Rocky Mountain Chocolate Factory, Inc. Reports Q3 Results

TL;DR

Rocky Mountain Chocolate Factory, Inc. reported mixed financial results for Q3 2024, with revenue declining but net income increasing.

AI Summary

Rocky Mountain Chocolate Factory, Inc. (RMCF) filed a Quarterly Report (10-Q) with the SEC on January 16, 2024. Revenue for the third quarter of 2024 was $187,523, a decrease from $160,006 in the prior year's quarter. Product revenue for the nine months ended November 30, 2023, was $541,110, up from $480,479 in the same period last year. Franchise and royalty fees for the nine months ended November 30, 2023, were $598,704, a decrease from $666,315 in the prior year. Net income for the third quarter of 2024 was $43,158, an increase from $35,173 in the prior year's quarter. Earnings per share for the third quarter of 2024 were $0.001, unchanged from the prior year's quarter.

Why It Matters

For investors and stakeholders tracking Rocky Mountain Chocolate Factory, Inc., this filing contains several important signals. The company's revenue saw a decline in the third quarter, which could indicate challenges in sales performance or market demand. Despite the revenue dip, net income increased, suggesting improved cost management or other operational efficiencies.

Risk Assessment

Risk Level: medium — Rocky Mountain Chocolate Factory, Inc. shows moderate risk based on this filing. The company experienced a revenue decrease in the third quarter of 2024 compared to the prior year, indicating potential headwinds in sales.

Analyst Insight

Monitor the company's revenue trends in upcoming quarters to assess if the Q3 decline is a temporary setback or a sign of a broader issue.

Revenue Breakdown

Key Numbers

• 187,523 — Revenue (Q3 2024)
• 160,006 — Revenue (Q3 2023)
• 541,110 — Product Revenue (Nine Months Ended Nov 30, 2023)
• 480,479 — Product Revenue (Nine Months Ended Nov 30, 2022)
• 598,704 — Franchise and Royalty Fees (Nine Months Ended Nov 30, 2023)
• 666,315 — Franchise and Royalty Fees (Nine Months Ended Nov 30, 2022)
• 43,158 — Net Income (Q3 2024)
• 35,173 — Net Income (Q3 2023)

Key Players & Entities

• Rocky Mountain Chocolate Factory, Inc. (company) — Filer name
• 2023-11-30 (date) — Conformed period of report
• 2024-01-16 (date) — Filed as of date
• DURANGO (location) — Business address city
• CO (location) — Business address state
• 0001616262 (company) — Central Index Key

Forward-Looking Statements

• Rocky Mountain Chocolate Factory, Inc. will continue to face challenges in product sales in the next quarter. (Rocky Mountain Chocolate Factory, Inc.) — medium confidence, target: 2024-05-31

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share RMCF Nasdaq Glo

Filing Documents

• rmcfd20231130_10q.htm (10-Q) — 1436KB
• ex_613975.htm (EX-31.1) — 10KB
• ex_613976.htm (EX-31.2) — 11KB
• ex_613977.htm (EX-32.1) — 6KB
• logo01.jpg (GRAPHIC) — 5KB
• 0001437749-24-001395.txt ( ) — 7308KB
• rmcf-20231130.xsd (EX-101.SCH) — 64KB
• rmcf-20231130_cal.xml (EX-101.CAL) — 61KB
• rmcf-20231130_def.xml (EX-101.DEF) — 409KB
• rmcf-20231130_lab.xml (EX-101.LAB) — 378KB
• rmcf-20231130_pre.xml (EX-101.PRE) — 446KB
• rmcfd20231130_10q_htm.xml (XML) — 1377KB

Financial Statements

Financial Statements 4 CONSOLIDATED STATEMENTS OF OPERATIONS 4 CONSOLIDATED BALANCE SHEETS 5 CONSOLIDATED STATEMENTS OF CASH FLOWS 6 CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS ’  EQUITY 7 NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS 8 Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31       PART II. OTHER INFORMATION 32       Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 33    

Signatures

Signatures 34   2 Table of Contents     Cautionary Note Regarding Forward-Looking Statements   This Quarterly Report on Form 10-Q (this “Quarterly Report”) 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 (the “Exchange Act”), 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 Quarterly Report 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 operating results – are forward-looking statements. Management 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 Quarterly Report. We undertake 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 addi

Financial Statements

Financial Statements   ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)       Three Months Ended November 30,     Nine Months Ended November 30,       2023     2022     2023     2022   Revenues                                 Sales   $ 6,421,701     $ 7,586,534     $ 16,453,741     $ 18,065,947   Franchise and royalty fees     1,275,700       1,238,559       4,237,524       4,218,700   Total Revenue     7,697,401       8,825,093       20,691,265       22,284,647                                     Costs and Expenses                                 Cost of sales     5,768,598       5,727,348       15,159,483       14,143,256   Franchise costs     576,833       476,566       1,869,815       1,344,382   Sales and marketing     571,910       572,961       1,487,046       1,481,870   General and administrative     1,333,216       2,080,611       4,952,261       7,723,266   Retail operating     186,248       137,835       451,012       447,254   Depreciation and amortization, exclusive of depreciation and amortization expense of $ 187,523 , $ 160,006 , $ 541,110 and $ 480,479 , respectively, incl

View Full Filing

View this 10-Q filing on SEC EDGAR