Industry Segment Information

6 Months Ended

Apr. 30, 2012

Industry Segment Information [Abstract]

Industry Segment Information

8. 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 24,000 and 30,000, respectively.

The Company reports segment information in a manner consistent with the way that our Management, including our chief operating decision maker, the Company's Chief Executive Officer, assesses performance and makes decisions regarding allocation of resources in accordance with the Segment Disclosures Topic of the ASC.

Our Financial Reporting systems present various data, which is used to operate and measure our operating performance. Our chief operating decision maker utilizes various measures of a segment's profit or loss including historical internal reporting measures and reporting measures based on product lines with operating (loss) income as the key profitability measure within the segment. Product line reporting is the basis for the organization of our segments and is the most consistent measure used by the chief operating decision maker and conforms with the use of segment operating income or (loss) that is the most consistent with those used in measuring like amounts in the Consolidated Financial Statements.

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, deferred financing costs and other items excluded for segment reporting. The total assets reported on the Company's balance sheet as of April 30, 2012 and 2011 are $58,285,193 and $88,745,286 (restated). The identifiable assets reported above represent $57,675,205 and $78,374,868 at April 30, 2012 and 2011.

The table below presents information about reported segments for the three and six months ended April 30:

2012 Quarter 2	Printing			Office Products & Furniture			Newspaper			Total
Revenues	$	22,063,503		$	10,502,075		$	3,408,125		$	35,973,703
Elimination of intersegment revenue		(1,209,747	)		(1,375,456	)		-			(2,585,203	)
Consolidated revenues	$	20,853,756		$	9,126,619		$	3,408,125		$	33,388,500
Operating (loss) income		16,424			778,268			(9,132,329	)		(8,337,637	)
Depreciation & amortization		658,399			20,814			287,524			966,737
Capital expenditures		145,063			15,783			38,361			199,207
Identifiable assets		37,321,832			7,449,647			12,903,726			57,675,205
Goodwill		2,226,837			1,230,485			-			3,457,322
2011 Quarter 2	Printing			Office Products & Furniture			Newspaper			Total
Revenues	$	20,854,240		$	9,571,166		$	3,392,379		$	33,817,785
Elimination of intersegment revenue		(1,194,335	)		(1,610,300	)		-			(2,804,635	)
Consolidated revenues	$	19,659,905		$	7,960,866		$	3,392,379		$	31,013,150
Operating income		937,625			473,211			388,249			1,799,085
Depreciation & amortization		689,480			33,852			283,940			1,007,272
Capital expenditures		278,018			37,900			12,218			328,136
Identifiable assets		39,466,377			6,921,039			31,987,452			78,374,868
Goodwill		2,226,837			1,230,485			11,874,961			15,332,283

2012 Year to Date	Printing			Office  Products & Furniture			Newspaper			Total
Revenues	$	42,802,887		$	20,294,023		$	7,267,534		$	70,364,444
Elimination of intersegment revenue		(2,397,788	)		(2,976,803	)		-			(5,374,591	)
Consolidated revenues	$	40,405,099		$	17,317,220		$	7,267,534		$	64,989,853
Operating (loss) income		(524,555	)		1,330,834			(8,443,077	)		(7,636,798	)
Depreciation & amortization		1,314,197			54,665			573,746			1,942,608
Capital expenditures		389,979			33,831			50,994			474,804
Identifiable assets		37,321,832			7,449,647			12,903,726			57,675,205
Goodwill		2,226,837			1,230,485			-			3,457,322

2011 Year to Date	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	41,936,821		$	19,564,168		$	7,336,860	$	68,837,849
Elimination of intersegment revenue		(2,718,737	)		(3,264,001	)		-		(5,982,738	)
Consolidated revenues	$	39,218,084		$	16,300,167		$	7,336,860	$	62,855,111
Operating income		827,973			818,939			1,224,458		2,871,370
Depreciation & amortization		1,381,809			67,724			568,069		2,017,602
Capital expenditures		530,230			55,457			29,191		614,878
Identifiable assets		39,466,377			6,921,039			31,987,452		78,374,868
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

A reconciliation of total segment revenues and of total segment operating (loss) income to consolidated (loss) income before income taxes, for the three and six months ended April 30, 2012 and 2011, is as follows:

	Three months						Six months
		2012			2011			2012			2011
Revenues:
Total segment revenues	$	35,973,703		$	33,817,785		$	70,364,444		$	68,837,849
Elimination of intersegment revenue		(2,585,203	)		(2,804,635	)		(5,374,591	)		(5,982,738	)
Consolidated revenue	$	33,388,500		$	31,013,150		$	64,989,853		$	62,855,111
Operating (loss) income:
Total segment operating (loss) income	$	(8,337,637	)	$	1,799,085		$	(7,636,798	)	$	2,871,370
Interest expense - related party		(16,250	)		(24,104	)		(22,389	)		(49,021	)
Interest expense		(890,227	)		(921,672	)		(1,750,544	)		(1,865,577	)
Other income		18,112			28,832			34,383			45,513
Consolidated (loss) income before income taxes	$	(9,226,002	)	$	882,141		$	(9,375,348	)	$	1,002,285
Identifiable assets:
Total segment identifiable assets	$	57,675,205		$	78,374,868		$	57,675,205		$	78,374,868
Assets not allocated to a segment		609,988			10,370,418			609,988			10,370,418
Total consolidated assets	$	58,285,193		$	88,745,286		$	58,285,193		$	88,745,286