• Filing Date: 2018-07-13
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
Note 7 - Operating Segments
3 Months Ended
May 31, 2018
Notes to Financial Statements  
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 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 the Company’s consolidated financial statements included in the Company’s Annual Report on Form
10
-K for the year ended
February 28, 2018.
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 differences in products and services:
 
Three Months Ended May 31, 2018
 
Franchising
   
Manufacturing
   
Retail
   
U-Swirl
   
Other
   
Total
 
Total revenues
  $
1,313,206
    $
5,870,514
    $
361,435
    $
1,133,254
    $
-
    $
8,678,409
 
Intersegment revenues
   
(1,035
)    
(311,289
)    
-
     
-
     
-
     
(312,324
)
Revenue from external customers
   
1,312,171
     
5,559,225
     
361,435
     
1,133,254
     
-
     
8,366,085
 
Segment profit (loss)
   
489,271
     
1,169,335
     
(78,494
)    
135,155
     
(950,093
)    
765,174
 
Total assets
   
1,058,006
     
12,533,723
     
1,054,367
     
7,594,185
     
5,897,814
     
28,138,095
 
Capital expenditures
   
3,529
     
111,765
     
2,071
     
3,338
     
9,869
     
130,572
 
Total depreciation & amortization
  $
11,924
    $
141,028
    $
12,675
    $
244,051
    $
27,827
    $
437,505
 
 
Three Months Ended May 31, 2017
 
Franchising
   
Manufacturing
   
Retail
   
U-Swirl
   
Other
   
Total
 
Total revenues
  $
1,606,485
    $
6,498,210
    $
362,027
    $
1,195,310
    $
-
    $
9,662,032
 
Intersegment revenues
   
(1,306
)    
(314,279
)    
-
     
-
     
-
     
(315,585
)
Revenue from external customers
   
1,605,179
     
6,183,931
     
362,027
     
1,195,310
     
-
     
9,346,447
 
Segment profit (loss)
   
762,689
     
1,387,039
     
(36,431
)    
240,196
     
(1,087,590
)    
1,265,903
 
Total assets
   
1,192,859
     
11,490,941
     
1,087,541
     
9,508,948
     
6,550,307
     
29,830,596
 
Capital expenditures
   
-
     
49,060
     
3,600
     
2,616
     
21,450
     
76,726
 
Total depreciation & amortization
  $
11,392
    $
129,863
    $
3,827
    $
143,090
    $
32,378
    $
320,550
 
 
Revenue from
one
customer of the Company’s Manufacturing segment represented approximately
$1.3
million, or
15.2
percent of the Company’s revenues from external customers during the
three
months ended
May 31, 2018
compared to
$1.9
million, or
20.3
percent of the Company’s revenues from external customers during the
three
months ended
May 31, 2017.