Rocky Mountain Chocolate Factory reported its operating results for the first quarter 2016. Revenue increased 0.4 percent to approximately $10.4 million, compared to approximately $10.3 million in Q1 2015.
Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees declined 1.0 percent in the first quarter of FY2016 when compared with the first quarter of FY2015.
Net income attributable to RMCF shareholders increased 7.3 percent to $763,000, or $0.13 per basic and $0.12 per diluted share, in the first quarter of FY2016, versus net income attributable to RMCF shareholders of $711,000, or $0.12 per basic and $0.11 per diluted share, in the first quarter of FY2015.
Adjusted net income, a non-GAAP measure defined later in this release, increased slightly to $926,000 in the first quarter of FY2016, compared with $924,000 in the first quarter of FY2015.
Non-GAAP adjusted diluted earnings per share rose 7.1 percent to $0.15 per share in the most recent quarter, compared with $0.14 per share in the first quarter of the prior year.
Adjusted EBITDA, a non-GAAP measure defined later in this release, decreased 2.1 percent to $2,097,000 in the most recent quarter, versus $2,142,000 in the first quarter of FY2015.
Factory sales increased 7.7 percent in the first quarter of FY2016, primarily due to a 32.5 percent increase in product shipments to customers outside the Company's network of franchised retail stores.
Factory gross margin narrowed to 25.6 percent of factory sales in the most recent quarter, from 28.8 percent a year earlier, due to higher costs for certain materials and a shift in product and customer mix in the first quarter of FY2016 when compared with the first quarter of FY2015.
Retail sales declined 28.7 percent in the first quarter of FY2016 relative to the first quarter of FY2015, primarily due to the sale and/or closure of certain Company-owned locations.
Franchise fees increased 371 percent, primarily due to fees associated with the license agreements for the development and franchising of CherryBerry self-serve frozen yogurt stores in the Canadian province of Ontario being recognized in the first quarter of FY2016 and no international license fees being recognized in the first quarter of FY2015.
Operating income increased 4.8 percent to $1,411,000 in the first quarter of FY2016, compared with operating income of $1,347,000 in the first quarter of FY2015. ■