College of Business Administration ASSE 4311 - Learning Outcome Assessment III Instructor: Dr. Emmanuel Ntui Section202 Group Case Analysis Project .Rocky Mountain Chocolate Factory, Inc Summer 2012 Submission Date: August 3rd, 2012
Table of Contents Introduction The present case study is to analyze Rocky Mountain Chocolate Factory,
Inc. (RMCFI). It will be divided into four parts: Current Situation and Corporate
Governance, External Environment (Opportunities and Threats) and Internal
Environment (Strengths and Weaknesses), Analysis of Strategic Factors (SWOT) &
Strategic Alternatives & Choice, and Strategy Implementation and Evaluation &
Control. To accomplish each of these four parts, the Rocky Mountain Chocolate
Factory, Inc. (RMCFI) should be scrutinized regarding its financial information and data that made the company to its present situation it has now. The case study report will also identify from the information whether the company will continue to strategically grow and what made it so. The close analysis of these data and
.information will be the basis of the conclusion
Company Background The present case is about the Rocky Mountain Chocolate Factory, Inc.
(RMCFI) which 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 with headquarters in Durango,
Colorado. As of the present, RMCFI together with its franchisees have 371 stores that are located in 40 different states of the USA, besides Canada, and the United
Arab Emirates. Also, it is listed as common stock on NASDAQ Global Market
”.under “RMCF
The Rocky Mountain Chocolate Factory, Inc. was founded by Frank Crail in
1981 and went to the public in 1986. Its main competitors are Godiva Chocolatier,
.(Fannie Mae, See’s Candies, Lindt, and Ethel M’s (www.rmcf.com, 2012 The company business line assures freshness of products sold as 50% of
them are done in the stores as the Company believes that this “in-store preparation
creates a special store ambiance and the aroma and sight of products being made
attracts foot traffic and assures customers that products are fresh” (www.rmcf.com,
.(2012
Presently, the Rocky Mountain Chocolate Factory, Inc. shareholders of
record at the close of business May 24, 2012, were given cash dividend of $0.11 per
common share outstanding last June 8, 2012. The dividend represents a 10%
increase in the cash dividend payout when compared with the previous quarterly
.(dividend (Merryman, 2012
The Corporate Governance The success of a company lies on the leadership of its governing body. The
leaders encourage productivity through the development and encouragement of
creativity and innovation as well as efficiency in the company’s employees. The
corporate governance is the combination of the rules, procedures, and
administration of the company’s contracts with its shareholders, creditors,
employees, suppliers, customers, and sovereign governments
(http://ivoireconsultancy. hubpages.com/, 2012). This governance is officially
placed on the responsibility of the board of directors whose duties have been
entrusted by the shareholders to serve the interests of the corporation. The Rocky
Mountain Chocolate Factory, Inc. has the following officers and directors taken
:(from the company’s website (www. rmcf.com, 2012
Since Title OFFICERS 1981 Chairman of the Board, President, Chief Executive Officer Franklin E. Crail 1997 Chief Financial Officer, Chief Operating Officer, Treasurer, Director Bryan J. Merryman 1997 Senior Vice President - Sales and Marketing Edward L. Dudley 2001 Senior Vice President – Development Gregory L. Pope 2008 Vice President - Franchise Support and Training Donna L. Coupe 2008 Vice President – Finance Jeremy M. Kinney 1991 Vice President – Creative Jay B. Haws 2001 Chief Information Officer William K. Jobson 2011 Corporate Secretary Tracy D. Wojcik
Since Title DIRECTORS 1982 Chairman of the Board, President, Chief Executive Officer Franklin E. Crail 1999 Chief Financial Officer, Chief Operating Officer, Treasurer, Director Bryan J. Merryman 2000 Director Clyde W. Engle 1995 Director .Gerald A. Kien, Ph.D 1987 Director Lee N. Mortenson 1982 Director Scott G. Capdevielle
The corporate governance is composed of the By-laws of the company, audit
committee of the Board of Directors, Code of Conduct, Code of Ethics for Senior
Financial Officers, Nominating Committee Charter, Policy on Shareholder
Communications with Board of Directors, and Whistleblower/Complaint
.Procedures for Accounting and Auditing matters
Company’s Vision
The vision of Rocky Mountain Chocolate Factory, Inc. is to become a top
.international manufacturer of chocolate candies and sweets
Company’s Mission
The mission of Rocky Mountain Chocolate Factory, Inc. is to produce a
fantastic variety of yummy handmade chocolates and confections that are made from only the finest ingredients, the best cocoa blends, and rated as the top
.chocolate for its rich, intense flavor
Industry Analysis Data
A short industry analysis of the chocolate identifies the following
:((http://chocolate-news.com/chocolate-makers-3/, 2012
Rise 2% on average in the duration of the next five years, because of the
.growth of emerging markets is expected in global demand for chocolate
Global chocolate market is estimated to reach $98.3 billion in 2016 from
$83.2 billion in 2010, at a CAGR of 2.7% from 2011 to 2016. The market in
Asia is driving the sales and is expected to hold 20% of the global market
share in 2016. The Asian market is expected to have high growth of CAGR
4.7% due to lower penetration and sales of Asian region are expected to
.boost their share from $15 billion in 2010 to $19.7 billion in 2016
Expands at a 45% in the Russian chocolate market and 60% in North Africa
.by 2016
Consumers purchased tablets of chocolate for lower cost because they
speculated with the recession, and chocolate makers reduced the size of the
.bars
Western Europe represents 32% of the demand for global chocolate and
.follows that of the United States, with 20% This year the consumption in the United States will fall by 4.8% and reach
1.32 million metric tons, and that Western Europe will expand by 0.6% to
.reach the 2.46 million tons
In the quarter of 2012, the demand will be 43,000 tons greater than the
.supply
Growth of cocoa consumption will decrease to 1.8% against more than 5%
.that occurred in the period 2010-2011
The U.S. leads the chocolate market in North America with around 86.3%
market share while Japan leads the Asian market with 39.7% of market share. Within Europe, UK draws the largest demand with 16.4%; followed
.by Germany with 15.9 % market share
In March of last year, cocoa climbed to its peak in 32 years because of civil war in Ivory Coast, from us $3.775 per ton but declined this year at $2.171
.(per ton and widespread disease in cocoa trees in Brazil (Bright, Chris
Supermarkets and hypermarkets distribute a further 28.5% of the market’s revenues. Chocolate candy boxes or bags greater or equal to 3.5oz account
.for 36.7% of the US Chocolate Confectionary Segment
The value of gourmet chocolate products that Americans bought increased
.by 28% from 2002 to the present
External Environment (Opportunities & Threats) and Internal (Environment (Strengths & Weaknesses
:External Environment
Economic Forces Environment
Growth of emerging markets like China, India, Indonesia, Vietnam, o
.and Malaysia .Steady economic growth in Western Europe o
.Continued slow growth of US economy o
.Decreasing growth of the global economy o
.(Increasing raw material prices (sugar, cacao, milk o
Dependence of the industry over unstable economies for cocoa o
.supply
Social and Demographic Forces
.Increase in world population o
.Chocolate is seen as good for the health o
.Seasonal and festive sales o
.The demand of gourmet and healthier types of chocolates o
Political, Legal, and Governmental Forces
Civil war in Ivory Coast last year that politically became stable thi8s o
.year
.Increased in production and sales tax in the US o
Environmental Forces
The existence of widespread cacao tree diseases in cacao plantations o
in Brazil call for planting change and to use cacao to reforest some
.portions of the Amazon forest
Technological Forces
Emergence of counterfeiting processes that produce alternative o
.chocolates
.Improved preparation and discovery of other products from cacao o :(Internal Environment (VRIO Analysis
To find the internal environment, we used the analysis of Valuable, Rare,
.Inimitable and Organized resources of the company which called VRIO Analysis
?Valuable - How valuable are the company’s resources
Using the common foundations that include efficiency, quality, customer responsiveness, and innovation, the company can be assessed of how valuable it is. As the increase of dividends of 10% increase in the cash dividend payout when compared with the previous quarterly dividend has shown of its increasing income as the amount of output is much higher than its input (revenue vs. cost is 9,658 vs. 5,567, respectively). Please see
Appendix financial statements. The quality of its chocolates is the pride of the company. It has over 300 varieties of handmade chocolates and confections that are made from the best cocoa blends and other ingredients that make their top chocolate products. The way the company prepares its chocolates and confectionaries are valuable because it is the only company with this way of preparing its products and servicing its customers. The special individualized way of serving its customers is valuable because this
.distinguishes the company from its competitors
Chocolate is made in front of your eyes when you order any of its chocolate products. Its continual way of creating new products tells of how innovative company RMCF is. RMCF’s valuable resources give it a
competitive advantage over its competitors
. ?Rare – How rare are the company’s resources
The brand name of RMCF has already achieved successful branding and it is known in the USA as a fun way to buy chocolates. Rocky
Mountain has strong brand awareness and marketing techniques that, in the
.past, have proved to be successful in its franchises
RMCF’s competitors include Hershey Foods Corporation, and Mars,
Inc. Hershey Foods Corporation is the leading company, with a 24.3% share, in the US confectionary market. Mars, Inc. holds 18.7% of the market’s value. Between the two of them, a 43% of the entire market is held. Hershey
Foods, the 112-year-old will expand to the premium chocolate market by buying Scharffen Berger Chocolate Maker. Mars will launch Ethel’s, a gourmet chocolate line that ranges from traditional truffles to trendy treats inspired by cocktails such as cosmopolitans. These products have the potential to be marketed in the grocery store environment just as their counterparts are now being marketed (Baldonado, Hardwick, Houang,
Moreno, Norashkarian, and Trinh, 2012). To have stronger share of the
.market, RMCF should also grow towards organic chocolate line
?Inimitable – Can these products imitated easily
Although particular chocolate confections are easily imitated and replaced by other chocolate confections, buying and consuming RMCF products is a luxury experience. Rocky Mountain Chocolate Factory embodies the idea that luxury, gourmet indulgence can be consumed on a relative budget. As long as tourists with higher levels of disposable income continue to be its core target market, the trend towards better chocolates should not decline within the franchise. Consumers will not move backward in terms of preference and taste, especially if what they desire remains attainable (Baldonado, Hardwick, Houang, Moreno, Norashkarian, and
Trinh, 2012). RMCF is believed to have unique products that are sought after by its consumers and clients and are not easily substituted by other
.chocolates
?Organized - How usable is the resource to the company
To be organized, a resource must be usable to the company.
RMCF’s marketing and sales outlets are well organized. As of May 3, 2012 the Company and its franchisees operated 371 stores in 40 states, Canada,
Japan and the United Arab Emirates (finance.yahoo.com, 2012). It is committed to its expansion of its franchise system as well as providing dedication and product excellence. From 2003 through 2007, it has been rated in the “Franchise 500.” It provides excellent support services for those who
.are interested in getting a franchise
As a summary, the VRIO analysis indicates that RMCF has internal
resources that make the company to have internal strengths. These strengths
.help the company grow
Summary of External and Internal Analysis
Some of the major drivers of the industry are health benefits, large variety of applications, and seasonal and festive sales. The major threats identified in this report are raw material prices and the dependence of the industry over unstable economies for cocoa supply, decrease of consumer buying due to continued financial crisis in North America and the Euro zone, rising counterfeit market and changing consumer preferences. There are some opportunities that include lower penetration in developing economies, increasing consumption in emerging
.economies, organic and fair trade chocolate, and use of chocolate as functional food
The market has been witnessing a trend of shifting consumer preferences
towards the dark and premium chocolate segments. The trend towards affordable- luxuries, such as those available at Rocky Mountain Chocolate Factory, is a cause of this increase in the value of gourmet products. The better-chocolates trend comes as
consumer palates shift to higher-end foods. The health benefits of cocoa act as a
major driver for the market. The dependence of the chocolate industry on unstable economies for the supply of cocoa along with rising raw material prices act as major
restraints for the market. Under the raw materials section, an in-depth analysis of
cocoa, sugar, emulsifiers, and flavors has been done with respect to their
.contribution to the chocolate industry
Analysis of Strategic Factors (SWOT) & Strategic Alternatives & Choice
The SWOT Analysis .A
After the analysis of internal and external factors, the analysis of
.strategic factors known as SWOT analysis follows Strengths
.Quality products of top chocolate confections o
.Over 300 varieties of handmade chocolates and confections o
Efficiency of production and management processes (Revenue vs. o
.Costs of production) results to increasing quarterly dividends
.Unique preparation of their products o
.Special individualized way of serving its customers o
.Improving financial status o
Strong brand awareness and marketing techniques that, in the past, o
.have proved to be successful in its franchises
Weaknesses
Hersey and Mars have cornered 43% of the US chocolate market for o
many years already and RMCF has not even come close to a small
.part of it
Small marketing reach as its products are sold in specialty stores o
because of the nature of its business line and specialized preparation
.of its products
Dependence to tourists as market segment which is a small segment o
.of the market
Opportunities
The global demand for chocolate rise 2% on average in the course of o the next five years, because of the growth of emerging markets, as
.reported by KPMG LLP The Russian chocolate market will expand at a 45% by 2016, while o
,in middle and North Africa it will be approximately 60% more
Because of recession, chocolate makers reduced the size of the bars o
This year consumption in Western Europe will expand by 0.6% to o
reach the 2.46 million tons and represents 32% of global chocolates
On March this year the demand is predicted to 43,000 tons greater o
than the supply
In March of last year, cocoa climbed to its peak in 32 years, from us o
$3.775 per ton, in the New York ICE Futures U.S. market and
decreased to US$ 2.171 per ton this year
The global chocolate market is estimated to reach $98.3 billion in o
2016 from $83.2 billion in 2010, at a CAGR of 2.7% from 2011 to
.2016
Threats
Shrink in demand in developed markets o
This year US consumption is predicted to fall by 4.8% and reach o
1.32 million metric tons which is 20% of global consumption
The consumption growth will decrease to 1.8% as it reaches o
September this year as against more than 5% that occurred in the period 2010-2011 because of economic crisis in Europe and the USA
.and the post tsunami rebuilding costs in Japan
Unsteady price of cocoa and other ingredients like sugar and milk o Unsteady supply of cocoa because of political events such as was o
like what happened in Ivory Coast last year and because of cacao
disease such as what happened in Brazil last year
B. Strategic Alternatives & Choice
Porter’s generic competitive strategy indicates three competitive strategies to cope up with Porter’s five competitive forces and to outperform the companies in the industry. In this report, I recommend to strengthen the use of differentiation in Rocky Mountain Chocolate Factory products. RMCF focuses
.its efforts in differentiating their products from those of the competitors
A visit to its store and a client discovers why Rocky Mountain Chocolate
Factory is the number one destination of chocolate lovers everywhere.
Throughout its store, different yummy chocolates and confections to satisfy cravings of even those who like chocolates so much. RMCF workers dip fresh apples in thick, bubbling caramel from a traditional copper kettle rolled in a rainbow of tasty toppings to complete this old fashioned treat. Fudge is made as
RMCF workers fashion a creamy loaf on a traditional marble slab, the old fashioned way, and right before the clients’ eyes. Orders of gift of fine chocolate are elegantly crafted and beautifully packaged in boxes, tins and baskets and are prepared according to clients’ specifications. All of its products are shown in its website. Everyone does not leave any of the RMCF stores
.without eating a free sample
This different way of serving and producing chocolates for their clients increases customer loyalty that protects RMCF from other competitors and also from the new entrants. Clients cannot compare RMCF products from other chocolate confections because they lack alternative for comparison. I recommend strengthening extensive R&D, product design, high quality products, and intensive customer support to differentiate either their products or their service for more differentiation. These can be done to find ways in making
.the products cheaper and at the same time very much unique
Strategy Implementation, Evaluation, and Control
At this last phase of the strategic management process, Rocky Mountain
Chocolate Factory needs to assess the success of its processes and strategies such as choice of products and production, organizational marketing strategy, organizational competitive strategy, and daily operations, and financial management strategies. In order to assess the appropriateness and success of these processes and strategies,
RMCF must put control process and identify a set of parameters for evaluating and measuring the performance at the headquarters’ level and the store level. Corrective actions will be done if the evaluation reveals difference between the actual performances with the projected one within the period of time. This is done to find out the effectiveness of strategy implementation. The parameters of the assessment include the nature of objectives, environmental assumptions, internal organization, resources, risk adverse, timing of decisions and actions, feasibility, and organizational management (Wheelen and Hunger, 2012).. RMCF’s evaluation system provides a feedback to the entire strategic management process.
Implementing a strategy well needs efficient employees, who have shared vision, developed work culture, and value system. RMCF should ensure an encouraging
.environment that develops the effective implementation of strategies
For example in 2009, decline in the same – store pounds purchased from the
factory by franchise stores was seen, thus an assessment was done to reverse what
was happening. It was found out that decline in same store pounds purchased was due to a product mix shift from factory-made products to products made in the store,
such as caramel apples and fudge. In that year, a study conducted to find out the
factors that affect total sales in order to craft strategy to increase total factory sales
and it was found that new store openings, competition, and the receptivity of the
company’s franchise system to new product introductions and promotional
programs are such factors. Corrections and effort were made to increase the
purchases by franchisees of company manufactured products, and to increase
profitability of its store system through increasing overall sales at existing store
locations by placing changes in system-wide domestic same-store sales. The
decline the sales in 2008 was blamed on the financial crisis and the decline in the
.(overall retail environment (Wheelen and Hunger, 2012
RMCF’s Financial Ratios
73.93M :Market Cap (intraday)5 70.73M :Enterprise Value (Jul 9, 2012)3 19.34 :(Trailing P/E (ttm, intraday 13.94 :Forward P/E (fye 2014-02-29)1 N/A :PEG Ratio (5 yr expected)1 2.16 :(Price/Sales (ttm 3.99 :(Price/Book (mrq 2.04 :Enterprise Value/Revenue (ttm)3 10.71 :Enterprise Value/EBITDA (ttm)6 Profitability 11.19% :(Profit Margin (ttm 16.90% :(Operating Margin (ttm
Management Effectiveness 16.04% :(Return on Assets (ttm 21.91% :(Return on Equity (ttm
Income Statement 34.63M :(Revenue (ttm 5.67 :(Revenue Per Share (ttm 13.00% :(Qtrly Revenue Growth (yoy 14.52M :(Gross Profit (ttm 6.60M :EBITDA (ttm)6 3.88M :(Net Income Avl to Common (ttm 0.62 :(Diluted EPS (ttm 13.60% :(Qtrly Earnings Growth (yoy
Balance Sheet 4.13M :(Total Cash (mrq 0.67 :(Total Cash Per Share (mrq 0.00 :(Total Debt (mrq N/A :(Total Debt/Equity (mrq 3.98 :(Current Ratio (mrq 3.04 :(Book Value Per Share (mrq
Dividends & Splits 0.44 :Forward Annual Dividend Rate4 3.60% :Forward Annual Dividend Yield4 0.41 :Trailing Annual Dividend Yield3 3.40% :Trailing Annual Dividend Yield3 4.60% :Year Average Dividend Yield4 5 65.00% :Payout Ratio4 Jun 7, 2012 :Dividend Date3 May 22, 2012 :Ex-Dividend Date4 105:100 :Last Split Factor (new per old)2 Jul 18, 2007 :Last Split Date3
RMCF’s Commons
.Please, see Appendix for Commons
RMCF’s Income Statement
Period Aug 31, 2011 Nov 30, 2011 Feb 29, 2012 May 31, 2012 Ending Total 7,576 8,280 10,133 9,658 Revenue Cost of 4,092 3,760 7,213 5,567 Revenue
Gross Profit 3,483 4,520 2,920 4,092
Operating Expenses Research - - - - Development Selling General and 1,889 3,225 772 2,232 Administrati ve Non - - - - Recurring 190 194 198 237 Others Total - - - - Operating Expenses
1,404 1,101 1,950 1,622 Operating Income or Loss
Income from Continuing Operations 14 15 13 11 Total Other Income/Expenses Net 1,418 1,116 1,963 1,633 Earnings Before Interest And Taxes - - - - Interest Expense 1,418 1,116 1,963 1,633 Income Before Tax 506 391 643 571 Income Tax Expense - - - - Minority Interest
912 725 1,320 1,062 Net Income From Continuing Ops
Non-recurring Events - - - - Discontinued Operations - - - - Extraordinary Items - - - - Effect Of Accounting Changes - - - - Other Items
912 725 1,320 1,062 Net Income - - - - Preferred Stock And Other Adjustments
912 725 1,320 1,062 Net Income Applicable To Common Shares
Conclusion
The Rocky Mountain Chocolate Factory, Inc. is an American company
which 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 with headquarters in Durango, Colorado. As of the present, RMCFI together with its franchisees have 371 stores located in 40 states of the USA, Canada, and the United Arab Emirates. It is listed as common stock on
Nasdaq Global Market under “RMCF.” It was founded by Frank Crail in 1981 and
went public in 1986. Its main competitors are Mars, Hersey, Godiva Chocolatier,
Fannie Mae, See’s Candies, Lindt, and Ethel M’s. Although the financial crisis has
hit the USA, RMCF has continued to be profitable although there is a declining
profit margin for some years now. Its financial statements, commons and financial
ratios still reflect that it is still profitable. Quarterly dividends still increase although the rate of increase is still declining. However with businesses looking for
solutions to their financial problems, Rocky Mountain Chocolate Factory, Inc. is
still solid. I recommend that RMCF should introduce and market its products in other places like in the GCC especially in Saudi Arabia whose population is looking
.for high end confections and chocolate products to satisfy their sweet tooth
:References
Bright C. (2011). Chocolate Could Bring the Forest Back. Retrieved on July 20, 2012 from website: http://www.worldwatch.org/node/510
Chocolate News (2012). Retrieved on July 20, 2012 from website: http://chocolate- /news.com/ chocolate-makers-3 ivoireconsultancy.hubpages.com. (2012). The Importance of Corporate Governance. Retrieved on June 10, 2012 from website: http://ivoireconsultancy.hubpages.com/hub/ The-Importance-Of-Corporate- Governance
Merryman B. (2012). Rocky Mountain Chocolate Factory, Inc. Announces 10% Increase in Quarterly Cash Dividend to $0.11 per Share. Retrieved on June 10, 2012 from website: http://www.reuters.com/article/2012/05/03/idUS123279+03-May- 2012+MW20120503
www.rmcf.com. (2012). Rocky Mountain Chocolate Company Factory, Inc. Retrieved on June 10, 2012 from website: https://rockymountainchocolatefactory.com/rmcf/ Documents/ WebHelpingFiles/aboutUs.html
Wheelen T.L. and Hunger J.D. (2012). Strategic Management and Business Policy. 13th edition. Retrieved on July 20, 2012 from website: http://www.scribd.com/doc/90690636/Strategic-Management-and-Business- Policy-13th-Edition-2012-Thomas-l-wheelen-j-David-Hunger
Wood A. (2011). Research and Markets: State of the Industry: Chocolate Candy in the U.S. Fifth Edition Report. Retrieved on July 20, 2012 from website: http://search.proquest.com/ docview/885430845/1383D0158B263BB626A/2? accountid=51112
Yahoo. (2012). Income statement. Retrieved on July 20, 2012 from website: http://finance.yahoo.com/q/is?s=rmcf
Appendix (Rocky Mountain Chocolate Factory Inc. (RMCF
NasdaqGM-
3:50PM EDT (3.06%)0.38 12.03
Add to Portfolio
Income Statement All numbers in thousands View: Annual Data | Quarterly Data
Aug 31, 2011 Nov 30, 2011 Feb 29, 2012 May 31, 2012 Period Ending
7,576 8,280 10,133 9,658 Total Revenue
4,092 3,760 7,213 5,567 Cost of Revenue
3,483 4,520 2,920 4,092 Gross Profit
Operating Expenses
Research - - - - Development
Selling General and 1,889 3,225 772 2,232 Administrative
- - - - Non Recurring
190 194 198 237 Others
- - - - Total Operating Expenses
1,404 1,101 1,950 1,622 Operating Income or Loss
Income from Continuing Operations
14 15 13 11 Total Other Income/Expenses Net
1,418 1,116 1,963 1,633 Earnings Before Interest And Taxes
- - - - Interest Expense
1,418 1,116 1,963 1,633 Income Before Tax
506 391 643 571 Income Tax Expense
- - - - Minority Interest
912 725 1,320 1,062 Net Income From Continuing Ops
Non-recurring Events
- - - - Discontinued Operations
- - - - Extraordinary Items
- - - - Effect Of Accounting Changes
- - - - Other Items
912 725 1,320 1,062 Net Income
- - - - Preferred Stock And Other Adjustments 912 725 1,320 1,062 Net Income Applicable To Common Shares
.Currency in USD Rocky Mountain Chocolate Factory, Inc. Announces 10% Increase in Quarterly Cash Dividend to $0.11 per Share
Press Release: Rocky Mountain Chocolate Factory, Inc. – Thu, May 3, 2012 7:30 AM EDT http://finance.yahoo.com/news/rocky-mountain-chocolate-factory-inc- 113000214.html
:Companies .Rocky Mountain Chocolate Factory Inc RELATED QUOTES Change Price Symbol 0.13- 12.01 RMCF
DURANGO, CO--(Marketwire -05/03/12)- Rocky Mountain Chocolate Factory, Inc. (RMCF - News), (the "Company"), which franchises/operates gourmet chocolate and self-serve frozen yogurt stores and manufactures an extensive line of premium chocolates and other confectionery products, today announced that its Board of Directors has declared a first quarter cash dividend of $0.11 per common share outstanding. This represents a 10% increase in the cash dividend payout when compared with the previous quarterly dividend. The cash dividend will be payable .June 8, 2012 to shareholders of record at the close of business May 24, 2012 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 May 3, 2012 the Company and its franchisees operated 371 stores in 40 states, Canada, Japan and the United Arab Emirates. The Company's common stock is listed on The Nasdaq Global Market under the symbol "."RMCF :Contact For Further Information Contact Bryan J. Merryman COO/CFO 259-0554 (970)
As of As of As of As of As of 2011-05- 2011-08- 2011-11- 2012-02- 2012-05- (In Millions of USD (except for per share items 31 31 30 29 31
4.57 4.07 3.15 4.13 5.05 Cash & Equivalents
- - - - - Short Term Investments
4.57 4.07 3.15 4.13 5.05 Cash and Short Term Investments
3.43 3.65 4.56 4.08 3.49 Accounts Receivable - Trade, Net
- - - - - Receivables - Other
3.81 4.10 4.92 5.09 3.91 Total Receivables, Net
3.87 4.59 4.32 4.12 3.74 Total Inventory
- - - - - Prepaid Expenses
0.92 0.82 0.88 0.77 1.00 Other Current Assets, Total
13.17 13.58 13.26 14.10 13.70 Total Current Assets
15.94 15.66 16.48 17.83 18.00 Property/Plant/Equipment, Total - Gross
9.12- 8.95- 9.13- 9.32- 9.55- Accumulated Depreciation, Total
1.05 1.05 1.05 1.05 1.05 Goodwill, Net
0.05 0.04 0.03 0.02 0.02 Intangibles, Net
- - - - - Long Term Investments As of As of As of As of As of 2011-05- 2011-08- 2011-11- 2012-02- 2012-05- (In Millions of USD (except for per share items 31 31 30 29 31
4.57 4.07 3.15 4.13 5.05 Cash & Equivalents
- - - - - Short Term Investments
4.57 4.07 3.15 4.13 5.05 Cash and Short Term Investments
3.43 3.65 4.56 4.08 3.49 Accounts Receivable - Trade, Net
- - - - - Receivables - Other
3.81 4.10 4.92 5.09 3.91 Total Receivables, Net
3.87 4.59 4.32 4.12 3.74 Total Inventory
- - - - - Prepaid Expenses
0.92 0.82 0.88 0.77 1.00 Other Current Assets, Total
13.17 13.58 13.26 14.10 13.70 Total Current Assets
15.94 15.66 16.48 17.83 18.00 Property/Plant/Equipment, Total - Gross
9.12- 8.95- 9.13- 9.32- 9.55- Accumulated Depreciation, Total
1.05 1.05 1.05 1.05 1.05 Goodwill, Net
0.05 0.04 0.03 0.02 0.02 Intangibles, Net
- - - - - Long Term Investments
0.10 0.10 0.13 0.13 0.14 Other Long Term Assets, Total
21.61 21.92 22.17 24.16 23.68 Total Assets
0.90 1.22 1.35 1.36 0.92 Accounts Payable
1.58 1.27 1.25 1.41 1.17 Accrued Expenses
0.00 0.00 0.00 0.00 0.00 Notes Payable/Short Term Debt
- - - - - Current Port. of LT Debt/Capital Leases
0.91 0.83 0.80 0.77 0.82 Other Current liabilities, Total
3.38 3.31 3.39 3.54 2.91 Total Current Liabilities
- - - - - Long Term Debt
- - - - - Capital Lease Obligations
0.00 0.00 0.00 0.00 0.00 Total Long Term Debt As of As of As of As of As of 2011-05- 2011-08- 2011-11- 2012-02- 2012-05- (In Millions of USD (except for per share items 31 31 30 29 31
0.00 0.00 0.00 0.00 0.00 Total Debt
1.08 1.04 1.00 1.88 1.86 Deferred Income Tax
- - - - - Minority Interest
- - - - - Other Liabilities, Total
4.46 4.36 4.39 5.43 4.78 Total Liabilities
- - - - - Redeemable Preferred Stock, Total
- - - - - Preferred Stock - Non Redeemable, Net
0.18 0.18 0.18 0.18 0.18 Common Stock, Total
8.24 8.36 8.46 8.71 8.49 Additional Paid-In Capital
8.72 9.02 9.13 9.84 10.22 (Retained Earnings (Accumulated Deficit
- - - - - Treasury Stock - Common
- - - - - Other Equity, Total
17.14 17.56 17.78 18.74 18.90 Total Equity
21.61 21.92 22.17 24.16 23.68 Total Liabilities & Shareholders' Equity
- - - - - Shares Outs - Common Stock Primary Issue
6.09 6.13 6.13 6.16 6.14 Total Common Shares Outstanding
.Google Finance Beta available in: Hong Kong - Canada - U.S. - China - U.K
Cash Flow
3 mo nths 6 9 12 months 3 endi months months months ending ng ending ending ending (In Millions of USD (except for per share items 2012-05- 201 2011-2011-11-2012-02- 31 1- 08-31 30 29 05- 31 0.92 1.83 2.56 3.88 1.06 Net Income/Starting Line 3 mo nths 6 9 12 months 3 endi months months months ending ng ending ending ending (In Millions of USD (except for per share items 2012-05- 201 2011-2011-11-2012-02- 31 1- 08-31 30 29 05- 31 0.17 0.36 0.55 0.75 0.24 Depreciation/Depletion - - - - - Amortization - 0.03- 0.17- 0.73 0.07- Deferred Taxes 0.09 0.23 0.41 0.67 0.92 0.24 Non-Cash Items 1.60 0.45 0.24- 0.14- 0.66 Changes in Working Capital 2.84 3.02 3.37 6.15 2.13 Cash from Operating Activities - 1.19- 1.86- 3.26- 0.25- Capital Expenditures 1.04 0.02 0.06 0.08 0.14 0.02 Other Investing Cash Flow Items, Total - 1.13- 1.78- 3.12- 0.23- Cash from Investing Activities 1.02 0.00 0.01 0.01 0.02 0.01 Financing Cash Flow Items - 1.22- 1.83- 2.44- 0.62- Total Cash Dividends Paid 0.61 0.02 0.04 0.04 0.17 0.36- Issuance (Retirement) of Stock, Net - - - - - Issuance (Retirement) of Debt, Net - 1.17- 1.78- 2.24- 0.97- Cash from Financing Activities 0.58 - - - - - Foreign Exchange Effects 1.23 0.72 0.19- 0.78 0.93 Net Change in Cash - - - - - Cash Interest Paid, Supplemental 0.11 0.98 1.43 1.88 0.05 Cash Taxes Paid, Supplemental Financial Ratios (Rocky Mountain Chocolate Factory Inc. (RMCF NasdaqGM-
3:09PM EDT - Nasdaq Real Time Price (1.06%)0.13 12.01 Add to Portfolio
:Get Key Statistics for Key Statistics
.Data provided by Capital IQ, except where noted Trading Information Valuation Measures
5 Stock Price History 73.93M :Market Cap (intraday)
3 0.25 :Beta 70.73M :Enterprise Value (Jul 9, 2012)
3 25.67% :Week Change -52 19.34 :(Trailing P/E (ttm, intraday
3 1 2.67% :S&P500 52-Week Change 13.94 :Forward P/E (fye 2014-02-29)
3 1 12.88 :Week High (Jul 2, 2012) -52 N/A :PEG Ratio (5 yr expected)
3 7.14 :Week Low (Oct 4, 2011) -52 2.16 :(Price/Sales (ttm
3 10.74 :Day Moving Average -50 3.99 :(Price/Book (mrq
3 3 9.59 :Day Moving Average -200 2.04 :Enterprise Value/Revenue (ttm)
6 10.71 :Enterprise Value/EBITDA (ttm) Share Statistics
3 Financial Highlights 12,644 :Avg Vol (3 month)
3 15,929 :Avg Vol (10 day) Fiscal Year
5 6.17M :Shares Outstanding Feb 29 :Fiscal Year Ends 5.13M :Float Feb 29, :(Most Recent Quarter (mrq 1 15.72% :Held by Insiders % 2012
1 36.60% :Held by Institutions %
3 Profitability 6.80K :Shares Short (as of Jun 15, 2012)
3 11.19% :(Profit Margin (ttm 0.60 :Short Ratio (as of Jun 15, 2012) 16.90% :(Operating Margin (ttm Short % of Float (as of Jun 15, N/A :2012)3
3 Management Effectiveness 5.32K :Shares Short (prior month) 16.04% :(Return on Assets (ttm
Dividends & Splits 21.91% :(Return on Equity (ttm
4 0.44 :Forward Annual Dividend Rate
4 Income Statement 3.60% :Forward Annual Dividend Yield
3 34.63M :(Revenue (ttm 0.41 :Trailing Annual Dividend Yield
3 5.67 :(Revenue Per Share (ttm 3.40% :Trailing Annual Dividend Yield
4 13.00% :(Qtrly Revenue Growth (yoy 4.60% :Year Average Dividend Yield 5
4 14.52M :(Gross Profit (ttm 65.00% :Payout Ratio 6 3 6.60M :EBITDA (ttm) Jun 7, 2012 :Dividend Date 3.88M :(Net Income Avl to Common (ttm May 22, :Ex-Dividend Date4 2012 0.62 :(Diluted EPS (ttm
2 105:100 :Last Split Factor (new per old) 13.60% :(Qtrly Earnings Growth (yoy
3 Jul 18, 2007 :Last Split Date Balance Sheet
4.13M :(Total Cash (mrq
0.67 :(Total Cash Per Share (mrq
0.00 :(Total Debt (mrq
N/A :(Total Debt/Equity (mrq
3.98 :(Current Ratio (mrq
3.04 :(Book Value Per Share (mrq
Cash Flow Statement
6.15M :(Operating Cash Flow (ttm
1.66M :(Levered Free Cash Flow (ttm RMCF’s Income Statement
Aug 31, 2011 Nov 30, 2011 Feb 29, 2012 May 31, 2012 Period Ending
7,576 8,280 10,133 9,658 Total Revenue
4,092 3,760 7,213 5,567 Cost of Revenue
3,483 4,520 2,920 4,092 Gross Profit
Operating Expenses
Research - - - - Development
Selling General
1,889 3,225 772 2,232 and
Administrative
- - - - Non Recurring
190 194 198 237 Others
- - - - Total Operating Expenses
1,404 1,101 1,950 1,622 Operating Income or Loss
Income from Continuing Operations
14 15 13 11 Total Other Income/Expenses Net
1,418 1,116 1,963 1,633 Earnings Before Interest And Taxes
- - - - Interest Expense
1,418 1,116 1,963 1,633 Income Before Tax
506 391 643 571 Income Tax Expense
- - - - Minority Interest
912 725 1,320 1,062 Net Income From Continuing Ops
Non-recurring Events
- - - - Discontinued Operations
- - - - Extraordinary Items
- - - - Effect Of Accounting Changes
- - - - Other Items
912 725 1,320 1,062 Net Income - - - - Preferred Stock And Other Adjustments
912 725 1,320 1,062 Net Income Applicable To Common Shares