Note 7

9 Months Ended

Nov. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 7 – We have two reportable segments:  Publishing and Usborne Books and More (“UBAM”).  These reportable segments are business units that offer different methods of distribution to different types of customers.  They are managed separately based on the fundamental differences in their operations.  The Publishing Division markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group.  The UBAM Division markets its product line through a network of independent sales consultants through a combination of direct sales, home shows, book fairs and the Internet.

The accounting policies of the segments are the same as those of the rest of the Company.  We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net sales reduced by cost of sales and direct expenses.  Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments, but are listed in the “other” row.  Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management.  Our assets and liabilities are not allocated on a segment basis.

Information by industry segment for the three and nine-month periods ended November 30, 2013 and 2012 follows:

NET REVENUES
	Three Months Ended November 30,				Nine Months Ended November 30,
	2013		2012		2013		2012
Publishing	$	3,180,100	$	2,969,800	$	8,744,500	$	8,406,700
UBAM		5,321,900		4,894,600		11,463,100		11,516,700
Other		-		-		-		-
Total	$	8,502,000	$	7,864,400	$	20,207,600	$	19,923,400

EARNINGS BEFORE INCOME TAXES
	Three Months Ended November 30,						Nine Months Ended November 30,
	2013			2012			2013			2012
Publishing	$	1,065,100		$	1,015,800		$	2,765,100		$	2,805,200
UBAM		951,500			884,300			1,554,800			1,972,000
Other		(1,089,200	)		(1,055,700	)		(3,201,500	)		(3,151,700	)
Total	$	927,400		$	844,400		$	1,118,400		$	1,625,500