Business
Rocky Mountain Chocolate Factory, Inc. Reports Fourth Quarter And Fiscal Year 2020 Operating Results
DURANGO, CO / ACCESSWIRE / May 29, 2020 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the "Company") today reported its operating results for the
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, CO / ACCESSWIRE / May 29, 2020 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company\") today reported its operating results for the fourth quarter and fiscal year ended February 29, 2020 (the \"fourth quarter of FY2020\" and \"FY2020,\" respectively). 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.FY2020 DETAILSOn December 20, 2019, the Company and Edible Arrangements®, LLC (\"EA\") entered into a long-term strategic alliance whereby the Company became the exclusive provider of certain branded chocolate products to EA, its affiliates and its franchisees. The strategic alliance represents the culmination of the Company's exploration of its strategic alternatives, as announced in May 2019.Total revenue decreased 7.8 percent to $31.8 million during FY2020 compared to $34.5 million during the fiscal year ended February 28, 2019 (\"FY2019\").Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 4.6 percent during FY2020 compared to FY2019.Net income decreased 53.8 percent to $1.0 million, or $0.17 per basic and diluted share, during FY2020 compared to net income of $2.2 million, or $0.38 per basic share and $0.37 per diluted share, during FY2019.Operating income decreased 53.7 percent to $1.4 million during FY2020, compared to operating income of $3.0 million during FY2019.Adjusted EBITDA (a non-GAAP financial measure defined later in this release) increased 13.7 percent to $6.2 million during FY2020 compared to $5.5 million during FY2019.Factory sales decreased 11.0 percent during FY2020 compared to FY2019, primarily due to a 40.2 percent decrease in shipments of products to customers outside our network of franchised retail stores.Royalty and marketing fees increased 2.4 percent during FY2020, primarily due to an increase in royalty revenue associated with the Company's purchase-based royalty structure, whereby stores incur a higher effective royalty rate when they purchase less product form us and a lower effective royalty when they purchase more product from us.Franchise fees decreased 3.0 percent during FY2020, primarily as a result of a 6.6% decrease in domestic franchise units in operatio...