Segment Information and Geographic Information

3 Months Ended

May 31, 2013

Segment Reporting [Abstract]

Segment Information and Geographic Information

11. Segment Information and Geographic Information

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

The Print Segment, which represented 59% of the Company’s consolidated net sales for the three months ended May 31, 2013, 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 47 manufacturing locations throughout the United States in 19 strategically located states. Approximately 97% 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 direct to a small number of 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 41% of the Company’s consolidated net sales for the three months ended May 31, 2013, 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 months ended May 31, 2013 and May 31, 2012 were as follows (in thousands):

	Print Segment		Apparel Segment			Corporate			Consolidated Totals
Three months ended May 31, 2013:
Net sales	$	81,439	$	57,027		$	—		$	138,466
Depreciation		1,377		970			40			2,387
Amortization of identifiable intangibles		428		367			—			795
Segment earnings (loss) before income tax		13,447		4,368			(4,312	)		13,503
Segment assets		161,672		307,420			20,325			489,417
Capital expenditures		479		150			40			669
Three months ended May 31, 2012:
Net sales	$	87,299	$	55,229		$	—		$	142,528
Depreciation		1,544		955			73			2,572
Amortization of identifiable intangibles		465		367			—			832
Segment earnings (loss) before income tax		12,614		(2,821	)		(3,685	)		6,108
Segment assets		173,150		317,813			21,918			512,881
Capital expenditures		118		—			15			133

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 months ended is as follows (in thousands):

	United States		Canada		Mexico		Total
Three months ended May 31, 2013:
Net sales to unaffiliated customers
Print Segment	$	81,439	$	—	$	—	$	81,439
Apparel Segment		51,702		5,262		63		57,027
	$	133,141	$	5,262	$	63	$	138,466
Identifiable long-lived assets
Print Segment	$	39,499	$	—	$	—	$	39,499
Apparel Segment		215		48		46,978		47,241
Corporate		3,303		—		—		3,303
	$	43,017	$	48	$	46,978	$	90,043
Three months ended May 31, 2012:
Net sales to unaffiliated customers
Print Segment	$	87,299	$	—	$	—	$	87,299
Apparel Segment		49,281		5,674		274		55,229
	$	136,580	$	5,674	$	274	$	142,528
Identifiable long-lived assets
Print Segment	$	43,484	$	—	$	—	$	43,484
Apparel Segment		168		28		47,687		47,883
Corporate		3,459		—		—		3,459
	$	47,111	$	28	$	47,687	$	94,826