Segment Information and Geographic Information

9 Months Ended

Nov. 30, 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 63% and 62% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 49 manufacturing locations throughout the United States in 19 strategically located states. Approximately 95% of the business products manufactured by the Print Segment are custom and semi-custom products, 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 37% and 38% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 nine months ended November 30, 2012 and 2011 were as follows (in thousands):

	Print		Apparel					Consolidated
	Segment		Segment		Corporate			Totals
Three months ended November 30, 2012:
Net sales	$	81,548	$	47,448	$	—		$	128,996
Depreciation		1,447		960		63			2,470
Amortization of identifiable intangibles		456		367		—			823
Segment earnings (loss) before income tax		12,999		837		(4,336	)		9,500
Segment assets		166,221		313,052		18,234			497,507
Capital expenditures		863		—		—			863

	Print		Apparel						Consolidated
	Segment		Segment			Corporate			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
Nine months ended November 30, 2012:
Net sales	$	254,916	$	154,952		$	—		$	409,868
Depreciation		4,455		2,861			202			7,518
Amortization of identifiable intangibles		1,383		1,100			—			2,483
Segment earnings (loss) before income tax		40,428		(937	)		(11,927	)		27,564
Segment assets		166,221		313,052			18,234			497,507
Capital expenditures		1,691		—			34			1,725
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

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):

	United States		Canada		Mexico		Total
Three months ended November 30, 2012:
Net sales to unaffiliated customers
Print Segment	$	81,548	$	—	$	—	$	81,548
Apparel Segment		43,408		3,837		203		47,448
	$	124,956	$	3,837	$	203	$	128,996
Identifiable long-lived assets
Print Segment	$	41,855	$	—	$	—	$	41,855
Apparel Segment		169		27		47,747		47,943
Corporate		3,349		—		—		3,349
	$	45,373	$	27	$	47,747	$	93,147

	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
Nine months ended November 30, 2012:
Net sales to unaffiliated customers
Print Segment	$	254,916	$	—	$	—	$	254,916
Apparel Segment		139,526		14,757		669		154,952
	$	394,442	$	14,757	$	669	$	409,868
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