Industry Segment Information

9 Months Ended

Jul. 31, 2011

Industry Segment Information [Abstract]

Industry Segment Information

7. Industry Segment Information

The Company operates principally in three industry segments organized on the basis of product lines: the production, printing and sale, principally to commercial customers, of printed materials (including brochures, pamphlets, reports, tags, continuous and other forms), the sale of office products and office furniture including interior design services and publication of The Herald-Dispatch daily newspaper in Huntington, West Virginia, with a total daily and Sunday circulation of approximately 23,000 and 29,000, respectively.

Our financial reporting systems present various data which is used to operate and measure our operating performance, including internal statements of operations which are prepared on a basis inconsistent with GAAP. Therefore, the segment reporting may not necessarily be consistent with GAAP reporting. Furthermore, because of our integrated business structure, operating costs included in one segment may benefit other segments, as a result of this structure these segments are not specifically designed to measure operating income or loss directly related to the products or services included in each segment.

The identifiable assets are reflective of non-GAAP assets reported on the Company's internal balance sheets and are typically adjusted for negative book cash balances, taxes, and other items excluded for segment reporting. The total assets reported on the Company's balance sheet as of July 31, 2011 and 2010 are $87,942,924 and $93,615,708. The identifiable assets reported above represent $79,443,154 and $83,443,540 at July 31, 2011 and 2010.

The table below presents information about reported segments for the three and nine months ended July 31:

2011 Quarter 3	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	20,709,732		$	10,436,689		$	3,561,153	$	34,707,574
Elimination of intersegment revenue		(1,135,600	)		(1,544,837	)		-		(2,680,437	)
Consolidated revenues	$	19,574,132		$	8,891,852		$	3,561,153	$	32,027,137
Operating income		73,646			576,902			447,581		1,098,129
Depreciation & amortization		709,462			33,851			287,621		1,030,934
Capital expenditures		320,961			12,732			8,770		342,463
Identifiable assets		38,221,289			7,107,335			34,114,530		79,443,154
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

2010 Quarter 3	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	21,645,833		$	9,966,618		$	3,585,861	$	35,198,312
Elimination of intersegment revenue		(1,985,607	)		(1,323,579	)		-		(3,309,186	)
Consolidated revenues	$	19,660,226		$	8,643,039		$	3,585,861	$	31,889,126
Operating income (loss)		(904,214	)		504,691			712,608		313,085
Depreciation & amortization		741,510			33,851			284,653		1,060,014
Capital expenditures		124,492			10,121			15,052		149,665
Identifiable assets		40,861,807			6,720,113			35,861,620		83,443,540
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

2011 Year to Date	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	62,646,552		$	30,000,857		$	11,038,648	$	103,686,057
Elimination of intersegment revenue		(3,854,337	)		(4,808,838	)		-		(8,663,175	)
Consolidated revenues	$	58,792,215		$	25,192,019		$	11,038,648	$	95,022,882
Operating income		901,618			1,395,842			1,672,039		3,969,499
Depreciation & amortization		2,091,271			101,575			855,690		3,048,536
Capital expenditures		851,191			68,198			37,961		957,341
Identifiable assets		38,221,289			7,107,335			34,114,530		79,443,154
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

2010 Year to Date	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	68,577,588		$	29,813,537		$	11,632,293	$	110,023,418
Elimination of intersegment revenue		(7,451,495	)		(4,556,205	)		-		(12,007,700	)
Consolidated revenues	$	61,126,093		$	25,257,332		$	11,632,293	$	98,015,718
Operating income (loss)		(1,212,079	)		1,456,527			2,895,689		3,140,137
Depreciation & amortization		2,294,034			102,787			851,222		3,248,043
Capital expenditures		446,959			19,609			58,481		525,049
Identifiable assets		40,861,807			6,720,113			35,861,620		83,443,540
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

A reconciliation of total segment revenues and of total segment operating income to consolidated income (loss) before income taxes, for the three and nine months ended July 31, 2011 and 2010, is as follows:

	Three months						Nine months
		2011			2010			2011			2010
Revenues:
Total segment revenues	$	34,707,574		$	35,198,312		$	103,686,057		$	110,023,418
Elimination of intersegment revenue		(2,680,437	)		(3,309,186	)		(8,663,175	)		(12,007,700	)
Consolidated revenue	$	32,027,137		$	31,889,126		$	95,022,882		$	98,015,718
Operating income:
Total segment operating income	$	1,098,129		$	313,085		$	3,969,499		$	3,140,137
Interest expense		(988,005	)		(1,232,003	)		(2,902,602	)		(4,164,454	)
Gain on early extinguishment of debt from related party		1,337,846			-			1,337,846			-
Other income		27,674			10,805			73,186			322,471
Consolidated income (loss) before income taxes	$	1,475,644		$	(908,113	)	$	2,477,929		$	(701,846	)
Identifiable assets:
Total segment identifiable assets	$	79,443,154		$	83,443,540		$	79,443,154		$	83,443,540
Assets not allocated to a segment		8,499,770			10,172,168			8,499,770			10,172,168
Total consolidated assets	$	87,942,924		$	93,615,708		$	87,942,924		$	93,615,708