Note 7 - Operating Segments

3 Months Ended

May 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 consolidated financial statements and Note 1 to the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the 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 May 31, 2012	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	1,567,567	$	6,956,432		$	1,677,281		$	-		$	10,201,280
Intersegment revenues		-		(543,087	)		-			-			(543,087	)
Revenue from external customers		1,567,567		6,413,345			1,677,281			-			9,658,193
Segment profit (loss)		668,935		1,818,267			12,635			(866,443	)		1,633,394
Total assets		1,463,906		9,594,086			5,158,282			7,460,317			23,676,591
Capital expenditures		7,539		52,422			160,859			32,032			252,852
Total depreciation & amortization		11,380		71,337			116,781			37,642			237,140
Three Months Ended May 31, 2011	Franchising		Manufacturing			Retail			Other			Total
Total revenues	$	1,427,438	$	6,413,057		$	1,377,889			-		$	9,218,384
Intersegment revenues		-		(580,460	)		-			-			(580,460	)
Revenue from external customers		1,427,438		5,832,597			1,377,889			-			8,637,924
Segment profit (loss)		642,175		1,628,460			(107,428	)		(748,328	)		1,414,879
Total assets		1,435,733		9,824,809			3,598,765			6,746,031			21,605,338
Capital expenditures		1,443		40,951			866,309			135,937			1,044,640
Total depreciation & amortization		18,952		74,024			44,400			31,529			168,905

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.1 million of the Company’s revenues from external customers during the three months ended May 31, 2012 compared to $1.8 million during the three months ended May 31, 2011.