Rocky Mountain Chocolate Factory, Inc. Reports Significantly
Improved FY 2014 Operating Results
Non-GAAP, Adjusted Diluted E.P.S. Increase 21% to $0.75, Versus
$0.62 in Previous Fiscal Year
DURANGO, CO--(Marketwired - Jun 5, 2014) - Rocky Mountain
Chocolate Factory, Inc. (NASDAQ: RMCF) (the "Company") today
reported its operating results for the quarter and fiscal year
ended February 28, 2014 (FY 2014). The Company franchises and
operates gourmet chocolate and confection stores and manufactures
an extensive line of premium chocolates and other confectionery
products. Its subsidiary, U-Swirl, Inc. (OTCQB: SWRL),
franchises and operates self-serve frozen yogurt cafés. Rocky
Mountain Chocolate Factory will host an investor conference call
today at 4:15 p.m. Eastern Time to discuss its operating results
and other topics of interest (see details below).
FY 2014 HIGHLIGHTS
- On a non-GAAP basis, the Company's adjusted diluted
earnings per share (excluding income tax adjustments,
impairment charges, equity compensation expense, the net fair
value adjustment related to the convertible note between RMCF
and SWRL and restructuring charges) increased 21 percent
to $0.75 in FY 2014, compared with $0.62 in the previous
fiscal year.
- Net income attributable to RMCF shareholders increased
197% to $4,393,000, or $0.72 per basic and $0.68 per diluted
share, in FY 2014, compared with net income attributable to
RMCF shareholders of $1,478,000, or $0.24 per basic and
diluted share, in the year ended February 28, 2013 (FY
2013). In the fourth quarter of FY 2014, the Company recorded
net income attributable to RMCF shareholders of $1,487,000, or
$0.24 per basic and $0.23 per diluted share, versus net income
attributable to RMCF shareholders of $96,000, or $0.02 per
basic and diluted share in the fourth quarter of FY 2013.
- Non-GAAP earnings before interest, taxes, depreciation and
amortization, equity compensation expense, impairment charges,
and restructuring charges ("Adjusted EBITDA") increased 13.7
percent to $7,709,000 in FY 2014, compared with $6,781,000 in
FY 2013.
- The Company's majority-owned subsidiary, U-Swirl, Inc.
("U-Swirl"), reported a loss from operations of $807,000 in FY
2014, compared with a loss from operations of $788,000 in FY
2013 (a portion of which was consolidated in FY 2013 Company
results). U-Swirl's operating results were
negatively impacted during FY 2014 by significant
non-recurring expenses related to restructuring of its
self-serve frozen yogurt operations, and the acquisition of four
franchisors that franchise, license and/or operate self-serve
frozen yogurt cafés.
- The Company's total revenue increased 7.9 percent to a
record $39.2 million in FY 2014, compared with approximately
$36.3 million in the previous fiscal year. System-wide,
same-store sales at the Company's domestic Rocky Mountain
Chocolate Factory store locations increased 1.2 percent in
FY 2014 compared to FY 2013. Same-store pounds of product
purchased from the Company's factory were approximately the
same as prior-year levels.
- Factory sales increased 2.3 percent in the fiscal year
ended February 28, 2014, relative to the prior fiscal year,
while factory adjusted gross margins narrowed slightly to 31.4
percent, from 31.8 percent a year earlier.
- Retail sales rose 17.3 percent in FY 2014, when compared
with FY 2013, while retail gross margin improved to 64.1
percent of retail sales, versus 60.8 percent in FY
2013
- Royalty and marketing fees during FY 2014 increased 20.3
percent compared to FY 2013, primarily due to the January 2013
acquisition of a majority ownership position in the U-Swirl
franchise system and U-Swirl's subsequent acquisitions of
self-serve frozen yogurt franchising companies.
- Operating income improved 106 percent to $5,236,000 in FY
2014, compared with operating income of $2,540,000 in FY
2013.
- The Company's franchisees and licensees opened 3 domestic
Rocky Mountain Chocolate Factory stores, 6
international licensed stores, and 12 co-branded Cold
Stone Creamery stores during FY 2014. U-Swirl expanded
its network of self-serve frozen yogurt stores with the
acquisition of 205 franchised and/or licensed cafés operating
under the brands CherryBerry, Yogli Mogli, Josie's,
and Fuzzy Peach, along with the opening of 13
franchised cafés in FY 2014.
- During the fourth quarter of FY 2014, the Company and
Wells Fargo Bank finalized a $7.0 million bank credit facility
agreement for the purpose of loaning money to U-Swirl to fund
acquisitions of other frozen yogurt businesses
by U-Swirl.
- During the fourth quarter of FY 2014, U-Swirl completed
the acquisition of three self-serve frozen yogurt
chains. On a combined basis, the acquisitions increased
the number of frozen yogurt cafés operated by U-Swirl, its
franchisees and licensees, by over 330% and positioned U-Swirl
as the fourth-largest franchisor and operator of self-serve
cafés in the frozen yogurt industry.
- Subsequent to the end of FY 2014, the Company announced
that it will pay its 44th consecutive quarterly cash dividend
on June 13, 2014, in the amount of $0.11 per share.
MANAGEMENT COMMENTS
"We are pleased to report a 25 percent increase in Non-GAAP,
adjusted net income attributable to our shareholders during fiscal
2014 and an improvement in Non-GAAP, adjusted diluted earnings per
share to $0.75, compared with $0.62 in the previous fiscal year,"
stated Bryan Merryman, Chief Operating Officer and Chief Financial
Officer of Rocky Mountain Chocolate Factory, Inc. "This was
accomplished through increases in Non-GAAP, adjusted profitability
in the core Rocky Mountain Chocolate Factory business and at our
subsidiary, U-Swirl, Inc."
"Same-store sales at our domestic Rocky Mountain Chocolate
Factory store locations improved 1.2 percent in fiscal 2014,
despite weather-related disruptions of store traffic in the fourth
quarter due to severe winter storms in many of our markets,"
continued Merryman. "Nonetheless, our fourth quarter adjusted
net income (a non-GAAP measure) increased 73 percent relative to
the fourth quarter of the previous fiscal year. On an adjusted
diluted per-share basis, we earned $0.27 in the final three months
of fiscal 2014, compared with $0.16 per diluted share in the fourth
quarter of fiscal 2013."
"The 7.9 percent increase in our total revenue during fiscal
2014 was comprised of a 2.3 percent increase in factory sales, a
17.3 percent rise in retail sales, a 20.3 percent increase in
royalty and marketing fees and a 53.6 percent increase in franchise
fees. Growth in factory sales was primarily driven by our
international expansion program, an increase in sales to co-branded
stores and increased sales to customers outside our network of
franchised retail stores. Increases in retail sales, royalty
and marketing fees, and franchise fees were primarily the result of
our acquisition of U-Swirl and the expansion of U-Swirl's franchise
system through acquisitions and new store openings."
"Our international expansion continued during FY 2014. With
Rocky Mountain Chocolate Factory licensees in Canada,
Japan, South Korea, the United Arab Emirates and Saudi Arabia, and
U-Swirl licensees in Canada, Turkey and Pakistan, we
expect the share of our total revenue derived from international
sales to increase in coming years. This bodes well for
royalties, franchise fees and factory product sales going
forward. We are currently in discussions with potential
licensees and/or have business development activities underway in
an additional seven countries."
"Our majority-owned subsidiary, U-Swirl, expanded its geographic
'footprint' dramatically with the acquisition of 210 self-serve
frozen yogurt stores during fiscal 2014 and ended the fiscal year
as the fourth-largest company in the $750 million frozen yogurt
segment of the $6 billion away-from-home frozen desserts
market. We believe U-Swirl has now achieved a 'critical mass'
that should allow operating results in fiscal 2015 and future years
to improve significantly. Our growth strategy for self-serve frozen
yogurt is to maximize U-Swirl's market share and market penetration
through the acquisition of additional franchisors, while
selectively acquiring complementary businesses that can provide
economies of scale."
"The growing strength of the Rocky Mountain Chocolate
Factory brand, which we consider one of our greatest assets,
was evident in last year's successful licensing relationship with
Kellogg Company," noted Merryman. "After a successful test
marketing program marked by an enthusiastic reception from
consumers, Kellogg recently elected to roll out its Rocky
Mountain Chocolate Factory Chocolatey Almond Cereal to the
majority of its retail distribution channels. We have always
believed that the strength of our national brand represents an
asset that can be leveraged, through licensing agreements, into
other product categories, and we are hopeful that our success in
the cereal industry will lead to additional licensing opportunities
going forward."
"In summary, we were very pleased with our earnings recovery in
fiscal 2014, and we are optimistic regarding the outlook for the
current fiscal year. Our business model has been transformed
in recent years through the launch of co-branding and international
expansion initiatives and our entry into self-serve frozen yogurt
at a time when the industry is ripe for consolidation. With
over 32 years of experience in franchising, we believe Rocky
Mountain Chocolate Factory is ideally positioned to take advantage
of these consolidation opportunities. We believe the outlook
for our Company is brighter than it has been in many years, and I
look forward to reporting upon our further progress during the
course of fiscal 2015."
FY 2014 OPERATING RESULTS
For FY 2014, revenue increased 7.9 percent to approximately
$39.2 million, compared with revenue of approximately $36.3 million
in FY 2013. The revenue increase was attributable to higher
factory sales, increased retail sales from Company-owned stores, an
increase in royalty and marketing fees, and higher franchise
fees.
System-wide, same-store sales at the Company's domestic
Rocky Mountain Chocolate Factory store locations increased
1.2 percent in FY 2014, when compared with FY 2013.
Total factory sales rose 2.3 percent to approximately $25.2
million in FY 2014, versus approximately $24.7 million in FY 2013,
due primarily to an increase in sales to international licensed
stores and an 8.9 percent increase in shipments of product to
customers outside the Company's network of franchised and licensed
retail stores. These increases were partially offset by a 0.1
percent decrease in same-store pounds of factory product purchased
by franchised and licensed retail stores and a 5.1 percent decrease
in the average number of domestic Rocky Mountain Chocolate
Factory stores in operation. Factory gross margin
declined by 40 basis points to 31.4 percent of factory sales in FY
2014, compared with 31.8 percent in FY 2013. The decrease in
factory gross margin was due primarily to increased costs of
certain materials.
Retail sales increased 17.3 percent to approximately $6.4
million in FY 2014, from approximately $5.5 million in FY 2013,
primarily due to an increase in units in operation resulting from
the acquisition of a majority ownership in U-Swirl. Same-store
sales at all Company-owned locations decreased 0.7 percent in FY
2014 relative to FY 2013. Retail gross margin improved to 64.1
percent of retail sales in FY 2014, from 60.8 percent of retail
sales in FY 2013, due to an increase in U-Swirl stores in operation
and associated higher margins.
Royalty and marketing fees increased 20.3 percent to
approximately $7.1 million in FY 2014, compared with approximately
$5.9 million in FY 2013, due to a 28.9 percent increase the number
of domestic franchise stores in operation. This increase was
primarily the result of royalty and marketing fees associated with
the U-Swirl franchise system, partially offset by a decrease in the
number of domestic Rocky Mountain Chocolate Factory
franchised stores in operation. During FY 2014, domestic Rocky
Mountain Chocolate Factory franchisees opened three new stores,
versus seven new stores opened in FY 2013.
Franchise fees increased 53.6 percent to approximately $452,000
in FY 2014, versus approximately $294,000 in FY 2013, as a result
of the license fees associated with the license agreements for the
development and franchising of Rocky Mountain Chocolate
Factory stores in South Korea and the Kingdom of Saudi
Arabia.
Net income attributable to the Company's shareholders improved
197 percent to $4,393,000, or $0.72 per basic and $0.68 per diluted
share, in FY 2014, compared with net income attributable to RMCF
shareholders of $1,478,000, or $0.24 per basic and diluted share,
in FY 2013. The increase in net income was due primarily to a
$2,012,000 asset impairment charge for Aspen Leaf Yogurt
operations that was recognized in FY 2013. No such charge was
recognized in FY 2014.
U-Swirl recorded a net loss totaling ($2,126,000) in FY 2014,
compared with a net loss of ($787,000) in FY 2013.
Adjusted net income (a non-GAAP financial measure defined later
in this release) for FY 2014 increased 25.0 percent to $4,797,000,
or $0.75 per diluted share, compared with $3,839,000, or $0.62 per
diluted share in FY 2013.
During FY 2014, domestic franchisees opened 3 new Rocky
Mountain Chocolate Factory stores, while U-Swirl Frozen
Yogurt franchisees opened 13 new stores and 14 new Cold
Stone Creamery co-branded stores were
opened. International licensees opened 6 new Rocky
Mountain Chocolate Factory stores. Complete lists of
stores are available on the Company's websites at www.rmcf.com and
www.u-swirl.com.
FOURTH QUARTER OPERATING RESULTS
For the three months ended February 28, 2014 (fourth quarter of
FY 2014), revenue increased 7.5 percent to approximately $11.1
million, compared with revenue of approximately $10.3 million in
the three months ended February 28, 2013 (fourth quarter of FY
2013). The revenue increase was attributable to increases in
factory sales, retail sales from Company-owned stores, and royalty,
marketing, and franchise fees.
Same-store sales at franchised Rocky Mountain Chocolate
Factory retail outlets decreased 1.5 percent in the fourth
quarter of FY 2014 when compared with the fourth quarter of FY
2013.
Total factory sales increased 4.9 percent to approximately $7.5
million in the fourth quarter of FY 2014, versus approximately $7.2
million in the fourth quarter of FY 2013, due to higher sales to
international licensed stores, co-branded stores and increased
shipments of product to customers outside the Company's network of
franchised and licensed retail stores. These increases were
partially offset by a decrease in the average number of domestic
Rocky Mountain Chocolate Factory stores in operation of
6.8 percent. Factory gross margin declined by 100 basis points
to 29.9 percent of factory sales in the fourth quarter of FY 2014,
compared with 30.9 percent in the prior year period, due primarily
to higher costs for certain materials.
Retail sales increased 11.3 percent to approximately $1.5
million in the fourth quarter of FY 2014, from approximately $1.3
million in the prior-year period, primarily due to changes in units
in operation resulting from the acquisition of a majority ownership
in U-Swirl, Inc. Same-store sales at all Company-owned
locations increased 2.5 percent in the fourth quarter of FY 2014
relative to the fourth quarter of FY 2013. Retail gross margin
improved to 62.3 percent of retail sales in the fourth quarter of
FY 2014, from 60.8 percent of retail sales in the fourth quarter of
FY 2013, due to an increase in U-Swirl stores in operation and
associated higher margins.
Royalty and marketing fees increased 14.8 percent to
approximately $2.0 million in the fourth quarter of FY 2014,
compared with approximately $1.7 million in the fourth quarter of
FY 2013. The increase was due to a 48.5 percent expansion in
the number of domestic franchise stores in operation, primarily as
a result of royalty and marketing fees associated with the U-Swirl
franchise system. Franchise fees increased to $61,000,
compared with $46,000 in the corresponding period of the previous
fiscal year.
Net income attributable to the Company's shareholders increased
over 15 times to $1,487,000, or $0.24 per basic and $0.23 per
diluted share, in the fourth quarter of FY 2014, compared with net
income attributable to RMCF shareholders of $96,000, or $0.02 per
basic and diluted share, in the fourth quarter of FY
2013. Fourth quarter FY 2013 operating results included
$34,000 in asset impairment charges, whereas no such impairment
charges were recorded in the fourth quarter of FY
2014. Restructuring charges totaling $786,000 and $635,000
were recognized in the fourth quarters of FY 2014 and FY 2013,
respectively.
Adjusted net income (a non-GAAP financial measure defined later
in this release) for the fourth quarter of FY 2014 improved 73
percent to $1,731,000, or $0.27 per diluted share, compared with
$999,000, or $0.16 per diluted share in the fourth quarter of FY
2013.
Non-GAAP Financial Measures
Adjusted EBITDA, a non-GAAP financial measure, is computed by
adding depreciation and amortization, equity compensation expenses,
impairment charges, restructuring charges and acquisition related
costs to GAAP income from operations.
Adjusted net income, a non-GAAP financial measure, is computed
by adding equity compensation expenses, impairment charges,
restructuring charges and acquisition related costs to GAAP net
income and deducting the net fair value adjustment related to the
convertible note between RMCF and SWRL from GAAP net
income. These figures are adjusted to reflect a federal and
state statutory tax rate of 37 percent.
Cash Dividends
On March 14, 2014, the Company paid its 43rd consecutive
quarterly cash dividend, in the amount of $0.11 per share, to
shareholders of record at the close of business on February 28,
2014. The Company has announced that it will pay its 44th
quarterly dividend on June 13, 2014, in the amount of $0.11 per
share, to shareholders of record at the close of business on June
3, 2014.
Investor Conference Call
The Company will host an investor conference call today, June 5,
2014, at 4:15 p.m. Eastern Time, to discuss its operating results
for the quarter and fiscal year ended February 28, 2014, along with
other topics of interest. To participate in the conference
call, please dial 1-877-374-8416 (international and local
participants dial 412-317-6716) approximately five minutes prior to
4:15 p.m. EST on (day), June 5, 2014 and ask to be connected to the
"Rocky Mountain Chocolate Factory Conference Call."
A replay of the conference call will be available one hour after
completion of the call until, June 12, 2014 at 5:00 pm EST by
dialing 877-344-7529 (international and local participants dial
412-317-0088) and entering the conference I.D. # 10047449.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc., headquartered in
Durango, Colorado, is an international franchiser of gourmet
chocolate, confection and self-serve frozen yogurt stores and a
manufacturer of an extensive line of premium chocolates and other
confectionery products. As of June 4, 2014 the Company, its
subsidiary and its franchisees operated 646 Rocky Mountain
Chocolate Factory and self-serve frozen yogurt stores in 42
states, Canada, Japan, South Korea, The United Arab Emirates,
Pakistan, and Turkey. The Company's common stock is listed on
The Nasdaq Global Market under the symbol "RMCF." The common
stock of U-Swirl, Inc. trades on the OTCQB market under the symbol
"SWRL."
Forward-Looking Statements
Certain statements in this press release are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements involve risks and
uncertainties, and the Company undertakes no obligation to update
any forward-looking information. Risks and uncertainties that
could cause cash flows to decrease or actual results to differ
materially include, without limitation, seasonality, consumer
interest in the Company's products, general economic conditions,
consumer and retail trends, costs and availability of raw
materials, competition, the success of the Company's co-branding
agreement with Cold Stone Creamery Brands, the success of
international expansion efforts, including but not limited to new
store openings, the success of U-Swirl, Inc. and other
risks. Readers are referred to the Company's periodic reports
filed with the SEC, specifically the most recent reports which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking
statements. The information contained in this press release is
a statement of the Company's present intentions, beliefs or
expectations and is based upon, among other things, the existing
business environment, industry conditions, market conditions and
prices, the economy in general and the Company's
assumptions. The Company may change its intentions, beliefs or
expectations at any time and without notice, based upon any changes
in such factors, in its assumptions or otherwise. The
cautionary statements contained or referred to in this press
release should be considered in connection with any subsequent
written or oral forward-looking statements that the Company or
persons acting on its behalf may issue.
For Further Information, Contact
Bryan J. Merryman COO/CFO (970) 375-5678
(Financial Highlights Follow)
|
|
STORE INFORMATION |
|
|
|
|
|
|
|
New stores opened during three months ended February 28, 2014 |
|
Stores open as of February 28, 2014 |
United States |
|
|
|
|
Rocky Mountain Chocolate Factory |
|
|
|
|
|
Franchise Stores |
|
0 |
|
213 |
|
Company-Owned Stores |
|
0 |
|
7 |
|
Cold
Stone Creamery |
|
7 |
|
65 |
|
International License Stores |
|
0 |
|
69 |
U-Swirl, Inc. |
|
|
|
|
|
Franchise Stores |
|
1 |
|
268 |
|
Company-Owned Stores |
|
0 |
|
13 |
|
International License Stores |
|
0 |
|
4 |
Total |
|
8 |
|
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA |
(in thousands) |
|
|
|
|
|
|
|
February 28, 2014 |
|
February 28, 2013 |
Current Assets |
|
$ |
16,992 |
|
$ |
14,544 |
Total
Assets |
|
$ |
37,466 |
|
$ |
23,834 |
Current Liabilities |
|
$ |
7,958 |
|
$ |
5,563 |
Stockholder's Equity |
|
$ |
22,165 |
|
$ |
17,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, |
|
|
Three Months Ended February 28, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factory sales |
|
$ |
7,515 |
|
|
$ |
7,166 |
|
|
67.9 |
% |
|
69.6 |
% |
|
Royalty and marketing fees |
|
|
2,007 |
|
|
|
1,749 |
|
|
18.1 |
% |
|
17.0 |
% |
|
Franchise fees |
|
|
61 |
|
|
|
46 |
|
|
0.6 |
% |
|
0.4 |
% |
|
Retail sales |
|
|
1,481 |
|
|
|
1,330 |
|
|
13.4 |
% |
|
12.9 |
% |
|
Total
Revenues |
|
|
11,064 |
|
|
|
10,291 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of sales |
|
|
5,823 |
|
|
|
5,494 |
|
|
52.6 |
% |
|
53.4 |
% |
|
Franchise costs |
|
|
554 |
|
|
|
521 |
|
|
5.0 |
% |
|
5.1 |
% |
|
Sales
and marketing |
|
|
630 |
|
|
|
621 |
|
|
5.7 |
% |
|
6.0 |
% |
|
General and administrative |
|
|
1,378 |
|
|
|
1,457 |
|
|
12.5 |
% |
|
14.2 |
% |
|
Retail operating |
|
|
715 |
|
|
|
804 |
|
|
6.5 |
% |
|
7.8 |
% |
|
Depreciation and amortization |
|
|
357 |
|
|
|
243 |
|
|
3.2 |
% |
|
2.4 |
% |
|
Impairment of long-lived assets |
|
|
- |
|
|
|
34 |
|
|
0.0 |
% |
|
0.3 |
% |
|
Restructuring charges |
|
|
786 |
|
|
|
635 |
|
|
7.1 |
% |
|
6.2 |
% |
|
Total
Costs and Expenses |
|
|
10,243 |
|
|
|
9,809 |
|
|
92.6 |
% |
|
95.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
821 |
|
|
|
482 |
|
|
7.4 |
% |
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(49 |
) |
|
|
- |
|
|
-0.4 |
% |
|
0.0 |
% |
|
Interest income |
|
|
41 |
|
|
|
11 |
|
|
0.4 |
% |
|
0.1 |
% |
|
Investment gain |
|
|
18 |
|
|
|
- |
|
|
|
|
|
|
|
|
Other, net |
|
|
10 |
|
|
|
11 |
|
|
0.1 |
% |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
831 |
|
|
|
493 |
|
|
7.5 |
% |
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
653 |
|
|
|
525 |
|
|
5.9 |
% |
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net income |
|
|
178 |
|
|
|
(32 |
) |
|
1.6 |
% |
|
-0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (loss) income attributable to non-controlling
interest |
|
|
(1,309 |
) |
|
|
(128 |
) |
|
-11.8 |
% |
|
-1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to RMCF |
|
$ |
1,487 |
|
|
$ |
96 |
|
|
13.4 |
% |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
$ |
0.24 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
$ |
0.23 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
6,116,848 |
|
|
|
6,058,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive Effect of Employee Stock Options |
|
|
358,121 |
|
|
|
124,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding, Assuming
Dilution |
|
|
6,474,969 |
|
|
|
6,182,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(in thousands, except share and per share data) |
|
|
|
|
|
Year Ended February 28, |
|
|
Year Ended February 28, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factory sales |
|
$ |
25,219 |
|
|
$ |
24,651 |
|
|
64.4 |
% |
|
67.9 |
% |
|
Royalty and marketing fees |
|
|
7,071 |
|
|
|
5,877 |
|
|
18.0 |
% |
|
16.2 |
% |
|
Franchise fees |
|
|
452 |
|
|
|
294 |
|
|
1.2 |
% |
|
0.8 |
% |
|
Retail sales |
|
|
6,443 |
|
|
|
5,493 |
|
|
16.4 |
% |
|
15.1 |
% |
|
Total
Revenues |
|
|
39,185 |
|
|
|
36,315 |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of sales |
|
|
19,613 |
|
|
|
18,955 |
|
|
50.1 |
% |
|
52.2 |
% |
|
Franchise costs |
|
|
2,063 |
|
|
|
2,080 |
|
|
5.3 |
% |
|
5.7 |
% |
|
Sales
and marketing |
|
|
2,154 |
|
|
|
1,939 |
|
|
5.5 |
% |
|
5.3 |
% |
|
General and administrative |
|
|
5,003 |
|
|
|
3,847 |
|
|
12.8 |
% |
|
10.6 |
% |
|
Retail operating |
|
|
3,303 |
|
|
|
3,372 |
|
|
8.4 |
% |
|
9.3 |
% |
|
Depreciation and amortization |
|
|
1,027 |
|
|
|
935 |
|
|
2.6 |
% |
|
2.6 |
% |
|
Impairment of long-lived assets |
|
|
- |
|
|
|
2,012 |
|
|
0.0 |
% |
|
5.5 |
% |
|
Restructuring charges |
|
|
786 |
|
|
|
635 |
|
|
2.0 |
% |
|
1.7 |
% |
|
Total
Costs and Expenses |
|
|
33,949 |
|
|
|
33,775 |
|
|
86.6 |
% |
|
93.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
5,236 |
|
|
|
2,540 |
|
|
13.4 |
% |
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(49 |
) |
|
|
- |
|
|
-0.1 |
% |
|
0.0 |
% |
|
Interest income |
|
|
85 |
|
|
|
44 |
|
|
0.2 |
% |
|
0.1 |
% |
|
Investment gain |
|
|
18 |
|
|
|
- |
|
|
|
|
|
|
|
|
Other, net |
|
|
54 |
|
|
|
44 |
|
|
0.1 |
% |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
5,290 |
|
|
|
2,584 |
|
|
13.5 |
% |
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
2,155 |
|
|
|
1,234 |
|
|
5.5 |
% |
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net income |
|
|
3,135 |
|
|
|
1,350 |
|
|
8.0 |
% |
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (loss) income attributable to non-controlling
interest |
|
|
(1,258 |
) |
|
|
(128 |
) |
|
-3.2 |
% |
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to RMCF |
|
$ |
4,393 |
|
|
$ |
1,478 |
|
|
11.2 |
% |
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
$ |
0.72 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
$ |
0.68 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
6,100,032 |
|
|
|
6,078,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive Effect of Employee Stock Options |
|
|
336,879 |
|
|
|
140,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding, Assuming
Dilution |
|
|
6,436,911 |
|
|
|
6,219,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP RECONCILIATION |
|
EBITDA EXCLUDING IMPAIRMENT CHARGES AND EQUITY
COMPENSATION |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, |
|
Change |
|
|
|
2014 |
|
2013 |
|
|
|
GAAP: Income from Operations |
|
$ |
821 |
|
$ |
482 |
|
-70.3 |
% |
|
Depreciation and Amortization |
|
|
357 |
|
|
243 |
|
|
|
|
Equity Compensation Expense |
|
|
172 |
|
|
221 |
|
|
|
|
Impairment and Restructuring |
|
|
786 |
|
|
669 |
|
|
|
Non-GAAP, adjusted EBITDA |
|
$ |
2,136 |
|
$ |
1,615 |
|
32.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP RECONCILIATION |
|
EBITDA EXCLUDING IMPAIRMENT CHARGES AND EQUITY
COMPENSATION |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Year Ended February 28, |
|
Change |
|
|
|
2014 |
|
2013 |
|
|
|
GAAP: Income from Operations |
|
$ |
5,236 |
|
$ |
2,540 |
|
106.1 |
% |
|
Depreciation and Amortization |
|
|
1,027 |
|
|
935 |
|
|
|
|
Equity Compensation Expense |
|
|
660 |
|
|
659 |
|
|
|
|
Impairment and Restructuring |
|
|
786 |
|
|
2,647 |
|
|
|
Non-GAAP, adjusted EBITDA |
|
$ |
7,709 |
|
$ |
6,781 |
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP RECONCILIATION |
|
ADJUSTED DILUTED EARNINGS PER SHARE |
|
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, |
|
Change |
|
|
|
2014 |
|
|
2013 |
|
|
|
GAAP: Net Income |
|
$ |
1,487 |
|
|
$ |
96 |
|
1449.0 |
% |
|
Income tax adjustment to Statutory Rate of 37% |
|
|
346 |
|
|
|
343 |
|
|
|
|
Equity Compensation Expense |
|
|
108 |
|
|
|
139 |
|
|
|
|
Impairment and Restructuring |
|
|
495 |
|
|
|
421 |
|
|
|
|
Net
gain on derivative fair value |
|
|
(705 |
) |
|
|
- |
|
|
|
Non-GAAP, adjusted Net Income |
|
$ |
1,731 |
|
|
$ |
999 |
|
73.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP, adjusted Diluted Earnings Per Share |
|
$ |
0.27 |
|
|
$ |
0.16 |
|
68.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP RECONCILIATION |
ADJUSTED DILUTED EARNINGS PER SHARE |
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
Year Ended February 28, |
|
Change |
|
|
|
2014 |
|
|
2013 |
|
|
|
GAAP: Net Income |
|
$ |
4,393 |
|
|
$ |
1,478 |
|
197.2 |
% |
|
Income tax adjustment to Statutory Rate of 37% |
|
|
198 |
|
|
|
278 |
|
|
|
|
Equity Compensation Expense |
|
|
416 |
|
|
|
415 |
|
|
|
|
Impairment and Restructuring |
|
|
495 |
|
|
|
1,668 |
|
|
|
|
Net
gain on derivative fair value |
|
|
(705 |
) |
|
|
- |
|
|
|
Non-GAAP, adjusted Net Income |
|
$ |
4,797 |
|
|
$ |
3,839 |
|
25.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP, adjusted Diluted Earnings Per Share |
|
$ |
0.75 |
|
|
$ |
0.62 |
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Further Information, Contact: Bryan J. Merryman COO/CFO
(970) 375-5678
U Swirl (CE) (USOTC:SWRL)
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De Ago 2024 até Set 2024
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Gráfico Histórico do Ativo
De Set 2023 até Set 2024