Industry Segment Information

3 Months Ended

Jan. 31, 2012

Industry Segment Information [Abstract]

Industry Segment Information

7. Industry Segment Information

The Company operates principally in three industry segments organized on the basis of product lines: the production, printing and sale, principally to commercial customers, of printed materials (including brochures, pamphlets, reports, tags, continuous and other forms), the sale of office products and office furniture including interior design services and publication of The Herald-Dispatch daily newspaper in Huntington, West Virginia, with a total daily and Sunday circulation of approximately 24,000 and 30,000, respectively.

The Company reports segment information in a manner consistent with the way that our management, including our chief operating decision maker, the Company's Chief Executive Officer, assesses performance and makes decisions regarding allocation of resources in accordance with the Segment Disclosures Topic of the ASC.

Our Financial Reporting systems present various data, which is used to operate and measure our operating performance. Our chief operating decision maker utilizes various measures of a segment's profit or loss including historical internal reporting measures and reporting measures based on product lines with operating income (loss) as the key profitability measure within the segment. Product line reporting is the basis for the organization of our segments and is the most consistent measure used by the chief operating decision maker and conforms with the use of segment operating income or (loss) that is the most consistent with those used in measuring like amounts in the Consolidated Financial Statements.

The identifiable assets are reflective of non-GAAP assets reported on the Company's internal balance sheets and are typically adjusted for negative book cash balances, taxes, and other items excluded for segment reporting. The total assets reported on the Company's balance sheet as of January 31, 2012 and 2011 are $80,051,505 and $91,915,439 (restated). The identifiable assets reported above represent $68,223,998 and $79,979,777 at January 31, 2012 and 2011.

The table below presents information about reported segments for the three months ended January 31:

2012 Quarter 1	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	20,739,384		$	9,791,947		$	3,859,408	$	34,390,739
Elimination of intersegment revenue		(1,188,041	)		(1,601,347	)		-		(2,789,388	)
Consolidated revenues	$	19,551,343		$	8,190,600		$	3,859,408	$	31,601,351
Operating income (loss)		(540,980	)		552,566			689,252		700,838
Depreciation & amortization		655,798			33,851			286,222		975,871
Capital expenditures		244,916			18,048			12,633		275,597
Identifiable assets		36,552,106			6,900,578			24,771,314		68,223,998
Goodwill		2,226,837			1,230,485			9,510,933		12,968,255
2011 Quarter1	Printing			Office Products and Furniture			Newspaper		Total
Revenues	$	21,082,580		$	9,993,003		$	3,944,480	$	35,020,063
Elimination of intersegment revenue		(1,524,402	)		(1,653,701	)		-		(3,178,103	)
Consolidated revenues	$	19,558,178		$	8,339,302		$	3,944,480	$	31,841,960
Operating income (loss)		(109,653	)		345,729			836,209		1,072,285
Depreciation & amortization		692,329			33,872			284,129		1,010,330
Capital expenditures		252,212			17,557			16,973		286,742
Identifiable assets		37,998,043			6,740,573			35,241,161		79,979,777
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

A reconciliation of total segment revenues and of total segment operating income to consolidated (loss) income before income taxes, for the three months ended January 31, 2012 and 2011, is as follows:

	Three months ended January 31,
		2012			2011
Revenues:
Total segment revenues	$	34,390,739		$	35,020,063
Elimination of intersegment revenue		(2,789,388	)		(3,178,103	)
Consolidated revenue	$	31,601,351		$	31,841,960
Operating Income:
Total segment operating income	$	700,838		$	1,072,285
Interest expense - related party		(6,139	)		(24,917	)
Interest expense		(860,317	)		(943,905	)
Other income		16,271			16,681
Consolidated (loss) income before income taxes	$	(149,347	)	$	120,144
Identifiable assets:
Total segment identifiable assets	$	68,223,998		$	79,979,777
Assets not allocated to a segment		11,827,507			11,935,662
Total consolidated assets	$	80,051,505		$	91,915,439