ENNIS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTSOF OPERATIONS (form 10-K)

EBF

References to 2022, 2021 and 2020 refer to the fiscal years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively.

Overview

COVID-19 Pandemic - The global spread of the novel strain of COVID-19 has significantly impacted health and economic conditions throughout the United States and the world, including the markets in which we operate.

The following is a summary of our recent and anticipated actions in response to COVID-19 and its impact on our business.

Cash/Liquidity:

Receivable and Inventory Management:

expenditures make economic sense by improving our operations and not jeopardizing our strong liquidity position.

The ultimate impact of COVID-19 is difficult to predict, including due to factors discussed under the caption "Risk Factors" in Item 1A of this Annual Report on Form 10-K.

Critical Accounting Policies and Estimates

Consolidated Summary

Selling, general, and administrative expenses. Our selling, general, and administrative ("SG&A") expenses increased approximately 4.5%, from $68.3 million for fiscal year 2021 to $71.4 million for fiscal year 2022. As a percentage of sales, SG&A expenses declined from 19.1% in fiscal year 2021 to 17.9% for fiscal year 2022. Our acquisitions negatively impacted our SG&A expenses by approximately $2.3 million during fiscal year 2022.

Liquidity and Capital Resources

Cash flows from operating activities. Cash provided by operating activities was $50.7 million for fiscal year 2022 (a decrease of $2.1 million compared to fiscal year 2021), $52.8 million for fiscal year 2021 (a decrease of $4.4 million compared to fiscal year 2020) and $57.2 million for fiscal year 2020.

Cash flows from financing activities. Cash used in financing activities was $30.2 million in fiscal year 2022 compared to $24.7 million used in fiscal year 2021 and $56.0 million used in fiscal year 2020.

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