Rocky Mountain Chocolate Factory, Inc. Earnings: Keeping the Profitability Streak Alive

Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) reported its results for the first quarter. Rocky Mountain Chocolate Factory, Inc. is an international franchisor and confectionery manufacturer. It owns franchisee/licensee owned and franchised Rocky Mountain Chocolate Factory stores operating in 36 states, Canada, and the United Arab Emirates.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

Rocky Mountain Chocolate Factory Earnings Cheat Sheet for the First Quarter

Results: Net income for Rocky Mountain Chocolate Factory, Inc. fell to $920,000 (15 cents per share) vs. $931,601 (15 cents per share) a year earlier. This is a decline of 1.2% from the year earlier quarter.

Revenue: Rose 13.4% to $8.6 million from the year earlier quarter.

Quoting Management: “We were pleased with our operating results for the first quarter of fiscal 2012,” commented Bryan Merryman, Chief Operating Officer and Chief Financial Officer of Rocky Mountain Chocolate Factory, Inc.  “Our net income decreased slightly in FY2012, which includes an operating loss of approximately $38,000, or approximately 2.6 percent of net income related to our new ALY retail initiative. We have been very pleased with the sales volumes achieved by the five ALY stores that have opened to date.  While ALY is still a new business venture for us, we are gaining confidence that the unit economics of ALY stores should provide a healthy return on investment to both us and our franchisees.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 1.9% to $9 million in the fourth quarter of the last fiscal year. The figure rose 15% in the third quarter of the last fiscal year from the year earlier and climbed 8.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 3.2% from the year earlier quarter.

Competitors to Watch: Tootsie Roll Industries, Inc. (NYSE:TR), The Hershey Company (NYSE:HSY), Lees Foods Plc (NYSE:LEE), Kraft Foods Inc. (NYSE:KFT), Snyder S Lance Inc (NASDAQ:LNCE), John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS), Ralcorp Holdings, Inc. (NYSE:RAH), Diamond Foods, Inc. (NASDAQ:DMND), The Hain Celestial Group, Inc. (NASDAQ:HAIN), General Mills, Inc. (NYSE:GIS) Pepsi (NYSE:PEP), Coca-Cola (NYSE:KO) and The J.M. Smucker Company (NYSE:SJM).

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

(Source: Xignite Financials)