Rocky Mountain Chocolate Factory Inc (RMCF)

potential turnaround...

Rocky Mountain Chocolate Factory, Inc. Reports First Quarter Operating Results

Fri July 12, 2019 8:00 AM|Accesswire|About: RMCF, SWRL

Rocky Mountain Chocolate Factory, Inc. (RMCF) (the “Company”) today reported its operating results for the three months ended May 31, 2019. The Company franchises and operates gourmet chocolate and confection stores and self-serve frozen yogurt cafés, and manufactures an extensive line of premium chocolates and other confectionery products.

FIRST QUARTER HIGHLIGHTS

Total revenue increased 0.7 percent to $8.43 million during the three months ended May 31, 2019 compared to $8.37 million during the three months ended May 31, 2018.

Same-store pounds of product purchased from the Company’s factory by franchisees and co-branded licensees decreased 5.7 percent during the three months ended May 31, 2019 compared to the three months ended May 31, 2018.

Net income increased 23.3 percent to $712,000, or $0.12 per basic share and $0.11 per diluted share, in the three months ended May 31, 2019 compared to net income of $577,000, or $0.10 per basic share and diluted share, in the three months ended May 31, 2018.

Operating income increased 20.8 percent to $946,000 in the three months ended May 31, 2019, compared to operating income of $783,000 during the three months ended May 31, 2018.

Adjusted EBITDA (a non-GAAP measure defined later in this release) increased 26.1 percent to $1.8 million in the three months ended May 31, 2019 compared to $1.4 million in the three months ended May 31, 2018.

Factory sales increased 0.8 percent during the three months ended May 31, 2019 compared to the three months ended May 31, 2018, primarily due to a 2.0 percent increase in sales of product to our network of franchised and licensed retail stores partially offset by a 2.1 percent decrease in shipments of product to customers outside our network of franchised retail stores.

Royalty and marketing fees increased 9.9 percent in the three months ended May 31, 2019, primarily due to higher royalty revenue associated with the Company’s purchase based royalty structure partially offset by a 5.0 percent decrease in the number of domestic franchised locations in operation during the three months ended May 31, 2019, compared to the three months ended May 31, 2018.

Franchise fees increased 14.1 percent in the three months ended May 31, 2019, the result of an increase in revenue resulting from store closures and the termination of any future contract liability associated with the closure.

The Company’s franchisees and licensees opened one Rocky Mountain Chocolate Factory franchised location, four Cold Stone Creamery co-branded locations and one U-Swirl (SWRL) franchised café during the three months ended May 31, 2019.

On June 14, 2019, the Company paid its 64th consecutive quarterly cash dividend to shareholders, in the amount of $0.12 per share.

FIRST QUARTER OPERATING RESULTS

Total revenue increased 0.7 percent to $8.43 million during the three months ended May 31, 2019 compared to $8.37 million during the three months ended May 31, 2018.

Total factory sales increased 0.8 percent to $5.61 million in the three months ended May 31, 2019 compared to $5.56 million in the three months ended May 31, 2018. The increase was primarily due to a 2.0 percent increase in sales of product to our network of franchised and licensed retail stores partially offset by a 2.1 percent decrease in shipments of product to customers outside our network of franchised retail stores. Factory gross margins decreased 40 basis points to 22.8 percent of factory sales in the three months ended May 31, 2019 compared to 23.2 percent in the three months ended May 31, 2018.

Retail sales decreased to $855,000 in the three months ended May 31, 2019 compared to $1.0 million in the three months ended May 31, 2018. This change was primarily the result of the closure of certain underperforming Company-owned locations during the prior fiscal year. Same-store sales at all Company-owned stores and cafés increased 2.4 percent during the three months ended May 31, 2019 compared to the three months ended May 31, 2018.

Royalty and marketing fees increased 9.9 percent to $1.9 million in the three months ended May 31, 2019 compared to $1.7 million in the three months ended May 31, 2018, primarily due to higher royalty revenue associated with the Company’s purchase based royalty structure partially offset by a 5.0 percent decrease in the number of domestic franchise stores and cafés in operation resulting from domestic store closures exceeding domestic store openings. The Company’s franchisees and licensees opened one Rocky Mountain Chocolate Factory franchised location, four Cold Stone Creamery co-branded locations and one U-Swirl franchised café during the three months ended May 31, 2019. Complete lists of stores and cafés currently in operation are available on the Company’s websites at www.rmcf.com and www.u-swirl.com.

Franchise fees increased 14.1 percent to $106,000 in the three months ended May 31, 2019 compared to $93,000 in the three months ended May 31, 2018, as a result of an increase in revenue resulting from store closures and the termination of any future contract liability associated with the closure.

Income from operations increased 20.8 percent in the three months ended May 31, 2019 to $946,000 compared to $783,000 in the three months ended May 31, 2018.

The Company’s effective income tax rate in the three months ended May 31, 2019 and 2018 was 24.6 percent.

Net income increased 23.3 percent to $712,000, or $0.12 per basic share and $0.11 per diluted share, in the three months ended May 31, 2019, compared to net income of $577,000, or $0.10 per basic and diluted share, in the three months ended May 31, 2018.

Adjusted EBITDA (a non-GAAP financial measure defined later in this release) increased 26.1 percent for the three months ended May 31, 2019 to $1.8 million compared to $1.4 million for the three months ended May 31, 2018.

Non-GAAP Financial Measures

Adjusted EBITDA, a non-GAAP financial measure, is computed by adding depreciation and amortization, stock-based compensation expenses, costs associated with store closures, and costs associated with the evaluation of strategic alternatives to GAAP income from operations.

This non-GAAP financial measure may have limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. The Company believes that Adjusted EBITDA provides additional analytical information on the nature of ongoing operations excluding expenses not expected to recur in future periods, non-cash charges and variations in the effective tax rate among periods. For example, the Company believes that Adjusted EBITDA is useful to investors because it provides a measure of operating performance and its ability to generate cash that is unaffected by non-cash accounting measures and non-recurring expenses. However, due to these limitations, the Company uses Adjusted EBITDA as a measure of performance only in conjunction with GAAP measures of performance such as income from operations and net income. Reconciliations of this non-GAAP measure to its most comparable GAAP measure are included below.

Cash Dividends

On June 14, 2019, the Company paid its 64th consecutive quarterly cash dividend to shareholders, in the amount of $0.12 per share.

About Rocky Mountain Chocolate Factory, Inc.

Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchiser of gourmet chocolate, confection and self-serve frozen yogurt stores and a manufacturer of an extensive line of premium chocolates and other confectionery products. As of July 12, 2019, the Company, through its subsidiaries and its franchisees and licensees operated 441 Rocky Mountain Chocolate Factory and self-serve frozen yogurt stores in 39states, Canada, South Korea, Qatar, the Republic of Panama, and The Republic of the Philippines. The Company’s common stock is listed on the Nasdaq Global Market under the symbol “RMCF.”

Will we see another form 4 showing insiders selling shares?

Cashflow models imply Rocky Mountain Chocolate has 10% upside b4 earnings Thursday:

Intrinsic Value

RMCF: The U.S. Securities and Exchange Commission announced today that a federal grand jury in Manhattan has indicted Bulgarian resident Nedko Nedev for engaging in a fraudulent scheme relating to the stocks of Avon Products, Inc., Tower Group International, Ltd., and Rocky Mountain Chocolate Factory, Inc. Nedev was arrested yesterday in Bulgaria in connection with the criminal charges.

https://www.sec.gov/litigation/litreleases/2016/lr23486.htm

Coldstone Creamery has always been good, not sure when they went RMCF. It is truly a crime what they did to SWRL, the just diluted it to death and set it up to fail IMO.

So so glad I pushed the sell button long long ago at $1.07 I think it was........... look what Merryman and his gang have done to it....Shameful if not criminal.

I have migrated away from most penny stocks now as I've found a nice niche playing beat down big boards, in the past 2 weeks I've had 3 that returned 100% or better. I do have some of my triple zeros moving up and its always hard to figure when to sell on the way up.

Took the family to Coldstone Creamery/RMCF last night. I had to cringe a little knowing these guys are crooks. I told my wife we were not buying any of the RMCF products. ..lol. although caramel apples looked delicious. I told her all about what these executives did to the subsidiary SWRL.

But how low will they sell this one? They are certainly trimming out their positions from the looks of it.

SWRL is pretty much dead at this point, Merryman made sure of that.

JMO

Looks like a similar trend here as happened to SWRL.

The question is remains..Does RMCF have the potential to grow substantially ?

$RMCF - Yummy

it looks like about to pop>>>>>

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p30610783689

Needs a break above the 50

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p71935705320

And following RMCF at the Marcum is another company expanding globally, RIBT. The room there are in could be a global room, lol, I don't thinks it works that way.

The move could be over for a bit, but RMCF is at the Marcum small cap conference tomorrow and could get some action.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p19725026593

Yeah, I sometimes get ahead of myself.

I think you mean Thursday? I might sell a bit the day before,confused you? But, I actually might b better off selling Thursday now that you make me think a bit, lol. And, I might just hold. I sold MKC way too soon, like $56

http://stockcharts.com/h-sc/ui?s=MKC&p=D&yr=2&mn=0&dy=0&id=p24123460807

Can't wait to get home tomorrow after work and listen to the call.

Ernie--glad someone else is here, RMCF, I might take some profits late tomorrow, but long term it looks great.

RMCF could drag SWRL up with the co branding. Nice base on the chart.I added it to my watch list, looking for a breakout.

http://finance.yahoo.com/q/bc?s=SWRL&t=5y&l=on&z=l&q=l&c=

SWRL is the 40 cent way to catch a lil RMCF magic IMO

Rocky Mountain Chocolate Factory, Inc. to Host FY2013 Operating Results Conference Call on Thursday, May 23, 2013

Today : Tuesday 21 May 2013
Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) today announced that it will host an investor conference call at 4:15 p.m. Eastern Time (EDT) on Thursday, May 23, 2013, to discuss the Company's operating results for the fourth quarter and fiscal year ended February 28, 2013 (FY2013), along with other topics of interest. The Company plans to report its operating results earlier the same day.
To participate in the conference call, please dial 1-877-374-8416 (international and local participants dial 412-317-6716) approximately five minutes prior to 4:15 p.m. EDT on May 23, 2013 and ask to be connected to the "Rocky Mountain Chocolate Factory Conference Call". A replay of the conference call will be available one hour after completion of the call until Thursday, May 30, 2013, at 5:00 pm EDT by dialing 877-344-7529 (international and local participants dial 412-317-0088) and entering the conference I.D.# 10029247.

About Rocky Mountain Chocolate Factory, Inc.

Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchiser of gourmet chocolate stores and a manufacturer of an extensive line of premium chocolates and other confectionery products. The Company's majority-owned subsidiary, U-Swirl, Inc. (OTCQB: SWRL) franchises and operates self-server frozen yogurt stores. Rocky Mountain Chocolate Factory's common stock is listed on The Nasdaq Global Market under the symbol "RMCF".

For Further Information, Contact

Bryan J. Merryman

COO/CFO

(970) 259-0554

RMCF Announces Continuing International Expansion With Licensing Agreements in South Korea and Kingdom of Saudi Arabia

http://ih.advfn.com/p.php?pid=nmona&article=56683552

3.5% dividend http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p11902473705

RMCF) (the "Company"), which franchises/operates gourmet chocolate stores and manufactures an extensive line of premium chocolates and other confectionery products, today announced the continuation of its international expansion strategy with the signing of Licensing Agreements ("the Agreements") in South Korea and the Kingdom of Saudi Arabia.

"We are very pleased to announce the continued expansion of our international franchising initiative with the signing of Licensing Agreements with strategic partners in South Korea and the Kingdom of Saudi Arabia," stated Franklin Crail, Chairman and Chief Executive Officer of the Company. "We commenced the international expansion program approximately one year ago with the signing of a Master License Agreement that anticipates the opening of 100 stores in Japan over a ten-year period. To date, 5 Rocky Mountain Chocolate Factory stores have opened in Japan, where consumers have exhibited great enthusiasm for our brand and our products. We continue to evaluate licensing opportunities in a number of additional countries and expect the opening of international franchised stores to gain momentum in coming years."

Under the terms of the Agreement for South Korea, the Licensee will open five (5) Rocky Mountain Chocolate Factory stores within 30 months following the execution of the Agreement. The Licensee has also been granted a 30-month option to convert its initial License Agreement into a Master License Agreement covering the entire country of South Korea. If the Licensee chooses to exercise the option prior to its expiration date, the Licensee will acquire the right to itself and/or through third-party franchisees to develop not less than 30 Rocky Mountain Chocolate Factory stores, inclusive of the five (5) stores developed under the terms of the initial License Agreement.

Under the terms of the Agreement for the Kingdom of Saudi Arabia, the Licensee will open and begin operating four (4) Rocky Mountain Chocolate Factory stores within 30 months following the execution of the Agreement. The Licensee has also been granted a 30-month option to convert its initial License Agreement into a Master License Agreement covering the entire country of Saudi Arabia. If the Licensee chooses to exercise the option prior to its expiration date, the Licensee will acquire the right to itself and/or through third-party franchisees to develop an additional six (6) Rocky Mountain Chocolate Factory stores in the Licensed Territory.

Could not pass this up today, added today. This sell off was over done. Dividend $4.33. Both Cargill and nestle and increasing raw cacao production that should keep prices down in the future.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=3&mn=0&dy=0&id=p59985783228

If RMCF breaks away from this congestion around the 200 day MA, a nice rally could happen and test the August high? 4.33% dividend yield now.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=3&mn=0&dy=0&id=p83962498670

Dividend now paying 3.8%

This must be technical selling. There is no news out. The volume the last few days has been increasing. I hope these is no bad news out there.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p11902473705

Great Q2 for Rocky

Same-Store Sales Increase for 8th Consecutive Quarter

http://finance.yahoo.com/news/rocky-mountain-chocolate-factory-inc-120500227.html

Another run coming? Went back above the 20 day MA

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p37989160970

I'm out for now, had a nice this year. I'll be watching.

I was thinking about it also. With the share structure of $RMCF it's looking like we still have a lot of upside potential.

Soemtimes I get lucky, I was looking to take profits around the 12.60 area, but we shot right by it. I'm still holding firm.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=0&mn=6&dy=0&id=p58423323514

New 52 week high today!
Go $RMCF

We're gapping up today!

I'm tempted to take some profits here for buying back around $11.70, but still undecided about that.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=2&mn=0&dy=0&id=p76270575270

RMCF Rocky Mountain Defensive Play

A defensive play for every portfolio. Who doesn't eat chocolates?

The stock is showing some real strength in the face of the big 2012 moves and lately, the market has been tanking and RMCF holding. I am still in for a while.

Fantastic Q1 results

http://finance.yahoo.com/news/rocky-mountain-chocolate-factory-inc-120000029.html

but investors seem to be shy!

New to this board, but been in RMCF since $8.00.
We're flying today. Is there any news out?


SG

I agree 100%. Dividends are over rated. There are many Asian place to expand besides Japan and they could expand faster in Japan if they used the dividend for expansion. But, good old fashioned management has it's merits as they ae more likely to be honest?

Personally I would like to see that Rocky Mountain uses their cash flow for expansion plans of their company owned Aspen Leaf yogurt stores.

A quarterly dividend is nice but every week a couple of new stores would be nicier.

Mexican--Now you are firmly in the money, congrats!!!!

20 day moving average may be the key.

If RMCF hangs around the 20, another leg up is a good bet. The 50 day MA wa key in the up move in 2011 and so far here in 2012 as well in May.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=2&mn=0&dy=0&id=p76270575270

The chart is looking great, nice 4.2% dividend while we wait. Just a matter of time before another leg up, probably on news or earnings.

http://stockcharts.com/h-sc/ui?s=RMCF&p=D&yr=1&mn=0&dy=0&id=p60013840983

Mexican, the iBox is the material at the top of the opening page, the corporate logo and the corporate overview. I thought you put that up. I'll help you out by becoming a moderator. Then I can add stories and sticky posts, if you can't figure it out. I am not the best eithe

$RMCF Your Chocolate Candy For Asian Nights

hahaha

Explain?

What's the iBox?

Good job on the iBox

$RMCF I bought at $10.60

My problem is I'm not in yet, I just spotted it over the weekend and it even opened at $10.89. Hope to get in soon. I do miss them sometimes, boo.

$RMCF Growth
I really think this is a new growth story in the making. Especially if they can speed up their expansion plans in Asia.

Looks good Mex, big money agree's

http://finance.yahoo.com/q/mh?s=RMCF+Major+Holders

$RMCF Aspen Leaf Yogurt stores the real deal!