Note 9 - Operating Segments

12 Months Ended

Feb. 29, 2012

Segment Reporting Disclosure [Text Block]

NOTE 9 - 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 consolidated financial statements.  The Company evaluates performance and allocates resources based on operating contribution, which excludes unallocated corporate 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:

FY 2012	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	5,751,263	$	25,723,144		$	5,438,911		$	-		$	36,913,318
Intersegment revenues		-		(2,286,426	)		-			-			(2,286,426	)
Revenue from external customers		5,751,263		23,436,718			5,438,911			-			34,626,892
Segment profit (loss)		2,572,926		6,704,333			(289,418	)		(3,076,064	)		5,911,777
Total assets		1,434,619		10,238,204			5,212,456			7,277,691			24,162,970
Capital expenditures		12,713		208,807			2,795,308			243,810			3,260,638
Total depreciation & amortization		59,947		293,804			255,575			141,535			750,861
FY 2011
Total revenues	$	5,783,892	$	23,837,108		$	3,716,511		$	-		$	33,337,511
Intersegment revenues		-		(2,209,540	)		-			-			(2,209,540	)
Revenue from external customers		5,783,892		21,627,568			3,716,511			-			31,127,971
Segment profit (loss)		2,859,433		6,227,366			(300,958	)		(2,776,782	)		6,009,059
Total assets		1,486,799		10,731,004			3,038,373			6,202,631			21,438,808
Capital expenditures		3,519		225,165			1,166,311			225,310			1,620,305
Total depreciation & amortization		78,101		340,552			108,437			143,231			670,321
FY 2010
Total revenues	$	5,492,531	$	22,087,355		$	2,825,751		$	-		$	30,405,637
Intersegment revenues		-		(1,969,089	)		-			-			(1,969,089	)
Revenue from external customers		5,492,531		20,118,266			2,825,751			-			28,436,548
Segment profit (loss)		2,775,358		5,666,968			(115,142	)		(2,656,639	)		5,670,545
Total assets		1,415,813		10,163,829			1,857,341			5,482,932			18,919,914
Capital expenditures		3,834		152,644			279,707			62,647			498,832
Total depreciation & amortization		101,214		342,943			75,362			179,061			698,580

Revenue from one customer of the Company’s Manufacturing segment represents approximately $4.5 million of the Company’s revenues from external customers during year ended February 29, 2012.