Business
Rocky Mountain Chocolate Factory, Inc. Reports Third Quarter Operating Results
Business remains strong with third quarter revenue increasing 17.7% and third quarter same store sales increasing 22.4%DURANGO, CO / ACCESSWIRE / January 13,
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"Business remains strong with third quarter revenue increasing 17.7% and third quarter same store sales increasing 22.4%DURANGO, CO / ACCESSWIRE / January 13, 2022 / 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, 2021. The Company franchises and operates retail gourmet chocolate and confection stores and self-serve frozen yogurt cafés, and produces an extensive line of premium, handcrafted chocolates and other confectionaries.THIRD QUARTER HIGHLIGHTSTotal revenue increased 17.7 percent to $8.5 million during the three months ended November 30, 2021 compared to $7.2 million during the three months ended November 30, 2020.Operating loss was $2.0 million during the three months ended November 30, 2021 compared to operating income of $0.4 million during the three months ended November 30, 2020, due primarily to non-recurring costs associated with the contested director elections and compensation expenses triggered by the results of the director elections.Adjusted EBITDA (a non-GAAP measure defined later in this release) increased 17.0 percent from $848,000 in the three months ended November 30, 2020 to $992,000 in the three months ended November 30, 2021.Factory sales increased 14.5 percent during the three months ended November 30, 2021 compared to the three months ended November 30, 2020, primarily due to a 37.8 percent increase in sales of product to the Company's network of franchised and licensed retail stores, while our shipments to out of network customers declined by 31.1 percent as we selectively managed our labor and supply chain constrained production in favor of our franchised retail stores.Royalty and marketing fees increased 32.6 percent primarily due to the majority of our franchise locations having resumed normal operations during the three months ended November 30, 2021, compared to the three months ended November 30, 2020.Same store sales at domestic franchise locations increased 22.4 percent during the three months ended November 30, 2021 when compared to the three months ended November 30, 2019 (the most recent comparable period prior to the business disruptions of COVID-19).Our balance sheet remained strong with $6 million of cash, zero debt and total working capital of $9.0 million as ...