Rocky Mountain Chocolate Factory Inc. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended November 30, 2012; Reports Impairment of Long-Lived Assets for the Third Quarter of Fiscal 2013
January 14, 2013 at 01:15 pm
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Rocky Mountain Chocolate Factory Inc. reported unaudited earnings results for the third quarter and nine months ended November 30, 2012. For the quarter, the company reported total revenues of $8,636,000 against $8,280,000 for the same period in the last year. The revenue increase was attributable to higher sales of factory products, greater sales from company-owned stores, an increase in royalty and marketing fees, and higher franchise fees. Loss from operations was $832,000 against income from operations of $1,101,000 for the same period in the last year. Loss before income taxes was $822,000 against income before income taxes of $1,116,000 for the same period in the last year. As a result of the non-recurring charge, net loss was $509,000 or $0.08 per basic and diluted share against net income of $725,000 or $0.12 per basic and diluted share for the same period in the last year. Non-GAAP EBITDA was $1,369,000 against $1,295,000 for the same period in the last year.
For the nine months, the company reported total revenues of $26,024,000 against $24,494,000 for the same period in the last year. The revenue increase was attributable to higher sales of factory products, higher same-store sales, increased sales from company-owned stores, an increase in royalty and marketing fees, and higher franchise fees. Income from operations was $2,058,000 against $3,903,000 for the same period in the last year. Income before income taxes was $2,091,000 against $3,949,000 for the same period in the last year. Net income was $1,382,000 or $0.22 per diluted share and $0.23 per basic share against $2,556,000 or $0.41 per diluted share and $0.42 per basic share for the same period in the last year. The decline in net income was entirely due to the above mentioned non-recurring, non-cash impairment charge associated with the Aspen Leaf Yogurt business segment that was recorded in the third quarter of fiscal 2013. Non-GAAP EBITDA was $4,728,000 against $4,456,000 for the same period in the last year.
The company reported impairment of long-lived assets of $1,978,000 for the third quarter of fiscal 2013, primarily related to the write-down of company-owned store asset values in its Aspen Leaf Yogurt business segment.
Rocky Mountain Chocolate Factory, Inc. is an international franchisor, confectionery producer and retail operator. The Company produces chocolate candies and other confectionery products (Durango Products). It also sells its candy in select locations outside its system of retail stores. It operates through three segments: Franchising, Manufacturing and Retail Stores. It produces over 400 chocolate candies and other confectionery products, including many varieties of clusters, caramels, creams, toffees, mints and truffles. Its individual stores also offer numerous varieties of gourmet caramel apples as well as other products prepared in the store from Company recipes. It sells its products in a select number of specialty markets, including wholesale, fundraising, corporate sales, e-commerce, and private label. It has two Company-owned and has approximately 115 licensee-owned and 152 Rocky Mountain Chocolate Factory franchised stores spread across 36 states and the Philippines.
Rocky Mountain Chocolate Factory Inc. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended November 30, 2012; Reports Impairment of Long-Lived Assets for the Third Quarter of Fiscal 2013