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Segment Information and Geographic Information
 6 Months Ended
Aug. 31, 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 67% and 65% of the Company’s consolidated net sales for the three and six months ended August 31, 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 22 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 LabelsSM, ColorWorx®, Enfusion®, Uncompromised Check Solutions®, VersaSeal®, Witt Printing®, B&D Litho®, Genforms®, PrintGraphicsSM, Calibrated Forms®, PrintXcelTM, Printegra®, Curtis Business FormsSM, Falcon Business FormsSM, Forms ManufacturersSM, Mutual GraphicsSM, TRI-C Business FormsSM 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 & LabelSM (which provides custom printed high performance labels and custom and stock tags); Atlas Tag & Label®, Kay Toledo TagSM and Special Service PartnersSM (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 33% and 35% of the Company’s consolidated net sales for the three and six months ended August 31, 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 six months ended August 31, 2015 and August 31, 2014 were as follows (in thousands):

 

     Print
Segment		      Apparel
Segment		      Corporate      Consolidated
Totals		  

Three months ended August 31, 2015:

            

Net sales

    $ 100,455       $ 50,306       $ —         $ 150,761   

Depreciation

      1,918         891         67         2,876   

Amortization of identifiable intangibles

      1,132         366         —           1,498   

Segment earnings (loss) before income tax

      18,463         3,387         (4,318 )       17,532   

Segment assets

      243,351         153,922         24,036         421,309   

Capital expenditures

      1,169         118         14         1,301   
     Print
Segment		      Apparel
Segment		      Corporate      Consolidated
Totals		  

Three months ended August 31, 2014:

            

Net sales

    $ 97,881       $ 53,960       $ —         $ 151,841   

Depreciation

      1,627         945         67         2,639   

Amortization of identifiable intangibles

      1,053         366         —           1,419   

Segment earnings (loss) before income tax

      18,295         911         (3,307 )       15,899   

Segment assets

      232,178         296,202         17,641         546,021   

Capital expenditures

      498         119         5         622   

Six months ended August 31, 2015:

            

Net sales

    $ 197,224       $ 104,113       $ —         $ 301,337   

Depreciation

      3,664         1,796         134         5,594   

Amortization of identifiable intangibles

      2,257         733         —           2,990   

Segment earnings (loss) before income tax

      35,590         5,126         (8,626 )       32,090   

Segment assets

      243,351         153,922         24,036         421,309   

Capital expenditures

      2,341         162         17         2,520   

Six months ended August 31, 2014:

            

Net sales

    $ 186,265       $ 106,762       $ —         $ 293,027   

Depreciation

      3,191         1,896         134         5,221   

Amortization of identifiable intangibles

      2,103         733         —           2,836   

Segment earnings (loss) before income tax

      33,777         2,087         (7,216 )       28,648   

Segment assets

      232,178         296,202         17,641         546,021   

Capital expenditures

      750         166         11         927   

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 six months ended is as follows (in thousands):

 

     United States      Canada      Mexico      Total  

Three months ended August 31, 2015:

            

Net sales to unaffiliated customers

            

Print Segment

    $ 100,455       $ —         $ —         $ 100,455   

Apparel Segment

      45,242         4,747         317         50,306   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 145,697       $ 4,747       $ 317       $ 150,761   
  

 

 

     

 

 

     

 

 

     

 

 

  

As of August 31, 2015

            

Identifiable long-lived assets

            

Print Segment

    $ 169,402       $ —         $ —         $ 169,402   

Apparel Segment

      19,607         51         33,170         52,828   

Corporate

      3,431         —           —           3,431   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 192,440       $ 51       $ 33,170       $ 225,661   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

 

     United States      Canada      Mexico      Total  

Three months ended August 31, 2014:

            

Net sales to unaffiliated customers

            

Print Segment

    $ 97,881       $ —         $ —         $ 97,881   

Apparel Segment

      47,962         5,364         634         53,960   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 145,843       $ 5,364       $ 634       $ 151,841   
  

 

 

     

 

 

     

 

 

     

 

 

  

As of August 31, 2014

            

Identifiable long-lived assets

            

Print Segment

    $ 158,431       $ —         $ —         $ 158,431   

Apparel Segment

      114,437         64         42,505         157,006   

Corporate

      3,651         —           —           3,651   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 276,519       $ 64       $ 42,505       $ 319,088   
  

 

 

     

 

 

     

 

 

     

 

 

  

Six months ended August 31, 2015:

            

Net sales to unaffiliated customers

            

Print Segment

    $ 197,224       $ —         $ —         $ 197,224   

Apparel Segment

      94,067         9,132         914         104,113   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 291,291       $ 9,132       $ 914       $ 301,337   
  

 

 

     

 

 

     

 

 

     

 

 

  

Six months ended August 31, 2014:

            

Net sales to unaffiliated customers

            

Print Segment

    $ 186,265       $ —         $ —         $ 186,265   

Apparel Segment

      95,964         9,991         807         106,762   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 282,229       $ 9,991       $ 807       $ 293,027