Segment Information and Geographic Information

6 Months Ended

Aug. 31, 2012

Segment Information and Geographic Information [Abstract]

Segment Information and Geographic Information

14. Segment Information and Geographic Information

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

The Print Segment, which represented 62% of the Company’s consolidated net sales for the three and six months ended August 31, 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 94% 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 several of the top 25 banks in the United States as customers and is actively working on other 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 38% of the Company’s consolidated net sales for the three and six months ended August 31, 2012, 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, 2012 and 2011 were as follows (in thousands):

	Print Segment		Apparel Segment			Corporate			Consolidated Totals
Three months ended August 31, 2012:
Net sales	$	86,069	$	52,275		$	—		$	138,344
Depreciation		1,464		946			66			2,476
Amortization of identifiable intangibles		462		366			—			828
Segment earnings (loss) before income tax		14,815		1,047			(3,906	)		11,956
Segment assets		173,880		311,718			19,939			505,537
Capital expenditures		710		—			19			729
	Print Segment		Apparel Segment			Corporate			Consolidated 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
Six months ended August 31, 2012:
Net sales	$	173,368	$	107,504		$	—		$	280,872
Depreciation		3,008		1,901			139			5,048
Amortization of identifiable intangibles		927		733			—			1,660
Segment earnings (loss) before income tax		27,429		(1,774	)		(7,591	)		18,064
Segment assets		173,880		311,718			19,939			505,537
Capital expenditures		828		—			34			862
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

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, 2012:
Net sales to unaffiliated customers
Print Segment	$	86,069	$	—	$	—	$	86,069
Apparel Segment		46,837		5,246		192		52,275
	$	132,906	$	5,246	$	192	$	138,344
Identifiable long-lived assets
Print Segment	$	42,505	$	—	$	—	$	42,505
Apparel Segment		146		28		48,152		48,326
Corporate		3,410		—		—		3,410
	$	46,061	$	28	$	48,152	$	94,241
	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
Six months ended August 31, 2012:
Net sales to unaffiliated customers
Print Segment	$	173,368	$	—	$	—	$	173,368
Apparel Segment		96,118		10,920		466		107,504
	$	269,486	$	10,920	$	466	$	280,872
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