Business
Rocky Mountain Chocolate Factory, Inc. Reports First Six Months of Fiscal Year 2021 Operating Results
DURANGO, CO / ACCESSWIRE / October 15, 2020 / 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 / October 15, 2020 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company,\" \"we\" or \"our\") today reported its operating results for the three and six months ended August 31, 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.SECOND QUARTER HIGHLIGHTS Total revenue decreased 27.9 percent to $5.3 million during the three months ended August 31, 2020 compared to $7.4 million during the three months ended August 31, 2019.Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 27.7 percent during the three months ended August 31, 2020 compared to the three months ended August 31, 2019.Net income decreased 91.7 percent to $76,000, or $0.01 per basic and diluted share in the three months ended August 31, 2020 compared to net income of $918,000, or $0.15 per basic and diluted share in the three months ended August 31, 2019.Operating income decreased 90.4 percent to $119,000 in the three months ended August 31, 2020 compared to operating income of $1.2 million during the three months ended August 31, 2019.Factory sales decreased 21.9 percent during the three months ended August 31, 2020 compared to the three months ended August 31, 2019, primarily due to a 34.5 percent decrease in sales of product to our network of franchised and licensed retail s...