Segment Information and Geographic Information

9 Months Ended

Nov. 30, 2013

Segment Reporting [Abstract]

Segment Information and Geographic Information

12. Segment Information and Geographic Information

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

The Print Segment, which represented 66% and 61% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 50 manufacturing locations throughout the United States in 21 strategically located states. Approximately 96% 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^® and Folder Express^® brands (which provide 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^®, Wisco Envelopes^® and National Imprint^® (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. Assets in this segment increased in 2013 primarily as a result of the Company’s acquisition of WISCO, NIC and Folder Express.

The Apparel Segment, which accounted for 34% and 39% of the Company’s consolidated net sales for the three and nine months ended November 30, 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 nine months ended November 30, 2013 and November 30, 2012 were as follows (in thousands):

	Print		Apparel					Consolidated
	Segment		Segment		Corporate			Totals
Three months ended November 30, 2013:
Net sales	$	89,671	$	46,879	$	—		$	136,550
Depreciation		1,502		956		56			2,514
Amortization of identifiable intangibles		858		367		—			1,225
Segment earnings (loss) before income tax		16,040		3,014		(4,215	)		14,839
Segment assets		224,233		317,314		16,050			557,597
Capital expenditures		1,002		850		18			1,870

	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
Nine months ended November 30, 2013:
Net sales	$	250,063	$	160,241		$	—		$	410,304
Depreciation		4,240		2,888			138			7,266
Amortization of identifiable intangibles		1,715		1,100			—			2,815
Segment earnings (loss) before income tax		43,094		13,283			(12,480	)		43,897
Segment assets		224,233		317,314			16,050			557,597
Capital expenditures		2,355		1,033			655			4,043
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

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, 2013:
Net sales to unaffiliated customers
Print Segment	$	89,671	$	—	$	—	$	89,671
Apparel Segment		42,157		4,567		155		46,879
	$	131,828	$	4,567	$	155	$	136,550
Identifiable long-lived assets
Print Segment	$	45,022	$	—	$	—	$	45,022
Apparel Segment		168		44		44,941		45,153
Corporate		3,821		—		—		3,821
	$	49,011	$	44	$	44,941	$	93,996

	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
Nine months ended November 30, 2013:
Net sales to unaffiliated customers
Print Segment	$	250,063	$	—	$	—	$	250,063
Apparel Segment		144,576		15,339		326		160,241
	$	394,639	$	15,339	$	326	$	410,304
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