XML 41 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Reporting Disclosure [Text Block]
8.  SEGMENT INFORMATION

We identify our segments based on the activities of three distinct operations:

 
a.
Wholesale Leathercraft, which consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America;

 
b.
Retail Leathercraft, which consists of a chain of retail stores operating under the name, Tandy Leather Company, located in the North America; and

 
c.
International Leathercraft, which sells to both wholesale and retail customers.  We have three stores operating in this segment:  one in Northampton, United Kingdom which opened in February 2008, one in Sydney, Australia which opened in October 2011, and one in Jerez, Spain, which opened in January 2012.  These stores carry the same products as our North American stores.

Our reportable operating segments have been determined as separately identifiable business units, and we measure segment earnings as operating earnings, defined as income before interest and income taxes.

   
Wholesale Leathercraft
   
Retail Leathercraft
   
Int’l
Leathercraft
   
Total
 
For the quarter ended September 30, 2012
                       
Net sales
  $ 6,242,602     $ 9,947,911     $ 810,215     $ 17,000,728  
Gross profit
    4,111,067       5,848,397       445,306       10,404,770  
Operating earnings
    (297,897 )     987,704       (44,951 )     644,856  
Interest (expense)
    (59,623 )     -       -       (59,623 )
Other income (expense), net
    15,926       -       (18,713 )     (2,787 )
Income before income taxes
    (341,594 )     987,704       (63,664 )     582,446  
                                 
Depreciation and amortization
    205,991       50,650       13,428       270,069  
Fixed asset additions
    779,676       107,234       3,529       908,210  
Total assets
  $ 35,690,494     $ 10,719,659     $ 2,242,963     $ 48,653,116  
                                 
For the quarter ended September 30, 2011
                               
Net sales
  $ 6,150,138     $ 8,744,446     $ 490,837     $ 15,385,421  
Gross profit
    3,733,345       5,178,788       326,145       9,238,278  
Operating earnings
  296,824       811,347       113,666       1,221,837  
Interest (expense)
    (61,550 )     -       -       (61,550 )
Other income (expense), net
    175,715       (1,577 )     2,236       176,374  
Income before income taxes
    410,989       809,770       115,902       1,336,661  
                                 
Depreciation and amortization
    216,958       42,836       2,134       261,928  
Fixed asset additions
    239,477       114,200       191,613       545,290  
Total assets
  $ 32,903,869     $ 7,225,267     $ 2,043,348     $ 42,172,484  

   
Wholesale Leathercraft
   
Retail Leathercraft
   
Int’l
Leathercraft
   
Total
 
For the nine months ended September 30, 2012
                       
Net sales
  $ 19,678,009     $ 30,093,864     $ 2,310,188     $ 52,082,061  
Gross profit
    12,914,740       18,365,729       1,430,136       32,710,605  
Operating earnings
    2,038,267       3,655,932       (30,395 )     5,663,804  
Interest (expense)
    (176,251 )     -       -       (176,251 )
Other income (expense), net
    44,275       13       15,498       59,786  
Income before income taxes
    1,906,291       3,655,945       (14,897 )     5,547,339  
                                 
Depreciation and amortization
    613,608       140,566       39,948       794,122  
Fixed asset additions
    913,900       303,525       76,625       1,294,050  
Total assets
  $ 35,690,494     $ 10,719,659     $ 2,242,963     $ 48,653,116  
                                 
For the nine months ended September 30, 2011
                               
Net sales
  $ 19,341,919     $ 26,327,904     $ 1,528,559     $ 47,198,382  
Gross profit
    11,781,622       15,829,914       996,844       28,608,380  
Operating earnings
    1,709,226       2,857,986       336,428       4,903,640  
Interest expense
    (185,685 )     -       -       (185,685 )
Other income (expense), net
    69,968       (7,613 )     19,420       81,775  
Income before income taxes
    1,593,509       2,850,373       355,848       4,799,730  
                                 
Depreciation and amortization
    636,050       115,597       7,632       759,279  
Fixed asset additions
    520,805       328,857       193,113       1,042,775  
Total assets
  $ 32,903,869     $ 7,225,267     $ 2,043,348     $ 42,172,484  

Net sales for geographic areas were as follows for the three and nine months ended September 30, 2012 and 2011:

Three months ended September 30,
 
2012
   
2011
 
United States
  $ 14,221,642     $ 13,078,107  
Canada
    1,761,960       1,560,808  
All other countries
    1,017,126       746,506  
    $ 17,000,728     $ 15,385,421  

Nine months ended September 30,
 
2012
   
2011
 
United States
  $ 43,861,288     $ 40,056,351  
Canada
    5,214,782       4,832,078  
All other countries
    3,005,991       2,309,953  
    $ 52,082,061     $ 47,198,382  

Geographic sales information is based on the location of the customer.  No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three or nine-month periods ended September 30, 2012 and 2011.  We do not have any significant long-lived assets outside of the United States.