Rocky Mountain Chocolate Clocks 48% Revenue Growth In Q2

Rocky Mountain Chocolate Factory Inc RMCF reported second-quarter sales growth of 48.8% year-on-year, to $7.93 million.
Same-store sales at domestic franchise locations increased 14.2% versus the 2019 period. Factory sales rose 47.5% Y/Y.
The operating margin expanded 110 basis points to 3.3%, and operating income for the quarter rose 116.8% to $0.258 million.
Adjusted EBITDA rose 179% Y/Y to $1.6 million. EPS was $0.03 versus $0.01 prior year.
The company noted that purchases by its largest customer, Edible Arrangements LLC, during Q2 were approximately $0.313 million, or 4.0% of its revenues, versus $0.615 million, or 11.5% of revenues last year.
The company noted continuing discussions related to certain disagreements with the customer Edible over the strategic alliance and ecommerce agreements, with the result not currently determinable.
Rocky Mountain Chocolate Factory had incurred $0.907 million of costs in the quarter associated with the contested solicitation of proxies in connection with its 2021 annual meeting of stockholders.
It also warned that it is likely to continue to realize material increased costs related to the contested solicitation of proxies for the near future.
Recently, the company revealed preliminary vote results following its Annual Meeting. Based on the preliminary vote count, stockholders have voted to elect four directors nominated by the company and two directors nominated by AB Value Management LLC.
Price action: RMCF shares closed higher by 3.98% at $8.10 on Thursday.

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