Business
Rocky Mountain Chocolate Factory, Inc. Reports First Nine Months of Fiscal Year 2021 Operating Results
DURANGO, CO / ACCESSWIRE / January 13, 2021 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the "Company," "we" or "our") today reported its operating
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, CO / ACCESSWIRE / January 13, 2021 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company,\" \"we\" or \"our\") today reported its operating results for the three and nine months ended November 30, 2020. The Company franchises and operates gourmet chocolate and confection stores and self-serve frozen yogurt cafés, and manufactures an extensive line of premium chocolates and other confectionery products.COVID-19 We have experienced business disruptions resulting from efforts to contain the rapid spread of the novel coronavirus (\"COVID-19\"), including the vast mandated self-quarantines and closures of non-essential business throughout the United States and around the world. Nearly all stores have been directly and negatively impacted by public health measures taken in response to the COVID-19 pandemic, with nearly all locations experiencing reduced operations as a result of, among other things, modified business hours and store and mall closures. As a result, franchisees and licensees are not ordering products for their stores in line with historical amounts. This trend has negatively impacted, and is expected to continue to negatively impact, among other things, factory sales, retail sales and royalty and marketing fees of the Company.THIRD QUARTER HIGHLIGHTS Total revenue decreased 8.6 percent to $7.2 million during the three months ended November 30, 2020 compared to $7.9 million during the three months ended November 30, 2019.Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 16.9 percent during the three months ended November 30, 2020 compared to the three months ended November 30, 2019.Net income increased to $524,000, or $0.09 per basic and $0.08 per diluted share in the three months ended November 30, 2020 compared to a net loss of $72,000, or $(0.01) per basic and diluted share in the three months ended November 30, 2019.Operating income increased to $399,000 in the three months ended November 30, 2020 compared to an operating loss of $98,000 during the three months ended November 30, 2019.Factory sales decreased 3.7 percent during the three months ended November 30, 2020 compared to the three months ended November 30, 2019, primarily due to a 22.5 percent decrease in sales of product to our network of franchised and licensed retail...