ENNIS, INC.

Regulatory Filings • Jun 24, 2022

11-K 1 ebf-2021-12-31-11-k.htm 11-K 11-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 11-K

Annual Report of Ennis, Inc. 401(k) Plan

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
	For the Calendar Year Ended December 31, 2021
	OR
	Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
	For the transition period from to

Commissions file number 1-5807

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

Ennis, Inc. 401(k) Plan

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Ennis, Inc. 2441 Presidential Parkway Midlothian, TX 76065 (972) 775-9801

REQUIRED INFORMATION

Pursuant to the section of the General Instructions to Form 11-K entitled “Required Information”, this Annual Report on Form 11-K for the year ended December 31, 2021 consists of the audited financial statements of the Ennis Inc. 401(k) Plan (the “Plan”) and the related schedules thereto. The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and in accordance with Item 4 of the section of the General Instructions to Form 11-K entitled “Required Information”, the financial statements and schedules furnished herewith have been prepared in accordance with the financial reporting requirements of ERISA in lieu of the requirements of Items 1-3 of that section of the General Instructions. Schedules I, II, and III are not submitted because they are either not applicable, the required information is included in the financial statements or notes thereto, or they are not required under ERISA.

ENNIS, INC. 401(k) PLAN

Table of Contents

	Page
Report of Independent Registered Public Accounting Firm	1
Financial Statements:
Statements of Net Assets Available for Benefits (Modified Cash Basis)	2
Statement of Changes in Net Assets Available for Benefits (Modified Cash Basis)	3
Notes to Financial Statements (Modified Cash Basis)	4 -13
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) (Modified Cash Basis)	14
Signature	15

Report of Independent Registered Public Accounting Firm

To the Audit and Retirement Committees, Administrator, and the Participants of the Ennis, Inc. 401(k) Plan

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits (modified cash basis) of the Ennis, Inc. 401(k) Plan (the “Plan”) as of December 31, 2021 and 2020, and the related statement of changes in net assets available for benefits (modified cash basis) for the year ended December 31, 2021, and the related notes and schedule (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits (modified cash basis) of the Plan as of December 31, 2021 and 2020, and the changes in net assets available for benefits (modified cash basis) for the year ended December 31, 2021, in conformity with the modified cash basis of accounting described in Note 2.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Basis of Accounting

We draw attention to Note 2 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Supplemental Information

The supplemental information contained in the schedule of assets (held at end of year) (modified cash basis) has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ BKM Sowan Horan, LLP

We have served as the Plan’s auditor since 2010.

Dallas, Texas

June 24, 2022

• 1 -

ENNIS, INC. 401(k) PLAN

Statements of Net Assets Available for Benefits

(Modified Cash Basis)

December 31, 2021 and 2020

	2021	2020
Assets:
Cash	$ 43,131	$ 5,636
Investments at fair value	165,879,191	153,782,644
Fully benefit-responsive investment contracts
at contract value	15,017,741	14,619,707
Notes receivable from participants	2,120,907	2,305,268
Net assets available for benefits	$ 183,060,970	$ 170,713,255

See accompanying notes to the financial statements

• 2 -

ENNIS, INC. 401(k) PLAN

Statement of Changes in Net Assets Available for Benefits

(Modified Cash Basis)

Year Ended December 31, 2021

Additions:
Contributions:
Employee contributions	$ 5,306,139
Employer matching and discretionary contributions	2,014,514
Employee rollover contributions	1,044,756
Total contributions	8,365,409
Interest on notes receivable from participants	115,736
Investment income:
Dividends	2,029,346
Net appreciation in fair value of investments	22,046,127
Total investment income	24,075,473
Total additions	32,556,618
Deductions:
Administrative expenses	(275,743	)
Benefits paid and withdrawals	(19,933,160	)
Total deductions	(20,208,903	)
Net increase	12,347,715
Net assets available for benefits at beginning of year	170,713,255
Net assets available for benefits at end of year	$ 183,060,970

See accompanying notes to the financial statements

• 3 -

Note 1 - Plan Description

The following description of the Ennis, Inc. 401(k) Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General

The Plan is a defined contribution plan covering substantially all employees of Ennis, Inc. (the “Company”). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) and the Internal Revenue Code (“IRC”).

The Plan was formed February 1, 1994 and has been restated to conform with ERISA and IRC regulations. The Plan is sponsored and administered by the Company, acting by and through the Retirement Committee. At December 31, 2021 and 2020, the Plan’s assets were held by Matrix Trust Company and by BMO Harris Bank N.A. (the “Custodian”), respectively. The Plan's record-keeper is One American Retirement Services LLC ("OARS").

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act contained several provisions that temporarily impacted 401(k) plans, such as the waiver of required minimum distributions, a new hardship withdrawal option, increased loan limits, and a loan payment deferral option. The Company has incorporated these provisions into the Plan. See further discussion in Note 1.

Eligibility

Employees age 18 and older of the Company are eligible to participate in the Plan and receive matching contributions the first of the month after completing 60 days of service, as defined by the Plan.

Employees are eligible to receive discretionary profit-sharing contributions, if granted, after completing 1,000 hours within their first 12 months of service.

Contributions

Participants may make voluntary contributions to the Plan ranging from 1% to 100% of eligible pay subject to the Internal Revenue Service (“IRS”) annual limitations. The Plan allows catch-up contributions (within the meaning of Section 414(v) of the IRC) for participants who have reached age 50 by the end of the plan year. The Plan also allows rollovers of distributions from other qualified plans.

The Company makes discretionary matching contributions at a rate determined by the Plan Sponsor for certain employees not enrolled in the Pension Plan for the Employees of Ennis, Inc. The total matching contributions are not to exceed $2,500, or discretionary employer contributions.

Eligibility for employer contributions depends on the participant’s employment location as defined in the Plan document. The Plan automatically enrolls all newly eligible participants into the Plan at a 4% deferral rate.

In addition, each year, the Company may at its discretion, make profit sharing contributions for the plan year not to exceed certain limitations prescribed by the IRC. During 2021, the Company declared a discretionary profit-sharing contribution of $149,000 on behalf of the employees of Northstar Computer Forms, Inc. in accordance with its original plan. This contribution was contributed to the Plan in 2022. During 2021, the Company contributed $176,000 which was declared in 2020.

• 4 -

Note 1 - Plan Description – (Continued)

Participant accounts

Each participant’s account is credited with the participant’s contribution, any employer contributions, and Plan earnings or losses and is reduced for any benefit payments and administrative expenses. Plan earnings or losses are allocated to each participant's account based on the ratio of the participant's account balance and share of net earnings or losses of their respective investment options. Allocations are determined in accordance with the benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested interest in his or her account.

Vesting

Participants are immediately vested in their salary deferrals, rollover contributions, and employer matching contributions. Profit sharing contributions vest over a 5-year graded vesting schedule as defined in the Plan document. Special vesting schedules ranging from 3 to 6 years apply to certain employees based on their location as defined in the Plan document.

Notes receivable from participants

Under provisions of the Plan, participants are allowed to borrow from their Plan accounts. The maximum amount that a participant may borrow is the lesser of (i) 50% of their total vested account balance or (ii) $50,000 less the highest loan balance outstanding. Note repayments are made in equal installments through payroll deductions generally over a term not to exceed five years. All notes are considered a directed investment from the participant’s Plan account with all payments of principal and interest credited to the participant’s account. A maximum number of one outstanding note is allowed per individual. The minimum note is $1,000 and there is a $100 set-up fee payable for each note. The interest rate is determined based on the prime rate as determined by the Plan’s trustee plus 1%.

As permitted by the CARES Act, the Plan allowed eligible participants impacted by the COVID-19 pandemic to suspend loan repayments with due dates on or after March 27, 2020 through December 31, 2020. Effective January 1, 2021, loans were re-amortized and payments recommenced.

Payment of benefits

Upon termination of service, financial hardship, retirement, or disability, the participant or their beneficiary has the option to withdraw qualified amounts up to the participant’s vested account balance. A participant may elect to

withdraw all or a portion of their vested account balance while employed after reaching age 59 ½.

The Plan allowed eligible participants who were impacted by the COVID-19 pandemic to request penalty-free distributions of up to $100,000 without penalty during 2020. The distributions are repayable to the Plan within three years. In addition, the required minimum distributions were waived for the 2020 calendar year and resumed for the 2021 calendar year.

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement Act was signed into law. The age requirement for minimum distributions was raised to 72 from 70-1/2, for any participant who turned 70-1/2 on or after January 1, 2020.

Administrative expenses

Administrative expenses which are not paid by the Plan Sponsor are paid by the Plan.

• 5 -

Note 2 - Summary of Significant Accounting Policies

Basis of accounting

The accompanying financial statements have been prepared on the modified cash basis of accounting and present the

net assets available for benefits and changes in those net assets. Consequently, certain additions and the related assets are recognized when received rather than when earned and certain deductions are recognized when paid rather than when the obligations is incurred. The modified cash basis of accounting is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

Use of estimates

The preparation of financial statements in conformity with the modified cash basis of accounting requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions to net assets available for benefits during the reporting period. Actual results could differ from those estimates. See Note 5 for discussion of significant estimates used to measure investments.

Investments valuation and income recognition

Participants may direct the allocation of amounts deferred to the available investment options. Provisions of the Plan allow participant contributions in 1% increments to be invested in any of the available options. The Plan provides for investments in a guaranteed investment contract (“GIC”), pooled-separate accounts (including a Company stock fund), and mutual funds. The Plan’s investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). See Note 4 for further discussion of fair value of investments.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the cash basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold, as well as held during the year.

Notes receivable from participants

Notes receivable from participants are recorded at their unpaid principal balance. Interest income is recorded on a cash basis and any related fees are recorded as administrative expenses when incurred. An allowance for credit losses is not necessary as the notes are collateralized by the participants’ account balance. Delinquent notes from participants are reclassified as distributions based upon provision of the Plan document. Participant loans are considered delinquent if any payment of principal and interest, or any portion thereof, remains unpaid for more than 90 days after due.

Benefits paid to participants

Benefits paid to participants are recorded as a reduction of net assets available for benefits when paid. For all employees who have terminated with an account balance between $1,000 and $5,000, the Plan Administrator has the right to automatically rollover the balance to an individual retirement plan designated by the Administrator, at the expense of the Plan. For terminated employees with a vested account balance less than $1,000, a check will be issued to the participant.

Forfeitures

Forfeitures may be used to reduce future employer contributions or to pay administrative expenses. The Plan did not use unvested amounts to pay administrative expenses in the current year. See Note 3.

• 6 -

Note 2 - Summary of Significant Accounting Policies - (Continued)

Subsequent events

Management of the Plan evaluates events and transactions occurring subsequent to the date of the financial statements for matters requiring recognition or disclosure in the financial statements. The accompanying financial statements consider events through June 24, 2022, the date which the financial statements were issued.

Risks and uncertainties

The Plan and its participants invest in various investment securities. Investment securities, in general, are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities, it is possible that changes in the value of investment securities will occur at any given time, and that such changes could materially affect participants' account balances and the amounts reported in the statements of net assets available for benefits.

Note 3 - Nonparticipant-Directed Investments

Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows:

	December 31, — 2021	2020
Net assets:
Forfeiture account	$ 1,112	$ 553
		Year ended
		December 31, 2021
Change in net assets:
Forfeitures relating to current year activities		$ 404
Earnings		155
		$ 559

Note 4 - Investments in Insurance Contracts

During the years ended December 31, 2021 and 2020, the Plan maintained a GIC investment option, the MassMutual SAGIC Diversified II Account with Matrix Trust and BMO (“Investment Contract”), respectively, which is considered a traditional investment contract. The underlying investment options of this contract is considered to be fully benefit-responsive as described in FASB ASC Topic 962 (“ASC 962”), Plan-Accounting-Defined Contribution Pension Plans , and therefore are reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions made under each contract, plus earnings, less participant withdrawals and administrative expenses.

The contract issuer is contractually obligated to repay the principal and interest at a specified interest rate that is guaranteed by the Plan. The crediting rate is based on a formula established by the contract issuer but may not be less than 1%. The crediting rate is reviewed on a quarterly basis for resetting.

• 7 -

Note 4 - Investments in Insurance Contracts - (Continued)

The determination of credited interest rates, as determined by the service provider, reflects a number of factors, including mortality and expense risks, interest rate guarantees, the investment income earned on invested assets and the amortization of any capital gains and/or losses realized on the sale of invested assets. A market value adjustment may apply to amounts withdrawn at the request of the contract holder.

The underlying contract has no restrictions on the use of Plan assets and there are no valuation reserves recorded to adjust contract amounts.

Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (i) amendments to the Plan documents (including complete or partial plan termination or merger with another plan); (ii) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions; or (iii) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan Administrator does not believe that the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

The Investment Contract does not permit the Custodian to terminate the agreement prior to the scheduled maturity date.

Note 5 - Fair Value Measurements

FASB ASC Topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

Level 2 Inputs to the valuation methodology include:

 Quoted prices for similar assets or liabilities in active markets;

 Quoted prices for identical or similar assets or liabilities in inactive markets;

 Inputs other than quoted prices that are observable for the asset or liability; or

 Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

• 8 -

Note 5 - Fair Value Measurement s - (Continued)

A description of the valuation methodologies used for Plan assets measured at fair value is as follows:

Guaranteed investment contract: Fair value is the amount plan participants would receive currently if they were to withdraw or transfer funds within the Plan prior to their maturity for an event other death, disability, termination or retirement. This fair value represents contract value adjusted to reflect current market interest rates only to the extent such market rates exceed crediting rates.

Mutual funds: Valued at the closing price reported on the active market on which the Fund is traded.

Pooled separate accounts (including the Company stock fund): Valued at the net asset value ("NAV") of shares held by the Plan at year end.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level within the fair value hierarchy, the Plan’s assets at fair value as of:

Description	Level 1	Level 2	Level 3	Total
Mutual funds	$ 33,393,984	$ -	$ -	$ 33,393,984
Guaranteed investment contract	-	-	15,017,741	15,017,741
Total assets in fair value hierarchy	$ 33,393,984	$ -	$ 15,017,741	48,411,725
Separate accounts measured at NAV (a)				132,485,209
				$ 180,896,934
	December 31, 2020
Description	Level 1	Level 2	Level 3	Total
Mutual funds	$ 30,881,895	$ -	$ -	$ 30,881,895
Guaranteed investment contract		-	14,619,708	14,619,708
Total assets in fair value hierarchy	$ 30,881,895	$ -	$ 14,619,708	45,501,603
Separate accounts measured at NAV (a)				122,900,749
				$ 168,402,352

(a) In accordance with ASC Subtopic 820-10, certain investments that were measured at net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of their fair value hierarchy to the Statement of Net Assets Available for Benefits.

The table below sets forth a summary of changes in the fair value of the Plan’s, GIC for the years ended December 31, 2021 and 2020.

Balance, beginning of year	$ 14,619,708	$	17,710,073
Total gains	482,882		489,356
Purchases	2,922,159		(1,224,949	)
Issuances, Settlements	(3,007,008	)	(2,354,772	)
Balance, end of year	$ 15,017,741	$	14,619,708

• 9 -

Note 5 - Fair Value Measurements - (Continued)

Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements

The following table, as of December 31, 2021, and 2020, represents the Plan’s Level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, and the significant unobservable inputs and the range of values for those inputs.

	Fair Value	Fair Value	Valuation	Unobservable	Input
Description	12/31/2021	12/31/2020	Techniques	Inputs	Values
Guaranteed				Risk-adjusted
Investment			Discounted	discount rate	Approximately
Contract	$ 15,017,741	$ 14,619,708	Cash Flow	applied	1%

The Plan’s investments in pooled separate accounts of $132,485,209 and $122,900,749 at December 31, 2021 and 2020, respectively, are valued, as a practical expedient, based on the Custodian’s Plan NAV of units held at year-end. The calculated NAV is directly related to the NAV of the underlying investments adjusted for dividends or distributions received by the Custodian and the daily equivalent of any fees charged. The investments held by each pooled separate account are traded on an active market.

• 10 -

Note 5 -Fair Value Measurements - (Continued)

The following table summarizes investments for which fair value is measured using the NAV per share

practical expedient as of December 31, 2021 and 2020.

	Fair Value — December 31,		Redemption	Other — Redemption	Redemption — Note
Investment	2021	2020	Frequency	Restrictions	Period
Flexpath Index Plus Moderate 2025
Pooled Separate Account (f)	32,422,517	31,802,811	Daily	None	None
Flexpath Index Plus Moderate 2035
Pooled Separate Account (f)	24,151,897	22,056,815	Daily	None	None
WT AB US Large Cap Growth
Pooled Separate Account(g)	15,120,739	13,681,353	Daily	None	None
Blackrock Equity Index Fund Fee CI1
Pooled separate accounts (a)	13,678,020	11,526,945	Daily	None	None
Flexpath Index Plus Moderate
Pooled Separate Account (f)	6,688,179	7,777,551	Daily	None	None
Flexpath Index Plus Moderate 2045
Pooled Separate Account (f)	8,073,499	6,883,606	Daily	None	None
WT Large Cap Value Fund
Pooled Separate Account(h)	7,578,298	6,584,786	Daily	None	None
WT Small Cap Growth Fund
Pooled Separate Account(i)	5,852,135	6,485,812	Daily	None	None
International Stock Fund Class I1
Pooled Separate Account (b)	4,552,851	4,486,349	Daily	None	None
WT CIT Small Cap Value Fund II
Pooled Separate Account(j)	3,624,384	2,941,007	Daily	None	None
Flexpath Index Plus Moderate 2055
Pooled Separate Account (f)	2,540,265	1,965,489	Daily	None	None
Ennis Employer Stock
Pooled Separate Account (e)	1,465,203	1,688,741	Daily	None	None
Flexpath Index Plus Conservative 2025
Pooled Separate Account (f)	1,406,544	1,468,953	Daily	None	None
Flexpath Index Plus Aggressive 2035
Pooled Separate Account (f)	1,081,331	692,719	Daily	None	None
Flexpath Index Plus Aggressive 2025
Pooled Separate Account (f)	970,580	351,661	Daily	None	None
Flexpath Index Plus Conservative 2035
Pooled Separate Account (f)	821,729	682,276	Daily	None	None
Flexpath Index Plus Aggressive 2045
Pooled Separate Account (f)	733,829	237,252	Daily	None	None
BlackRock US Debt Index Fund Class I
Pooled Separate Account (c)	654,475	630,375	Daily	None	None
BlackRock Equity Index Fund CI 1
Pooled separate accounts (d)	497,554	527,430	Daily	None	None
Flexpath Index Plus Aggressive 2055
Pooled Separate Account (f)	336,851	219,267	Daily	None	None
Flexpath Index Plus Conservative
Pooled Separate Account (f)	145,998	135,562	Daily	None	None
Flexpath Index Plus Conservative 2045
Pooled Separate Account (f)	49,470	44,844	Daily	None	None
Flexpath Index Plus Conservative 2055
Pooled Separate Account (f)	35,597	28,486	Daily	None	None
Flexpath Index Plus Aggressive Retirement Fd
Pooled Separate Account (f)	3,264	659	Daily	None	None
	$ 132,485,209	$ 122,900,749

• 11 -

Note 5 - Fair Value Measurements - (Continued)

a) The fund seeks to achieve investment results that are similar to the price and yield performance, before fees and expenses, of the S&P 500 Index. BlackRock uses a replication indexing strategy to manage the underlying fund by investing all of the securities of the Index in approximately the same proportions as the Index.

b) The fund seeks long-term capital growth through investments in foreign, primarily equity securities. The fund uses a bottom-up, value-oriented, long-term approach, focusing on the market price of a company’s securities relative to the sub-advisor’s evaluation of the company’s long-term earnings, asset value and cash flow potential.

c) The fund seeks to achieve investment results that are similar to the price and yield performance, before fees and expenses, of the Bloomberg Barclays U.S. Aggregate Bond Index. BlackRock uses a representative sampling indexing strategy to manage the underlying fund.

d) The fund seeks to achieve investment results that are similar to the price and yield performance, before fees and expenses of the MSCI EAFE Index. BlackRock uses a replication indexing strategy to manage the underlying fund by investing in substantially all of the securities of the Index in approximately the same proportions as the Index.

e) The Ennis Employer Stock Fund seeks long-term capital growth. The Fund invests primarily in Ennis, Inc. common stock (EBF) traded on the New York Stock Exchange. For liquidity purposes, a small amount of cash is kept in a money market in the Fund.

f) Each flexPATH strategy, offered through flexPath Strategies, LLC, seeks to provide long-term investors with an asset allocation strategy designed to maximize assets for retirement consistent with the risk level and projected retirement date associated with each fund. The funds are designed to reduce exposure to risk over time by shifting gradually from a focus on capital appreciation to one of capital preservation, while maintaining some exposure to capital appreciation asset classes.

g) The fund seeks long-term growth of capital by investing in highly profitable businesses for long-term, non-cyclical growth. The investment team uses a bottom-up research to identify companies that they believe have the ability to deliver persistent growth. They seek businesses that earn returns in excess of their cost of capital and have long-term opportunities to reinvest those returns in high margin, value-creating project.

h) The fund seeks to outperform the market over time by employing a value-oriented approach to identify potential opportunities for revaluation or fundamental improvement.

i) The fund seeks long-term growth of capital through comprehensive stock selection. The strategy employs a highly disciplined stock selection process that marries in-depth fundamental research with quantitative analysis to identify high-quality, rapidly growing companies with earnings growth potential that appear likely to outpace

market expectations. The fund invests in a diversified portfolio of equity securities with relatively smaller

capitalizations as compared to the overall U.S. market.

j) The fund seeks to deliver capital appreciation through investing in value-oriented common stocks of small sized

U.S. companies similar in size, at the same time of purchase, to those in the Russell 2000 Value Index. The

strategy is benchmarked to the Russell 2000 Value Index.

• 12 -

Note 6 - Plan Termination

Although the Company has not expressed any intent to do so, it has the right under the Plan document to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become 100% vested in their accounts.

Note 7 - Tax Status of Plan

The Plan has obtained its latest determination letter dated March 31, 2014, in which the IRS stated that the Plan, as then designed, was in compliance with the applicable requirements of the IRC. Although the Plan has been amended since receiving the determination letter, the Plan’s administrator and management believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2021, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the Plan’s financial statements. The IRS generally has the ability to examine Plan activity for up to three years.

Note 8 - Parties-in-Interest

Certain plan investments at December 31, 2021 and 2020 were managed by the Custodian. The Custodians and OARS acts as the trustee and record-keeper, respectively as defined by the Plan document, and therefore, these transactions qualify as party-in-interest transactions. The Plan also invests in a Company common stock fund, and therefore, these transactions qualify as party-in-interest transactions.

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Supplemental Schedule

ENNIS, INC. 401(k) PLAN

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)(Modified Cash Basis)

December 31, 2021

EIN 75-0256410

a10254

	(b) Identity of issuer, borrower,	(c) Description of investment including maturity	(d)	(e)Current
(a)	lessor, or similar party	date, rate of interest, collateral, par, or maturity value	Cost	value
	Wilmington Trust	Flexpath Index Plus Moderate 2025		$ 32,422,517
	Wilmington Trust	Flexpath Index Plus Moderate 2035		24,151,897
	Wilmington Trust	WT AB US Large Cap Growth		15,120,739
(1)	MML Investment Advisors, LLC	MassMutual Diversified SAGIC II		15,017,741
	Wilmington Trust	BlackRock Equity Index Fund Fee CI1		13,678,020
	Fidelity Management Company	Fidelity Mid Cap Index Instl Prem		13,279,010
	T Rowe Price Associates, Inc.	T Rowe Price Balanced Fund		8,934,722
	Wilmington Trust	Flexpath Index Plus Moderate 2045		8,073,499
	Wilmington Trust	WT Large Cap Value Fund		7,578,298
	Wilmington Trust	Flexpath Index Plus Moderate		6,688,179
	Invesco	Invesco Core bond Fund		5,881,492
	Wilmington Trust	WT Small Cap Growth Fund		5,852,135
	Wilmington Trust	International Stock Fund Class I1		4,552,851
	American Century Inv. Mgmt.	American Century Mid Cap Value R6		3,938,725
	Wilmington Trust	WT CIT Small Cap Value Fund II		3,624,384
	Wilmington Trust	Flexpath Index Plus Moderate 2055		2,540,265
*	Ennis Common Stock	Ennis ER Stock Unitized Fund		1,465,203
	Wilmington Trust	Flexpath Index Plus Conservative 2025		1,406,544
	Invesco	Invesco Developing Markets Fund		1,360,034
	Wilmington Trust	Flexpath Index Plus Aggressive 2035		1,081,331
	Wilmington Trust	Flexpath Index Plus Aggressive 2025		970,580
	Wilmington Trust	Flexpath Index Plus Conservative 2035		821,729
	Wilmington Trust	Flexpath Index Plus Aggressive 2045		733,829
	Wilmington Trust	BlackRock US Debt Index Fund Class I		654,475
	Wilmington Trust	BlackRock Equity Index Fund CI 1		497,554
	Wilmington Trust	Flexpath Index Plus Aggressive 2055		336,851
	Wilmington Trust	Flexpath Index Plus Conservative		145,998
	Wilmington Trust	Flexpath Index Plus Conservative 2045		49,470
	Wilmington Trust	Flexpath Index Plus Conservative 2055		35,597
	Wilmington Trust	Flexpath Index Plus Aggressive Retirement Fd		3,264
	Cash			43,131
	Total investments			180,940,063
*	Notes receivable from participants	Notes receivable (interest rates ranging from 3.25% to 7.50%)		2,120,907
	Total Assets		$	183,060,970

• Indicates party-in-interest to the plan.

(1) Included in the MassMutual Diversified SAGIC II is $1,112 in nonparticipant-directed unallocated forfeitures.

Column (d) cost is not required since all investments are directed by participants.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

	ENNIS, INC. 401(k) PLAN
Date: June 24, 2022	/s/ Vera Burnett
	Vera Burnett
	CFO, Treasurer and Principal Financial
	Accounting Officer

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