Segment Information and Geographic Information

12 Months Ended

Feb. 28, 2014

Segment Reporting [Abstract]

Segment Information and Geographic Information

(13) Segment Information and Geographic Information

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

The Print Segment, which represented 63% of the Company’s consolidated net sales for fiscal year 2014, 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 plants throughout the United States in 21 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, 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^® and National Imprint Corporation^® (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 2014 primarily as a result of the Company’s acquisition of Wisco, NIC and Folder Express.

The Apparel Segment, which accounted for 37% of the Company’s fiscal year 2014 consolidated net sales, 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 fiscal years ended 2014, 2013 and 2012 were as follows (in thousands):

	Print Segment		Apparel Segment			Corporate			Consolidated Totals
Fiscal year ended February 28, 2014:
Net sales	$	339,947	$	202,495		$	—		$	542,442
Depreciation		5,804		3,845			205			9,854
Amortization of identifiable intangibles		2,749		1,467			—			4,216
Impairment of goodwill and trademarks		—		24,226			—			24,226
Segment earnings (loss) before income tax		57,390		(9,467	)		(16,131	)		31,792
Segment assets		221,937		302,020			12,390			536,347
Capital expenditures		2,746		1,228			672			4,646
Fiscal year ended February 28, 2013:
Net sales	$	334,701	$	198,805		$	—		$	533,506
Depreciation		5,895		3,815			247			9,957
Amortization of identifiable intangibles		1,811		1,467			—			3,278
Segment earnings (loss) before income tax		54,224		247			(15,853	)		38,618
Segment assets		167,329		313,790			14,173			495,292
Capital expenditures		2,513		12			35			2,560
Fiscal year ended February 29, 2012:
Net sales	$	277,988	$	239,026		$	—		$	517,014
Depreciation		5,129		3,979			413			9,521
Amortization of identifiable intangibles		964		1,467			—			2,431
Segment earnings (loss) before income tax		46,238		19,345			(16,203	)		49,380
Segment assets		178,504		335,540			17,918			531,962
Capital expenditures		1,958		3,091			38			5,087

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 fiscal years ended is as follows (in thousands):

	United States		Canada		Mexico		Total
2014
Net sales to unaffiliated customers
Print Segment	$	339,947	$	—	$	—	$	339,947
Apparel Segment		183,335		18,694		466		202,495
	$	523,282	$	18,694	$	466	$	542,442
Identifiable long-lived assets
Print Segment	$	43,849	$	—	$	—	$	43,849
Apparel Segment		147		40		43,757		43,944
Corporate		3,772		—		—		3,772
	$	47,768	$	40	$	43,757	$	91,565
2013
Net sales to unaffiliated customers
Print Segment	$	334,701	$	—	$	—	$	334,701
Apparel Segment		180,215		17,806		784		198,805
	$	514,916	$	17,806	$	784	$	533,506
Identifiable long-lived assets
Print Segment	$	41,106	$	—	$	—	$	41,106
Apparel Segment		240		26		47,237		47,503
Corporate		3,304		—		—		3,304
	$	44,650	$	26	$	47,237	$	91,913
2012
Net sales to unaffiliated customers
Print Segment	$	277,988	$	—	$	—	$	277,988
Apparel Segment		219,687		18,377		962		239,026
	$	497,675	$	18,377	$	962	$	517,014
Identifiable long-lived assets
Print Segment	$	44,712	$	—	$	—	$	44,712
Apparel Segment		196		29		51,062		51,287
Corporate		3,517		—		—		3,517
	$	48,425	$	29	$	51,062	$	99,516