Industry Segment Information

3 Months Ended

Jan. 31, 2016

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 or 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 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 reported herein. The Company had certain assets classified as held for sale at January 31, 2016 and 2015 of $256,832. These assets were part of the printing segment prior to the reclassification as assets held for sale. The total assets reported on the Company's balance sheets as of January 31, 2016 and January 31, 2015 were $22,898,574 and $23,695,441, respectively. The identifiable assets reported below represent $22,641,742 and $23,438,609 at January 31, 2016 and 2015, respectively.

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

2016 Quarter 1	Printing			Office Products & Furniture			Total
Revenues	$	9,549,752		$	7,511,474		$	17,061,226
Elimination of intersegment revenue		(504,021	)		(633,833	)		(1,137,854	)
Consolidated revenues	$	9,045,731		$	6,877,641		$	15,923,372
Operating (loss) income		(218,669	)		104,839			(113,830	)
Depreciation & amortization		389,804			21,639			411,443
Capital expenditures		151,235			15,561			166,796
Identifiable assets		15,596,719			7,045,023			22,641,742
Goodwill		-			1,230,485			1,230,485

2015 Quarter 1	Printing			Office Products & Furniture			Total
Revenues	$	9,916,899		$	6,212,973		$	16,129,872
Elimination of intersegment revenue		(528,377	)		(801,235	)		(1,329,612	)
Consolidated revenues	$	9,388,522		$	5,411,738		$	14,800,260
Operating loss		(93,197	)		(110,743	)		(203,940	)
Depreciation & amortization		379,643			22,359			402,002
Capital expenditures		377,301			70,194			447,495
Identifiable assets		16,633,275			6,805,334			23,438,609
Goodwill		-			1,230,485			1,230,485

A reconciliation of total segment revenue, assets and operating loss to consolidated loss before income taxes for and at the three months ended January 31, 2016 and 2015 is as follows:

	Three months ended January 31,
	2016			2015
Revenues:
Total segment revenues	$	17,061,226		$	16,129,872
Elimination of intersegment revenue		(1,137,854	)		(1,329,612	)
Consolidated revenue	$	15,923,372		$	14,800,260
Operating loss:
Total segment operating loss	$	(113,830	)	$	(203,940	)
Interest expense - related party		(21,563	)		(20,764	)
Interest expense		(148,744	)		(263,977	)
Other income		13,765			20,863
Consolidated loss before income taxes	$	(270,372	)	$	(467,818	)
Identifiable assets:
Total segment identifiable assets	$	22,641,742		$	23,438,609
Elimination of intersegment assets and assets held for sale		256,832			256,832
Total consolidated assets	$	22,898,574		$	23,695,441