Third Quarter Diluted Earnings Per Share Rise 30.8 Percent To $0.17, Compared With $0.13 In Prior-Year Quarter
DURANGO, Colorado (January 5, 2006) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq/NMS: RMCF) (the “Company”), which franchises gourmet chocolate and confection stores and manufactures an extensive line of premium chocolates and other confectionery products, today reported record revenues and earnings for the third quarter and first nine months of FY2006.
(Note: All per-share figures in this news release are adjusted for a 4-for-3 stock split in June 2005 and a 5% stock dividend that was distributed to shareholders in March 2005).
For the quarter ended November 30, 2005, revenues increased 12.7 percent to approximately $8.0 million, compared with $7.1 million in the third quarter of FY2005. Comparable-store sales at franchised retail outlets increased approximately 1.1 percent during the most recent quarter when measured against the three months ended November 30, 2004. Sales of all franchised and Company-owned stores increased 8.9% to approximately $22.1 million in the most recent quarter, compared with approximately $20.3 million in the third quarter of the previous fiscal year.
Net earnings for the third quarter of FY2006 increased 28.1 percent to $1,116,000, compared with $871,000 in the prior-year period. Basic earnings per share rose 20.0 percent to $0.18 in the third quarter of FY2006,versus $0.15 in the quarter ended November 30, 2004, while diluted earnings per share increased 30.8 percent to $0.17 in the third quarter of FY2006, compared with $0.13 in the prior-year quarter.
“We are pleased to report a recovery in earnings momentum during the most recent quarter,” stated FrankCrail, Chairman and Chief Executive Officer of Rocky Mountain Chocolate Factory, Inc. “Our 30.8 percentim provement in third quarter diluted earnings per share compared favorably to the 6.3 percent increase in the second quarter, which was penalized by unusually hot weather in many of our markets during the summer months. Comparable-store sales growth also resumed in the most recent quarter, and we shipped an order to a major warehouse club customer that schedules a pre-Christmas promotion of our candies each year.”