14. Segment Information

12 Months Ended

Aug. 31, 2013

Notes

14. Segment Information

14.           SEGMENT INFORMATION

The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered.  Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. 

The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes.  The following tables show the operations of the Company's reportable segments.

Following is a summary of segmented information for the years ended August 31:

	2013		2012
Sales to unaffiliated customers:
Industrial wood products	$    7,864,264		$    7,866,469
Lawn, garden, pet and other	34,650,583		29,819,201
Seed processing and sales	4,707,797		5,733,323
Industrial tools and clamps	2,063,503		2,526,537
	$  49,286,147		$  45,945,530
Income (loss) before income taxes:
Industrial wood products	$        12,315			$     (109,345)
Lawn, garden, pet and other	4,504,778	*		3,437,720	*
Seed processing and sales	26,711			71,614
Industrial tools and clamps	132,467			147,859
Unallocated overhead	8,086			15,050
	$   4,684,357			$   3,562,898
Identifiable assets:
Industrial wood products	$   1,145,154			$   1,961,561
Lawn, garden, pet and other	21,566,594			16,632,902
Seed processing and sales	320,193			1,320,437
Industrial tools and clamps	616,472			514,637
Unallocated overhead	9,444			9,924
	$  23,657,857			$  20,439,461
Depreciation and amortization:
Industrial wood products	$              866			$           1,613
Lawn, garden, pet and other	233,733			220,539
Seed processing and sales	15,295			16,780
Industrial tools and clamps	6,592			5,284
	$       256,486			$       244,216

*              For comparability purposes, the 2013 amount excludes gain on sale of property, plant and equipment of $353,852 and litigation interest income of $26,716.  The 2012 amount excludes reversal of litigation reserve of $1,443,629 and related interest of $13,467.

	2013	2012
Capital expenditures:
Industrial wood products	$          3,602	$                   -
Lawn, garden, pet and other	469,477	294,705
Seed processing and sales	1,476	15,465
Industrial tools and clamps	7,379	14,550
	$      481,934	$       324,720
Interest expense:
Lawn, garden, pet and other	$             400	$                   -
Unallocated overhead	-	743
	$             400	$              743

The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the years ended August 31:

	2013	2012
Sales	$  17,672,338	$  15,202,776

The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the fiscal years ended August 31:

	2013	2012
United States	$  44,184,875	$  41,935,912
Canada	2,126,786	2,099,210
Mexico/Latin America	2,723,535	1,434,467
Europe	163,791	395,957
Asia/Pacific	87,160	79,984

All of the Company’s significant identifiable assets were located in the United States as of August 31, 2013 and 2012.