Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF the "Company”) today reported
record basic earnings per share of $.19 for the quarter ended May 31, 2001 compared
to $.10 per share for the comparable period in the prior year, an increase of
90%. Net income in the first quarter of fiscal 2002 increased 60.2% to a record
$351,000 from $219,000 in the first quarter of 2001. Excluding retail sales, revenues
increased 12.9% in the first quarter of fiscal 2002, to $3,655,000 from $3,239,000
for the comparable period in the prior year.
Total retail sales decreased from $1,999,000 in the first quarter of fiscal
2001 to $578,000 in the first quarter of fiscal 2002. The decrease in retail
sales is due primarily to the execution of the Company’s strategy to exit its
Company-owned store program. On May 1, 2001, the Company completed the conversion
of substantially all of its Company-owned stores to franchise-owned stores in
order to focus its resources on its franchise system. The Company retained four
stores in Colorado to test sales, marketing, design and operational initiatives.
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Through June 1, 2001, two new franchised stores have opened, 12 additional
franchised stores are under construction and another six leases have been completed.
On January 5, 2001 the Board of Directors approved the repurchase of an additional
100,000 shares of the Company’s outstanding common stock at an aggregate price
of up to $500,000. To date, the Company has repurchased 76,000 shares of its
common stock for approximately $413,000.
This press release contains forward-looking information that involves risks
and uncertainties, and the Company undertakes no obligation to update any forward-looking
information. Risks and uncertainties that could cause actual results to differ
materially include, without limitation, the Company’s ability to franchise its
Company-owned stores, seasonality, consumer interest in the company’s products,
general economic conditions, consumer trends, costs and availability of raw
materials, competition and the effect of government regulation.
Rocky Mountain Chocolate Factory, Inc. is an international franchiser of old-fashion
chocolate and confection stores and a manufacturer of an extensive line of premium
chocolates and other confectionery products.
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