Note 9 - BUSINESS SEGMENTS

9 Months Ended

Nov. 30, 2017

Segment Reporting Disclosure [Text Block]

Note 9 – BUSINESS SEGMENTS

The Company has two reportable segments: Usborne Books & More (“UBAM”) and Publishing. 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 segment 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 tele-sales group. The UBAM segment markets its products through a network of independent sales consultants using a combination of home shows, internet shows and book fairs.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies disclosed in the Company’s most recent 10-K annual report for the fiscal year ended February 28, 2017. 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 reporting segment for the three and nine-month periods ended November 30, 2017 and 2016, follows:

NET REVENUES
	Three Months Ended November 30,				Nine Months Ended November 30,
	2017		2016		2017		2016
Publishing	$	2,439,600	$	3,075,000	$	6,538,700	$	7,244,600
UBAM		36,468,400		27,622,600		83,481,400		72,130,200
Total	$	38,908,000	$	30,697,600	$	90,020,100	$	79,374,800

EARNINGS BEFORE INCOME TAXES
	Three Months Ended November 30,						Nine Months Ended November 30,
	2017			2016			2017			2016
Publishing	$	556,800		$	979,500		$	1,514,200		$	2,138,700
UBAM		6,915,400			4,719,800			15,865,200			11,286,200
Other		(4,039,400	)		(3,659,200	)		(10,281,700	)		(9,859,500	)
Total	$	3,432,800		$	2,040,100		$	7,097,700		$	3,565,400