Industry Segment Information

12 Months Ended

Oct. 31, 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 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 representing $256,832 at October 31, 2015 and 2014. This asset was part of the printing segment prior to the reclassification as an assets held for sale. The total assets reported on the Company's balance sheets as of October 31, 2015, 2014 and 2013 are $22,926,526, $24,008,393 and $27,530,622. The identifiable assets reported below represent $22,669,694, $23,751,561, and $27,037,318.

The table below presents information about reported segments for the years ended October 31:

2015	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	38,576,045		$	27,594,920		$	66,170,965
Elimination of intersegment revenue	(2,122,382		)	(2,763,382		)	(4,885,764		)
Consolidated revenue from continuing operations	$	36,453,663		$	24,831,538		$	61,285,201
Operating income (loss) from continuing operations	101,249			(312,533		)	(211,284		)
Depreciation & amortization	1,563,294			91,547			1,654,841
Capital expenditure	1,602,562			100,445			1,703,007
Identifiable assets	16,107,165			6,562,529			22,669,694
Goodwill	-			1,230,485			1,230,485
2014	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	39,546,537		$	29,375,140		$	68,921,677
Elimination of intersegment revenue		(2,169,053	)		(3,230,284	)		(5,399,337	)
Consolidated revenues from continuing operations	$	37,377,484		$	26,144,856		$	63,522,340
Operating income (loss) from continuing operations		(360,182	)		105,932			(254,250	)
Depreciation & amortization		1,832,458			98,049			1,930,507
Capital expenditures		738,893			22,474			761,367
Identifiable assets		16,526,888			7,224,673			23,751,561
Goodwill		-			1,230,485			1,230,485
2013	Printing			Office Products & Furniture			Total
Revenues from continuing operations	$	45,460,503		$	34,333,182		$	79,793,685
Elimination of intersegment revenue		(2,791,035	)		(4,679,475	)		(7,470,510	)
Consolidated revenues from continuing operations	$	42,669,468		$	29,653,707		$	72,323,175
Operating income (loss) from continuing operations		(2,228,855	)		954,451			(1,274,404	)
Depreciation & amortization		2,049,191			119,823			2,169,014
Capital expenditures		541,855			2,788			544,643
Identifiable assets		18,850,573			8,186,745			27,037,318
Goodwill		-			1,230,485			1,230,485

A reconciliation of total segment revenue, assets and operating income (loss) to consolidated (loss) income before income taxes for the years ended October 31, 2015, 2014 and 2013 is as follows:

		2015		2014			2013
Revenues:
Total segment revenues	$	66,170,965		$	68,921,677		$	79,793,685
Elimination of intersegment revenue		(4,885,764	)		(5,399,337	)		(7,470,510	)
Consolidated revenue from continuing operations	$	61,285,201		$	63,522,340		$	72,323,175
Operating income (loss) from continuing operations:
Total segment operating loss from continuing operations	$	(211,284	)	$	(254,250	)	$	(1,274,404	)
Interest expense - related party		(82,378	)		(82,378	)		(82,378	)
Interest expense		(775,299	)		(1,056,019	)		(4,202,774	)
Gain from debt forgiveness		-			-			11,118,069
Other (loss) income		(30,681	)		261,013			(32,207	)
Consolidated income (loss) before income taxes from continuing operations	$	(1,099,642	)	$	(1,131,634	)	$	5,526,306
Identifiable assets:
Total segment identifiable assets	$	22,669,694		$	23,751,561		$	27,037,318
Elimination of intersegment assets and assets held for sale		256,832			256,832			493,304
Total consolidated assets	$	22,926,526		$	24,008,393		$	27,530,622