Note 7 - Operating Segments

6 Months Ended

Aug. 31, 2012

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 29, 2012.  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 August 31, 2012	Franchising		Manufacturing			Retail		Other			Total
Total revenues	$	1,499,692	$	5,080,496		$	1,660,068	$	-		$	8,240,256
Intersegment revenues		-		(510,419	)		-		-			(510,419	)
Revenue from external customers		1,499,692		4,570,077			1,660,068		-			7,729,837
Segment profit (loss)		628,016		1,344,529			64,829		(757,932	)		1,279,442
Total assets		1,530,306		10,620,818			4,385,447		5,900,973			22,437,544
Capital expenditures		16,468		117,833			80,888		49,372			264,561
Total depreciation & amortization		9,713		72,840			109,047		38,806			230,406

Three Months Ended August 31, 2011
Total revenues	$	1,572,169	$	4,940,999		$	1,566,809	$	-		$	8,079,977
Intersegment revenues		-		(504,188	)		-		-			(504,188	)
Revenue from external customers		1,572,169		4,436,811			1,566,809		-			7,575,789
Segment profit (loss)		739,560		1,277,758			125,582		(725,231	)		1,417,669
Total assets		1,491,798		10,738,663			3,281,040		6,409,875			21,921,376
Capital expenditures		-		69,707			36,542		39,467			145,716
Total depreciation & amortization		15,603		74,140			64,690		35,827			190,260

Six Months Ended August 31, 2012	Franchising		Manufacturing			Retail		Other			Total
Total revenues	$	3,067,260	$	12,036,927		$	3,337,349	$	-		$	18,441,536
Intersegment revenues		-		(1,053,506	)		-		-			(1,053,506	)
Revenue from external customers		3,067,260		10,983,421			3,337,349		-			17,388,030
Segment profit (loss)		1,296,951		3,162,796			77,463		(1,624,374	)		2,912,836
Total assets		1,530,306		10,620,818			4,385,447		5,900,973			22,437,544
Capital expenditures		24,007		170,255			241,746		81,405			517,413
Total depreciation & amortization		21,093		144,177			225,828		76,448			467,546
Six Months Ended August 31, 2011
Total revenues	$	2,999,607	$	11,354,055		$	2,944,698	$	-		$	17,298,360
Intersegment revenues		-		(1,084,648	)		-		-			(1,084,648	)
Revenue from external customers		2,999,607		10,269,407			2,944,698		-			16,213,712
Segment profit (loss)		1,381,735		2,906,217			18,154		(1,473,559	)		2,832,547
Total assets		1,491,798		10,738,663			3,281,040		6,409,875			21,921,376
Capital expenditures		1,442		110,658			902,852		175,404			1,190,356
Total depreciation & amortization		34,556		148,164			109,090		67,356			359,166

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.2 million of the Company’s revenues from external customers during the six months ended August 31, 2012 compared to $1.9 million during the six months ended August 31, 2011.