13. BUSINESS SEGMENTS

12 Months Ended

Feb. 28, 2019

Segment Reporting Disclosure [Text Block]

13. BUSINESS SEGMENTS

We have two reportable segments: Publishing and UBAM. These reportable segments offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and our internal tele-sales group. Our UBAM segment markets its products through a network of independent sales consultants using a combination of internet sales, direct sales, home shows and book fairs.

The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net revenues reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments but are listed in the “Other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management, warehouse operations 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, 2019 and 2018 is set forth below:

NET REVENUES

	2019		2018
Publishing	$	10,430,000	$	8,267,500
UBAM		108,381,300		103,717,100
Total	$	118,811,300	$	111,984,600

EARNINGS (LOSS) BEFORE INCOME TAXES

	2019			2018
Publishing	$	2,885,800		$	1,763,200
UBAM		19,250,100			19,429,600
Other		(12,955,100	)		(13,360,100	)
Total	$	9,180,800		$	7,832,700