Note 7 - Operating Segments

9 Months Ended

Nov. 30, 2014

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 7 - OPERATING SEGMENTS

The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl, Inc. and Other. 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, 2014. 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, 2014

	Franchising			Manufacturing			Retail			U-Swirl, Inc.			Other			Total
Total revenues	$	1,244,732		$	7,994,116		$	350,261		$	1,430,397		$	-		$	11,019,506
Intersegment revenues		(1,407	)		(456,537	)		-			-			-			(457,944	)
Revenue from external customers		1,243,325			7,537,579			350,261			1,430,397			-			10,561,562
Segment profit (loss)		438,160			2,189,548			(94,387	)		(100,978	)		(923,179	)		1,509,164
Total assets		1,115,716			12,878,192			1,166,851			15,284,436			7,425,254			37,870,449
Capital expenditures		22,050			28,414			658			(7,505	)		4,526			48,143
Total depreciation & amortization		10,661			102,699			6,083			199,787			38,635		$	357,865

Three Months Ended

November 30, 2013

	Franchising		Manufacturing			Retail			U-Swirl, Inc.			Other			Total
Total revenues	$	1,181,577	$	7,128,169		$	436,755		$	1,039,498		$	-		$	9,785,999
Intersegment revenues		-		(506,005	)		-			-			-			(506,005	)
Revenue from external customers		1,181,577		6,622,164			436,755			1,039,498			-			9,279,994
Segment profit (loss)		351,215		1,850,702			(124,432	)		(197,616	)		(858,784	)		1,021,085
Total assets		1,091,984		12,345,986			1,327,840			3,586,150			5,890,240			24,242,200
Capital expenditures		30,430		590,234			(16,483	)		74,118			26,077			704,376
Total depreciation & amortization	$	9,534	$	74,338		$	14,698		$	61,318		$	38,578		$	198,466

Nine Months Ended

November 30, 2014

	Franchising			Manufacturing			Retail			U-Swirl, Inc.		Other			Total
Total revenues	$	4,290,060		$	19,331,459		$	1,445,444		$	6,424,909	$	-		$	31,491,872
Intersegment revenues		(2,917	)		(1,147,739	)		-			-		-			(1,150,656	)
Revenue from external customers		4,287,143			18,183,720			1,445,444			6,424,909		-			30,341,216
Segment profit (loss)		1,922,482			5,045,608			(129,726	)		131,461		(2,780,361	)		4,189,464
Total assets		1,115,716			12,878,192			1,166,851			15,284,436		7,425,254			37,870,449
Capital expenditures		28,753			295,188			34,511			55,847		31,867			446,166
Total depreciation & amortization		31,393			294,204			23,224			632,622		115,961		$	1,097,404

Nine Months Ended

November 30, 2013

	Franchising		Manufacturing			Retail			U-Swirl, Inc.		Other			Total
Total revenues	$	4,379,618	$	19,085,028		$	1,588,282		$	4,449,364	$	-		$	29,502,292
Intersegment revenues		-		(1,381,275	)		-			-		-			(1,381,275	)
Revenue from external customers		4,379,618		17,703,753			1,588,282			4,449,364		-			28,121,017
Segment profit (loss)		1,956,513		5,160,089			(150,823	)		130,255		(2,637,190	)		4,458,844
Total assets		1,091,984		12,345,986			1,327,840			3,586,150		5,890,240			24,242,200
Capital expenditures		45,959		786,343			295			137,868		141,965			1,112,430
Total depreciation & amortization	$	27,432	$	219,730		$	44,093		$	272,266	$	106,698			670,219

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.9 million, or 9.6 percent, of the Company’s revenues from external customers during the nine months ended November 30, 2014 compared to $2.6 million, or 9.2 percent of the Company’s revenues from external customers during the nine months ended November 30, 2013.