Rocky Mountain Chocolate Factory
Just about everyone loves chocolate — an important driver for Rocky Mountain Chocolate Factory (RMCF), which has been making chocolate candies and other sweets for more than 20 years.
The company is the brainchild of Frank Crail, whose vision of a small-town confectionery in 1981 now includes a 53,000-square-foot factory on the outskirts of Durango, Colo., and just more than $36 million in annual revenue generated from its nearly 300 global franchisees. Those are revenues that have grown fairly steadily, at about 9% annually since 2010.
Despite a down year on the earnings front in fiscal 2013 — due primarily to impairment costs associated with disposal of its Aspen-Leaf Yogurt line — RMCF managed to generate more than $6 million in net operating cashflow, enough to cover its capex and dividends nearly twice over.
RMCF also has extended its product lineup beyond chocolates and candies. Earlier this year, Rocky Mountain bought a majority interest in U-Swirl (SWRL), a self-service yogurt operator that management believes will improve its organic growth.
While RMCF hasn’t been a rapid grower by any means, it has been a steady dividend payer. Plus, more than $5 million in cash on hand plus annual cash flow of roughly the same amount bode well for the dividend’s future.