Industry Segment Information

9 Months Ended

Jul. 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 $ 311,275 at July 31, 2014 and $ 520,912 at July 31, 2013. 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 July 31, 2014 and July 31, 2013 are $ 23,798,134 and $ 26,519,230. The identifiable assets reported below represent $ 23,486,859 and $ 25,998,318.

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

2014 Quarter 3	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	9,363,551		$	7,483,730		$	16,847,281
Elimination of intersegment revenue		(714,463	)		(808,285	)		(1,522,748	)
Consolidated revenues from continuing operations	$	8,649,088		$	6,675,445		$	15,324,533
Operating income (loss) from continuing operations		(203,633	)		(105,389	)		(309,022	)
Depreciation & amortization		440,840			26,359			467,199
Capital expenditures		118,529			2,371			120,900
Identifiable assets		16,040,091			7,446,768			23,486,859
Goodwill		-			1,230,485			1,230,485

2013 Quarter 3	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	10,435,991		$	9,064,858		$	19,500,849
Elimination of intersegment revenue		(534,200	)		(999,360	)		(1,533,560	)
Consolidated revenues from continuing operations	$	9,901,791		$	8,065,498		$	17,967,289
Operating income from continuing operations		(400,441	)		98,363			(302,078	)
Depreciation & amortization		492,794			52,350			545,144
Capital expenditures		60,093			-			60,093
Identifiable assets		17,032,768			8,965,550			25,998,318
Goodwill		-			1,230,485			1,230,485

2014 Year to Date	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	29,377,286		$	20,487,492		$	49,864,778
Elimination of intersegment revenue		(1,702,026	)		(2,383,240	)		(4,085,266	)
Consolidated revenues from continuing operations	$	27,675,260		$	18,104,252		$	45,779,512
Operating (loss) from continuing operations		(429,058	)		(418,564	)		(847,622	)
Depreciation & amortization		1,422,415			79,080			1,501,495
Capital expenditures		400,748			20,111			420,859
Identifiable assets		16,040,091			7,446,768			23,486,859
Goodwill		-			1,230,485			1,,230,485

2013 Year to Date	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	34,472,541		$	26,006,874		$	60,479,415
Elimination of intersegment revenue		(2,257,882	)		(3,707,785	)		(5,965,667	)
Consolidated revenues from continuing operations	$	32,214,659		$	22,299,089		$	54,513,748
Operating (loss) income from continuing operations		(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		17,032,768			8,965,550			25,998,318
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 and nine months ended July 31, 2014 and 2013 is as follows:

	Three months						Nine months
	2014			2013			2014			2013
Revenues:
Total segment revenues from continuing operations	$	16,847,281		$	19,500,849		$	49,864,778		$	60,479,415
Elimination of intersegment revenue		(1,522,748	)		(1,533,560	)		(4,085,266	)		(5,965,667	)
Consolidated revenue from continuing operations	$	15,324,533		$	17,967,289		$	45,779,512		$	54,513,748
Operating (loss) from continuing operations:
Total segment operating (loss) income from continuing operations	$	(309,022	)	$	(302,078	)	$	(847,622	)	$	(1,886,048	)
Interest expense - related party		(20,764	)		(20,764	)		(61,615	)		(61,615	)
Interest expense		(262,076	)		(1,142,212	)		(782,441	)		(3,742,989	)
Other income		4,400			17,188			225,538			38,182
Consolidated (loss) from continuing operations before income taxes	$	(587,462	)	$	(1,447,866	)	$	(1,466,140	)	$	(5,652,470	)
Identifiable assets:
Total segment identifiable assets	$	23,486,859		$	25,998,318		$	23,486,859		$	25,998,318
Assets not allocated to a segment		311,275			520,912			311,275			520,912
Total consolidated assets	$	23,798,134		$	26,519,230		$	23,798,134		$	26,519,230