Industry Segment Information

3 Months Ended

Jan. 31, 2015

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.

The identifiable assets are reflective of non-GAAP assets reported on the Company's internal balance sheets and are typically adjusted for 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 had certain assets classified as held for sale at January 31, 2015 and 2014 of $256,832 and $461,443, respectively. These assets were part of the printing and newspaper segments prior to the reclassification as assets held for sale. The total assets reported on the Company's balance sheets as of January 31, 2015 and January 31, 2014 were $23,695,441 and $24,971,668, respectively. The identifiable assets reported below represent $23,438,609 and $24,510,225 at January 31, 2015 and 2014, respectively.

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

2015 Quarter 1	Printing			Office Products & Furniture			Total
Revenues	$	9,916,899		$	6,212,973		$	16,129,872
Elimination of intersegment revenue		(528,377	)		(801,235	)		(1,329,612	)
Consolidated revenues	$	9,388,522		$	5,411,738		$	14,800,260
Operating (loss)		(93,197	)		(110,743	)		(203,940	)
Depreciation & amortization		379,643			22,359			402,002
Capital expenditures		377,301			70,194			447,495
Identifiable assets		16,633,275			6,805,334			23,438,609
Goodwill		-			1,230,485			1,230,485

2014 Quarter 1	Printing			Office Products & Furniture			Total
Revenues	$	9,847,054		$	6,890,038		$	16,737,092
Elimination of intersegment revenue		(488,446	)		(825,948	)		(1,314,394	)
Consolidated revenues	$	9,358,608		$	6,064,090		$	15,422,698
Operating (loss)		(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

A reconciliation of total segment revenue, assets and operating (loss) to consolidated (loss) before income taxes for the three months ended January 31, 2015 and 2014 is as follows:

	Three months ended January 31,
	2015			2014
Revenues:
Total segment revenues	$	16,129,872		$	16,737,092
Elimination of intersegment revenue		(1,329,612	)		(1,314,394	)
Consolidated revenue	$	14,800,260		$	15,422,698
Operating (loss):
Total segment operating (loss)	$	(203,940	)	$	(360,152	)
Interest expense - related party		(20,764	)		(20,764	)
Interest expense		(263,977	)		(263,761	)
Other income		20,863			14,494
Consolidated (loss) before income taxes	$	(467,818	)	$	(630,183	)
Identifiable assets:
Total segment identifiable assets	$	23,438,609		$	24,510,225
Elimination of intersegment assets and assets held for sale		256,832			461,443
Total consolidated assets	$	23,695,441		$	24,971,668