Note 8 - BUSINESS SEGMENTS

6 Months Ended

Aug. 31, 2018

Segment Reporting Disclosure [Text Block]

Note 8 – BUSINESS SEGMENTS

We have 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. Our 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. Our UBAM segment markets its products through a network of independent sales consultants using a combination of direct sales, home shows, book fairs and internet 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 reporting segment for the three and six-month periods ended August 31, 2018 and 2017, follows:

NET REVENUES

	Three Months Ended August 31,				Six Months Ended August 31,
	2018		2017		2018		2017
Publishing	$	2,605,500	$	1,977,000	$	4,911,700	$	4,099,100
UBAM		22,075,500		22,209,900		49,791,600		47,029,000
Total	$	24,681,000	$	24,186,900	$	54,703,300	$	51,128,100

EARNINGS (LOSS) BEFORE INCOME TAXES

	Three Months Ended August 31,						Six Months Ended August 31,
	2018			2017			2018			2017
Publishing	$	636,700		$	388,300		$	1,143,000		$	957,400
UBAM		4,277,100			4,570,300			9,376,100			8,949,800
Other		(2,878,200	)		(3,275,900	)		(5,987,700	)		(6,242,300	)
Total	$	2,035,600		$	1,682,700		$	4,531,400		$	3,664,900