Business
Rocky Mountain Chocolate Factory, Inc. Reports First Six Months Of Fiscal Year 2020 Operating Results
DURANGO, CO / ACCESSWIRE / October 10, 2019 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the "Company") today reported its operating results for
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, CO / ACCESSWIRE / October 10, 2019 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company\") today reported its operating results for the three and six months ended August 31, 2019. 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.SECOND QUARTER HIGHLIGHTS Total revenue decreased 5.3 percent to $7.4 million during the three months ended August 31, 2019 compared to $7.8 million during the three months ended August 31, 2018.Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 5.0 percent during the three months ended August 31, 2019 compared to the three months ended August 31, 2018.Net income increased 22.3 percent to $918,000, or $0.15 per basic and diluted share, in the three months ended August 31, 2019 compared to net income of $751,000, or $0.13 per basic share and diluted share, in the three months ended August 31, 2018.Operating income increased 19.7 percent to $1.2 million in the three months ended August 31, 2019 compared to operating income of $1.0 million during the three months ended August 31, 2018.Adjusted EBITDA (a non-GAAP measure defined later in this release) increased 8.4 percent to $1.9 million in the three months ended August 31, 2019 compared to $1.7 million in the three months ended August 31, 2018.Factory sales decreased 6.3 percent during the three months ended August 31, 2019 compared to the three months ended August 31, 2018, primarily due to a 32.4 percent decrease in shipments of product to customers outside our network of franchise retail locations and a 2.7 percent decrease in purchases by our network of franchised and licensed stores. The decrease in shipments of product to customers outside our network of franchise retail stores was primarily the result of product rationalization and a decline in revenue associated with products no longer offered for sale.Royalty and marketing fees decreased 1.9 percent in the three months ended August 31, 2019, primarily due to a 6.5 percent decrease in domestic franchise units in operation (primarily yogurt locations) during the three months ended August 31, 2019 compared to the three months ended August 31, 2018.Franchise fee...