12. BUSINESS SEGMENTS

12 Months Ended

Feb. 28, 2017

Segment Reporting Disclosure [Text Block]

12.	BUSINESS SEGMENTS

We have two reportable segments: EDC Publishing and UBAM which are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations.

·	EDC Publishing markets its products to retail accounts, which include book, toy and gift stores, school supply stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group.

·	UBAM markets its product line through a nationwide network of independent sales consultants using a combination of home shows, internet shows, and book fairs. UBAM also distributes to school and public libraries.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate segment performance based on earnings (loss) before income taxes of the segments, which is defined as segment net sales reduced by direct cost of sales and direct expenses. Corporate expenses, depreciation, interest expense, other income and income taxes are not allocated to the segments, but are listed in the “other” column. Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management. Our assets and liabilities are not allocated on a segment basis.

Information by industry segment for the years ended February 28, 2017 and February 29, 2016 is set forth below:

NET REVENUES

	2017		2016
EDC Publishing	$	9,007,500	$	10,831,400
UBAM		97,620,600		52,786,900
Total	$	106,628,100	$	63,618,300

EARNINGS (LOSS) BEFORE INCOME TAXES

	2017			2016
EDC Publishing	$	2,566,400		$	3,305,300
UBAM		15,376,000			7,336,200
Other		(13,330,300	)		(7,095,600	)
Total	$	4,612,100		$	3,545,900