Acquisitions

3 Months Ended

May 31, 2012

Acquisitions [Abstract]

Acquisitions

(4) Acquisitions

On February 10, 2012, the Company acquired certain assets of PrintXcel and Printegra Corporation (“Printegra”) for $40.0 million plus assumed trade liabilities. The acquisition was funded by a draw down on the Company’s line of credit facility. The combined sales of the purchased operations were $74.4 million during the most recent twelve month period ended December 31, 2011. The operations using the acquired assets will continue under their respective trade names of PrintXcel and Printegra.

The following is a summary of the preliminary purchase price allocations for PrintXcel and Printegra (in thousands):

Accounts receivable	$	7,155
Inventories		9,190
Other assets		631
Property, plant & equipment		8,470
Customer lists		7,930
Trademarks		4,840
Patent		773
Goodwill		3,834
Other long-term asseets		71
Accounts payable and accrued liabilities		(2,924	)
	$	39,970

On September 30, 2011, the Company purchased all of the outstanding stock of PrintGraphics, LLC (“PrintGraphics”), a privately held company, as well as the associated land and buildings for $6.0 million in cash. PrintGraphics has locations in Vandalia, Ohio and Nevada, Iowa. The sales of the purchased operations were $15.1 million during the twelve month period ended December 31, 2010.

The following is a summary of the purchase price allocation for PrintGraphics (in thousands):

Accounts receivable	$	1,867
Inventories		1,356
Other assets		94
Property, plant & equipment		3,572
Accounts payable and accrued liabilities		(903	)
	$	5,986

The results of operations for PrintXcel, Printegra, and PrintGraphics are included in the Company’s consolidated financial statements from the dates of acquisition. The following table represents certain operating information on a pro forma basis as though all companies had been acquired as of March 1, 2011, after the estimated impact of adjustments such as amortization of intangible assets, interest expense, interest income and related tax effects (in thousands except per share amounts):

	Three months ended
	May 31,
	2011
Pro forma net sales	$	167,800
Pro forma net earnings		12,192
Pro forma earnings per share—diluted		0.47

The pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the periods presented.