v3.22.2.2
BUSINESS SEGMENTS
 6 Months Ended
Aug. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 8 – BUSINESS SEGMENTS

 

We have two reportable segments: Usborne Books & More (“UBAM”) and Publishing. These reportable segments 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. 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. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores, museums, trade and specialty wholesalers, through commissioned sales representatives and our internal tele-sales group.

 

The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings (loss) 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 reporting segment for the three and six-month periods ended August 31, 2022 and 2021, are as follows:

 

NET REVENUES

  
   

Three Months Ended

August 31,

    

Six Months Ended

August 31,

  
   

2022

    

2021

    

2022

    

2021

  

UBAM

   $ 15,932,200     $ 29,518,100     $ 35,949,000     $ 67,135,000  

Publishing

     3,486,100       3,476,300       6,630,200       6,667,300  

Total

   $ 19,418,300     $ 32,994,400     $ 42,579,200     $ 73,802,300  

 

EARNINGS (LOSS) BEFORE INCOME TAXES

  
   

Three Months Ended

August 31,

    

Six Months Ended

August 31,

  
   

2022

    

2021

    

2022

    

2021

  

UBAM

   $ 1,697,900     $ 5,579,100     $ 5,029,200     $ 13,440,400  

Publishing

     815,900       982,800       1,565,600       1,844,300  

Other

     (3,619,400

)

     (3,903,800

)

     (7,415,200

)

     (7,966,000

)

Total

   $ (1,105,600

)

   $ 2,658,100     $ (820,400

)

   $ 7,318,700