Industry Segment Information

9 Months Ended

Jul. 31, 2013

Industry Segment Information [Abstract]

Industry Segment Information

8. Industry Segment Information

The Company operates principally in two 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) and the sale of office products and office furniture including interior design services.

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 $0.1 million and $0.1 million being allocated to the office products and office furniture segment for the third quarter of 2013 and 2012 and $0.3 million and $0.1 million for the nine months ended July 31, 2013 and 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 including cash which has not been allocated to segments. 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 $520,912 at July 31, 2013 and has adjusted July 31, 2012 identifiable assets to reflect certain assets subsequently determined to be assets held for sale /discontinued operations of $17,306,493 at July 31, 2012. The entire newspaper segment was sold in July of 2013. The assets classified as held for sale /discontinued operations were part of the printing segment and newspaper segment prior to the reclassification as assets held for sale/discontinued operations for the applicable periods. The total assets reported on the Company's balance sheets as of July 31, 2013 and 2012 are $26,519,230 and $51,217,399. The identifiable assets reported below represent $25,998,318 and $33,910,906 at July 31, 2013 and 2012.

The table below presents information about reported segments for the three and nine months ended July 31:

2013 Quarter 3	Printing			Office Products & Furniture			Total
Revenues	$	10,435,991		$	9,064,858		$	19,500,849
Elimination of intersegment revenue		(534,200	)		(999,360	)		(1,533,560	)
Consolidated revenues	$	9,901,791		$	8,065,498		$	17,967,289
Operating (loss) income		(400,441	)		98,363			(302,078	)
Depreciation & amortization		492,794			52,350			545,144
Capital expenditures		60,093			-			60,093
Identifiable assets		18,819,212			7,179,106			25,998,318
Goodwill		-			1,230,485			1,230,485

2012 Quarter 3	Printing			Office Products & Furniture			Total
Revenues	$	13,816,689		$	11,147,025		$	24,963,714
Elimination of intersegment revenue		(1,307,914	)		(1,332,806	)		(2,640,720	)
Consolidated revenues	$	12,508,775		$	9,814,219		$	22,322,994
Operating (loss) income		(844,985	)		305,681			(539,304	)
Depreciation & amortization		603,694			55,378			659,072
Capital expenditures		116,586			9,201			125,787
Identifiable assets		26,298,068			7,612,838			33,910,906
Goodwill		2,226,837			1,230,485			3,457,322

2013 Year to Date	Printing			Office Products & Furniture			Total
Revenues	$	34,472,541		$	26,006,874		$	60,479,415
Elimination of intersegment revenue		(2,257,882	)		(3,707,785	)		(5,965,667	)
Consolidated revenues	$	32,214,659		$	22,299,089		$	54,513,748
Operating (loss) income		(2,488,542	)		602,494			(1,886,048	)
Depreciation & amortization		1,476,625			162,450			1,639,075
Capital expenditures		348,675			1,483			350,158
Identifiable assets		18,819,212			7,179,106			25,998,318
Goodwill		-			1,230,485			1,230,485

2012 Year to Date	Printing			Office Products & Furniture			Total
Revenues	$	43,673,027		$	31,441,048		$	75,114,075
Elimination of intersegment revenue		(3,350,235	)		(4,309,609	)		(7,659,844	)
Consolidated revenues	$	40,322,792		$	27,131,439		$	67,454,231
Operating income (loss)		(1,481,809	)		1,595,919			114,110
Depreciation & amortization		1,826,113			150,639			1,976,752
Capital expenditures		437,590			43,022			480,612
Identifiable assets		26,298,068			7,612,838			33,910,906
Goodwill		2,226,837			1,230,485			3,457,322

A reconciliation of total segment revenues and of total segment operating (loss) income to consolidated (loss) before income taxes, for the three and nine months ended July 31, 2013 and 2012, is as follows:

		Three months				Nine months
		2013		2012		2013		2012
Revenue:
Total segment revenues	$	19,500,849	$	24,963,714	$	60,479,415	$	75,114,075
Elimination of intersegment revenue		(1,533,560	)	(2,640,720	)	(5,965,667	)	(7,659,844)
Consolidated revenue	$	17,967,289	$	22,322,994	$	54,513,748	$	67,454,231
Operating (loss) income:
Total segment operating (loss) income	$	(302,078	)   $	(539,304	)   $	(1,886,048	)   $	114,110
Interest expense - related party		(20,764	)	(16,611	)	(61,615	)	(39,000)
Interest expense		(1,142,212	)	(946,185	)	(3,742,989	)	(2,254,555)
Other (expense) income		17,188		(10,933	)	38,182		21,186
Consolidated (loss) before income taxes	$	(1,447,866	)   $	(1,513,033	)   $	(5,652,470	)   $	(2,158,259)
Identifiable assets:
Total segment identifiable assets	$	25,998,318	$	33,910,906	$	25,998,318	$	33,910,906
Assets not allocated to a segment		520,912		17,306,493		520,912		17,306,493
Total consolidated assets	$	26,519,230	$	51,217,399	$	26,519,230	$	51,217,399