Segment Information and Geographic Information

6 Months Ended

Aug. 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 58% and 59% of the Company’s consolidated net sales for the three and six months ended August 31, 2013, respectively, 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, ColorWorx^®, 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 42% and 41% of the Company’s consolidated net sales for the three and six months ended August 31, 2013, respectively, 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, 2013 and August 31, 2012 were as follows (in thousands):

	Print		Apparel						Consolidated
	Segment		Segment			Corporate			Totals
Three months ended August 31, 2013:
Net sales	$	78,953	$	56,335		$	—		$	135,288
Depreciation		1,361		962			42			2,365
Amortization of identifiable intangibles		429		366			—			795
Segment earnings (loss) before income tax		13,607		5,901			(3,953	)		15,555
Segment assets		159,637		303,450			24,192			487,279
Capital expenditures		874		33			597			1,504
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
Six months ended August 31, 2013:
Net sales	$	160,392	$	113,362		$	—		$	273,754
Depreciation		2,738		1,932			82			4,752
Amortization of identifiable intangibles		857		733			—			1,590
Segment earnings (loss) before income tax		27,054		10,269			(8,265	)		29,058
Segment assets		159,637		303,450			24,192			487,279
Capital expenditures		1,353		183			637			2,173
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

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, 2013:
Net sales to unaffiliated customers
Print Segment	$	78,953	$	—	$	—	$	78,953
Apparel Segment		50,717		5,510		108		56,335
	$	129,670	$	5,510	$	108	$	135,288
Identifiable long-lived assets
Print Segment	$	39,007	$	—	$	—	$	39,007
Apparel Segment		191		46		44,681		44,918
Corporate		3,859		—		—		3,859
	$	43,057	$	46	$	44,681	$	87,784
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
Six months ended August 31, 2013:
Net sales to unaffiliated customers
Print Segment	$	160,392	$	—	$	—	$	160,392
Apparel Segment		102,419		10,772		171		113,362
	$	262,811	$	10,772	$	171	$	273,754
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