Note 8

3 Months Ended

May 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 8 – We have two reportable segments:  EDC Publishing and Usborne Books & More (“UBAM”).  These reportable segments are business units that offer different methods of distribution to different types of customers.  They are managed separately based on the fundamental differences in their operations.  EDC Publishing markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group.  UBAM markets its products through a network of independent sales consultants using a combination of direct sales, home shows, book fairs and internet web sales.

The accounting policies of the segments are the same as those of the rest of the Company.  We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net sales reduced by cost of sales and direct expenses.  Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments, but are listed in the “other” row below.  Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management.  Our assets and liabilities are not allocated on a segment basis.

Information by industry segment for the three-month period ended May 31, 2016 and 2015, follows:

NET REVENUES
	Three Months Ended May 31,
	2016		2015
EDC Publishing	$	2,134,000	$	2,619,600
UBAM		20,650,200		7,018,200
Total	$	22,784,200	$	9,637,800

EARNINGS BEFORE INCOME TAXES
	Three Months Ended May 31,
	2016			2015
EDC Publishing	$	653,000		$	718,600
UBAM		3,226,200			952,000
Other		(2,874,600	)		(1,138,900	)
Total	$	1,004,600		$	531,700