Note 7 - Operating Segments

3 Months Ended

May 31, 2013

Segment Reporting Disclosure [Text Block]

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. 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 financial statements included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2013. 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, 2013	Franchising		Manufacturing			Retail			U-Swirl, Inc.		Other			Total
Total revenues	$	1,660,016	$	6,726,056		$	515,138		$	1,717,406	$	-		$	10,618,616
Intersegment revenues		-		(440,754	)		-			-		-			(440,754	)
Revenue from external customers		1,660,016		6,285,302			515,138			1,717,406		-			10,177,862
Segment profit (loss)		848,444		1,748,467			(44,859	)		168,079		(889,438	)		1,830,693
Total assets		1,334,534		10,035,858			1,277,606			3,357,523		7,465,193			23,470,714
Capital expenditures		8,451		31,481			5,611			-		12,252			57,795
Total depreciation & amortization		8,593		72,373			14,740			105,578		34,472			235,756

Three Months Ended May 31, 2012	Franchising		Manufacturing			Retail		U-Swirl, Inc.		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

Revenue from one customer of the Company’s Manufacturing segment represented approximately $1.8 million of the Company’s revenues from external customers during the three months ended May 31, 2013 compared to $2.1 million during the three months ended May 31, 2012.