Segment Information and Geographic Information

9 Months Ended

Nov. 30, 2015

Segment Reporting [Abstract]

Segment Information and Geographic Information

12. Segment Information and Geographic Information

The Company operates in two segments–the Print Segment and the Apparel Segment.

The Print Segment, which represented 70% and 67% of the Company’s consolidated net sales for the three and nine months ended November 30, 2015, respectively, is in the business of manufacturing, designing, and selling business forms and other printed business products primarily to distributors located in the United States. The Print Segment operates 58 manufacturing plants throughout the United States in 21 strategically located states. Approximately 96% of the business products manufactured by the Print Segment are custom and semi-custom products, constructed in a wide variety of sizes, colors, number of parts and quantities on an individual job basis depending upon the customers’ specifications.

The products sold include snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls and pressure sensitive products in short, medium and long runs under the following labels: Ennis^®, Royal Business Forms^®, Block Graphics^®, Specialized Printed Forms^®, 360º Custom Labels^SM, ColorWorx^®, Enfusion^®, Uncompromised Check Solutions^®, VersaSeal^®, Witt Printing^®, B&D Litho^®, Genforms^®, PrintGraphics^SM, Calibrated Forms^®, PrintXcel^SM, Printegra^®, Curtis Business Forms^SM, Falcon Business Forms^SM, Forms Manufacturers^SM, Mutual Graphics^SM, TRI-C Business Forms^SM and Hoosier Data Forms^®. The Print Segment also sells the Adams McClure^® brand (which provides Point of Purchase advertising for large franchise and fast food chains as well as kitting and fulfillment); the Admore^® and Folder Express^® brands (which provide presentation folders and document folders); Ennis Tag & Label^SM (which provides custom printed high performance labels and custom and stock tags); Atlas Tag & Label^®, Kay Toledo Tag^SM and Special Service Partners^SM (SSP) (which provides custom and stock tags and labels); Trade Envelopes^®, Block Graphics^®, Wisco^® and National Imprint Corporation^® (which provide custom and imprinted envelopes) and Northstar^® and General Financial Supply^® (which provide financial and security documents).

The Print Segment sells predominantly through private printers and independent distributors. Northstar also sells direct to a small number of customers. Adams McClure sales are generally provided through advertising agencies. Assets in this segment increased in 2015 primarily as a result of the Company’s acquisition of Sovereign Business Forms, Kay Toledo Tag and SSP.

The Apparel Segment, which represented for 30% and 33% of the Company’s consolidated net sales for the three and nine months ended November 30, 2015, respectively, consists of Alstyle Apparel. This group is primarily engaged in the production and sale of activewear including T-shirts, fleece goods, and other wearables. Alstyle sales are seasonal, with sales in the first and second quarters generally being the highest. Substantially all of the Apparel Segment sales are to customers in the United States.

Corporate information is included to reconcile segment data to the consolidated financial statements and includes assets and expenses related to the Company’s corporate headquarters and other administrative costs.

Segment data for the three and nine months ended November 30, 2015 and November 30, 2014 were as follows (in thousands):

	Print Segment		Apparel Segment			Corporate			Consolidated Totals
Three months ended November 30, 2015:
Net sales	$	97,516	$	41,935		$	—		$	139,451
Depreciation		1,915		876			67			2,858
Amortization of identifiable intangibles		1,149		367			—			1,516
Segment earnings (loss) before income tax		17,311		4,195			(4,563	)		16,943
Segment assets		236,423		151,489			19,143			407,055
Capital expenditures		1,749		348			23			2,120
Three months ended November 30, 2014:
Net sales	$	97,652	$	49,319		$	—		$	146,971
Depreciation		1,599		928			67			2,594
Amortization of identifiable intangibles		1,046		367			—			1,413
Impairment of goodwill and trademarks		—		93,324			—			93,324
Segment earnings (loss) before income tax		17,100		(93,218	)		(4,617	)		(80,735	)
Segment assets		229,111		196,467			19,139			444,717
Capital expenditures		615		63			19			697
Nine months ended November 30, 2015:
Net sales	$	294,740	$	146,048		$	—		$	440,788
Depreciation		5,579		2,672			201			8,452
Amortization of identifiable intangibles		3,406		1,100			—			4,506
Segment earnings (loss) before income tax		52,901		9,321			(13,189	)		49,033
Segment assets		236,423		151,489			19,143			407,055
Capital expenditures		4,090		510			40			4,640
Nine months ended November 30, 2014:
Net sales	$	283,917	$	156,081		$	—		$	439,998
Depreciation		4,790		2,824			201			7,815
Amortization of identifiable intangibles		3,149		1,100			—			4,249
Impairment of goodwill and trademarks		—		93,324			—			93,324
Segment earnings (loss) before income tax		50,877		(91,131	)		(11,833	)		(52,087	)
Segment assets		229,111		196,467			19,139			444,717
Capital expenditures		1,365		229			30			1,624

Identifiable long-lived assets by country include property, plant, and equipment, net of accumulated depreciation as well as intangible assets, net of accumulated amortization. The Company attributes revenues from external customers to individual geographic areas based on the country where the sale originated. Information about the Company’s operations in different geographic areas as of and for the three and nine months ended is as follows (in thousands):

	United States		Canada		Mexico		Total
Three months ended November 30, 2015:
Net sales to unaffiliated customers
Print Segment	$	97,516	$	—	$	—	$	97,516
Apparel Segment		37,232		4,379		324		41,935
	$	134,748	$	4,379	$	324	$	139,451
As of November 30, 2015
Identifiable long-lived assets
Print Segment	$	167,677	$	—	$	—	$	167,677
Apparel Segment		19,234		47		33,075		52,356
Corporate		3,386		—		—		3,386
	$	190,297	$	47	$	33,075	$	223,419
Three months ended November 30, 2014:
Net sales to unaffiliated customers
Print Segment	$	97,652	$	—	$	—	$	97,652
Apparel Segment		44,873		4,104		342		49,319
	$	142,525	$	4,104	$	342	$	146,971
As of November 30, 2014
Identifiable long-lived assets
Print Segment	$	156,328	$	—	$	—	$	156,328
Apparel Segment		20,737		60		40,348		61,145
Corporate		3,603		—		—		3,603
	$	180,668	$	60	$	40,348	$	221,076
Nine months ended November 30, 2015:
Net sales to unaffiliated customers
Print Segment	$	294,740	$	—	$	—	$	294,740
Apparel Segment		131,299		13,511		1,238		146,048
	$	426,039	$	13,511	$	1,238	$	440,788
Nine months ended November 30, 2014:
Net sales to unaffiliated customers
Print Segment	$	283,917	$	—	$	—	$	283,917
Apparel Segment		140,837		14,095		1,149		156,081
	$	424,754	$	14,095	$	1,149	$	439,998