Note 7 - Operating Segments

9 Months Ended

Nov. 30, 2011

Segment Reporting Disclosure [Text Block]

NOTE 7 - OPERATING SEGMENTS

The Company classifies its business interests into three reportable segments: Franchising, Manufacturing and Retail Stores.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to these financial statements and Note 1 to the Company’s financial statements included in the Company’s annual report on Form 10-K for the fiscal year ended February 28, 2011.  The Company evaluates performance and allocates resources based on operating contribution, which excludes unallocatedcorporate general and administrative costs and income tax expense or benefit.  The Company’s reportable segments are strategic businesses that utilize common merchandising, distribution, and marketing functions, as well as common information systems and corporate administration.  All inter-segment sales prices are market based.  Each segment is managed separately because of the differences in required infrastructure and the difference in products and services:

Three Months Ended November 30, 2011	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	1,164,453	$	6,738,048		$	966,515		$	-		$	8,869,016
Intersegment revenues		-		(589,106	)		-			-			(589,106	)
Revenue from external customers		1,164,453		6,148,942			966,515			-			8,279,910
Segment profit (loss)		374,409		1,740,532			(179,408	)		(819,135	)		1,116,398
Total assets		1,328,594		11,488,435			3,982,890			5,371,335			22,171,254
Capital expenditures		10,171		22,783			622,587			15,811			671,352
Total depreciation & amortization	$	15,599	$	73,382		$	68,121		$	37,028		$	194,130

Three Months Ended November 30, 2010	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	1,290,889	$	6,471,210		$	765,983		$	-		$	8,528,082
Intersegment revenues		-		(612,150	)		-			-			(612,150	)
Revenue from external customers		1,290,889		5,859,060			765,983			-			7,915,932
Segment profit (loss)		554,005		1,651,547			(169,664	)		(696,456	)		1,339,432
Total assets		1,431,276		11,158,330			3,000,480			4,591,953			20,182,039
Capital expenditures		-		35,727			144,361			37,369			217,457
Total depreciation & amortization	$	19,335	$	86,719		$	21,753		$	34,933		$	162,740

Nine Months Ended November 30, 2011	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	4,164,061	$	18,092,103		$	3,911,213		$	-		$	26,167,377
Intersegment revenues		-		(1,673,755	)		-			-			(1,673,755	)
Revenue from external customers		4,164,061		16,418,348			3,911,213			-			24,493,622
Segment profit (loss)		1,756,143		4,646,749			(161,254	)		(2,292,693	)		3,948,945
Total assets		1,328,594		11,488,435			3,982,890			5,371,335			22,171,254
Capital expenditures		11,613		133,441			1,525,439			191,215			1,861,708
Total depreciation & amortization	$	50,155	$	221,546		$	177,210		$	104,384		$	553,295

Nine Months Ended November 30, 2010	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	4,178,274	$	17,084,006		$	2,502,141		$	-		$	23,764,421
Intersegment revenues		-		(1,606,887	)		-			-			(1,606,887	)
Revenue from external customers		4,178,274		15,477,119			2,502,141			-			22,157,534
Segment profit (loss)		2,064,665		4,527,163			(280,906	)		(2,068,547	)		4,242,375
Total assets		1,431,276		11,158,330			3,000,480			4,591,953			20,182,039
Capital expenditures		3,524		146,488			173,620			208,771			532,403
Total depreciation & amortization	$	59,002	$	262,447		$	71,491		$	111,142		$	504,082

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.4 million of the Company’s revenues from external customers during the nine months ended November 30, 2011 compared to $1.6 million during the nine months ended November 30, 2010.