Rocky Mountain Chocolate Factory Reports Fiscal Second Quarter 2025 Financial Results
Rocky Mountain Chocolate Factory (RMCF) reported financial results for its fiscal second quarter ended August 31, 2024. Total revenue was $6.4 million, down from $6.6 million in the year-ago quarter. Gross margin improved to 11.5% from 7.7%, primarily due to increased pricing and improved operating efficiencies. The company reported a net loss of $0.7 million or ($0.11) per share, compared to a net loss of $1.0 million or ($0.16) per share in fiscal Q2 2024.
RMCF is executing a multi-year strategic plan, focusing on strengthening liquidity, rebuilding the executive team, expanding the franchise network, and laying a foundation for sustainable growth. The company secured a new $6 million credit facility to improve its financial position. RMCF is expanding its franchise network across eight strategic U.S. markets and finalizing new franchise agreements for three additional store locations.
Rocky Mountain Chocolate Factory (RMCF) ha riportato i risultati finanziari per il secondo trimestre fiscale chiuso il 31 agosto 2024. Il fatturato totale è stato di 6,4 milioni di dollari, in calo rispetto ai 6,6 milioni di dollari nello stesso trimestre dell'anno precedente. Il margine lordo è migliorato all'11,5% rispetto al 7,7%, principalmente grazie all'aumento dei prezzi e a una maggiore efficienza operativa. L'azienda ha registrato una perdita netta di 0,7 milioni di dollari, ovvero ($0,11) per azione, rispetto a una perdita netta di 1,0 milioni di dollari o ($0,16) per azione nel secondo trimestre fiscale 2024.
RMCF sta attuando un piano strategico pluriennale, con l'obiettivo di rafforzare la liquidità, ricostruire il team esecutivo, espandere la rete di franchising e gettare le basi per una crescita sostenibile. L'azienda ha ottenuto una nuova linea di credito di 6 milioni di dollari per migliorare la sua posizione finanziaria. RMCF sta espandendo la sua rete di franchising in otto mercati strategici negli Stati Uniti e sta finalizzando nuovi contratti di franchising per tre ulteriori sedi.
Rocky Mountain Chocolate Factory (RMCF) reportó los resultados financieros para su segundo trimestre fiscal que terminó el 31 de agosto de 2024. Los ingresos totales fueron de 6,4 millones de dólares, una disminución respecto a los 6,6 millones de dólares del mismo trimestre del año anterior. El margen bruto mejoró al 11,5% desde el 7,7%, principalmente debido al aumento de precios y a las mejoras en la eficiencia operativa. La compañía reportó una pérdida neta de 0,7 millones de dólares o ($0,11) por acción, en comparación con una pérdida neta de 1,0 millones de dólares o ($0,16) por acción en el segundo trimestre fiscal 2024.
RMCF está llevando a cabo un plan estratégico a varios años, enfocándose en fortalecer la liquidez, reconstruir el equipo ejecutivo, expandir la red de franquicias y establecer una base para un crecimiento sostenible. La compañía aseguró una nueva línea de crédito de 6 millones de dólares para mejorar su posición financiera. RMCF está expandiendo su red de franquicias en ocho mercados estratégicos de EE. UU. y finalizando nuevos acuerdos de franquicia para tres ubicaciones de tiendas adicionales.
록키 마운틴 초콜릿 팩토리(RMCF)는 2024년 8월 31일로 끝나는 회계연도 2분기의 재무 결과를 보고했습니다. 총 수익은 640만 달러로, 지난해 같은 분기의 660만 달러에서 감소했습니다. 총 마진은 가격 상승과 운영 효율성 향상 덕분에 7.7%에서 11.5%로 개선되었습니다. 회사는 70만 달러의 순손실을 기록했으며, 주당 ($0.11)로, 2024 회계연도 2분기에서 100만 달러의 순손실이나 ($0.16)로 재보고되었습니다.
RMCF는 유동성을 강화하고, 경영진 팀을 재건하고, 프랜차이즈 네트워크를 확장하며, 지속 가능한 성장을 위한 기반을 조성하는 다년간의 전략 계획을 실행하고 있습니다. 회사는 재무 상황을 개선하기 위해 새로운 600만 달러 규모의 신용 시설을 확보했습니다. RMCF는 미국의 8개 전략적 시장에서 프랜차이즈 네트워크를 확장하고 있으며, 추가로 3개 매장을 위한 새로운 프랜차이즈 계약을 체결하고 있습니다.
Rocky Mountain Chocolate Factory (RMCF) a publié ses résultats financiers pour son deuxième trimestre fiscal clos le 31 août 2024. Le chiffre d'affaires total s'est élevé à 6,4 millions de dollars, en baisse par rapport aux 6,6 millions de dollars du trimestre de l'année précédente. La marge brute s'est améliorée à 11,5% contre 7,7%, principalement grâce à une augmentation des prix et à une meilleure efficacité opérationnelle. La société a enregistré une perte nette de 0,7 million de dollars ou ($0,11) par action, comparativement à une perte nette de 1,0 million de dollars ou ($0,16) par action au deuxième trimestre fiscal 2024.
RMCF exécute un plan stratégique pluriannuel, axé sur le renforcement de la liquidité, la reconstruction de l'équipe exécutive, l'expansion du réseau de franchises et la création d'une base pour une croissance durable. L'entreprise a sécurisé une nouvelle ligne de crédit de 6 millions de dollars pour améliorer sa situation financière. RMCF élargit son réseau de franchises dans huit marchés stratégiques aux États-Unis et finalise de nouveaux contrats de franchise pour trois emplacements de magasins supplémentaires.
Rocky Mountain Chocolate Factory (RMCF) hat die finanziellen Ergebnisse für das im 31. August 2024 endende zweite Quartal des Geschäftsjahres bekannt gegeben. Der Gesamtumsatz betrug 6,4 Millionen Dollar, ein Rückgang von 6,6 Millionen Dollar im Vorjahresquartal. Die Bruttomarge verbesserte sich von 7,7% auf 11,5%, hauptsächlich aufgrund von Preiserhöhungen und verbesserten Betriebseffizienzen. Das Unternehmen berichtete von einem Nettoverlust von 0,7 Millionen Dollar oder ($0,11) pro Aktie, verglichen mit einem Nettoverlust von 1,0 Millionen Dollar oder ($0,16) pro Aktie im zweiten Quartal des Geschäftsjahres 2024.
RMCF führt einen mehrjährigen Strategieplan durch, der sich auf die Stärkung der Liquidität, den Wiederaufbau des Führungsteams, die Erweiterung des Franchisenetzwerks und das Legen einer Grundlage für nachhaltiges Wachstum konzentriert. Das Unternehmen sicherte sich eine neue Kreditlinie von 6 Millionen Dollar, um seine finanzielle Lage zu verbessern. RMCF erweitert sein Franchisenetzwerk in acht strategischen Märkten in den USA und schließt neue Franchisevereinbarungen für drei zusätzliche Standorte ab.
- Gross margin improved to 11.5% from 7.7% in the year-ago quarter
- Total Costs and Expenses reduced to $7.3 million from $7.6 million
- Net loss decreased to $0.7 million from $1.0 million year-over-year
- Secured a new $6 million credit facility, improving financial position
- Expanding franchise network across eight strategic U.S. markets
- Finalizing new franchise agreements for three additional store locations
- Total revenue decreased to $6.4 million from $6.6 million year-over-year
- Reported net loss of $0.7 million or ($0.11) per share
Insights
Rocky Mountain Chocolate Factory's Q2 2025 results show mixed performance. Total revenue slightly decreased to
- Gross profit improved to
$0.6 million from$0.4 million - Gross margin increased to
11.5% from7.7% - Total costs and expenses reduced to
$7.3 million from$7.6 million - Net loss narrowed to
$0.7 million ($0.11 per share) from$1.0 million ($0.16 per share)
The company's strategic initiatives, including strengthening liquidity, rebuilding the executive team and expanding the franchise network, are promising. The new
RMCF's strategic moves indicate a potential turnaround, but market challenges persist. The focus on franchise expansion in eight strategic U.S. markets, starting with Edmond, Oklahoma, could drive growth. The imminent announcement of three additional store locations signals momentum in network expansion.
The rebranding initiative and new store design, expected by year-end, may rejuvenate the brand and attract new customers. However, the slight revenue decline in Q2 suggests ongoing market pressures. The improved gross margin (
Investors should watch for the impact of these initiatives on same-store sales and overall revenue growth in the coming quarters. The success of the new store openings and consumer reception to the rebranded experience will be key indicators of RMCF's ability to capture market share in the competitive confectionery industry.
Company to Host Conference Call Today at 5:00 p.m. ET
DURANGO, Colo., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, or “RMCF”), an international franchisor and producer of premium chocolates and other confectionery products including gourmet caramel apples, is reporting financial and operating results for its fiscal second quarter ended August 31, 2024.
“We are pleased with our progress this quarter as we begin executing our multi-year strategic plan,” said Jeff Geygan, Interim CEO of RMCF. “We have been focused on several critical areas of the business: strengthening the company’s liquidity, rebuilding a strong executive team, expanding our franchise network, and laying a solid foundation for sustainable growth and profitability.
“In recent months, we welcomed several key team members, including a new CFO to lead our finance organization. We are also beginning to drive momentum with the expansion of our franchise network across eight strategic markets in the U.S., starting with a new store opening in Edmond, Oklahoma next month. We are finalizing new franchise agreements for three additional store locations, which we expect to announce in the coming weeks. At the same time, our rebranding initiative is nearly complete, and we anticipate unveiling the new store design by year-end, which will enhance the RMCF experience for both franchisees and consumers.”
Geygan continued, “Subsequent to quarter end, we took an important step to improve our financial position with a new
Fiscal Q2 2025 Financial Results vs. Year-Ago Quarter
- Total revenue for the second quarter of 2025 was
$6.4 million compared to$6.6 million in the year-ago quarter. - Total product and retail gross profit was
$0.6 million compared to$0.4 million . Gross margin improved to11.5% compared to7.7% . The increase was primarily attributable to increased pricing and improved operating efficiencies. - Total Costs and Expenses were reduced to
$7.3 million compared to$7.6 million in the year-ago period. - Net loss for the quarter was
$0.7 million or ($0.11) per share, compared to net loss of$1.0 million or ($0.16) per share in fiscal Q2 2024.
Conference Call Information
The Company will conduct a conference call today at 5:00 p.m. Eastern time to discuss its financial results. A question-and-answer session will follow management’s opening remarks. The conference call details are as follows:
Date: Tuesday, October 15, 2024
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
Please dial into the conference call 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at RMCF@elevate-ir.com.
The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at https://ir.rmcf.com/.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc. is an international franchiser of premium chocolate and confection stores, and a producer of an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples. Rocky Mountain Chocolate Factory was ranked in both the Franchise 500 by Entrepreneur Magazine and the Franchise 400 by Franchise Times for 2024. The Company is headquartered in Durango, Colorado. The Company and its franchisees and licensees operate over 260 Rocky Mountain Chocolate stores across the United States, with several international locations. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."
Forward-Looking Statements
This press release includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties. The statements, other than statements of historical fact, included in this press release are forward-looking statements. Many of the forward-looking statements contained in this document may be identified by the use of forward-looking words such as "will," "intend," "believe," "expect," "anticipate," "should," "plan," "estimate," "potential," or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future - including statements expressing general views about future operational performance, financial results and execution of the Company’s strategic plan - are forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause our Company’s actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: inflationary impacts, changes in the confectionery business environment, seasonality, consumer interest in our products, receptiveness of our products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of our co-branding strategy, the success of international expansion efforts and the effect of government regulations. For a detailed discussion of the risks and uncertainties that may cause our actual results to differ from the forward-looking statements contained herein, please see the section entitled “Risk Factors” contained in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, each filed with the Securities and Exchange Commission.
Investor Contact
Sean Mansouri, CFA
Elevate IR
720-330-2829
RMCF@elevate-ir.com
| Rocky Mountain Chocolate Factory, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share amounts) | ||||||||
| August 31, 2024 (unaudited) | February 29, 2024 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 973 | $ | 2,082 | ||||
| Accounts receivable, less allowance for credit losses of | 2,439 | 2,184 | ||||||
| Notes receivable, current portion, less current portion of the allowance for credit losses of | 36 | 489 | ||||||
| Refundable income taxes | 63 | 46 | ||||||
| Inventories | 6,115 | 4,358 | ||||||
| Other | 702 | 443 | ||||||
| Current assets held for sale | 666 | - | ||||||
| Total current assets | 10,994 | 9,602 | ||||||
| Property and Equipment, Net | 7,724 | 7,758 | ||||||
| Other Assets | ||||||||
| Notes receivable, less current portion and allowance for credit losses of | 77 | 695 | ||||||
| Goodwill | 576 | 576 | ||||||
| Intangible assets, net | 224 | 238 | ||||||
| Lease right of use asset | 1,460 | 1,694 | ||||||
| Other | 75 | 14 | ||||||
| Total other assets | 2,412 | 3,217 | ||||||
| Total Assets | $ | 21,130 | $ | 20,577 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,714 | $ | 3,411 | ||||
| Line of credit | 3,450 | 1,250 | ||||||
| Accrued salaries and wages | 962 | 1,833 | ||||||
| Gift card liabilities | 688 | 624 | ||||||
| Other accrued expenses | 154 | 301 | ||||||
| Contract liabilities | 147 | 150 | ||||||
| Lease liability | 380 | 503 | ||||||
| Deposit Liability | 358 | - | ||||||
| Total current liabilities | 8,853 | 8,072 | ||||||
| Lease Liability, Less Current Portion | 1,081 | 1,191 | ||||||
| Contract Liabilities, Less Current Portion | 671 | 678 | ||||||
| Total Liabilities | 10,605 | 9,941 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Preferred stock, $.001 par value per share; 250,000 authorized; 0 shares issued and outstanding | - | - | ||||||
| Common stock, $.001 par value, 46,000,000 shares authorized, 7,588,587 shares and 6,306,027 shares issued and outstanding, respectively | 8 | 6 | ||||||
| Additional paid-in capital | 12,163 | 9,896 | ||||||
| Retained earnings (accumulated deficit) | (1,646 | ) | 734 | |||||
| Total stockholders' equity | 10,525 | 10,636 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 21,130 | $ | 20,577 | ||||
| Rocky Mountain Chocolate Factory, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| August 31, | August 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Sales | $ | 4,918 | $ | 5,016 | $ | 10,197 | $ | 10,032 | ||||||||
| Franchise and royalty fees | 1,462 | 1,542 | 2,590 | 2,962 | ||||||||||||
| Total Revenue | 6,380 | 6,558 | 12,787 | 12,994 | ||||||||||||
| Costs and Expenses | ||||||||||||||||
| Cost of sales | 4,350 | 4,632 | 9,936 | 9,391 | ||||||||||||
| Franchise costs | 952 | 614 | 1,493 | 1,293 | ||||||||||||
| Sales and marketing | 138 | 442 | 568 | 915 | ||||||||||||
| General and administrative | 1,622 | 1,687 | 2,861 | 3,619 | ||||||||||||
| Retail operating | 194 | 162 | 393 | 265 | ||||||||||||
| Depreciation and amortization, exclusive of depreciation and amortization expense of | 38 | 32 | 80 | 63 | ||||||||||||
| Total costs and expenses | 7,294 | 7,569 | 15,331 | 15,546 | ||||||||||||
| Loss from Operations | (914 | ) | (1,011 | ) | (2,544 | ) | (2,552 | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest expense | (63 | ) | (6 | ) | (98 | ) | (13 | ) | ||||||||
| Interest income | 7 | 18 | 14 | 38 | ||||||||||||
| Gain (loss) on disposal of assets | 248 | - | 248 | - | ||||||||||||
| Other income, net | 192 | 12 | 164 | 25 | ||||||||||||
| Loss Before Income Taxes | (722 | ) | (999 | ) | (2,380 | ) | (2,527 | ) | ||||||||
| Income Tax Provision (Benefit) | - | - | - | - | ||||||||||||
| Loss from Continuing Operations | (722 | ) | (999 | ) | (2,380 | ) | (2,527 | ) | ||||||||
| Discontinued Operations | ||||||||||||||||
| Earnings from discontinued operations, net of tax | - | - | - | 69 | ||||||||||||
| Gain on disposal of discontinued operations, net of tax | - | - | - | 635 | ||||||||||||
| Earnings from discontinued operations, net of tax | - | - | - | 704 | ||||||||||||
| Net Loss | $ | (722 | ) | $ | (999 | ) | $ | (2,380 | ) | $ | (1,823 | ) | ||||
| Basic Loss per Common Share | ||||||||||||||||
| Loss from continuing operations | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.37 | ) | $ | (0.40 | ) | ||||
| Earnings from discontinued operations | - | - | - | 0.11 | ||||||||||||
| Net loss | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.37 | ) | $ | (0.29 | ) | ||||
| Diluted Loss per Common Share | ||||||||||||||||
| Loss from continuing operations | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.37 | ) | $ | (0.40 | ) | ||||
| Earnings from discontinued operations | - | - | - | 0.11 | ||||||||||||
| Net loss | $ | (0.11 | ) | $ | (0.16 | ) | $ | (0.37 | ) | $ | (0.29 | ) | ||||
| Weighted Average Common Shares Outstanding - Basic | 6,686,537 | 6,239,078 | 6,507,323 | 6,284,846 | ||||||||||||
| Dilutive Effect of Employee Stock Awards | - | - | - | - | ||||||||||||
| Weighted Average Common Shares Outstanding - Diluted | 6,686,537 | 6,239,078 | 6,507,323 | 6,284,846 | ||||||||||||
FAQ
What was Rocky Mountain Chocolate Factory's revenue for Q2 2025?
How did RMCF's gross margin change in Q2 2025 compared to the previous year?
What was Rocky Mountain Chocolate Factory's net loss per share for Q2 2025?
How much is RMCF's new credit facility worth?
In how many strategic U.S. markets is RMCF expanding its franchise network?
