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SEGMENT REPORTING
 12 Months Ended
Jun. 26, 2016
SEGMENT REPORTING  
SEGMENT REPORTING

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 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 26, 2016 and June 28, 2015 (in thousands):

 

 

 

Fiscal Year Ended

 

 

 

June 26,

 

 

June 28,

 

 

 

2016

 

 

2015

 

Net sales and operating revenues:

 

 

 

 

 

 

Franchising and food and supply distribution

 

$

40,324

 

 

$

35,330

 

Company-owned restaurants (1)

 

 

20,487

 

 

 

12,869

 

 Consolidated revenues

 

$

60,811

 

 

$

48,199

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

Franchising and food and supply distribution

 

$

23

 

 

$

24

 

Company-owned restaurants (1)

 

 

2,458

 

 

 

1,374

 

 Combined

 

 

2,481

 

 

 

1,398

 

Corporate administration and other

 

 

241

 

 

 

219

 

 Depreciation and amortization

 

$

2,722

 

 

$

1,617

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before taxes

 

 

 

 

 

 

 

 

Franchising and food and supply distribution (2)

 

$

2,694

 

 

$

1,492

 

Company-owned restaurants (1) (2)

 

 

(6,183

)

 

 

(1,729

)

 Combined

 

 

(3,489

)

 

 

(237

)

Corporate administration and other (2)

 

 

(2,572

)

 

 

(2,104

)

 Loss from continuing operations before taxes

 

$

(6,061

)

 

$

(2,341

)

 

 

 

 

 

 

 

 

 

Capital Expenditures:

 

 

 

 

 

 

 

 

Franchising and food and supply distribution

 

$

-

 

 

$

-

 

Company-owned restaurants

 

 

7,497

 

 

 

6,443

 

Corporate administration

 

 

613

 

 

 

284

 

 Combined capital expenditures

 

$

8,110

 

 

$

6,727

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Franchising and food and supply distribution

 

$

3,187

 

 

$

4,314

 

Company-owned restaurants

 

 

12,817

 

 

 

11,088

 

Corporate administration

 

 

2,501

 

 

 

8,569

 

 Combined assets

 

$

18,505

 

 

$

23,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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:

 

 

 

 

 

 

 

United States

 

$

60,260

 

 

$

47,509

 

Foreign countries

 

 

551

 

 

 

690

 

 Consolidated total

 

$

60,811

 

 

$

48,199