Segment Information and Geographic Information

12 Months Ended

Feb. 29, 2012

Segment Information and Geographic Information [Abstract]

Segment Information and Geographic Information

(15) Segment Information and Geographic Information

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

The Print Segment, which represented 54% of the Company’s consolidated net sales for fiscal year 2012, 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 50 manufacturing locations throughout the United States in 20 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 ^®, VersaSeal ^®, Witt Printing^®, B&D Litho^®, Genforms ^®, PrintGraphics^SM , Calibrated Forms^®, PrintXcel™ and Printegra ^®. 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 also sells 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 46% of the Company’s fiscal year 2012 consolidated net sales, 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 fiscal years ended 2012, 2011 and 2010 were as follows (in thousands):

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Fiscal year ended February 29, 2012:
Net sales	$	277,988	$	239,026	$	—		$	517,014
Depreciation		5,129		3,979		413			9,521
Amortization of identifiable intangibles		964		1,467		—			2,431
Segment earnings (loss) before income tax		46,238		19,345		(16,203	)		49,380
Segment assets		178,504		335,540		17,918			531,962
Capital expenditures		1,958		3,091		38			5,087

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Fiscal year ended February 28, 2011:
Net sales	$	272,689	$	277,310	$	—		$	549,999
Depreciation		5,396		1,943		727			8,066
Amortization of identifiable intangibles		933		1,466		—			2,399
Segment earnings (loss) before income tax		46,002		42,611		(19,196	)		69,417
Segment assets		136,255		321,908		15,565			473,728
Capital expenditures		2,176		31,549		28			33,753
Fiscal year ended February 28, 2010:
Net sales	$	282,308	$	235,430	$	—		$	517,738
Depreciation		5,970		2,168		838			8,976
Amortization of identifiable intangibles		937		1,466		—			2,403
Segment earnings (loss) before income tax		46,047		24,778		(15,156	)		55,669
Segment assets		140,734		270,680		21,285			432,699
Capital expenditures		2,522		17,661		97			20,280

Identifiable long-lived assets by country of ownership 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 fiscal years ended is as follows (in thousands):

	United States		Canada		Mexico		Total
2012
Net sales to unaffiliated customers
Print Segment	$	277,988	$	—	$	—	$	277,988
Apparel Segment		219,687		18,377		962		239,026
	$	497,675	$	18,377	$	962	$	517,014
Identifiable long-lived assets
Print Segment	$	44,712	$	—	$	—		44,712
Apparel Segment		196		29		51,062		51,287
Corporate		3,517		—		—		3,517
	$	48,425	$	29	$	51,062	$	99,516
2011
Net sales to unaffiliated customers
Print Segment	$	272,689	$	—	$	—	$	272,689
Apparel Segment		253,172		22,227		1,911		277,310
	$	525,861	$	22,227	$	1,911	$	549,999
Identifiable long-lived assets
Print Segment	$	35,867	$	—	$	—		35,867
Apparel Segment		1,901		33		51,968		53,902
Corporate		3,892		—		—		3,892
	$	41,660	$	33	$	51,968	$	93,661

	United States		Canada		Mexico		Total
2010
Net sales to unaffiliated customers
Print Segment	$	282,308	$	—	$	—	$	282,308
Apparel Segment		217,442		15,183		2,805		235,430
	$	499,750	$	15,183	$	2,805	$	517,738
Identifiable long-lived assets
Print Segment	$	37,984	$	—	$	—		37,984
Apparel Segment		9,508		33		13,602		23,143
Corporate		4,593		—		—		4,593
	$	52,085	$	33	$	13,602	$	65,720