Industry Segment Information

6 Months Ended

Apr. 30, 2015

Industry Segment Information [Abstract]

Industry Segment Information

Note 8. Industry Segment Information

The Company operates principally in two 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) and the sale of office products and office furniture including interior design services.

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.

The identifiable assets are reflective of non-GAAP assets reported on the Company's internal balance sheets and 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 representing $256,832 at April 30, 2015 and $315,275 at April 30, 2014. These assets were part of the printing and newspaper segments prior to the reclassification as assets held for sale. The total assets reported on the Company's balance sheets as of April 30, 2015 and April 30, 2014 are $24,387,810 and $24,960,967, respectively. The identifiable assets reported below represent $24,130,878 and $24,645,692.

The tables below present information about reported segments for the three (Quarter 2) and six months (Year to Date) ended April 30:

2015 Quarter 2	Printing			Office Products & Furniture			Total
Revenues	$	9,674,038		$	7,831,722		$	17,505,760
Elimination of intersegment revenue		(554,965	)		(661,687	)		(1,216,652	)
Consolidated revenues	$	9,119,073		$	7,170,035		$	16,289,108
Operating income (loss)		355,970			(17,572	)		338,398
Depreciation & amortization		390,623			24,422			415,045
Capital expenditures		112,509			-			112,509
Identifiable assets		16,254,808			7,876,170			24,130,978
Goodwill		-			1,230,485			1,230,485

2014 Quarter 2	Printing			Office Products & Furniture			Total
Revenues	$	10,166,681		$	6,113,724		$	16,280,405
Elimination of intersegment revenue		(499,118	)		(749,007	)		(1,248,125	)
Consolidated revenues	$	9,667,563		$	5,364,717		$	15,032,280
Operating income (loss)		61,636			(240,084	)		(178,448	)
Depreciation & amortization		486,863			26,361			513,224
Capital expenditures		158,240			12,085			170,325
Identifiable assets		17,109,632			7,536,060			24,645,692
Goodwill		-			1,230,485			1,230,485

2015 Year to Date	Printing			Office Products & Furniture			Total
Revenues	$	19,590,937		$	14,044,695		$	33,635,632
Elimination of intersegment revenue		(1,083,342	)		(1,462,922	)		(2,546,264	)
Consolidated revenues	$	18,507,595		$	12,581,773		$	31,089,368
Operating income (loss)		262,773			(128,315	)		134,458
Depreciation & amortization		770,266			46,781			817,047
Capital expenditures		489,810			70,194			560,004
Identifiable assets		16,254,808			7,876,170			24,130,978
Goodwill		-			1,230,485			1,230,485

2014 Year to Date	Printing			Office Products & Furniture			Total
Revenues	$	20,013,735		$	13,003,762		$	33,017,497
Elimination of intersegment revenue		(987,563	)		(1,574,955	)		(2,562,518	)
Consolidated revenues	$	19,026,172		$	11,428,807		$	30,454,979
Operating (loss)		(225,425	)		(313,175	)		(538,600	)
Depreciation & amortization		981,575			52,721			1,034,296
Capital expenditures		282,219			17,740			299,959
Identifiable assets		17,109,632			7,536,060			24,645,692
Goodwill		-			1,230,485			1,230,485

A reconciliation of total segment revenue, assets and operating income (loss) to consolidated income (loss) before income taxes, for the three and six months ended April 30, 2015 and 2014 is as follows:

	Three months						Six months
		2015			2014			2015			2014
Revenues:
Total segment revenues	$	17,505,760		$	16,280,405		$	33,635,632		$	33,017,497
Elimination of intersegment revenue		(1,216,652	)		(1,248,125	)		(2,546,264	)		(2,562,518	)
Consolidated revenue	$	16,289,108		$	15,032,280		$	31,089,368		$	30,454,979
Operating income (loss) from continuing operations:
Total segment operating income (loss)	$	338,398		$	(178,448	)	$	134,458		$	(538,600	)
Interest expense - related party		(20,087	)		(20,087	)		(40,851	)		(40,851	)
Interest expense		(206,076	)		(256,604	)		(470,053	)		(520,365	)
Other (expense) income		(64,338	)		206,644			(43,475	)		221,138
Consolidated income (loss) before income taxes	$	47,897		$	(248,495	)	$	(419,921	)	$	(878,678	)
Identifiable assets:
Total segment identifiable assets	$	24,130,978		$	24,645,692		$	24,130,978		$	24,645,692
Assets not allocated to a segment		256,832			315,275			256,832			315,275
Total consolidated assets	$	24,387,810		$	24,960,967		$	24,387,810		$	24,960,967