Rocky Mountain Chocolate Factory Inc. (RMCF) filed Quarterly Report for the period ended 2009-05-31.
ROCKY MTN CHOCOLATE FACTORY manufactures an extensive line of premium chocolate candies and other confectionery products from its own proprietary recipes for sale at its franchised and Company-owned stores. As of April 30 1996 there were 41 Company-owned and 153 franchised ``Rocky Mountain Chocolate Factory`` stores operating in 40 states and Canada. Rocky Mountain Chocolate Factory Inc. has a market cap of $45.9 million; its shares were traded at around $7.5 with a P/E ratio of 12.6 and P/S ratio of 1.6. The dividend yield of Rocky Mountain Chocolate Factory Inc. stocks is 5.3%. Rocky Mountain Chocolate Factory Inc. had an annual average earning growth of 14.1% over the past 5 years.
Highlight of Business Operations:
Basic earnings per share decreased 29.4% from $.17 for the three months ended May 31, 2008 to $.12 for the three months ended May 31, 2009. Revenues decreased 5.5% from the first quarter of fiscal 2009 to the first quarter of fiscal 2010. Operating income decreased 26.9% from $1.6 million for the first three months of fiscal 2009 to $1.2 million for the first three months of fiscal 2010. Net income decreased 25.5% from $1,004,000 in the first quarter of fiscal 2009 to $748,000 in the first quarter of fiscal 2010. The decrease in revenues and net income for the first quarter of fiscal 2010 versus the same period in fiscal 2009 was due primarily to a decrease in royalty and marketing fees and franchise fee revenue and a decrease of 6% in same store pounds purchased.
Depreciation and amortization of $179,000 in the first quarter of fiscal 2010 decreased 10.0% from $199,000 in the first quarter of fiscal 2009 due to certain assets becoming fully depreciated.
Other, net of $5,100 realized in the first quarter of fiscal 2010 represents an increase of $800 from the $4,300 realized in the first quarter of fiscal 2009.
As of May 31, 2009, working capital was $7.6 million, compared with $7.4 million as of February 28, 2009, an increase of $200,000. The increase in working capital was primarily due to operating results.
Cash and cash equivalent balances increased from $1.3 million as of February 28, 2009 to $2.2 million as of May 31, 2009 as a result of cash flow generated by operating activities being greater than cash flows used by financing and investing activities. The Company’s current ratio was 3.5 to 1 at May 31, 2009 in comparison with 3.7 to 1 at February 28, 2009. The Company monitors current and anticipated future levels of cash and cash equivalents in relation to anticipated operating, financing and investing requirements.
The Company has a $5 million ($5 million available as of May 31, 2009) working capital line of credit collateralized by substantially all of the Company’s assets with the exception of the Company’s retail store assets. The line is subject to renewal in July, 2009.
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