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SEGMENT REPORTING
 12 Months Ended
Jun. 28, 2015
SEGMENT REPORTING  
SEGMENT REPORTING {1}

NOTE L– SEGMENT REPORTING:

 

The Company has two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information:  (1) Franchising and Food and Supply Distribution, and (2) Company-owned Restaurants.  These segments are a result of differences in the nature of the products and services sold.  Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments.  Other revenue consists of nonrecurring items.

 

The Franchising and Food and Supply Distribution segment establishes franchisees and franchise territorial rights and sells and distributes proprietary and non-proprietary food and other items to franchisees. Revenue for this segment is derived from the sale of distributed products and franchise royalties, franchise fees and sale of area development and foreign master license rights. Assets for this segment include equipment, furniture and fixtures.

 

The Company-owned Restaurant segment includes sales and operating results for all Company-owned restaurants.  Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

 

Corporate administration and other assets primarily include the deferred tax asset, cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets.  All assets are located within the United States.

 

Summarized in the following tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the fiscal years ended June 28, 2015 and June 29, 2014 (in thousands):

 

 

 

 

 

 

 

Fiscal Year Ended

 

 

 

 

 

 

June 28,

 

 

June 29,

 

 

 

2015

 

 

2014

 

 Net sales and operating revenues:

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

35,330

 

 

$

32,253

 

 Company-owned restaurants (1)

 

 

12,869

 

 

 

9,971

 

 Consolidated revenues

 

$

48,199

 

 

$

42,224

 

 

 

 

 

 

 

 

 

 

 Depreciation and amortization:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

24

 

 

$

19

 

 Company-owned restaurants (1)

 

 

1,374

 

 

 

1,244

 

 Combined

 

 

1,398

 

 

 

1,263

 

 Corporate administration and other

 

 

219

 

 

 

191

 

 Depreciation and amortization

 

$

1,617

 

 

$

1,454

 

 

 

 

 

 

 

 

 

 

 Loss from continuing operations before taxes

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution (2)

 

$

1,492

 

 

$

762

 

 Company-owned restaurants (1) (2)

 

 

(1,429

)

 

 

(1,212

)

 Combined

 

 

63

 

 

 

(450

)

 Impairment of long-lived assets and other lease charges

 

 

(300

)

 

 

(253

)

 Corporate administration and other (2)

 

 

(2,104

)

 

 

(1,511

)

 Loss from continuing operations before taxes

 

$

(2,341

)

 

$

(2,214

)

 

 

 

 

 

 

 

 

 

 Capital Expenditures:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

-

 

 

$

-

 

 Company-owned restaurants

 

 

6,443

 

 

 

1,918

 

 Corporate administration

 

 

284

 

 

 

150

 

 Combined capital expenditures

 

$

6,727

 

 

$

2,068

 

 

 

 

 

 

 

 

 

 

 Assets:

 

 

 

 

 

 

 

 

 Franchising and food and supply distribution

 

$

4,314

 

 

$

5,231

 

 Company-owned restaurants

 

 

11,088

 

 

 

4,631

 

 Corporate administration

 

 

8,569

 

 

 

6,106

 

 Combined assets

 

$

23,971

 

 

$

15,968

 

 

 (1) Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (2) Portions of corporate administration and other have been allocated to segments.

 

 

 

 

 

 

 

The following table provides information on our foreign and domestic revenues:

 

 

 

 

 

 

 

 

 Geographic information (revenues):

 

 

 

 

 

 

 United States

 

$

47,509

 

 

$

41,342

 

 Foreign countries

 

 

690

 

 

 

882

 

 Consolidated total

 

$

48,199

 

 

$

42,224