EXHIBIT 99.1

For Immediate Release

 

ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2021 OPERATING RESULTS

 

DURANGO, Colorado (June 1, 2021) – Rocky Mountain Chocolate Factory, Inc. (Nasdaq Global Market: RMCF) (the “Company,” “we” or “our”) today reported its operating results for the fourth quarter and fiscal year ended February 28, 2021 (the “fourth quarter of FY2021” and “FY2021,” respectively). The Company franchises and operates gourmet chocolate and confection stores and self-serve frozen yogurt cafés, and manufactures an extensive line of premium chocolates and other confectionery products.

 

COVID-19

 

We have experienced significant business disruptions resulting from efforts to contain the rapid spread of the novel coronavirus (“COVID-19”), including the vast mandated self-quarantines and closures of non-essential business throughout the United States and around the world. Nearly all stores have been directly and negatively impacted by government and public health measures taken in response to the COVID-19 pandemic, with nearly all locations experiencing reduced operations as a result of, among other things, modified business hours and store and mall closures. As a result, franchisees and licensees are not ordering products for their stores in line with historical amounts. This trend has negatively impacted, and is expected to continue to negatively impact, among other things, factory sales, retail sales and royalty and marketing fees of the Company for the foreseeable future.

 

FY2021 DETAILS

 

 

Total revenue decreased 26.3 percent to $23.5 million during FY2021 compared to $31.8 million during the fiscal year ended February 29, 2020 (“FY2020”).

 

 

Same-store pounds of product purchased from the Company’s factory by franchisees and co-branded licensees decreased 30.0 percent during FY2021 compared to FY2020.

 

 

Net income decreased to a net loss of $(900,000), or $(0.15) per basic and diluted share, during FY2021 compared to net income of $1.0 million, or $0.17 per basic and diluted share, during FY2020.

 

 

Operating income decreased to an operating loss of $(3.5) million during FY2021, compared to operating income of $1.4 million during FY2020.

 

 

Factory sales decreased 19.5 percent during FY2021 compared to FY2020, primarily due to a 37.3 percent decrease in sales of product to our network of franchised and licensed retail stores partially offset by a $2.3 million increase in shipments of product to customers outside our network of franchised retail stores.

 

 

Royalty and marketing fees decreased 40.1 percent during FY2021 compared to FY2020.

 

 

Franchise fees decreased 30.2 percent in FY2021 compared to FY2020, primarily due to a decrease in revenue resulting from fewer franchise stores in operation and the associated recognition of revenue over the term of the franchise agreement.

 

 

The Company’s franchisees and licensees opened five domestic Rocky Mountain Chocolate Factory locations, three international Rocky Mountain Chocolate Factory locations and six U-Swirl locations during FY2021.

 

 

1

The following information was filed by Rocky Mountain Chocolate Factory, Inc. (RMCF) on Tuesday, June 1, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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