Segment Information and Geographic Information

6 Months Ended

Aug. 31, 2011

Segment Information and Geographic Information [Abstract]

Segment Information and Geographic Information

13. Segment Information and Geographic Information

The Company operates in two segments — the Print Segment and the Apparel Segment.

The Print Segment, which represented 53% and 50% of the Company’s consolidated net sales for the three and six months ended August 31, 2011, is in the business of manufacturing, designing, and selling business forms and other printed business products primarily to distributors located in the United States. The Print Segment operates 38 manufacturing locations throughout the United States in 17 strategically located domestic states. Approximately 97% of the business products manufactured by the Print Segment are custom and semi-custom, constructed in a wide variety of sizes, colors, number of parts and quantities on an individual job basis depending upon the customers’ specifications.

The products sold include snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive products in short, medium and long runs under the following labels: Ennis^®, Royal Business Forms^®, Block Graphics^®, Specialized Printed Forms^®, 360º Custom Labels^SM, Enfusion^®, Uncompromised Check Solutions^®, Witt Printing^®, B&D Litho^®, Genforms^® and Calibrated Forms^®. The Print Segment also sells the Adams-McClure^® brand (which provides Point of Purchase advertising for large franchise and fast food chains as well as kitting and fulfillment); the Admore^® brand (which provides presentation folders and document folders); Ennis Tag & Label^SM (which provides tags and labels, promotional products and advertising concept products); Atlas Tag & Label^® (which provides tags and labels); Trade Envelopes^® and Block Graphics^® (which provide custom and imprinted envelopes) and Northstar^® and General Financial Supply^® (which provide financial and security documents).

The Print Segment sells predominantly through private printers and independent distributors. Northstar and General Financial Supply also sell to a small number of direct customers. Northstar has continued its focus with large banking organizations on a direct basis (where a distributor is not acceptable or available to the end-user) and has acquired several of the top 25 banks in the United States as customers and is actively working on other large banks within the top 25 tier of banks in the United States. Adams-McClure sales are generally provided through advertising agencies.

The Apparel Segment, which accounted for 47% and 50% of the Company’s consolidated net sales for the three and six months ended August 31, 2011, consists of Alstyle Apparel. This group is primarily engaged in the production and sale of activewear including t-shirts, fleece goods, and other wearables. Alstyle sales are seasonal, with sales in the first and second quarters generally being the highest. Substantially all of the Apparel Segment sales are to customers in the United States.

Corporate information is included to reconcile segment data to the consolidated financial statements and includes assets and expenses related to the Company’s corporate headquarters and other administrative costs.

Segment data for the three and six months ended August 31, 2011 and 2010 were as follows (in thousands):

	Print		Apparel					Consolidated
	Segment		Segment		Corporate			Totals
Three months ended August 31, 2011:
Net sales	$	69,212	$	61,172	$	—		$	130,384
Depreciation		1,219		1,029		106			2,354
Amortization of identifiable intangibles		233		366		—			599
Segment earnings (loss) before income tax		11,941		6,715		(3,377	)		15,279
Segment assets		134,346		336,224		17,522			488,092
Capital expenditures		785		1,260		7			2,052

	Print		Apparel					Consolidated
	Segment		Segment		Corporate			Totals
Three months ended August 31, 2010:
Net sales	$	69,146	$	73,888	$	—		$	143,034
Depreciation		1,412		486		187			2,085
Amortization of identifiable intangibles		234		366		—			600
Segment earnings (loss) before income tax		11,861		11,621		(4,382	)		19,100
Segment assets		139,475		295,270		15,905			450,650
Capital expenditures		762		9,312		10			10,084
Six months ended August 31, 2011:
Net sales	$	136,326	$	137,316	$	—		$	273,642
Depreciation		2,454		2,166		226			4,846
Amortization of identifiable intangibles		465		733		—			1,198
Segment earnings (loss) before income tax		22,943		17,630		(7,444	)		33,129
Segment assets		134,346		336,224		17,522			488,092
Capital expenditures		1,471		2,685		13			4,169
Six months ended August 31, 2010:
Net sales	$	136,936	$	146,839	$	—		$	283,775
Depreciation		2,788		987		377			4,152
Amortization of identifiable intangibles		468		733		—			1,201
Segment earnings (loss) before income tax		24,363		24,123		(8,850	)		39,636
Segment assets		139,475		295,270		15,905			450,650
Capital expenditures		1,383		21,846		13			23,242

Identifiable long-lived assets by country include property, plant, and equipment, net of accumulated depreciation. The Company attributes revenues from external customers to individual geographic areas based on the country where the sale originated. Information about the Company’s operations in different geographic areas as of and for the three and six months ended is as follows (in thousands):

	United States		Canada		Mexico		Total
Three months ended August 31, 2011:
Net sales to unaffiliated customers
Print Segment	$	69,212	$	—	$	—	$	69,212
Apparel Segment		56,208		4,758		206		61,172
	$	125,420	$	4,758	$	206	$	130,384
Identifiable long-lived assets
Print Segment	$	34,875	$	—	$	—	$	34,875
Apparel Segment		587		31		53,114		53,732
Corporate		3,678		—		—		3,678
	$	39,140	$	31	$	53,114	$	92,285

	United States		Canada		Mexico		Total
Three months ended August 31, 2010:
Net sales to unaffiliated customers
Print Segment	$	69,146	$	—	$	—	$	69,146
Apparel Segment		66,380		6,895		613		73,888
	$	135,526	$	6,895	$	613	$	143,034
Identifiable long-lived assets
Print Segment	$	37,378	$	—	$	—	$	37,378
Apparel Segment		20,492		31		23,027		43,550
Corporate		4,230		—		—		4,230
	$	62,100	$	31	$	23,027	$	85,158
Six months ended August 31, 2011:
Net sales to unaffiliated customers
Print Segment	$	136,326	$	—	$	—	$	136,326
Apparel Segment		126,113		10,761		442		137,316
	$	262,439	$	10,761	$	442	$	273,642
Six months ended August 31, 2010:
Net sales to unaffiliated customers
Print Segment	$	136,936	$	—	$	—	$	136,936
Apparel Segment		133,322		12,215		1,302		146,839
	$	270,258	$	12,215	$	1,302	$	283,775