Industry Segment Information

6 Months Ended

Apr. 30, 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 23,000 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 and $0.2 million being allocated to the office products and office furniture segment for the second quarter of 2013 and the six months ended April 30, 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 including cash which has not been allocated to segments. 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 $571,391 at April 30, 2013 and has adjusted April 30, 2012 identifiable assets to reflect certain assets subsequently determined to be assets held for sale /discontinued operations of $7,012,047 at April 30, 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 April 30, 2013 and 2012 are $41,960,272 and $58,285,193. The identifiable assets reported below represent $38,843,132 and $50,576,028 at April 30, 2013 and 2012.

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

2013 Quarter 2	Printing			Office Products & Furniture			Newspaper		Total
Revenues from continuing operations	$	12,637,333		$	8,493,759		$	3,037,690	$	24,168,782
Elimination of intersegment revenue		(915,893	)		(1,469,187	)		-		(2,385,080	)
Consolidated revenues from continuing operations	$	11,721,440		$	7,024,572		$	3,037,690	$	21,783,702
Operating income from continuing operations		237,823			333,807			212,974		784,604
Depreciation & amortization		503,760			35,652			254,356		793,768
Capital expenditures		216,465			-			8,465		224,930
Identifiable assets		22,400,226			6,262,201			10,180,705		38,843,132
Goodwill		-			1,230,485			-		1,230,485

2012 Quarter 2	Printing			Office Products & Furniture			Newspaper			Total
Revenues from continuing operations	$	15,963,719		$	10,502,075		$	3,412,941		$	29,878,735
Elimination of intersegment revenue		(1,209,747	)		(1,375,456	)		-			(2,585,203	)
Consolidated revenues from continuing operations	$	14,753,972		$	9,126,619		$	3,412,941		$	27,293,532
Operating (loss) income from continuing operations		(89,210	)		778,268			(9,127,513	)		(8,438,455	)
Depreciation & amortization		626,631			20,814			287,524			934,969
Capital expenditures		134,393			15,773			38,361			188,527
Identifiable assets		30,050,566			7,445,216			13,080,246			50,576,028
Goodwill		2,226,837			1,230,485			-			3,457,322

2013 Year to Date	Printing			Office Products & Furniture			Newspaper		Total
Revenues from continuing operations	$	25,374,404		$	16,942,016		$	6,589,932	$	48,906,352
Elimination of intersegment revenue		(1,803,925	)		(2,708,425	)		-		(4,512,350	)
Consolidated revenues from continuing operations	$	23,570,479		$	14,233,591		$	6,589,932	$	44,394,002
Operating (loss) income from continuing operations		(2,207,436	)		544,727			747,373		(915,336	)
Depreciation & amortization		1,010,045			69,503			508,746		1,588,294
Capital expenditures		288,582			1,483			8,465		298,530
Identifiable assets		22,400,226			6,262,201			10,180,705		38,843,132
Goodwill		-			1,230,485			-		1,230,485

2012 Year to Date	Printing			Office Products & Furniture			Newspaper			Total
Revenues from continuing operations	$	31,613,763		$	20,294,023		$	7,285,988		$	59,193,774
Elimination of intersegment revenue		(2,397,788	)		(2,976,803	)		-			(5,374,591	)
Consolidated revenues from continuing operations	$	29,215,975		$	17,317,220		$	7,285,988		$	53,819,183
Operating (loss) income from continuing operations		(699,920	)		1,330,834			(8,424,623	)		(7,793,709	)
Depreciation & amortization		1,252,264			54,665			573,746			1,880,675
Capital expenditures		320,994			33,831			50,994			405,819
Identifiable assets		30,050,566			7,445,216			13,080,246			50,576,028
Goodwill		2,226,837			1,230,485			-			3,457,322

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, 2013 and 2012, is as follows:

	Three months				Six months
		2013		2012		2013		2012
Revenues:
Total segment revenues from continuing operations	$	24,168,782	$	29,878,735	$	48,906,352	$	59,193,774
Elimination of intersegment revenue		(2,385,080)		(2,585,203)		(4,512,350)		(5,374,591)
Consolidated revenue from continuing operations		21,783,702	$	27,293,532	$	44,394,002	$	53,819,183
Operating (loss) income from continuing operations:
Total segment operating (loss) income from continuing operations	$	784,604	$	(8,438,455)	$	(915,336)	$	(7,793,709)
Interest expense - related party		(20,087)		(16,250)		(40,851)		(22,389)
Interest expense		(1,499,076)		(822,306)		(3,033,520)		(1,614,702)
Other income		11,370		4,629		20,993		8,760
Consolidated (loss) income from continuing operations before income taxes	$	(723,189)	$	(9,272,382)	$	(3,968,714)	$	(9,422,040)
Identifiable assets:
Total segment identifiable assets	$	38,843,132	$	50,576,028	$	38,843,132	$	50,576,028
Assets not allocated to a segment		3,117,140		7,709,165		3,117,140		7,709,165
Total consolidated assets	$	41,960,272	$	58,285,193	$	41,960,272	$	58,285,193