Segment Information and Geographic Information

9 Months Ended

Nov. 30, 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 57% and 52% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 40 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 ^®, PrintGraphics ^SM 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 43% and 48% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 nine months ended November 30, 2011 and 2010 were as follows (in thousands):

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Three months ended November 30, 2011:
Net sales	$	69,216	$	52,630	$	—		$	121,846
Depreciation		1,286		944		98			2,328
Amortization of identifiable intangibles		232		367		—			599
Segment earnings (loss) before income tax		11,027		4,098		(4,115	)		11,010
Segment assets		136,757		326,982		20,792			484,531
Capital expenditures		487		634		14			1,135

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Three months ended November 30, 2010:
Net sales	$	69,516	$	65,301	$	—		$	134,817
Depreciation		1,356		480		187			2,023
Amortization of identifiable intangibles		232		367		—			599
Segment earnings (loss) before income tax		11,342		8,240		(4,396	)		15,186
Segment assets		139,228		311,284		19,270			469,782
Capital expenditures		476		5,189		7			5,672
Nine months ended November 30, 2011:
Net sales	$	205,542	$	189,946	$	—		$	395,488
Depreciation		3,740		3,110		324			7,174
Amortization of identifiable intangibles		697		1,100		—			1,797
Segment earnings (loss) before income tax		33,970		21,728		(11,559	)		44,139
Segment assets		136,757		326,982		20,792			484,531
Capital expenditures		1,958		3,319		27			5,304
Nine months ended November 30, 2010:
Net sales	$	206,452	$	212,140	$	—		$	418,592
Depreciation		4,144		1,467		564			6,175
Amortization of identifiable intangibles		700		1,100		—			1,800
Segment earnings (loss) before income tax		35,705		32,363		(13,246	)		54,822
Segment assets		139,228		311,284		19,270			469,782
Capital expenditures		1,859		27,035		20			28,914

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 nine months ended is as follows (in thousands):

		$000000		$000000		$000000		$000000
	United States		Canada		Mexico		Total
Three months ended November 30, 2011:
Net sales to unaffiliated customers
Print Segment	$	69,216	$	—	$	—	$	69,216
Apparel Segment		47,876		4,474		280		52,630
	$	117,092	$	4,474	$	280	$	121,846
Identifiable long-lived assets
Print Segment	$	37,631	$	—	$	—	$	37,631
Apparel Segment		522		29		49,544		50,095
Corporate		3,594		—		—		3,594
	$	41,747	$	29	$	49,544	$	91,320

	United States		Canada		Mexico		Total
Three months ended November 30, 2010:
Net sales to unaffiliated customers
Print Segment	$	69,516	$	—	$	—	$	69,516
Apparel Segment		58,819		6,067		415		65,301
	$	128,335	$	6,067	$	415	$	134,817
Identifiable long-lived assets
Print Segment	$	36,799	$	—	$	—	$	36,799
Apparel Segment		23,664		32		25,520		49,216
Corporate		4,050		—		—		4,050
	$	64,513	$	32	$	25,520	$	90,065
Nine months ended November 30, 2011:
Net sales to unaffiliated customers
Print Segment	$	205,542	$	—	$	—	$	205,542
Apparel Segment		173,989		15,235		722		189,946
	$	379,531	$	15,235	$	722	$	395,488
Nine months ended November 30, 2010:
Net sales to unaffiliated customers
Print Segment	$	206,452	$	—	$	—	$	206,452
Apparel Segment		192,141		18,282		1,717		212,140
	$	398,593	$	18,282	$	1,717	$	418,592