ENNIS, INC. Segments Disclosure
(20) Segment Reporting
The Company’s CODM is its The CODM allocates resources on a consolidated basis using consolidated net income, earnings releases, investor presentations, and the Company’s SEC filings, as well as through the approval of the Company’s annual budget and forecast.
The operating segment is also our reportable segment called “Print” and derives its operating revenues from the manufacturing of mostly custom or semi-custom printed products sold mostly to independent distributors in the United States. Independent distributors are responsible for selling the printed product to the end consumer. The single reportable segment derives its revenues by manufacturing print products at homogeneous printing plants dispersed throughout the United States.
The accounting policies of this single reportable segment are the same as those described in the summary of significant accounting policies to the consolidated financial statements.
The CODM assesses the performance of this reportable segment using the entity-wide revenue and expense information reported on the Statement of Operations and the more detailed expense categories disclosed in the table below. The primary measure of segment profit (loss) is consolidated net income (loss) as reported on the Statement of Operations. In addition, segment assets reviewed by the CODM are reported on the Company’s Consolidated Balance Sheets as total assets.
(Dollars in thousands) |
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Segment operating net sales |
$ |
392,403 |
|
|
$ |
394,618 |
|
|
$ |
420,109 |
|
|
|
|
|
|
|
|
|
|
|||
Segment operating expenses |
|
|
|
|
|
|
|
|
|||
Product purchases |
|
126,679 |
|
|
|
126,993 |
|
|
|
139,131 |
|
Compensation expense |
|
84,051 |
|
|
|
83,082 |
|
|
|
85,975 |
|
Product supplies |
|
23,121 |
|
|
|
24,623 |
|
|
|
26,439 |
|
Manufacturing depreciation |
|
8,549 |
|
|
|
8,275 |
|
|
|
9,189 |
|
Other product cost (1) |
|
29,592 |
|
|
|
34,351 |
|
|
|
34,033 |
|
Segment cost of goods sold |
|
271,992 |
|
|
|
277,324 |
|
|
|
294,767 |
|
|
|
|
|
|
|
|
|
|
|||
Segment SG&A expenses |
|
|
|
|
|
|
|
|
|||
Compensation expense |
|
45,263 |
|
|
|
43,731 |
|
|
|
44,261 |
|
Depreciation expense |
|
498 |
|
|
|
568 |
|
|
|
674 |
|
Amortization expense |
|
8,079 |
|
|
|
7,726 |
|
|
|
7,649 |
|
Other expense (2) |
|
13,894 |
|
|
|
13,353 |
|
|
|
16,246 |
|
Segment SG&A expenses |
|
67,734 |
|
|
|
65,378 |
|
|
|
68,830 |
|
|
|
|
|
|
|
|
|
|
|||
Other segment items |
|
|
|
|
|
|
|
|
|||
(Gain) loss from disposal of assets |
|
(13 |
) |
|
|
(58 |
) |
|
|
53 |
|
Interest (income) expense |
|
(1,894 |
) |
|
|
(4,872 |
) |
|
|
(3,973 |
) |
Other expense, net |
|
(4,010 |
) |
|
|
1,392 |
|
|
|
1,309 |
|
Provision for income tax |
|
15,967 |
|
|
|
15,232 |
|
|
|
16,526 |
|
|
|
|
|
|
|
|
|
|
|||
Consolidated net earnings |
$ |
42,627 |
|
|
$ |
40,222 |
|
|
$ |
42,597 |
|
(1) Other product cost includes manufacturing overhead and freight expenses.
(2) SG&A other expenses include utility services, bank fee and professional services not included in the manufacturing process.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 8, 2026 | Showing above |
| 2025 | May 13, 2025 | |
| 2016 | May 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.