Note 16 - Operating Segments

6 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

16

– OPERATING SEGMENTS

The Company classifies its business interests into

five

reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl operations 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 consolidated financial statements and Note

1

to the Company's consolidated financial statements included in the Company's Annual Report on Form

10

-K for the fiscal year ended

February

29,

2020.

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:

ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES

NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended August 31, 2020	Franchising			Manufacturing			Retail		U-Swirl		Other			Total
Total revenues	$	1,040,863		$	3,768,416		$	193,702	$	594,812	$	-		$	5,597,793
Intersegment revenues		(727	)		(269,664	)		-		-		-			(270,391	)
Revenue from external customers		1,040,136			3,498,752			193,702		594,812		-			5,327,402
Segment profit (loss)		366,535			489,668			21,924		11,903		(789,297	)		100,733
Total assets		1,387,005			12,241,965			618,323		5,526,772		9,413,374			29,187,439
Capital expenditures		150			11,343			72		-		16,799			28,364
Total depreciation & amortization	$	10,095		$	162,523		$	1,391	$	140,823	$	20,021		$	334,853

Three Months Ended August 31, 2019	Franchising			Manufacturing			Retail		U-Swirl		Other			Total
Total revenues	$	1,515,805		$	4,714,682		$	265,662	$	1,122,751	$	-		$	7,618,900
Intersegment revenues		(1,321	)		(232,309	)		-		-		-			(233,630	)
Revenue from external customers		1,514,484			4,482,373			265,662		1,122,751		-			7,385,270
Segment profit (loss)		828,978			955,360			7,979		296,880		(841,434	)		1,247,763
Total assets		1,445,041			11,838,237			1,005,356		5,620,012		9,377,697			29,286,343
Capital expenditures		(2,040	)		162,127			23,106		1,673		12,570			197,436
Total depreciation & amortization	$	10,353		$	151,848		$	2,533	$	185,208	$	22,891		$	372,833

Six Months Ended August 31, 2020	Franchising			Manufacturing			Retail			U-Swirl			Other			Total
Total revenues	$	1,295,339		$	6,061,508		$	253,683		$	848,859		$	-		$	8,459,389
Intersegment revenues		(1,409	)		(428,141	)		-			-			-			(429,550	)
Revenue from external customers		1,293,930			5,633,367			253,683			848,859			-			8,029,839
Segment profit (loss)		(84,784	)		(293,801	)		(455,902	)		(445,815	)		(3,465,690	)		(4,745,992	)
Total assets		1,387,005			12,241,965			618,323			5,526,772			9,413,374			29,187,439
Capital expenditures		150			25,197			72			1,712			23,722			50,853
Total depreciation & amortization	$	20,233		$	324,353		$	4,794		$	287,772		$	40,815		$	677,967

Six Months Ended August 31, 2019	Franchising			Manufacturing			Retail			U-Swirl		Other			Total
Total revenues	$	2,944,846		$	10,581,154		$	498,081		$	2,282,556	$	-		$	16,306,637
Intersegment revenues		(2,607	)		(492,761	)		-			-		-			(495,368	)
Revenue from external customers		2,942,239			10,088,393			498,081			2,282,556		-			15,811,269
Segment profit (loss)		1,446,888			2,124,047			(7,033	)		576,043		(1,948,398	)		2,191,547
Total assets		1,445,041			11,838,237			1,005,356			5,620,012		9,377,697			29,286,343
Capital expenditures		8,500			385,679			32,624			1,673		52,508			480,984
Total depreciation & amortization	$	21,183		$	301,980		$	5,143		$	375,977	$	46,203		$	750,486