Rocky Mountain Chocolate Factory Q1 2017 revenue down 9.5%
Staff Writer |
Rocky Mountain Chocolate Factory reported its operating results for the first quarter of FY2017.
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Total revenue decreased 9.5 percent to $9.4 million in the first quarter of FY2017, compared with revenue of $10.4 million in Q1 FY2016.
Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 5.8% during the first quarter of FY2017 compared to the first quarter of FY2016.
Net income attributable to RMCF shareholders decreased 4.1 percent to $732,000, or $0.13 per basic and $0.12 per diluted share, in the first quarter of FY2017, versus net income attributable to RMCF shareholders of $763,000, or $0.13 per basic and $0.12 per diluted share, in the first quarter of FY2016.
Operating income decreased 16.2 percent to $1,183,000 in the first quarter of FY2017, compared with operating income of $1,411,000 during the first quarter of FY2016.
Adjusted EBITDA (a non-GAAP measure defined later in this release) decreased 17.2 percent to $1,736,000 in the first quarter of FY2017, versus $2,097,000 in the first quarter of FY2016.
Factory sales declined 8.9 percent during the first quarter of FY2017, compared to the first quarter of FY2016 primarily due to a 20.4% decrease in shipments of product to customers outside our network of franchised retail stores.
Royalty and marketing fees decreased 4.7 percent in the first quarter of FY2017, primarily due to an 11.5 percent decrease in the number of franchised locations in operation compared to the first quarter of FY2016.
Franchise fees decreased 61.0 percent in the first quarter of FY2017, primarily due to fewer international license fees during the quarter compared to the first quarter of FY2016 as a result of the license fees associated with the license agreements for the development and franchising of CherryBerry 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 FY2017.