BUSINESS SEGMENTS

9 Months Ended

Nov. 30, 2019

Segment Reporting Disclosure [Text Block]

Note 8 – BUSINESS SEGMENTS

We have two reportable segments: 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. Our Publishing segment 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 our internal tele-sales group. Our UBAM segment markets its products through a network of independent sales consultants using a combination of internet sales, direct sales, home shows and book fairs.

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 revenues 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, warehouse operations and building facilities management. Our assets and liabilities are not allocated on a segment basis.

Information by reporting segment for the three and nine-month periods ended November 30, 2019 and 2018, are as follows:

NET REVENUES

	Three Months Ended November 30,				Nine Months Ended November 30,
	2019		2018		2019		2018
Publishing	$	2,724,200	$	3,161,300	$	7,766,300	$	8,073,000
UBAM		38,100,400		37,321,300		85,083,700		87,112,900
Total	$	40,824,600	$	40,482,600	$	92,850,000	$	95,185,900

EARNINGS (LOSS) BEFORE INCOME TAXES

	Three Months Ended November 30,						Nine Months Ended November 30,
	2019			2018			2019			2018
Publishing	$	832,900		$	998,800		$	2,253,300		$	2,141,800
UBAM		6,501,200			6,459,800			14,358,500			15,835,800
Other		(3,498,400	)		(3,654,400	)		(9,562,900	)		(9,642,000	)
Total	$	3,835,700		$	3,804,200		$	7,048,900		$	8,335,600