Industry Segment Information

12 Months Ended

Oct. 31, 2012

Industry Segment Information [Abstract]

Industry Segment Information

9. 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 23,000 and 28,000 respectively. The Company employs approximately 550 people, of whom approximately 10 or 2%, are covered by collective bargaining agreements, which expire December 31, 2013.

               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. During the third quarter of 2012, the Company realigned personnel and divisional responsibilities between the printing segment and office products and office furniture segments primarily in one location, resulting in additional SG&A costs of approximately $0.2 million being allocated to the office products and office furniture segment for 2012 which were previously a component of the printing segment.

                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 assets are classified based on the primary functional segment category as reported on the internal balance sheets.  Therefore, the actual segment assets may not directly correspond with the segment operating (loss) income reported herein.  The Company has certain assets classified as held for sale/discontinued operations representing $2,705,280 at October 31, 2012 and $7,361,869 at October 31,2011. These assets were part of the printing segment prior to the reclassification as assets held for sale/discontinued operations. The total assets reported on the Company's balance sheets as of October 31, 2012, 2011 and 2010 are $47,966,591, $82,024,282, and $92,452,662. The identifiable assets reported below represent $45,261,311, $62,894,853, and $76,501,708.

The table below presents information about reported segments for the years ended October 31:

2012	Printing			Office Products & Furniture				Newspaper			Total
Revenues from continuing operations	$	60,204,947		$	40,606,947			$	13,991,752		$	114,803,646
Elimination of intersegment revenue	(4,758,471		)	(5,631,460			)	-			(10,389,931		)
Consolidated revenue from continuing operations	$	55,446,476		$		34,975,487		$	13,991,752		$	104,413,715
Operating (loss) income  from continuing operations	(1,832,029		)	1,915,331				(9,008,778		)	(8,925,476		)
Depreciation & amortization	2,426,059			113,671				1,129,561			3,669,291
Capital expenditure	646,728			50,469				58,992			756,189
Identifiable assets	25,738,617			7,077,977				12,444,717			45,261,311
Goodwill	2,226,837			1,230,485				-			3,457,322
2011	Printing			Office Products & Furniture				Newspaper			Total
Revenues from continuing operations	$	60,626,443		$		41,098,106		$	14,589,210		$	116,313,759
Elimination of intersegment revenue		(5,249,556	)			(6,552,373	)		-			(11,801,929	)
Consolidated revenues from continuing operations	$	55,376,887		$		34,545,733		$	14,589,210		$	104,511,830
Operating (loss) income from continuing operations		(500,704	)			2,397,703			(6,342,018	)		(4,445,019	)
Depreciation & amortization		2,688,378				135,426			1,141,709			3,965,513
Capital expenditures		1,199,163				77,336			54,178			1,330,677
Identifiable assets		28,304,364				9,151,757			25,438,732			62,894,853
Goodwill		2,226,837				1,230,485			9,510,933			12,968,255
2010	Printing			Office Products & Furniture				Newspaper			Total
Revenues from continuing operations	$	66,541,632		$		39,691,717		$	15,332,671		$	121,566,020
Elimination of intersegment revenue		(9,136,312	)			(6,254,129	)		-			(15,390,441	)
Consolidated revenues from continuing operations	$	57,405,320		$		33,437,588		$	15,332,671		$	106,175,579
Operating income (loss) from continuing operations		(559,261	)			2,055,990			3,163,387			4,660,116
Depreciation & amortization		2,795,377				131,529			1,135,901			4,062,807
Capital expenditures		702,491				53,556			59,496			815,543
Identifiable assets		32,143,086				8,806,943			35,551,679			76,501,708
Goodwill		2,226,837				1,230,485			11,874,961			15,332,283

A reconciliation of total segment revenue, assets and operating (loss) income  to consolidated (loss) income before income taxes for the years ended October 31, 2012, 2011 and 2010 is as follows:

		2012		2011			2010
Revenues:
Total segment revenues	$	114,803,646		$	116,313,759		$	121,566,020
Elimination of intersegment revenue		(10,389,931	)		(11,801,929	)		(15,390,441	)
Consolidated revenue from continuing operations	$	104,413,715		$	104,511,830		$	106,175,579
Operating (loss) income from continuing operations:
Total segment operating (loss) income from continuing operations	$	(8,925,476	)	$	(4,445,019	)	$	4,660,116
Interest expense - related party		(57,733	)		(65,316	)		(82,334	)
Interest expense		(3,738,725	)		(3,553,031	)		(5,060,437	)
Gain on early extinguishment of debt from a related party		-			1,337,846			-
Other income (loss)		(13,117	)		50,410			952,018
Consolidated (loss) income before income taxes from continuing operations	$	(12,735,051	)	$	(6,675,110	)	$	469,363
Identifiable assets:
Total segment identifiable assets	$	45,261,311		$	62,894,853		$	76,501,708
Elimination of intersegment assets		2,705,280			19,129,429			15,950,954
Total consolidated assets	$	47,966,591		$	82,024,282		$	92,452,662