Rocky Mountain Chocolate Factory Q2 net loss widens as revenue dips
RMCF•Rocky Mountain Chocolate Factory reported Q2 revenue of $6.70 million, a net loss of $1.30 million and an EBITDA loss of $700,000. After the quarter ended, it completed a $6.6 million sale-leaseback of its Durango facility to repay debt.
1. Quarterly results
Rocky Mountain Chocolate Factory's fiscal second-quarter revenue declined slightly from a year earlier to $6.70 million. Its net loss widened to $1.30 million, or $0.14 per share, and its EBITDA loss increased to $700,000. Gross margin was 8%.
2. Durango facility
After the quarter ended, the company completed a $6.6 million sale-leaseback of its Durango facility to repay debt. It said increasing production at the facility remains a key priority heading into the holiday season.
3. Margin and sales factors
The company attributed gross-margin improvement to production-process and execution improvements, as well as pricing actions. Increased retail sales reflected a larger company-owned store base and price increases, partly offset by declines in other areas.
