Industry Segment Information

3 Months Ended

Jan. 31, 2014

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. 

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 $13,010,266 at January 31, 2013 and $461,443 at January 31, 2014. These assets were part of the printing and newspaper segments prior to the reclassification as assets held for sale/discontinued operations. The total assets reported on the Company's balance sheets as of January 31, 2014 and January 31, 2013 are $24,971,668 and $43,815,842. The identifiable assets reported below represent $24,510,225 and $30,805,576.

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

2014 Quarter 1	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	9,847,054		$	6,890,038		$	16,737,092
Elimination of intersegment revenue		(488,446	)		(825,948	)		(1,314,394	)
Consolidated revenues from continuing operations	$	9,358,608		$	6,064,090		$	15,422,698
Operating (loss) from continuing operations		(287,061	)		(73,091	)		(360,152	)
Depreciation & amortization		494,712			26,360			521,072
Capital expenditures		123,979			5,655			129,634
Identifiable assets		17,151,052			7,359,173			24,510,225
Goodwill		-			1,230,485			1,230,485

2013 Quarter 1	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	11,989,511		$	8,448,257		$	20,437,768
Elimination of intersegment revenue		(888,031	)		(1,239,238	)		(2,127,269	)
Consolidated revenues from continuing operations	$	11,101,480		$	7,209,019		$	18,310,499
Operating (loss) income from continuing operations		(2,454,091	)		210,920			(2,243,171	)
Depreciation & amortization		513,362			33,851			547,212
Capital expenditures		72,117			1,483			73,600
Identifiable assets		22,849,996			7,955,580			30,805,576
Goodwill		-			1,230,485			1,230,485

A reconciliation of total segment revenue, assets and operating (loss) to consolidated (loss) before income taxes for the three months ended January 31, 2014 and 2013 is as follows:

	Three months ended January 31,
		2014			2013
Revenues:
Total segment revenues from continuing operations	$	16,737,092		$	20,437,768
Elimination of intersegment revenue		(1,314,394	)		(2,127,269	)
Consolidated revenue from continuing operations	$	15,422,698		$	18,310,499
Operating (loss) from continuing operations:
Total segment operating (loss) from continuing operations	$	(360,152	)	$	(2,243,171	)
Interest expense - related party		(20,764	)		(20,764	)
Interest expense		(263,761	)		(1,315,066	)
Other income		14,494			9,623
Consolidated (loss) before income taxes from continuing operations	$	(630,183	)	$	(3,569,378	)
Identifiable assets:
Total segment identifiable assets	$	24,510,225		$	30,805,576
Elimination of intersegment assets and assets held for sale/discontinued operations		461,443			13,010,266
Total consolidated assets	$	24,971,668		$	43,815,842