Industry Segment Information

9 Months Ended

Jul. 31, 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 29,000, 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. During the third quarter of 2012, the Company realigned personnel and divisional responsibilities between the printing segment and office products and office furniture segments primarily in one location, resulting in additional SG&A costs of approximately $0.1 million being allocated to the office products and office furniture segment for the three and nine months ended July 31, 2012 which were previously a component of the printing 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, deferred financing costs and other items excluded for segment reporting. The Company has certain assets as held for sale/discontinued operations representing $3,170,216 at July 31, 2012 and $7,775,321 at July 31, 2011. These assets were part of the printing segment prior to the reclassification as assets held for sale/discontinued operations. The total assets reported on the Company's balance sheet as of July 31, 2012 and 2011 are $51,217,399 and $88,161,600 (restated). The identifiable assets reported below represent $47,614,337 and $70,717,250 at July 31, 2012 and 2011.

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

2012 Quarter 3	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	14,546,393		$	11,147,025		$	3,287,779	$	28,981,197
Elimination of intersegment revenue		(1,307,914	)		(1,332,806	)		-		(2,640,720	)
Consolidated revenues	$	13,238,479		$	9,814,219		$	3,287,779	$	26,340,477
Operating income (loss)		(1,026,931	)		325,980			406,388		(294,563	)
Depreciation & amortization		618,191			35,079			289,655		942,925
Capital expenditures		116,586			9,201			7,998		133,785
Identifiable assets		27,519,335			7,617,268			12,477,734		47,614,337
Goodwill		2,226,837			1,230,485			-		3,457,322

2011 Quarter 3	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	14,322,788		$	10,436,689		$	3,469,014	$	28,228,491
Elimination of intersegment revenue		(1,086,743	)		(1,544,837	)		-		(2,631,580	)
Consolidated revenues	$	13,236,045		$	8,891,852		$	3,469,014	$	25,596,911
Operating income (loss)		(136,692	)		576,903			447,581		887,792
Depreciation & amortization		680,038			33,851			287,621		1,001,510
Capital expenditures		243,587			12,732			8,770		265,089
Identifiable assets		31,174,473			7,971,050			31,571,727		70,717,250
Goodwill		2,226,837			1,230,485			11,874,961		15,332,283

2012 Year to Date	Printing			Office Products & Furniture			Newspaper			Total
Revenues	$	45,823,145		$	31,441,048		$	10,555,313		$	87,819,506
Elimination of intersegment revenue		(3,350,235	)		(4,309,609	)		-			(7,659,844	)
Consolidated revenues	$	42,472,910		$	27,131,439		$	10,555,313		$	80,159,662
Operating income (loss)		(1,611,758	)		1,656,815			(8,036,689	)		(7,991,632	)
Depreciation & amortization		1,870,455			89,743			863,401			2,823,599
Capital expenditures		437,590			43,022			58,992			539,604
Identifiable assets		27,519,335			7,617,268			12,477,734			47,614,337
Goodwill		2,226,837			1,230,485			-			3,457,322

2011 Year to Date	Printing			Office Products & Furniture			Newspaper		Total
Revenues	$	44,190,431		$	30,000,857		$	10,805,874	$	84,997,162
Elimination of intersegment revenue		(3,584,850	)		(4,808,838	)		-		(8,393,688	)
Consolidated revenues	$	40,605,581		$	25,192,019		$	10,805,874	$	76,603,474
Operating income		248,285			1,395,842			1,672,039		3,316,166
Depreciation & amortization		2,001,807			101,558			855,690		2,959,055
Capital expenditures		758,870			68,189			37,961		865,020
Identifiable assets		31,174,473			7,971,050			31,571,727		70,717,250
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 nine months ended July 31, 2012 and 2011, is as follows:

	Three months						Nine months
	2012			2011			2012			2011
Revenue:
Total segment revenues	$	28,981,197		$	28,228,491		$	87,819,506		$	84,997,162
Elimination of intersegment revenue		(2,640,720	)		(2,631,580	)		(7,659,844	)		(8,393,688	)
Consolidated revenue	$	26,340,477		$	25,596,911		$	80,159,662		$	76,603,474
Operating (loss) income:
Total segment operating (loss) income	$	(294,563	)	$	887,792		$	(7,991,632	)	$	3,316,166
Interest expense - related party		(16,611	)		(16,295	)		(39,000	)		(65,316	)
Interest expense		(1,101,571	)		(906,430	)		(2,720,264	)		(2,640,639	)
Gain on early extinguishment of debt from related party		-			1,337,846			-			1,337,846
Other (expense) income		(10,935	)		15,104			21,188			36,306
Consolidated (loss) income before income taxes	$	(1,423,680	)	$	1,318,017		$	(10,729,708	)	$	1,984,363
Identifiable assets:
Total segment identifiable assets	$	47,614,337		$	70,717,250		$	47,614,337		$	70,717,250
Elimination of intersegment assets		3,603,062			17,444,350			3,603,062			17,444,350
Total consolidated assets	$	51,217,399		$	88,161,600		$	51,217,399		$	88,161,600