Note 7 - Operating Segments

9 Months Ended

Nov. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 7 - OPERATING SEGMENTS

The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Rocky Mountain Chocolate Factory 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 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, 2013. 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:

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

Three Months Ended November 30, 2012	Franchising		Manufacturing			Retail			U-Swirl, Inc.		Other			Total
Total revenues	$	1,308,146	$	6,799,847		$	1,089,431		$	-	$	-		$	9,197,424
Intersegment revenues		-		(561,619	)		-			-		-			(561,619	)
Revenue from external customers		1,308,146		6,238,228			1,089,431			-		-			8,635,805
Segment profit (loss)		503,380		1,727,587			(2,131,270	)		-		(922,062	)		(822,365	)
Total assets		1,316,002		11,499,337			2,422,986			-		5,541,326			20,779,651
Capital expenditures		-		85,058			12,357			-		76,665			174,080
Total depreciation & amortization	$	9,067	$	73,012		$	103,255		$	-	$	38,710		$	224,044

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

Nine Months Ended November 30, 2012	Franchising		Manufacturing			Retail			U-Swirl, Inc.		Other			Total
Total revenues	$	4,375,405	$	18,836,774		$	4,426,780		$	-	$	-		$	27,638,959
Intersegment revenues		-		(1,615,125	)		-			-		-			(1,615,125	)
Revenue from external customers		4,375,405		17,221,649			4,426,780			-		-			26,023,834
Segment profit (loss)		1,800,330		4,890,384			(2,053,806	)		-		(2,546,438	)		3,948,945
Total assets		1,316,002		11,499,337			2,422,986			-		5,541,326			20,779,651
Capital expenditures		24,007		255,313			254,103			-		158,070			1,861,708
Total depreciation & amortization	$	30,160	$	217,189		$	329,083		$	-	$	115,158		$	691,590

Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.6 million, or 9.2 percent, of the Company’s revenues from external customers during the nine months ended November 30, 2013 compared to $2.5 million, or 9.6 percent of the Company’s revenues from external customers during the nine months ended November 30, 2012.