Industry Segment Information

3 Months Ended

Jan. 31, 2013

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 22,000 and 28,000, 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 income (loss) 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 first quarter of 2013 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 and other items excluded for segment reporting. The assets are classified based on the primary functional segment category as reported on the internal balance sheets. Therefore the actual segment assets may not directly correspond with the segment operating (loss) income reported herein. The Company has certain assets classified as held for sale/discontinued operations representing $883,512 at January 31, 2013 and $6,095,653 at January 31, 2012. 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 sheets as of January 31, 2013 and 2012 are $43,815,842 and $80,051,505. The identifiable assets reported below represent $42,932,330 and $62,128,345.

The table below presents information about reported segments for the three months ended January 31:

2013 Quarter 1	Printing			Office Products & Furniture			Newspaper		Total
Revenues from continuing operations	$	12,737,070		$	8,448,257		$	3,552,242	$	24,737,569
Elimination of intersegment revenue		(888,031	)		(1,239,238	)		-		(2,127,269	)
Consolidated revenues from continuing operations	$	11,849,039		$	7,209,019		$	3,552,242	$	22,610,300
Operating (loss) income from continuing operations		(2,445,258	)		210,920			534,399		(1,699,939	)
Depreciation & amortization		506,285			33,851			254,390		794,526
Capital expenditures		72,117			1,483			-		73,600
Identifiable assets		24,488,055			6,383,019			12,061,256		42,932,330
Goodwill		-			1,230,485			-		1,230,485

2012 Quarter 1	Printing			Office Products & Furniture			Newspaper		Total
Revenues from continuing operations	$	15,650,046		$	9,791,947		$	3,873,046	$	29,315,039
Elimination of intersegment revenue		(1,188,041	)		(1,601,347	)		-		(2,789,388	)
Consolidated revenues from continuing operations	$	14,462,005		$	8,190,600		$	3,873,046	$	26,525,651
Operating income (loss) from continuing operations		(610,710	)		552,566			702,890		644,746
Depreciation & amortization		625,633			33,851			286,222		945,706
Capital expenditures		186,611			18,048			12,633		217,292
Identifiable assets		30,803,559			6,900,578			24,424,208		62,128,345
Goodwill		2,226,837			1,230,485			9,510,933		12,968,255

A reconciliation of total segment revenues and of total segment operating (loss) to consolidated (loss) before income taxes, for the three months ended January 31, 2013 and 2012, is as follows:

	Three months ended January 31,
		2013			2012
Revenues:
Total segment revenues from continuing operations	$	24,737,569		$	29,315,039
Elimination of intersegment revenue		(2,127,269	)		(2,789,388	)
Consolidated revenue from continuing operations	$	22,610,300		$	26,525,651
Operating (loss) income:
Total segment operating (loss) income from continuing operations	$	(1,699,939	)	$	644,746
Interest expense - related party		(20,764	)		(6,139	)
Interest expense		(1,539,542	)		(792,396	)
Other income		9,623			4,131
Consolidated (loss) before income taxes from continuing operations	$	(3,250,622	)	$	(149,658	)
Identifiable assets:
Total segment identifiable assets	$	42,932,330		$	62,128,345
Assets not allocated to a segment		883,512			17,923,160
Total consolidated assets	$	43,815,842		$	80,051,505