Business
Rocky Mountain Chocolate Factory, Inc. Reports Fourth Quarter and Fiscal Year 2021 Operating Results
DURANGO, CO / ACCESSWIRE / June 1, 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 / June 1, 2021 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company,\" \"we\" or \"our\") today reported its operating results for the fourth quarter and fiscal year ended February 28, 2021 (the \"fourth quarter of FY2021\" and \"FY2021,\" 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.COVID-19 We have experienced significant 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 government and 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 for the foreseeable future.FY2021 DETAILSTotal revenue decreased 26.3 percent to $23.5 million during FY2021 compared to $31.8 million during the fiscal year ended February 29, 2020 (\"FY2020\").Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 30.0 percent during FY2021 compared to FY2020.Net income decreased to a net loss of $(900,000), or $(0.15) per basic and diluted share, during FY2021 compared to net income of $1.0 million, or $0.17 per basic and diluted share, during FY2020.Operating income decreased to an operating loss of $(3.5) million during FY2021, compared to operating income of $1.4 million during FY2020.Factory sales decreased 19.5 percent during FY2021 compared to FY2020, primarily due to a 37.3 percent decrease in sales of product to our network of franchised and licensed retail stores partially offset by a $2.3 million increase in shipments of product to customers outside our network of franchise...