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Rocky Mountain Chocolate Factory Inc. Reports Operating Results (10-Q)

January 14, 2013 | About:
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10qk

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Rocky Mountain Chocolate Factory Inc. (RMCF) filed Quarterly Report for the period ended 2012-11-30.

Rocky Mountain Chocolate has a market cap of $67.6 million; its shares were traded at around $11.9399 with a P/E ratio of 16.3 and P/S ratio of 1.8. The dividend yield of Rocky Mountain Chocolate stocks is 4.3%. Rocky Mountain Chocolate had an annual average earning growth of 5.1% over the past 10 years.

Highlight of Business Operations:

Basic earnings per share decreased from $.12 in the three months ended November 30, 2011 to a loss of $.08 per share in the same period of the current year. Revenues increased 4.3% from $8.3 million in the three months ended November 30, 2011 to $8.6 million in the same period of the current year. Operating income decreased from $1.1 million in the three months ended November 30, 2011 to an operating loss of $833,000 in the same period of the current year. Net income decreased from $725,000 in the three months ended November 30, 2011 to a net loss of $509,000 in the same period of the current year. The decrease in operating income and net income for the three months ended November 30, 2012 compared to the same period in the prior year was due primarily to an impairment loss for ALY operations being recognized in the amount of $1.98 million for long-lived assets related to eight underperforming Company-owned stores.

Basic earnings per share decreased from $.12 in the three months ended November 30, 2011 to a loss of $.08 per share in the same period of the current year. Revenues increased 4.3% from $8.3 million in the three months ended November 30, 2011 to $8.6 million in the same period of the current year. Operating income decreased from $1.1 million in the three months ended November 30, 2011 to an operating loss of $833,000 in the same period of the current year. Net income decreased from $725,000 in the three months ended November 30, 2011 to a net loss of $509,000 in the same period of the current year. The decrease in operating income and net income for the three months ended November 30, 2012 compared to the same period in the prior year was due primarily to an impairment loss for ALY operations being recognized in the amount of $1.98 million for long-lived assets related to eight underperforming Company-owned stores.

General and administrative costs increased 5.9% for the three months ended November 30, 2012 compared to the three months ended November 30, 2011. This increase was primarily due to restructuring expenses associated with Aspen Leaf Yogurt as described above. As a percentage of total revenues, general and administrative expense increased to 9.8% in the three months ended November 30, 2012 compared to 9.7% in the same period of the prior year.

Basic earnings per share decreased 45.2% from $.42 for the nine months ended November 30, 2011 to $­­.23 for the same period of the current year. Revenues increased 6.2% to $26.0 million for the nine months ended November 30, 2012 compared to $24.5 million in the nine months ended November 30, 2011. Operating income decreased 47.3% from $3.9 million in the nine months ended November 30, 2011 to $2.1 million in the nine months ended November 30, 2012. Net income decreased 45.9% from $2.6 million in the nine months ended November 30, 2011 to $1.4 million in the nine months ended November 30, 2012. The decrease in operating income and net income for the nine months ended November 30, 2012 compared to the same period in the prior year was due primarily to an impairment loss for ALY operations being recognized in the amount of $1.98 million for long-lived assets related to eight underperforming Company-owned stores.

The increase in factory sales for the nine months ended November 30, 2012 versus the nine months ended November 30, 2011 was primarily due to a 6.6% increase in sales to domestic and international franchised and licensed stores and a 1.5% increase in shipments of product to customers outside our network of franchised retail stores. Same-store pounds purchased by franchise locations was unchanged in the nine months ended November 30, 2012 compared with the same period in the prior year. These increases were partially offset by a 3.8% decrease in the average number of domestic Rocky Mountain Chocolate Factory franchised stores in operation.

Read the The complete Report

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