College of Business Administration
ASSE 4311 - Learning Outcome Assessment III
Instructor: Dr. Emmanuel Ntui
Section202
Group Case Analysis Project
Rocky Mountain Chocolate Factory, Inc.
Saja Al-Onazi 200600375
Abtesam Al-Ghamdi 200700025
Fawzeyyah Al-Hajiri 200
Nouf Al-Ardhi 200800083
Thikra Al-Qahtani 200600462
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):
OFFICERS
Title
Since
Chairman of the Board, President, Chief Executive Officer
1981
Bryan J. Merryman
Chief Financial Officer, Chief Operating Officer, Treasurer, Director
1997
Edward L. Dudley
Senior Vice President - Sales and Marketing
1997
Gregory L. Pope
Senior Vice President – Development
2001
Donna L. Coupe
Vice President - Franchise Support and Training
2008
Jeremy M. Kinney
Vice President – Finance
2008
Jay B. Haws
Vice President – Creative
1991
William K. Jobson
Chief Information Officer
2001
Corporate Secretary
2011
Franklin E. Crail
Tracy D. Wojcik
DIRECTORS
Title
Since
Chairman of the Board, President, Chief Executive Officer
1982
Chief Financial Officer, Chief Operating Officer, Treasurer, Director
1999
Clyde W. Engle
Director
2000
Gerald A. Kien, Ph.D.
Director
1995
Lee N. Mortenson
Director
1987
Scott G. Capdevielle
Director
1982
Franklin E. Crail
Bryan J. Merryman
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
o Growth of emerging markets like China, India, Indonesia, Vietnam,
and Malaysia.
o 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 supply.
 Social and Demographic Forces
o 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.
 Political, Legal, and Governmental Forces
o Civil war in Ivory Coast last year that politically became stable thi8s
year.
o Increased in production and sales tax in the US.
 Environmental Forces
o The existence of widespread cacao tree diseases in cacao plantations in
Brazil call for planting change and to use cacao to reforest some
portions of the Amazon forest.
 Technological Forces
o
Emergence of counterfeiting processes that produce alternative
chocolates.
o Improved preparation and discovery of other products from cacao.
 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 affordableluxuries, 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
A. The SWOT Analysis
After the analysis of internal and external factors, the analysis of
strategic factors known as SWOT analysis follows.
 Strengths
o Quality products of top chocolate confections.
o Over 300 varieties of handmade chocolates and confections.
o Efficiency of production and management processes (Revenue vs.
Costs of production) results to increasing quarterly dividends.
o 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,
have proved to be successful in its franchises.
 Weaknesses
o Hersey and Mars have cornered 43% of the US chocolate market for
many years already and RMCF has not even come close to a small part
of it.
o Small marketing reach as its products are sold in specialty stores
because of the nature of its business line and specialized preparation of
its products.
o Dependence to tourists as market segment which is a small segment of
the market.
 Opportunities
o The global demand for chocolate rise 2% on average in the course of
the next five years, because of the growth of emerging markets, as
reported by KPMG LLP.
o The Russian chocolate market will expand at a 45% by 2016, while in
middle and North Africa it will be approximately 60% more,
o Because of recession, chocolate makers reduced the size of the bars
o This year consumption in Western Europe will expand by 0.6% to
reach the 2.46 million tons and represents 32% of global chocolates
o On March this year the demand is predicted to 43,000 tons greater than
the supply
o In March of last year, cocoa climbed to its peak in 32 years, from us
$3.775 per ton, in the New York ICE Futures U.S. market and
decreased to US$ 2.171 per ton this year
o The 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.
 Threats
o Shrink in demand in developed markets
o This year US consumption is predicted to fall by 4.8% and reach 1.32
million metric tons which is 20% of global consumption
o The consumption growth will decrease to 1.8% as it reaches September
this year as against more than 5% that occurred in the period 20102011 because of economic crisis in Europe and the USA and the post
tsunami rebuilding costs in Japan.
o Unsteady price of cocoa and other ingredients like sugar and milk
o Unsteady supply of cocoa because of political events such as was 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
Market Cap (intraday)5:
73.93M
Enterprise Value (Jul 9, 2012)3:
70.73M
Trailing P/E (ttm, intraday):
19.34
Forward P/E (fye 2014-02-29)1:
13.94
PEG Ratio (5 yr expected)1:
N/A
Price/Sales (ttm):
2.16
Price/Book (mrq):
3.99
Enterprise Value/Revenue (ttm)3:
2.04
Enterprise Value/EBITDA (ttm)6:
10.71
Profitability
Profit Margin (ttm):
11.19%
Operating Margin (ttm):
16.90%
Management Effectiveness
Return on Assets (ttm):
16.04%
Return on Equity (ttm):
21.91%
Income Statement
Revenue (ttm):
34.63M
Revenue Per Share (ttm):
5.67
Qtrly Revenue Growth (yoy):
13.00%
Gross Profit (ttm):
14.52M
EBITDA (ttm)6:
6.60M
Net Income Avl to Common (ttm):
3.88M
Diluted EPS (ttm):
0.62
Qtrly Earnings Growth (yoy):
13.60%
Balance Sheet
Total Cash (mrq):
4.13M
Total Cash Per Share (mrq):
0.67
Total Debt (mrq):
0.00
Total Debt/Equity (mrq):
N/A
Current Ratio (mrq):
3.98
Book Value Per Share (mrq):
3.04
Dividends & Splits
Forward Annual Dividend Rate4:
0.44
Forward Annual Dividend Yield4:
3.60%
Trailing Annual Dividend Yield3:
0.41
Trailing Annual Dividend Yield3:
3.40%
5 Year Average Dividend Yield4:
4.60%
Payout Ratio4:
65.00%
Dividend Date3:
Jun 7, 2012
Ex-Dividend Date4:
May 22, 2012
Last Split Factor (new per old)2:
105:100
Last Split Date3:
Jul 18, 2007
RMCF’s Commons
Please, see Appendix for Commons.
RMCF’s Income Statement
Period Ending
May 31, 2012
Total Revenue
Cost of Revenue
9,658
5,567
Feb 29, 2012 Nov 30, 2011
10,133
7,213
Aug 31, 2011
8,280
3,760
7,576
4,092
Gross Profit
4,092
2,920
4,520
3,483
-
-
-
-
2,232
772
3,225
1,889
-
-
-
-
237
198
194
190
-
-
-
-
Operating Expenses
Research
Development
Selling General and
Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
1,622
1,950
1,101
1,404
11
13
15
14
1,633
1,963
1,116
1,418
-
-
-
-
1,633
1,963
1,116
1,418
571
643
391
506
-
-
-
-
1,062
1,320
725
912
Discontinued Operations
-
-
-
-
Extraordinary Items
-
-
-
-
Effect Of Accounting Changes
-
-
-
-
Other Items
-
-
-
-
Net Income
Preferred Stock And Other Adjustments
1,062
-
1,320
-
725
-
912
-
Net Income Applicable To Common Shares
1,062
1,320
725
912
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
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://chocolatenews.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-CorporateGovernance
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+03May-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-BusinessPolicy-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
12.03
0.38(3.06%) 3:50PM EDT
Add to Portfolio
Income Statement
View: Annual Data | Quarterly Data
Period Ending
All numbers in thousands
May 31, 2012
Feb 29, 2012
Nov 30, 2011
Aug 31, 2011
Total Revenue
9,658
10,133
8,280
7,576
Cost of Revenue
5,567
7,213
3,760
4,092
Gross Profit
4,092
2,920
4,520
3,483
-
-
-
-
2,232
772
3,225
1,889
-
-
-
-
237
198
194
190
-
-
-
-
1,622
1,950
1,101
1,404
11
13
15
14
1,633
1,963
1,116
1,418
-
-
-
-
1,633
1,963
1,116
1,418
571
643
391
506
-
-
-
-
1,062
1,320
725
912
Discontinued Operations
-
-
-
-
Extraordinary Items
-
-
-
-
Effect Of Accounting Changes
-
-
-
-
Other Items
-
-
-
-
1,062
1,320
725
912
-
-
-
-
1,062
1,320
725
912
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
Net Income
Preferred Stock And Other Adjustments
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-inc113000214.html
Companies:

Rocky Mountain Chocolate Factory Inc.
RELATED QUOTES
Symbol Price Change
RMCF
12.01 -0.13
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
(970) 259-0554
As of
201205-31
As of
201202-29
As of
201111-30
As of
201108-31
As of
201105-31
5.05
4.13
3.15
4.07
4.57
-
-
-
-
-
Cash and Short Term Investments
5.05
4.13
3.15
4.07
4.57
Accounts Receivable - Trade, Net
3.49
4.08
4.56
3.65
3.43
-
-
-
-
-
Total Receivables, Net
3.91
5.09
4.92
4.10
3.81
Total Inventory
3.74
4.12
4.32
4.59
3.87
-
-
-
-
-
1.00
0.77
0.88
0.82
0.92
Total Current Assets
13.70
14.10
13.26
13.58
13.17
Property/Plant/Equipment, Total - Gross
18.00
17.83
16.48
15.66
15.94
Accumulated Depreciation, Total
-9.55
-9.32
-9.13
-8.95
-9.12
Goodwill, Net
1.05
1.05
1.05
1.05
1.05
Intangibles, Net
0.02
0.02
0.03
0.04
0.05
-
-
-
-
-
In Millions of USD (except for per share items)
Cash & Equivalents
Short Term Investments
Receivables - Other
Prepaid Expenses
Other Current Assets, Total
Long Term Investments
As of
201205-31
As of
201202-29
As of
201111-30
As of
201108-31
As of
201105-31
5.05
4.13
3.15
4.07
4.57
-
-
-
-
-
Cash and Short Term Investments
5.05
4.13
3.15
4.07
4.57
Accounts Receivable - Trade, Net
3.49
4.08
4.56
3.65
3.43
-
-
-
-
-
Total Receivables, Net
3.91
5.09
4.92
4.10
3.81
Total Inventory
3.74
4.12
4.32
4.59
3.87
-
-
-
-
-
1.00
0.77
0.88
0.82
0.92
Total Current Assets
13.70
14.10
13.26
13.58
13.17
Property/Plant/Equipment, Total - Gross
18.00
17.83
16.48
15.66
15.94
Accumulated Depreciation, Total
-9.55
-9.32
-9.13
-8.95
-9.12
Goodwill, Net
1.05
1.05
1.05
1.05
1.05
Intangibles, Net
0.02
0.02
0.03
0.04
0.05
-
-
-
-
-
0.14
0.13
0.13
0.10
0.10
23.68
24.16
22.17
21.92
21.61
Accounts Payable
0.92
1.36
1.35
1.22
0.90
Accrued Expenses
1.17
1.41
1.25
1.27
1.58
Notes Payable/Short Term Debt
0.00
0.00
0.00
0.00
0.00
-
-
-
-
-
0.82
0.77
0.80
0.83
0.91
In Millions of USD (except for per share items)
Cash & Equivalents
Short Term Investments
Receivables - Other
Prepaid Expenses
Other Current Assets, Total
Long Term Investments
Other Long Term Assets, Total
Total Assets
Current Port. of LT Debt/Capital Leases
Other Current liabilities, Total
As of
201205-31
As of
201202-29
As of
201111-30
As of
201108-31
As of
201105-31
2.91
3.54
3.39
3.31
3.38
Long Term Debt
-
-
-
-
-
Capital Lease Obligations
-
-
-
-
-
Total Long Term Debt
0.00
0.00
0.00
0.00
0.00
Total Debt
0.00
0.00
0.00
0.00
0.00
Deferred Income Tax
1.86
1.88
1.00
1.04
1.08
Minority Interest
-
-
-
-
-
Other Liabilities, Total
-
-
-
-
-
4.78
5.43
4.39
4.36
4.46
Redeemable Preferred Stock, Total
-
-
-
-
-
Preferred Stock - Non Redeemable, Net
-
-
-
-
-
Common Stock, Total
0.18
0.18
0.18
0.18
0.18
Additional Paid-In Capital
8.49
8.71
8.46
8.36
8.24
10.22
9.84
9.13
9.02
8.72
Treasury Stock - Common
-
-
-
-
-
Other Equity, Total
-
-
-
-
-
Total Equity
18.90
18.74
17.78
17.56
17.14
Total Liabilities & Shareholders' Equity
23.68
24.16
22.17
21.92
21.61
-
-
-
-
-
6.14
6.16
6.13
6.13
6.09
In Millions of USD (except for per share items)
Total Current Liabilities
Total Liabilities
Retained Earnings (Accumulated Deficit)
Shares Outs - Common Stock Primary Issue
Total Common Shares Outstanding
Google Finance Beta available in: Hong Kong - Canada - U.S. - China - U.K.
Cash Flow
3
12
9
6
3
months months months months months
In Millions of USD (except for per share items) ending ending ending ending ending
20122012- 2011- 2011- 201105-31
02-29 11-30 08-31 05-31
Net Income/Starting Line
1.06
3.88
2.56
1.83
0.92
Depreciation/Depletion
0.24
0.75
0.55
0.36
0.17
-
-
-
-
-
Deferred Taxes
-0.07
0.73
-0.17
-0.03
-0.09
Non-Cash Items
0.24
0.92
0.67
0.41
0.23
Changes in Working Capital
0.66
-0.14
-0.24
0.45
1.60
Cash from Operating Activities
2.13
6.15
3.37
3.02
2.84
-0.25
-3.26
-1.86
-1.19
-1.04
0.02
0.14
0.08
0.06
0.02
-0.23
-3.12
-1.78
-1.13
-1.02
Financing Cash Flow Items
0.01
0.02
0.01
0.01
0.00
Total Cash Dividends Paid
-0.62
-2.44
-1.83
-1.22
-0.61
Issuance (Retirement) of Stock, Net
-0.36
0.17
0.04
0.04
0.02
-
-
-
-
-
-0.97
-2.24
-1.78
-1.17
-0.58
-
-
-
-
-
0.93
0.78
-0.19
0.72
1.23
-
-
-
-
-
0.05
1.88
1.43
0.98
0.11
Amortization
Capital Expenditures
Other Investing Cash Flow Items, Total
Cash from Investing Activities
Issuance (Retirement) of Debt, Net
Cash from Financing Activities
Foreign Exchange Effects
Net Change in Cash
Cash Interest Paid, Supplemental
Cash Taxes Paid, Supplemental
Financial Ratios
Rocky Mountain Chocolate Factory Inc. (RMCF)
-NasdaqGM
12.01
0.13(1.06%) 3:09PM EDT - Nasdaq Real Time Price
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Key Statistics
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Data provided by Capital IQ, except where noted.
Valuation Measures
Trading Information
Market Cap (intraday)5:
73.93M
Enterprise Value (Jul 9, 2012)3:
70.73M
Beta:
0.25
Trailing P/E (ttm, intraday):
19.34
52-Week Change3:
25.67%
Forward P/E (fye 2014-02-29)1:
13.94
S&P500 52-Week Change3:
2.67%
PEG Ratio (5 yr expected)1:
N/A
52-Week High (Jul 2, 2012)3:
12.88
Price/Sales (ttm):
2.16
52-Week Low (Oct 4, 2011)3:
7.14
Price/Book (mrq):
3.99
50-Day Moving Average3:
10.74
Enterprise Value/Revenue (ttm)3:
2.04
200-Day Moving Average3:
9.59
Stock Price History
Enterprise Value/EBITDA (ttm)6:
10.71
Financial Highlights
Avg Vol (3 month)3:
12,644
Avg Vol (10 day)3:
15,929
Feb 29
Shares Outstanding5:
6.17M
Feb 29,
Float:
5.13M
% Held by Insiders1:
15.72%
% Held by Institutions1:
36.60%
Fiscal Year
Fiscal Year Ends:
Share Statistics
Most Recent Quarter (mrq):
2012
Profitability
Profit Margin (ttm):
11.19%
Operating Margin (ttm):
16.90%
Shares Short (as of Jun 15,
2012)3:
Short Ratio (as of Jun 15, 2012)3:
Management Effectiveness
Return on Assets (ttm):
16.04%
Short % of Float (as of Jun 15,
Return on Equity (ttm):
21.91%
2012)3:
Shares Short (prior month)3:
Income Statement
6.80K
0.60
N/A
5.32K
Dividends & Splits
Revenue (ttm):
34.63M
Revenue Per Share (ttm):
5.67
Forward Annual Dividend Rate4:
0.44
Qtrly Revenue Growth (yoy):
13.00%
Forward Annual Dividend Yield4:
3.60%
Gross Profit (ttm):
14.52M
Trailing Annual Dividend Yield3:
0.41
EBITDA (ttm)6:
6.60M
Trailing Annual Dividend Yield3:
3.40%
Net Income Avl to Common (ttm):
3.88M
5 Year Average Dividend Yield4:
4.60%
Diluted EPS (ttm):
0.62
Payout Ratio4:
65.00%
Qtrly Earnings Growth (yoy):
13.60%
Dividend Date3:
Jun 7,
2012
Balance Sheet
Total Cash (mrq):
4.13M
Total Cash Per Share (mrq):
0.67
Total Debt (mrq):
0.00
Total Debt/Equity (mrq):
N/A
Current Ratio (mrq):
3.98
Book Value Per Share (mrq):
3.04
Ex-Dividend Date4:
May 22,
2012
Cash Flow Statement
Operating Cash Flow (ttm):
6.15M
Levered Free Cash Flow (ttm):
1.66M
Last Split Factor (new per old)2:
Last Split Date3:
105:100
Jul 18,
2007
RMCF’s Income Statement
Period Ending
May 31, 2012
Feb 29, 2012
Nov 30, 2011
Aug 31, 2011
Total Revenue
9,658
10,133
8,280
7,576
Cost of Revenue
5,567
7,213
3,760
4,092
Gross Profit
4,092
2,920
4,520
3,483
-
-
-
-
2,232
772
3,225
1,889
-
-
-
-
237
198
194
190
-
-
-
-
1,622
1,950
1,101
1,404
11
13
15
14
1,633
1,963
1,116
1,418
-
-
-
-
1,633
1,963
1,116
1,418
571
643
391
506
-
-
-
-
1,062
1,320
725
912
Discontinued Operations
-
-
-
-
Extraordinary Items
-
-
-
-
Effect Of Accounting Changes
-
-
-
-
Other Items
-
-
-
-
1,062
1,320
725
912
-
-
-
-
1,062
1,320
725
912
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
Net Income
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares