13. Segment Information

9 Months Ended

May 31, 2013

Notes

13. Segment Information

13.                SEGMENT INFORMATION

The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered.  Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. 

The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes.  The following tables show the operations of the Company's reportable segments.

Following is a summary of segmented information for the nine month periods ended May 31, 2013 and 2012.

	2013		2012
Sales to unaffiliated customers:
Industrial wood products	$    5,935,267		$    5,700,139
Lawn, garden, pet and other	26,742,571		22,874,080
Seed processing and sales	4,193,249		4,452,635
Industrial tools and clamps	1,704,651		2,078,988
Total sales	$  38,575,738		$  35,105,842
Income (loss) before income taxes:
Industrial wood products	$        (10,469)		$     (150,505)
Lawn, garden, pet and other	3,287,551	*	2,375,934	*
Seed processing and sales	121,749		116,771
Industrial tools and clamps	110,655		108,239
Unallocated overhead	(41,885)		(59,112)
Income from operations	$    3,467,601		$    2,391,327
Identifiable assets:
Industrial wood products	$    1,659,045		$    2,181,410
Lawn, garden, pet and other	19,167,457		15,561,693
Seed processing and sales	111,381		388,133
Industrial tools and clamps	602,305		786,072
Unallocated overhead	46,020		42,955
Total assets	$  21,586,208		$  18,960,263
Depreciation and amortization:
Industrial wood products	$              634		$           1,209
Lawn, garden, pet and other	171,525		168,711
Seed processing and sales	11,549		13,198
Industrial tools and clamps	4,723		3,655
Total depreciation and amortization	$       188,431		$       186,773
Capital expenditures:
Industrial wood products	$           3,602		$                   -
Lawn, garden, pet and other	171,222		23,721
Seed processing and sales	1,476		2,485
Industrial tools and clamps	7,379		10,000
Total capital expenditures	$       183,679		$         36,206
Interest expense:
Lawn, garden, pet and other	$              400		$              743

* For comparability purposes, the 2013 amount excludes gain on sale of property, plant and equipment of $353,852. The 2012 amount excludes reversal of litigation reserve of $1,443,629 and related interest of $6,734.

The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine month periods ended May 31, 2013 and 2012:

	2013	2012
Sales	$  12,475,035	$  11,743,006

The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine month periods ended May 31, 2013 and 2012:

	2013	2012
United States	$  34,320,602	$  31,908,507
Canada	1,889,696	1,831,358
Mexico / Latin America	2,256,420	944,623
Europe	54,615	341,925
Asia/Pacific	54,405	79,429
Total sales by country	$  38,575,738	$  35,105,842

All of the Company’s significant identifiable assets were located in the United States as of May 31, 2013 and 2012.