Rocky Mountain Q4 Revenues Increase To $8.8m

Rocky Mountain Chocolate Factory, a Colorado based franchiser of gourmet chocolate and confection stores, has reported revenues of $8.8m for the fourth quarter ended February 28, 2010, an increase of 13.6% compared to $7.7m in the same quarter previous year.

The company reported net income of $1.2m or $0.19 per diluted share, an increase of 15.4 % compared to $1.04m or $0.17 per diluted share in the same quarter last year.

Same-store sales at franchised retail locations increased 1.4% in the fourth quarter while same-store pounds of factory products purchased by franchisees increased approximately 0.3%, when compared to the prior year quarter.

For the fiscal year 2010, total revenues declined less than 0.5% to approximately $28.4m compared to approximately $28.5m in the previous year.

Net earnings for the year declined 3.7% to $3.58m or $0.58 per diluted share compared to $3.71m or $0.60 per diluted share in the previous fiscal year.

The decrease in revenue, earnings per share, operating income, and net income in fiscal year was due primarily to decreased same store sales, a decrease in the average number of domestic franchise stores in operation and decreased same store pounds purchased by domestic franchise locations.

Bryan Merryman, chief operating officer and chief financial officer of Rocky Mountain Chocolate Factory, said: While openings of new Rocky Mountain Chocolate Factory stores by our franchisees declined to 10 in fiscal 2010, due primarily to the contraction in credit available to small business owners, our co-branding relationship with Cold Stone Creamery (CSC) has evolved into a business opportunity with impressive potential.

“To date, 25 stores have either opened or been converted to the Rocky Mountain Chocolate Factory / Cold Stone Creamery co-branded concept, and we have identified several hundred CSC stores that we believe have the potential to be converted in coming years.”