10. BUSINESS SEGMENTS

12 Months Ended

Feb. 28, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

10. BUSINESS SEGMENTS

We have two reportable segments: EDC Publishing and Usborne Books & More (“UBAM”) which 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.

·   EDC Publishing markets its products to retail accounts, which include book, toy and gift stores, school supply stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group.

·   UBAM markets its product line through a nationwide network of independent sales consultants using a combination of direct sales, home shows and book fairs.  The UBAM division also distributes to school and public libraries.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.  We evaluate segment performance based on earnings (loss) before income taxes of the segments, which is defined as segment net sales reduced by direct 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” column.  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 years ended February 28, 2014 and 2013 is set forth below:

NET REVENUES
	2014		2013
Publishing	$	10,968,400	$	10,811,600
UBAM	$	15,128,600	$	14,675,900
Other	$	-	$	-
Total	$	26,097,000	$	25,487,500

EARNINGS (LOSS) BEFORE INCOME TAXES
	2014			2013
Publishing	$	3,448,900		$	3,457,900
UBAM	$	2,159,700		$	2,105,800
Other	$	(4,735,100	)	$	(4,281,700	)
Total	$	873,500		$	1,282,000