Healthy Fast Food Announces Second Quarter 2009 Results
Total revenues were $834,000, up 123% from $374,000.
Healthy Fast Food, Inc. (OTC:HFFI) (BULLETIN BOARD: HFFI) , the owner and franchisor of U-SWIRL Frozen Yogurt stores, today announced its financial and operational results for the three and six months ended June 30, 2009.
Financial Highlights for Six Months Ended June 30, 2009 Compared to Six Months Ended June 30, 2008:
- Total revenues were $834,000, up 123% from $374,000.
- Net sales generated by the Company's new wholly-owned subsidiary, U-SWIRL International, totaled $395,000, up from $0. The Company launched its new U-SWIRL operations in 2009 with the opening of its first two Company-owned stores in the Las Vegas valley, which occurred in late March and late April 2009, respectively.
- Net sales posted by the Company's former EVOS franchise operations (representing sales by two EVOS stores in the Vegas market, now rebranded Fresh and Fast), increased 17% to $439,000 from $374,000.
- Franchise fee income totaled $11,000, down from $23,000.
- On a consolidated basis, loss from operations increased 7% to $557,000 from $522,000.
- The operating income reported for U-SWIRL International was $29,000, compared to $0.
- The operating loss reported for EVOS increased to $154,000, up from $84,000.
- Net loss increased to $553,000, or $0.22 per basic and diluted share, from $497,000, or $0.23 per basic and diluted share.
Financial Highlights for Three Months Ended June 30, 2009 Compared to Three Months Ended June 30, 2008:
- Total revenues climbed 234% to $574,000 from $172,000.
- On a consolidated basis, loss from operations was $208,000, down 13% from 238,000.
- Net loss was $205,000, or $0.08 per basic and diluted share, dropping 5% from $216,000, or $0.10 per basic and diluted share.
As of June 30, 2009, Healthy Fast Food had cash and cash equivalents of $1.66 million, working capital of $1.70 million, long-term liabilities of $13,000 and total stockholders' equity of $3.57 million.
Commenting on the results, Hank Cartwright, Chairman and CEO of Healthy Fast Food, noted, "Our decision to abandon the EVOS franchising strategy in favor of supporting the national roll-out of U-SWIRL Frozen Yogurt self-serve stores is proving to be right on the mark. U-SWIRL's financial results are indeed supporting that our business model is sound and incredibly lucrative. Each of our stores has fast attracted a league of devoted and loyal customers, who are returning time and time again with friends and family members to enjoy unique dessert creations and the overall U-SWIRL experience."
Continuing, Cartwright said, "We are also proud of the tremendous response we are receiving to the launch of our national franchise program and look forward to announcing several new partners in this regard in coming quarters. With three new Company-owned stores under construction; with five additional Company-owned stores expected to commence construction in the third and fourth quarter; and with current and anticipated franchising opportunities coming into play, the future of U-SWIRL holds tremendous promise for robust growth, rapidly expanding brand awareness and long term success and prosperity for Healthy Fast Food and our valued business partners and shareholders."
HEALTHY FAST FOOD, INC. CONSOLIDATED BALANCE SHEET
Unaudited Audited
June 30, 2009 December 31, 2008
------------- ------------
ASSETS
Current assets
Cash and equivalents $1,659,956 $3,335,740
Tenant improvement allowance
receivable 26,675 50,210
Due from U-Create Enterprises, Inc. 1,492 -
Royalty rebate receivable 6,916 2,039
Inventory 66,256 43,450
Prepaid expenses 79,183 43,010
------ ------
Total current assets 1,840,478 3,474,449
--------- ---------
Leasehold improvements, property and
equipment, net 2,036,318 879,435
--------- -------
Other assets
Deposits 157,537 151,617
Franchise fees, net of amortization - 13,621
--- ------
Total other assets 157,537 165,238
------- -------
Total assets $4,034,333 $4,519,122
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $109,778 $170,776
Royalties payable 12,072 2,207
Deferred revenue 15,000 -
Current portion of long-term debt 4,495 4,203
----- -----
Total current liabilities 141,345 177,186
Deferred rent 313,473 207,482
Long-term liabilities 12,628 14,951
------ ------
Total liabilities 467,446 399,619
------- -------
Commitments and contingencies
Stockholders' equity
Preferred stock; $0.001 par value;
25,000,000 shares authorized, no
shares issued and outstanding - -
Common stock; $0.001 par value;
100,000,000 shares authorized,
2,518,350 shares issued and outstanding
at 6/30/09 and 12/31/08 2,518 2,518
Additional paid-in capital 6,794,179 6,794,179
Stock subscriptions receivable (150) (150)
Deficit (3,229,660) (2,677,044)
---------- ----------
Total stockholders' equity 3,566,887 4,119,503
--------- ---------
Total liabilities and stockholders'
equity $4,034,333 $4,519,122
========== ==========
HEALTHY FAST FOOD, INC. RESULTS OF OPERATIONS
Unaudited Unaudited
For the three For the six
months ended months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
Revenues
Restaurant sales, net of
discounts $569,031 $167,795 $822,925 $351,093
Franchise royalties and fees 4,335 3,775 10,954 23,011
----- ----- ------ ------
Total revenues 573,366 171,570 833,879 374,104
------- ------- ------- -------
Restaurant operating costs
Food, beverage and packaging
costs 184,485 68,430 289,814 149,520
Labor and related expenses 160,200 83,337 279,136 172,953
Occupancy and related
expenses 103,428 29,254 161,616 53,859
Marketing and advertising 27,822 22,968 35,369 44,948
Royalties 8,669 7,551 18,222 13,966
General and administrative 101,606 85,843 250,379 154,503
Officer compensation 117,757 71,670 244,049 136,159
Investor relations fees - 22,500 - 131,342
Pre-opening costs 8,026 - 8,026 -
Impairment loss on franchise
fee 12,746 - 12,746 -
Depreciation and amortization 55,940 17,967 91,046 38,075
Amortization of franchise fees 438 438 875 875
--- --- --- ---
Total costs and expenses 781,117 409,958 1,391,278 896,200
------- ------- --------- -------
Loss from operations (207,751) (238,388) (557,399) (522,096)
Interest expense (603) (733) (1,240) (2,023)
Interest income 3,018 22,961 6,023 26,908
----- ------ ----- ------
Loss before income taxes (205,336) (216,160) (552,616) (497,211)
Provision for income taxes - - - -
--- --- --- ---
Net loss $(205,336) $(216,160) $(552,616) $(497,211)
========= ========= ========= =========
Net loss per common share -
basic and fully diluted $(0.08) $(0.10) $(0.22) $(0.23)
====== ====== ====== ======
Weighted average common shares
outstanding - basic and
diluted 2,518,350 2,186,110 2,518,350 2,186,110
========= ========= ========= =========
- Healthy Fast Food Unveils New Web Site at U-SWIRL.com
- Healthy Fast Food Welcomes Richard Ungaro as New Chief Operating Officer
- Healthy Fast Food Extends Las Vegas Expansion Streak With Casino-Based U-Swirl(R) Frozen Yogurt Store
- Healthy Fast Food Signs New Franchise Agreement to Expand U-SWIRL(R) Frozen Yogurt Stores Into Northwestern U.S.
- Healthy Fast Food Opens Third U-SWIRL Frozen Yogurt Store in the Las Vegas Market
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