Industry Segment Information

12 Months Ended

Oct. 31, 2014

Industry Segment Information [Abstract]

Industry Segment Information

Note 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 $0.2 million being allocated to the office products and office furniture segment for 2012. These costs 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 $256,832 and $493,304 at October 31, 2014 and 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 October 31, 2014, 2013 and 2012 are $24,008,393, $27,530,622, and $47,966,591. The identifiable assets reported below represent $23,751,561, $27,037,318, and $33,071,771.

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

2014	Printing			Office Products & Furniture				Total
Revenues from continuing operations	$	39,546,537		$	29,375,140			$	68,921,677
Elimination of intersegment revenue	(2,169,053		)	(3,230,284			)	(5,399,337		)
Consolidated revenue from continuing operations	$	37,377,484		$		26,144,856		$	63,522,340
Operating income (loss) from continuing operations	(360,182		)	105,932				(254,250		)
Depreciation & amortization	1,832,458			98,049				1,930,507
Capital expenditure	738,893			22,474				761,367
Identifiable assets	16,526,888			7,224,673				23,751,561
Goodwill	-			1,230,485				1,230,485
2013	Printing			Office Products & Furniture				Total
Revenues from continuing operations	$	45,460,503		$		34,333,182		$	79,793,685
Elimination of intersegment revenue		(2,791,035	)			(4,679,475	)		(7,470,510	)
Consolidated revenues from continuing operations	$	42,669,468		$		29,653,707		$	72,323,175
Operating income (loss) from continuing operations		(2,228,855	)			954,451			(1,274,404	)
Depreciation & amortization		2,049,191				119,823			2,169,014
Capital expenditures		541,855				2,788			544,643
Identifiable assets		18,850,573				8,186,745			27,037,318
Goodwill		-				1,230,485			1,230,485
2012	Printing			Office Products & Furniture				Total
Revenues from continuing operations	$	56,933,015		$		40,606,947		$	97,539,962
Elimination of intersegment revenue		(4,758,471	)			(5,631,460	)		(10,389,931	)
Consolidated revenues from continuing operations	$	52,174,544		$		34,975,487		$	87,150,031
Operating income (loss) from continuing operations		(1,610,691	)			1,915,331			304,640
Depreciation & amortization		2,449,031				113,671			2,562,702
Capital expenditures		646,727				50,469			697,196
Identifiable assets		25,046,667				8,025,104			33,071,771
Goodwill		2,226,837				1,230,485			3,457,322

A reconciliation of total segment revenue, assets and operating (loss) income  to consolidated (loss) income before income taxes for the years ended October 31, 2014, 2013 and 2012 is as follows:

		2014		2013			2012
Revenues:
Total segment revenues	$	68,921,677		$	79,793,685		$	97,539,962
Elimination of intersegment revenue		(5,399,337	)		(7,470,510	)		(10,389,931	)
Consolidated revenue from continuing operations	$	63,522,340		$	72,323,175		$	87,150,031
Operating (loss) income from continuing operations:
Total segment operating (loss) income from continuing operations	$	(254,250	)	$	(1,274,404	)	$	304,640
Interest expense - related party		(82,378	)		(82,378	)		(57,733	)
Interest expense		(1,056,019	)		(4,202,774	)		(3,111,845	)
Gain from debt forgiveness		-			11,118,069			-
Other (loss) income		261,013			(32,207	)		(13,118	)
Consolidated income (loss) before income taxes from continuing operations	$	(1,131,634	)	$	5,526,306		$	(2,878,056	)
Identifiable assets:
Total segment identifiable assets	$	23,751,561		$	27,037,318		$	33,071,771
Elimination of intersegment assets and assets held for sale/discontinued operations		256,832			493,304			14,894,820
Total consolidated assets	$	24,008,393		$	27,530,622		$	47,966,591