FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(MARK ONE)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Calendar year ended December 31, 2000
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number 1-5807
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A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Ennis Business Forms, 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 Business Forms, Inc.
1510 North Hampton Road, Suite 300
DeSoto, TX 75115
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Financial Statements and Supplemental Schedule
(Modified Cash Basis)
December 31, 2000 and 1999
(With Independent Auditors' Report Thereon)
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Table of Contents
Page
Independent Auditors' Report 1
Statements of Net Assets Available for Benefits
(Modified Cash Basis) at December 31, 2000 and 1999 2
Statement of Changes in Net Assets Available for
Benefits (Modified Cash Basis) for the year ended
December 31, 2000 3
Notes to Financial Statements (Modified Cash Basis) 4
Schedules*
Schedule H, Line 4i - Schedule of Assets (Held at
End of Year) - December 31, 2000 9
* All other schedules required by Section 2520.103-10 of the
Department of Labor Rules and Regulations for Reporting and
Disclosure under ERISA have been omitted because they are not
applicable or the required information is shown in the
financial statements or the notes thereto.
Independent Auditors' Report
To the Participants and Administrator
Ennis Business Forms, Inc. 401(k) Plan:
We have audited the accompanying statements of net assets
available for benefits of the Ennis Business Forms, Inc. 401(k)
Plan (the Plan) (Modified Cash Basis) as of December 31, 2000 and
1999, and the related statement of changes in net assets
available for benefits for the year ended December 31, 2000.
These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
As described in note 2, these financial statements and
supplemental schedule were prepared on the modified cash basis of
accounting, which is a comprehensive basis of accounting other
than generally accepted accounting principles.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Ennis Business Forms, Inc. 401(k)
Plan as of December 31, 2000 and 1999, and the change in its net
assets available for benefits for the year ended December 31,
2000 in conformity with the modified cash basis of accounting as
described in note 2.
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental
schedule of assets (held at end of year) as of December 31, 2000
is presented for the purpose of additional analysis and is not a
required part of the basic financial statements but is
supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. This
supplemental schedule is the responsibility of the Plan's
management. The supplemental schedule has been subjected to the
auditing procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG LLP
Dallas, Texas
June 29, 2001
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Statements of Net Assets Available for Benefits
(Modified Cash Basis)
December 31, 2000 and 1999
2000 1999
---- ----
Assets:
Investments, at fair value (note 3):
Investments held by Trustee $7,750,580 $7,377,219
Participant loans 336,343 226,273
---------- ----------
Net assets available
for benefits $8,086,923 $7,603,492
========== ==========
See accompanying notes to financial statements.
2
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Statement of Changes in Net Assets Available for Benefits
(Modified Cash Basis)
Year ended December 31, 2000
Additions to net assets attributed to:
Contributions - employees $1,710,601
Contributions - employer 64,276
Investment income:
Interest and dividends 116,796
Net depreciation in fair value of
investments (698,093)
----------
Total investment income 1,193,580
Deductions from net assets attributed to:
Administrative expenses (14,079)
Benefits paid and withdrawals (696,070)
----------
Net increase in net assets
available for benefits 483,431
Net assets available for benefits at
beginning of year 7,603,492
----------
Net assets available for benefits at
end of year $8,086,923
==========
See accompanying notes to financial statements.
3
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Notes to Financial Statements
(Modified Cash Basis)
December 31, 2000 and 1999
1. Description of the Plan
The following description of the Ennis Business Forms,
Inc. (the Company) 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.
(a) General
The Plan was formed February 1, 1994 and is a
defined contribution plan covering substantially all
employees of the Company. The Plan is subject to the
provisions of the Employee Retirement Income Security
Act of 1974 (ERISA) and the Internal Revenue Code
(IRC). In addition, the financial statements have
been prepared in compliance with ERISA.
(b) Eligibility
Employees age 18 and older of the Company are eligible
to participate in the Plan after completing 60 days
of service, as defined by the Plan.
(c) Contributions
Participants may make deductible voluntary contributions
to the Plan ranging from 1% to 20% of eligible pay
subject to the Internal Revenue Service (IRS) annual
limitations. The Plan allows rollovers of distributions
from other qualified plans. The Plan provides for 50%
employer matching contribution or discretionary employer
contributions not to exceed $1,000 for certain employees
not enrolled in the Company's retirement plan.
Eligibility for employer contributions depends on the
participant's employment location.
(d) Participant Accounts
Each participant's account is credited with the
participant's contribution and allocation of the Plan
earnings. Allocations are based on participant earnings or
account balances, as defined in the Plan document.
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.
(e) Vesting
Participants are immediately vested in their
contributions plus actual earnings thereon and qualified
employer matching contributions.
(f) Loans
Under provisions of the Plan, participants may borrow
up to 50% of their total account balance up to a maximum
of $50,000. Loan repayments are made in equal
installments through payroll deductions generally over
a term not to exceed five years. All loans 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 two
outstanding loans are allowed per individual. The
minimum loan is $1,000 and requires a $75 set-up fee
payable for each loan.
4 (Continued)
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Notes to Financial Statements
(Modified Cash Basis)
December 31, 2000 and 1999
2. Summary of Significant Accounting Policies
(a) 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 obligation is incurred.
Investments are adjusted to fair value for
presentation in the accompanying financial
statements. Purchases and sales are recorded on
a trade-date basis. The modified cash basis of
accounting is a comprehensive basis of accounting
other than generally accepted accounting principles.
(b) Use of Estimates
The preparation of the financial statements in
conformity with the modified cash basis of accounting,
which is a comprehensive basis of accounting other
than generally accepted accounting principles, requires
management to make estimates and assumptions that
affect the reported amounts of assets, liabilities
and changes therein, and disclosure of contingent
assets and liabilities. Actual results could
differ from those estimates.
(c) Valuation and Net Depreciation in the Fair Value of
Investments
Fair value of investments is determined by quoted
market prices as reported by the Trustee. Participant
loans are recorded at estimated fair value, consisting
of outstanding principal and any related accrued
interest. The Plan presents in the Statement of Changes
in Net Assets Available for Benefits the net depreciation
in the fair value of its investments which consists of
the realized gains or losses and the unrealized appreciation
(depreciation) on those investments.
(d) Income Recognition
Interest on investments is recorded as income in the
period in which it is earned. Dividends are recorded
on the ex-dividend date.
(e) Benefits paid to Participants
Benefits paid to participants are recorded as a reduction
of assets available for benefits when paid.
(f) Risk and Uncertainties
The Plan provides for various investment options in any
combination of investments and investment funds.
Investments and investment funds are exposed to various
risks, such as interest rate, market and credit risk.
Due to the level of risk associated with certain investment
securities, it is at least reasonably possible that changes
in the values of investments will occur in the near term
and that such changes could materially affect
participants' account balances and the amount reported in
the Statement of Assets Available for Benefits.
5 (Continued)
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Notes to Financial Statements
(Modified Cash Basis)
December 31, 2000 and 1999
3. Investments
Participants may direct the allocation of amounts deferred to
the available investment funds. Provisions of the plan allow
participant contributions in 5% increments to be vested in any
of the available funds.
The Plan's investments, at fair value, at December 31, 2000
and 1999 were comprised of the following:
2000 1999
------ ------
Money Market:
INVESCO IRT Stable Value Fund $ 527,061 568,490
Wells Fargo Treasury Plus Money Market 131,401 --
Intermediate Bond Fund:
INVESCO Select Income Fund 58,293 25,163
Balanced:
INVESCO Total Return Fund -- 987,606
Janus Balanced Fund 917,902 --
Lifestyle:
Wells Fargo LifePath 2010 Fund 3,766 --
Wells Fargo LifePath 2020 Fund 9,177 --
Wells Fargo LifePath 2030 Fund 23,368 --
Wells Fargo LifePath 2040 Fund 1,361 --
Large Capital Value Equity:
American Century Income & Growth Fund 18,472 --
Large Capital Blend:
INVESCO Equity Income -- 2,156,348
Wells Fargo Index Fund 25,769 --
Goldman Sachs Capital Growth 1,972,872 --
Large Capital Growth:
Wells Fargo Large Company Growth Fund 77,553 --
Large Capital Aggressive Growth:
Janus Twenty Fund 114,916 --
Mid-Capital:
INVESCO Dynamics Fund 3,637,276 3,586,397
Small Capital:
INVESCO Small Capital Growth Fund 60,203 --
International/Global Equity:
INVESCO IRT International Equity Fund -- 53,215
Janus Worldwide Fund 162,227 --
Ennis Business Forms, Inc. Common Stock 8,963
--
Participant loans 336,343 226,273
---------- ---------
Total investments $8,086,923 7,603,492
========== =========
6 (Continued)
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Notes to Financial Statements
(Modified Cash Basis)
December 31, 2000 and 1999
The following investments exceed 5% of the Plan's net assets
available for Plan benefits at December 31, 2000 and 1999:
December 31,
----------------------
2000 1999
---------- ---------
INVESCO Equity Income $ -- 2,156,348
INVESCO Dynamics Fund 3,637,276 3,586,397
INVESCO IRT Stable Value Fund 527,061 568,490
INVESCO Total Return Fund -- 987,605
Janus Balanced Fund 917,902 --
Goldman Sacks Capital Growth 1,972,872 --
Other - less than 5% 1,031,812 304,652
----------- ---------
Total investments $8,086,923 7,603,492
========== =========
4. Plan Termination
Although the Company has not expressed any intent to do so,
it has the right under the plan 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 fully vested in their
accounts.
5. Tax Status of Plan
The Internal Revenue Service (the IRS) has determined and
informed the Company by letter dated September 21, 1995,
that the Plan and related trust are designed in accordance
with applicable sections of the IRC. The Plan has been
amended since receiving the determination letter. However,
the plan administrator and the Plan's management believe
that the Plan is currently being operated within the
applicable IRS rules and regulations.
6. Related Party and Party-in-interest
The Plan held 1,542 shares of Ennis Business Forms, Inc.
common stock with a fair value of $8,963 at December 31,
2000. The Company paid dividends of $.60 per share in 2000.
During 2000, the Plan made six purchases of these securities
totaling $8,744.
7. Transfer to New Trustee
Effective March 31, 2000, the Plan changed its Trustee
from INVESCO Trust Company to Wells Fargo Retirement Plan
Services.
8. Plan Amendments
Effective March 31, 2000, an agreement was executed to
change the Trustee from INVESCO to Wells Fargo. As a result,
the eligibility requirements were changed from attainment
of age 21 and 90 days of service to attainment of age 18
and only 60 days of service. No other significant
amendments were made that would have a significant impact
on plan assets.
7 (Continued)
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Notes to Financial Statements
(Modified Cash Basis)
December 31, 2000 and 1999
9. Subsequent Event
Effective February 1, 2001, the Plan was amended to merge the
net assets of the Northstar Computer Forms, Inc. 401(k) Profit
Sharing Plan into the Plan.
10. New Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board issued
SFAS No. 133, Accounting for Derivative Instruments and
Hedging Activities (SFAS No. 133). SFAS No. 133 requires that
an entity recognize all derivatives and measure those
instruments at fair value.
SFAS No. 133 is effective for fiscal years beginning after
June 15, 2000. Pursuant to SFAS No. 137, the Plan is required
to adopt SFAS No. 133 effective January 1, 2001. Management
has determined that the impact of SFAS No. 133 on the Plan
financial statements would be immaterial.
8
Schedule 1
ENNIS BUSINESS FORMS, INC. 401(k) PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2000
(b) Identity of issue (c) Description of investments (d) Current
borrower, lessor including value
or similar party maturity date, rate of interest,
collateral, par, or maturity value
---------------------- --------------------------------------- ---------
(a) INVESCO Family of Funds* Invesco IRT Stable Value Fund $ 527,061
Wells Fargo Fund* Wells Fargo Treasury Plus Money Market 131,401
INVESCO Family of Funds* Invesco Select Income Fund 58,293
Janus Janus Balanced Fund 917,902
Wells Fargo Fund* Wells Fargo LifePath 2010 Fund 3,766
Wells Fargo Fund* Wells Fargo LifePath 2020 Fund 9,177
Wells Fargo Fund* Wells Fargo LifePath 2030 Fund 23,368
Wells Fargo Fund* Wells Fargo LifePath 2040 Fund 1,361
American Century
Investments American Century Income & Growth Fund 18,472
Wells Fargo Fund* Wells Fargo Index Fund 25,769
Goldman Sachs Asset
Management Goldman Sachs Capital Growth Fund 1,972,872
Wells Fargo Fund* Wells Fargo Large Company Growth Fund 77,553
Janus Janus Twenty Fund 114,916
INVESCO Family of Funds* Invesco Dynamics Fund 3,637,276
INVESCO Family of Funds* Invesco Small Capital Growth Fund 60,203
Janus Janus Worldwide Fund 162,227
Ennis Business Forms, Inc.* Ennis Business Forms, Inc. Common Stock 8,963
Loan to participants* Interest rates ranged from 9.75% to
11.5% during the Plan year 336,343
----------
Total investments $8,086,923
==========
* Party-in-interest
Note: Information on cost of the investments is excluded as all investments
are participant directed.
See accompanying independent auditors' report.
9
SIGNATURES
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 BUSINESS FORMS, INC.
401(k) PLAN
Date: June 29, 2001 /s/ Robert M. Halowec
---------------------------------
Robert M. Halowec,
Vice President - Finance and
Chief Financial Officer
Ennis Business Forms, Inc.
Date: June 29, 2001 /s/ Harve Cathey
----------------------------------
Harve Cathey,
Secretary and Treasurer,
Principal Accounting Officer
Ennis Business Forms, Inc.