Note 7

3 Months Ended

May. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 7 – We have two reportable segments:  EDC Publishing and Usborne Books & 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.  EDC Publishing 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.  UBAM markets its products through a network of independent sales consultants using a combination of direct sales, home shows, book fairs and internet web sales.

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 below.  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-month periods ended May 31, 2015 and 2014 follows:

NET REVENUES
	Three Months Ended May 31, 2015
	2015		2014
EDC Publishing	$	2,619,600	$	2,763,900
UBAM		7,018,200		4,414,400
Total	$	9,637,800	$	7,178,300

EARNINGS BEFORE INCOME TAXES
	Three Months Ended May 31, 2015
	2015			2014
EDC Publishing	$	718,600		$	809,300
UBAM		952,000			615,400
Other		(1,138,900	)		(1,037,100	)
Total	$	531,700		$	387,600