 Effect of dilutive options — 30,099 Diluted weighted average common shares outstanding 26,028,337 25,363,772 Earnings per share Net earnings - basic $ 0.37 $ 0.37 Net earnings - diluted $ 0.37 $ 0.36 Cash dividends $ 0.225 $ 0.200 |
Significant Accounting Polici_3
Significant Accounting Policies and General Matters - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2019 | Mar. 01, 2019 |
Accounting Policies [Abstract] | ||
Operating lease right-of-use assets | $ 18,653 | $ 18,000 |
Operating lease liability | $ 18,367 | $ 18,200 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 3 Months Ended |
May 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |
Revenue unsatisfied performance obligation, practical expedient | true |
Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Contract with customer, customer payment terms | 30 days |
Maximum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Contract with customer, customer payment terms | 90 days |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Doubtful Receivables - Allowance for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 1,020 | $ 1,194 |
Bad debt expense, net of recoveries | 40 | 135 |
Accounts written off | (19) | (31) |
Balance at end of period | $ 1,041 | $ 1,298 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 22,826 | $ 21,717 |
Work-in-process | 4,414 | 4,172 |
Finished goods | 9,586 | 9,522 |
Inventories | $ 36,826 | $ 35,411 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Mar. 16, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | May 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Feb. 28, 2018 |
Business Acquisition [Line Items] | |||||||
Percentage of assets acquired and liabilities assumed at their acquisition date fair values | 100.00% | 100.00% | |||||
Goodwill | $ 82,527,000 | $ 82,527,000 | $ 81,634,000 | $ 70,603,000 | |||
Integrated Print & Graphics (Integrated) [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 8,900,000 | ||||||
Acquisition related costs incurred | $ 29,000 | ||||||
Goodwill | 893,000 | ||||||
Intangible assets | 1,800,000 | ||||||
Net sales | $ 20,000,000 | ||||||
Wright Business Graphics, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 38,871,000 | ||||||
Acquisition related costs incurred | $ 200,000 | ||||||
Goodwill | 11,031,000 | ||||||
Net sales | $ 58,000,000 | ||||||
Issuance of common stock in connection with merger, shares | 829,126 | ||||||
Business acquisition, date of acquisition | Jul. 16, 2018 | ||||||
Issuance of common stock in connection with merger, value | $ 16,218,000 | ||||||
Cash paid for final working capital adjustment in connection with merger | 19,700,000 | ||||||
Business acquisition payment for outstanding debt | $ 2,600,000 | ||||||
Tag and Label Company [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 4,700,000 | ||||||
Contingent consideration payable, period | 3 years | ||||||
Tag and Label Company [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration payable | $ 500,000 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price (Detail) - Wright Business Graphics, Inc [Member] $ in Thousands | Jul. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Ennis shares of common stock | $ 16,218 |
Cash | 22,653 |
Purchase price of Wright Business Graphics | $ 38,871 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 | Jul. 31, 2018 | Feb. 28, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 82,527 | $ 81,634 | $ 70,603 | |
Wright Business Graphics, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 5,220 | |||
Prepaid expenses | 427 | |||
Inventories | 4,365 | |||
Other assets | 88 | |||
Property, plant & equipment | 10,331 | |||
Goodwill | 11,031 | |||
Accounts payable and accrued liabilities | (4,226) | |||
Deferred income taxes | (5,542) | |||
Total purchase consideration | 38,871 | |||
Non-Compete [Member] | Wright Business Graphics, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Non-compete, Customer lists, Trade names and Trademark | 447 | |||
Customer Lists [Member] | Wright Business Graphics, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Non-compete, Customer lists, Trade names and Trademark | 12,900 | |||
Trade Names [Member] | Wright Business Graphics, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Non-compete, Customer lists, Trade names and Trademark | $ 3,830 |
Acquisitions - Summary of Opera
Acquisitions - Summary of Operating Information on Pro Forma Basis (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Business Combinations [Abstract] | ||
Pro forma net sales | $ 108,033 | $ 107,321 |
Pro forma net earnings | $ 9,632 | $ 9,810 |
Pro forma earnings per share - diluted | $ 0.37 | $ 0.39 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
May 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Leases description | The Company leases certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally have terms of 1 – 5 years, with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. The Company currently does not have leases that include options to purchase or provisions that would automatically transfer ownership of the leased property to the Company. |
Leases, renewal options, description | The Company’s leases generally have terms of 1 – 5 years, with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. |
Lessee operating lease, existence of option to extend | true |
Variable lease cost | $ 0 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Leases terms | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Leases terms | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
May 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 1,577 |
Supplemental cash flow information related to leases was as follows: | |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases | $ 1,569 |
Weighted Average Remaining Lease Terms, Operating leases | 5 years |
Weighted Average Discount Rate, Operating leases | 4.50% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Commitments Under Non-cancelable Operating Leases (Detail) - USD ($) $ in Thousands | May 31, 2019 | Mar. 01, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2020 (remaining 9 months) | $ 4,424 | |
2021 | 4,689 | |
2022 | 3,851 | |
2023 | 3,196 | |
2024 | 2,341 | |
2025 | 1,646 | |
Thereafter | 1,196 | |
Total lease payments | 21,343 | |
Less imputed interest | 2,976 | |
Total lease payments | $ 18,367 | $ 18,200 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
May 31, 2019 | Feb. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 9 years 9 months 18 days | 10 years |
Gross Carrying Amount | $ 99,576 | $ 97,759 |
Accumulated Amortization | 38,391 | 36,487 |
Amortized intangible assets, Net | $ 61,185 | $ 61,272 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 13 years 3 months 18 days | 13 years 9 months 18 days |
Gross Carrying Amount | $ 25,281 | $ 24,385 |
Accumulated Amortization | 4,346 | 3,906 |
Amortized intangible assets, Net | $ 20,935 | $ 20,479 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 8 years | 8 years 2 months 12 days |
Gross Carrying Amount | $ 72,765 | $ 71,869 |
Accumulated Amortization | 32,907 | 31,498 |
Amortized intangible assets, Net | $ 39,858 | $ 40,371 |
Non-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 2 years 4 months 24 days | 2 years 6 months |
Gross Carrying Amount | $ 747 | $ 722 |
Accumulated Amortization | 355 | 300 |
Amortized intangible assets, Net | 392 | 422 |
Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 783 | 783 |
Accumulated Amortization | $ 783 | $ 783 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | Feb. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of trade names, customer lists, and patent | $ 1,904 | $ 1,415 | |
Goodwill acquired | 893 | $ 11,031 | |
Integrated Print & Graphics (Integrated) [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill acquired | $ 900 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | May 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 7,589 |
2021 | 7,472 |
2022 | 7,305 |
2023 | 6,459 |
2024 | $ 6,421 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Net Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
May 31, 2019 | Feb. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning balance | $ 81,634 | $ 70,603 |
Goodwill acquired | 893 | 11,031 |
Goodwill, Ending balance | $ 82,527 | $ 81,634 |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 |
Payables And Accruals [Abstract] | ||
Employee compensation and benefits | $ 11,964 | $ 15,950 |
Taxes other than income | 966 | 583 |
Income taxes payable | 3,432 | |
Accrued legal and professional fees | 124 | 203 |
Accrued interest | 187 | 188 |
Accrued utilities | 90 | 90 |
Accrued acquisition related obligations | 360 | 214 |
Accrued credit card fees | 147 | 146 |
Other accrued expenses | 855 | 521 |
Accrued expenses, Total | $ 18,125 | $ 17,895 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2019 | Feb. 28, 2019 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 30,000 | $ 30,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 30,000 | $ 30,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
May 31, 2019USD ($) | Feb. 28, 2019 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 30,000,000 | |
Second Amendment [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maturity date | Aug. 11, 2020 | |
Revolving credit facility, maximum borrowing capacity | $ 100,000,000 | |
Revolving credit facility, additional borrowing capacity | $ 50,000,000 | |
Fixed charge coverage ratio, minimum | 1.25 | |
Line of credit facility, borrowing capacity description | (i) the Company’s consolidated net leverage ratio may not exceed 3.00:1.00, (ii) the Company’s consolidated fixed charge coverage ratio may not be less than 1.25:1.00, and (iii) the Company may make dividends or distributions to shareholders so long as (a) no event of default has occurred and is continuing and (b) the Company’s net leverage ratio both before and after giving effect to any such dividend or distribution is equal to or less than 2.50:1.00. | |
Revolving credit facility, interest rate description | LIBOR rate plus a spread ranging from 1.0% to 2.0%, which rate was 3.5% (3 month LIBOR + 1.0%) at May 31, 2019 and 3.6% (3 month LIBOR + 1.0%) at February 28, 2019. | |
Revolving credit facility, variable basis spread | 1.00% | 1.00% |
Revolving credit facility, interest rate | 3.50% | 3.60% |
Second Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Net leverage ratio | 3 | |
Revolving credit facility, variable basis spread | 2.00% | |
Second Amendment [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, variable basis spread | 1.00% | |
Second Amendment [Member] | Revolving Credit Facility [Member] | Dividends or Distributions Effect [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Net leverage ratio | 2.50 | |
Second Amendment [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 20,000,000 | |
Second Amendment [Member] | Swing-line Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 15,000,000 | |
Third Amendment [Member] | Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 700,000 | |
Revolving credit facility, remaining borrowing capacity | $ 69,300,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 127 Months Ended |
May 31, 2019USD ($)$ / sharesshares | May 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Repurchase of common stock | shares | 62,038 | 1,752,062 |
Repurchase of common stock, average cost per share | $ / shares | $ 19.54 | $ 15.78 |
Total amount available to repurchase of shares | $ 12,400,000 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock repurchase program, authorized amount | $ 40,000,000 | $ 40,000,000 |
Stock Option Plan and Stock B_3
Stock Option Plan and Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unissued common stock reserved | 582,853 | |
Stock option award maximum term | 10 years | |
Share based compensation arrangements by share based payment award vesting period maximum | 5 years | |
Number of outstanding vested and unvested stock options | 0 | |
Number of stock options granted | 0 | 0 |
Number of unvested stock options outstanding | 0 | |
Remaining unrecognized compensation cost related to unvested restricted stock | $ 2.4 | |
Weighted average remaining requisite service period of the unvested restricted stock awards | 2 years 1 month 6 days | |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related share based compensation before tax | $ 0.4 | $ 0.3 |
Stock Option Plan and Stock B_4
Stock Option Plan and Stock Based Compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | Feb. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Options Outstanding, Beginning Balance | 61,590 | ||
Number of Shares, Granted | 0 | 0 | |
Number of Shares, Exercised | (61,590) | ||
Number of Shares, Options Outstanding, Ending Balance | 0 | 61,590 | |
Weighted Average Exercise Price, Beginning Balance | $ 15.88 | ||
Weighted Average Exercise Price, Exercised | $ 15.88 | ||
Weighted Average Exercise Price, Ending Balance | $ 15.88 | ||
Weighted Average Remaining Contractual Life (in years) | 1 year 9 months 18 days | ||
Aggregate Intrinsic Value | $ 327 |
Stock Option Plan and Stock B_5
Stock Option Plan and Stock Based Compensation - Summary of Stock Options Exercised and Tax Benefits Realized from Stock Based Compensation (Detail) $ in Thousands | 3 Months Ended |
May 31, 2019USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total grant-date fair value | $ 201 |
Intrinsic value | $ 267 |
Stock Option Plan and Stock B_6
Stock Option Plan and Stock Based Compensation - Restricted Stock Activity (Detail) - Restricted Stock [Member] | 3 Months Ended |
May 31, 2019$ / sharesshares | |
Restricted stock activity | |
Outstanding at Beginning, Number of Shares | shares | 155,105 |
Number of Shares, Granted | shares | 51,073 |
Number of Shares, Vested | shares | (69,880) |
Outstanding at Ending, Number of Shares | shares | 136,298 |
Outstanding at Beginning, Weighted Average Grant Date Fair value | $ / shares | $ 19.03 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 20.50 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 18.69 |
Outstanding at Ending, Weighted Average Grant Date Fair value | $ / shares | $ 19.76 |
Pension Plan - Additional Infor
Pension Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 31, 2019 | Feb. 28, 2019 | Feb. 29, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employees covered under noncontributory Pension Plan | 17.00% | ||
Compensation period preceding retirement and termination | 5 years | ||
Period used for calculating Pension Plan liability | 25 years | ||
Company contributions | $ 3,000,000 | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions | $ 1,000,000 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions | $ 1,500,000 | ||
Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required contribution to the plan | $ 0 |
Pension Plan - Summary of Pensi
Pension Plan - Summary of Pension Expense Composed of Components Included in Cost of Goods Sold and Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Components of net periodic benefit cost | ||
Service cost | $ 272 | $ 277 |
Interest cost | 564 | 568 |
Expected return on plan assets | (1,050) | (1,027) |
Amortization of: | ||
Unrecognized net loss | 509 | 511 |
Net periodic benefit cost | $ 295 | $ 329 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | May 31, 2019 | Feb. 28, 2019 |
Earnings Per Share [Abstract] | ||
Options outstanding | 0 | 61,590 |
Earnings Per Share - Computatio
Earnings Per Share - Computation for Basic and Diluted Earnings (loss) Per Share (Detail) - $ / shares | 3 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 26,028,337 | 25,333,673 |
Effect of dilutive options | 30,099 | |
Diluted weighted average common shares outstanding | 26,028,337 | 25,363,772 |
Earnings per share | ||
Net earnings - basic | $ 0.37 | $ 0.37 |
Net earnings - diluted | 0.37 | 0.36 |
Cash dividends | $ 0.225 | $ 0.200 |
Concentrations of Risk - Additi
Concentrations of Risk - Additional Information (Detail) | May 31, 2019USD ($) |
Concentration Risk [Line Items] | |
Cash balances not federally insured | $ 85,300,000 |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Maximum insurance available to depositors under the FDIC's general deposit insurance rules | $ 250,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] | Jun. 21, 2019$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Jun. 21, 2019 |
Dividend payable date | Aug. 12, 2019 |
Dividend payable, date of record | Jul. 12, 2019 |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Dividend payable per share | $ 0.225 |