Ennis, Inc. (NYSE: EBF)

Ennis, Inc. is primarily a trade printer that manufactures a broad range of printed products for resale throughout the United States through a network of independent distributors. This distributor channel includes independent print distributors, commercial printers, direct mail companies, fulfillment firms, payroll and accounts payable software providers, and advertising agencies. The company also sells products to many of its competitors to meet their customers' needs.

Ennis, Inc. generates revenue primarily from the sale of printed business products such as snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive items. Approximately ninety four percent of its output is custom or semi custom, produced to individual customer specifications. The company sells these products mainly through independent distributors, while subsidiaries such as Northstar Computer Forms Inc. and Adams McClure LP also make direct sales to large banking organizations and advertising agencies respectively.

The company operates through the following segments: printing services and manufacture of business forms.

• The printing services and manufacture of business forms segment encompasses the production of a wide variety of printed items including snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive goods. Products are manufactured on an individual job basis with varying sizes, colors, numbers of parts and quantities according to customer specifications. The segment serves independent distributors across the United States and also supplies products to competitors seeking to fulfill their own customers' orders. The segment operates fifty six manufacturing plants located in twenty states, supporting short, medium and long production runs under multiple brand names.

Ennis, Inc. considers itself the largest provider of business forms, pressure seal forms, labels, tags, envelopes and presentation folders to independent distributors in the United States. The company competes with large national printers such as R. R. Donnelley and Taylor Corporation. Management believes its strategic locations, purchasing power and focus on service, quality and price allow it to compete effectively in the distributor market.

The company's customer base consists primarily of independent distributors, commercial printers, direct mail firms, fulfillment companies, payroll and accounts payable software providers and advertising agencies. Ennis, Inc. also sells to many of its competitors and, through subsidiaries, directly to large banking organizations and advertising agencies. No single customer accounts for five percent or more of the company's net sales or accounts receivable, with the largest receivable representing five point three percent of accounts receivable.