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.