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 (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. 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) income reported herein. The Company has certain assets classified as held for sale/discontinued operations representing $ 256,832 at July 31, 2015 and $ 311,275 at July 31, 2014. These assets were part of the printing and newspaper segments prior to the reclassification as assets held for sale/discontinued operations. The total assets reported on the Company's balance sheets as of July 31, 2015 and July 31, 2014 are $ 22,905,923 and $ 23,798,134. The identifiable assets reported below represent $ 22,649,091 and $ 23,486,859.
The table below presents information about reported segments for the three and nine months ended July 31, 2015 and 2014: 2015 Quarter 3 | | Printing | | Office Products & Furniture | | Total | | | | | | | | | | Revenues | | $ | 9,043,753 | | $ | 6,433,197 | | $ | 15,476,950 | | Elimination of intersegment revenue | | | (476,375 | ) | | (606,446 | ) | | (1,082,821 | ) | Consolidated revenues | | $ | 8,567,378 | | $ | 5,826,751 | | $ | 14,394,129 | | | | | | | | | | | | | Operating loss | | | (102,331 | ) | | (286,203 | ) | | (388,534 | ) | Depreciation & amortization | | | 381,836 | | | 22,703 | | | 404,539 | | Capital expenditures | | | 230,390 | | | 19,771 | | | 250,161 | | Identifiable assets | | | 15,273,510 | | | 7,375,581 | | | 22,649,091 | | Goodwill | | | - | | | 1,230,485 | | | 1,230,485 | | | | | | | | | | | | |
2014 Quarter 3 | | Printing | | Office Products & Furniture | | Total | | | | | | | | | | Revenues | | $ | 9,363,551 | | $ | 7,483,730 | | $ | 16,847,281 | | Elimination of intersegment revenue | | | (714,463 | ) | | (808,285 | ) | | (1,522,748 | ) | Consolidated revenues | | $ | 8,649,088 | | $ | 6,675,445 | | $ | 15,324,533 | | | | | | | | | | | | | Operating loss | | | (203,633 | ) | | (105,389 | ) | | (309,022 | ) | Depreciation & amortization | | | 440,840 | | | 26,359 | | | 467,199 | | Capital expenditures | | | 118,529 | | | 2,371 | | | 120,900 | | Identifiable assets | | | 16,040,091 | | | 7,446,768 | | | 23,486,859 | | Goodwill | | | - | | | 1,230,485 | | | 1,230,485 | | | | | | | | | | | | |
2015 Year to Date | | Printing | | Office Products & Furniture | | Total | | | | | | | | | | Revenues | | $ | 28,634,690 | | $ | 20,477,892 | | $ | 49,112,582 | | Elimination of intersegment revenue | | | (1,559,718 | ) | | (2,069,368 | ) | | (3,629,086 | ) | Consolidated revenues | | $ | 27,074,972 | | $ | 18,408,524 | | $ | 45,483,496 | | | | | | | | | | | | | Operating income (loss) | | | 160,441 | | | (414,518 | ) | | (254,077 | ) | Depreciation & amortization | | | 1,152,102 | | | 69,484 | | | 1,221,586 | | Capital expenditures | | | 720,200 | | | 89,965 | | | 810,165 | | Identifiable assets | | | 15,273,510 | | | 7,375,581 | | | 22,649,091 | | Goodwill | | | - | | | 1,230,485 | | | 1,230,485 | | | | | | | | | | | | |
2014 Year to Date | | Printing | | Office Products & Furniture | | Total | | | | | | | | | | Revenues | | $ | 29,377,286 | | $ | 20,487,492 | | $ | 49,864,778 | | Elimination of intersegment revenue | | | (1,702,026 | ) | | (2,383,240 | ) | | (4,085,266 | ) | Consolidated revenues | | $ | 27,675,260 | | $ | 18,104,252 | | $ | 45,779,512 | | | | | | | | | | | | | Operating loss | | | (429,058 | ) | | (418,564 | ) | | (847,622 | ) | Depreciation & amortization | | | 1,422,415 | | | 79,080 | | | 1,501,495 | | Capital expenditures | | | 400,748 | | | 20,111 | | | 420,859 | | Identifiable assets | | | 16,040,091 | | | 7,446,768 | | | 23,486,859 | | Goodwill | | | - | | | 1,230,485 | | | 1,230,485 | | | | | | | | | | | | |
A reconciliation of total segment revenue, assets and operating (loss) to consolidated (loss) before income taxes, for the three and nine months ended July 31, 2015 and 2014 is as follows: | | Three months | Nine months | | | 2015 | | 2014 | | 2015 | | 2014 | | Revenues: | | | | | | | | | | | | | | Total segment revenues | | $ | 15,476,950 | | $ | 16,847,281 | | $ | 49,112,582 | | $ | 49,864,778 | | Elimination of intersegment revenue | | | (1,082,821 | ) | | (1,522,748 | ) | | (3,629,086 | ) | | (4,085,266 | ) | Consolidated revenue | | $ | 14,394,129 | | $ | 15,324,533 | | $ | 45,483,496 | | $ | 45,779,512 | | | | | | | | | | | | | | | | Operating loss: | | | | | | | | | | | | | | Total segment operating loss | | $ | (388,534 | ) | $ | (309,022 | ) | $ | (254,077 | ) | $ | (847,622 | ) | Interest expense - related party | | | (20,763 | ) | | (20,764 | ) | | (61,615 | ) | | (61,615 | ) | Interest expense | | | (159,329 | ) | | (262,076 | ) | | (629,381 | ) | | (782,441 | ) | Other income | | | 7,927 | | | 4,400 | | | (35,547 | ) | | 225,538 | | Consolidated loss | | $ | (560,699 | ) | $ | (587,462 | ) | $ | (980,620 | ) | $ | (1,466,140 | ) | | | | | | | | | | | | | | | Identifiable assets: | | | | | | | | | | | | | | Total segment identifiable assets | | $ | 22,649,091 | | $ | 23,486,859 | | $ | 22,649,091 | | $ | 23,486,859 | | Assets not allocated to a segment | | | 256,832 | | | 311,275 | | | 256,832 | | | 311,275 | | Total consolidated assets | | $ | 22,905,923 | | $ | 23,798,134 | | $ | 22,905,923 | | $ | 23,798,134 | |
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