Restructuring of Operations

6 Months Ended

Apr. 30, 2012

Restructuring of Operations [Abstract]

Restructuring of Operations

10.  Restructuring of Operations

In fiscal 2010 and 2011, the Company recorded charges related to a restructuring and profitability enhancement plan. This plan was implemented to effectuate certain key initiatives and was an integral component of the Second Amendment and Waiver to the Credit Agreement among the Company, Fifth Third Bank, as Lender, L/C Issuer and Administrative Agent for Lenders and other Lenders dated March 31, 2010 (the "Second Amendment"). These actions were taken to comply with the provisions and targeted covenants of the Second Amendment and to address the impact of the global economic crisis on the Company. The Company may incur additional costs in future periods to address the ongoing and fluid nature of the economic crisis, and may incur costs pursuant to certain initiatives being reviewed in accordance with the provisions of the Limited Forbearance Agreement. The amount of future charges is currently not estimable by the Company.

The following information summarizes the costs incurred with respect to restructuring, integration and asset impairment charges during the three and six months ended April 30, 2012 and 2011, as well as the cumulative total of such costs representing fiscal 2010 and fiscal 2011, there were no costs incurred in the first two quarters of 2012, and such costs are included as a component of the printing segment:

		Three Months Ended April 30, 2012		Three Months Ended April 30, 2011		Six Months Ended April 30, 2012		Six Months  Ended April 30, 2011		Cumulative Total
Occupancy and equipment related costs	$	-	$	-	$	-	$	123,553	$	1,618,965
Costs incurred to streamline production, personnel and other		-		-		-		97,105		564,726
Inventory		-		-		-		28,851		200,380
Total	$	-	$	-	$	-	$	249,509	$	2,384,071

The activity pertaining to the Company's accruals related to restructuring and other charges since October 31, 2011, including additions and payments made are summarized below:

		Occupancy and equipment related costs		Costs incurred to streamline production, personnel and other		Total
Balance at October 31, 2011	$	865,849	$	55,575	$	921,424
2012 expenses		-		-		-
Paid in 2012		(165,690)		(838)		(166,528)
Balance at April 30, 2012	$	700,159	$	54,737	$	754,896

Effective June 1, 2012 as a result of initiatives implemented by the Company to improve operating efficiency and pursuant to the Company's restructuring plan submitted to the secured lenders in the second quarter of 2012, the Company's commercial printing production operation in Cincinnati, Ohio, was consolidated into existing Company facilities in other locations. The Company intends to continue to service its customer base through a dedicated sales and customer service team within this market. As a result of this action, the Company recorded a reduction in force of 18 employees. The Company expects to incur costs associated with work force reductions, lease termination costs and other related costs in future periods including the third quarter of 2012. The Company recorded severance costs of approximately $27,000 in the third quarter of 2012 and the remaining restructuring related charges are currently not estimable by the Company.