Note 7 - Operating Segments

9 Months Ended

Nov. 30, 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 November 30, 2012	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	1,308,146	$	6,799,847		$	1,089,431		$	-		$	9,197,424
Intersegment revenues		-		(561,619	)		-			-			(561,619	)
Revenue from external customers		1,308,146		6,238,228			1,089,431			-			8,635,805
Segment profit (loss)		503,380		1,727,587			(2,131,270	)		(922,062	)		(822,365	)
Total assets		1,316,002		11,499,337			2,422,986			5,541,326			20,779,651
Capital expenditures		-		85,058			12,357			76,665			174,080
Total depreciation & amortization	$	9,067	$	73,012		$	103,255		$	38,710		$	224,044

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

Nine Months Ended November 30, 2012	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	4,375,405	$	18,836,774		$	4,426,780		$	-		$	27,638,959
Intersegment revenues		-		(1,615,125	)		-			-			(1,615,125	)
Revenue from external customers		4,375,405		17,221,649			4,426,780			-			26,023,834
Segment profit (loss)		1,800,330		4,890,384			(2,053,806	)		(2,546,438	)		2,090,470
Total assets		1,316,002		11,499,337			2,422,986			5,541,326			20,779,651
Capital expenditures		24,007		255,313			254,103			158,070			691,493
Total depreciation & amortization	$	30,160	$	217,189		$	329,083		$	115,158		$	691,590

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

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.5 million of the Company’s revenues from external customers during the nine months ended November 30, 2012 compared to $2.4 million during the nine months ended November 30, 2011.