Segment Information and Geographic Information

3 Months Ended

May. 31, 2015

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 64% of the Company’s consolidated net sales for the three months ended May 31, 2015, 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 58 manufacturing plants throughout the United States in 22 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^TM, Printegra^®, Curtis Business Forms^SM, Falcon Business Forms^SM, Forms Manufacturers^SM, Mutual Graphics^SM and TRI-C Business Forms^SM. 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 custom printer high performance labels and custom and stock tags); Atlas Tag & Label^®, Kay Toledo Tag^SM and Special Service Partners^SM (SSP) (which provides custom and stock tags and labels); Trade Envelopes^®, 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 2015 primarily as a result of the Company’s acquisition of Sovereign Business Forms and Kay Toledo.

The Apparel Segment, which accounted for 36% of the Company’s consolidated net sales for the three months ended May 31, 2015, 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, 2015 and May 31, 2014 were as follows (in thousands):

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Three months ended May 31, 2015:
Net sales	$	96,769	$	53,807	$	—		$	150,576
Depreciation		1,746		905		67			2,718
Amortization of identifiable intangibles		1,125		367		—			1,492
Segment earnings (loss) before income tax		17,127		1,739		(4,308	)		14,558
Segment assets		244,005		171,772		20,866			436,643
Capital expenditures		1,172		44		3			1,219

	Print Segment		Apparel Segment		Corporate			Consolidated Totals
Three months ended May 31, 2014:
Net sales	$	88,384	$	52,802	$	—		$	141,186
Depreciation		1,564		951		67			2,582
Amortization of identifiable intangibles		1,050		367		—			1,417
Segment earnings (loss) before income tax		15,482		1,176		(3,909	)		12,749
Segment assets		218,534		307,296		16,061			541,891
Capital expenditures		252		47		6			305

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 May 31, 2015:
Net sales to unaffiliated customers
Print Segment	$	96,769	$	—	$	—	$	96,769
Apparel Segment		48,825		4,385		597		53,807
	$	145,594	$	4,385	$	597	$	150,576
As of May 31, 2015
Identifiable long-lived assets
Print Segment	$	51,037	$	—	$	—	$	51,037
Apparel Segment		84		52		36,024		36,160
Corporate		3,483		—		—		3,483
	$	54,604	$	52	$	36,024	$	90,680
Three months ended May 31, 2014:
Net sales to unaffiliated customers
Print Segment	$	88,384	$	—	$	—	$	88,384
Apparel Segment		48,002		4,627		173		52,802
	$	136,386	$	4,627	$	173	$	141,186
As of May 31, 2014
Identifiable long-lived assets
Print Segment	$	42,537	$	—	$	—	$	42,537
Apparel Segment		128		39		43,813		43,980
Corporate		3,711		—		—		3,711
	$	46,376	$	39	$	43,813	$	90,228