Rocky Mountain Chocolate Factory Q3 net income fell 54.2%
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Adjusted net income declined 27.5 percent to $797,000.
The 19 percent decline in consolidated net income and the 54.2 percent decrease in net income attributable to RMCF shareholders, as well as the 53.3 percent reduction in diluted earnings per share, was due primarily to a derivative fair value charge of $710,000 in the three months ended November 30, 2015, versus a derivative fair value charge of $92,000 in the prior-year period (a derivative fair value charge benefits the non-controlling interest in our subsidiary).
Adjusted net income declined 27.5 percent to $797,000 in the three months ended November 30, 2015, compared with $1,099,000 in the three months ended November 30, 2014.
Non-GAAP adjusted diluted earnings per share decreased 23.5 percent to $0.13 per share in the three months ended November 30, 2015, compared with $0.17 per share in the three months ended November 30, 2014.
Adjusted EBITDA, a non-GAAP measure defined later in this release, declined 16.2 percent to $1,741,000 in the three months ended November 30, 2015, compared to $2,078,000 in the three months ended November 30, 2014.
Operating income declined 19.4 percent to $1,252,000 in the three months ended November 30, 2015, compared with operating income of $1,554,000 in the three months ended November 30, 2014.
The company's franchisees and licensees opened 2 domestic Rocky Mountain Chocolate Factory stores and 6 international licensed stores during the most recent quarter. U-Swirl franchisees opened 1 self-serve frozen yogurt café and 1 international licensed café during the third quarter of FY2016.
The company repurchased 12,005 shares of its common stock at an average price of $12.00 per share during the three months ended November 30, 2015.
On December 11, 2015, the company paid its 50th consecutive quarterly cash dividend to stockholders, in the amount of $0.12 per share. ■