Healthy Fast Food Announces FY09 Financial and Operational Results
Reports $1.34 Million in Total Revenues and $301,000 in Operating Profit from U-SWIRL Frozen Yogurt(R) Cafe Operations
HENDERSON, Nev., April 1 /PRNewswire-FirstCall/ -- Healthy Fast Food, Inc. (OTC Bulletin Board: HFFI), parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® cafes, today announced its financial and operational results for the fiscal year ended December 31, 2009.
Financial Highlights for Fiscal Year 2009 Compared to Fiscal Year 2008:
- Revenues from the U-SWIRL Frozen Yogurt operations totaled $1.34 million. The Company launched its new U-SWIRL business in March 2009. Consequently, there were no reported revenues for the prior year.
- As of December 31, 2009, there were a total of five Company-owned cafes in operation – one opened in the first quarter ended March 31, 2009; one opened in the second quarter ended June 30, 2009; and three opened in the third quarter ended September 30, 2009.
- In addition, the Company had two franchised cafes in operation as of year end 2009 – one located in Henderson, Nevada and one in Reno, Nevada.
- After factoring cafe operating costs, excluding pre-opening expenses of $17,000 related to staff training, supplies and grand-opening promotions, U-SWIRL achieved an operating profit of $301,000 from Company cafe operations.
As of December 31, 2009, Healthy Fast Food had cash and cash equivalents of $517,000, working capital of $378,000 and total stockholders' equity of $2.12 million. For more detailed information on the financial results, please refer to the financial charts reflected below and the Form 10K filed with the U.S. Securities & Exchange Commission on Wednesday, March 31, 2010.
Operational Highlights for Fiscal Year 2009:
- During the year, Healthy Fast Food launched its new U-SWIRL self-serve frozen yogurt concept, opening a total of five Company-owned cafes in the Las Vegas market over a six-month period.
- In November, U-SWIRL International initiated construction on the sixth Company-owned cafe serving the Vegas valley and held its official grand opening on February 19, 2010.
- In July, the Company entered into a franchise agreement with Galena Frozen Yogurt Company providing for the franchisee to open a U-SWIRL cafe in Reno – North Nevada's largest city and one of America's most popular tourist destinations. This Reno store opened in November.
- In November, the Company awarded franchise area development rights to a multi-concept franchise system operator, based in Phoenix, Arizona, providing for a minimum of 18 U-SWIRL cafes to be opened in the Phoenix market over the next five years.
- Subsequent to the end of the year, the Company signed an Area Development Agreement with RMR Group, LLC to develop a minimum of three U-SWIRL Frozen Yogurt cafes on the Jersey Shore in Monmouth County, New Jersey.
- In October, U-SWIRL launched a comprehensive online marketing strategy, which included establishing identities on Twitter and Facebook. To date, U-SWIRL Frozen Yogurt has attracted over 4,800 fans to its Facebook page and more than 2,000 followers on Twitter. Early in 2010, the Company unveiled its new corporate web site, found at www.U-SWIRL.com.
- U-SWIRL and its self-serve concept have continued to receive favorable reviews from customers and area publications, alike. Most recently, U-SWIRL Frozen Yogurt was named by The Las Vegas Review-Journal's "Best of Las Vegas" as the best pick in the ice cream category.
- In December, Healthy Fast Food was honored with the 2009 Best of Business Award in the "Fast Food Restaurants and Stands" category by the Small Business Commerce Association.
"We've got a big winner in U-SWIRL," stated Hank Cartwright, Chairman and CEO of Healthy Fast Food. "Our results confirm that we are achieving success in establishing the U-SWIRL brand as a popular, in-demand frozen yogurt choice by local consumers, and we are demonstrating that our cafe business model and franchise opportunity are both smart and highly lucrative. The name of the game, from this point forward, centers on achieving rapid national cafe expansion and broad market recognition as the consumer-preferred destination for self-serve frozen treats. We are very pleased with the early positive traction that U-SWIRL is enjoying, and have every reason to believe that our continued efforts will help to perpetuate and accentuate U-SWIRL's success in 2010 and well beyond."
HEALTHY FAST FOOD, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Audited)
December December
31, 2009 31, 2008
-------- --------
ASSETS
(RESTATED)
Current assets
Cash and cash equivalents $516,925 $3,335,740
Accounts receivable 5,597 -
Accounts receivable from U-Create 1,481 -
Inventory 61,658 15,100
Prepaid expenses 147,814 23,495
Current assets from
discontinued operations 8,426 100,113
----- -------
Total current assets 741,901 3,474,448
Leasehold improvements,
property and equipment, net 2,056,346 64,586
Leasehold improvements,
property and equipment from
discontinued operations, net - 814,849
Other assets
Deposits 56,762 5,400
Other assets 58,475
Other assets from discontinued operations 85,351 159,839
------ -------
Total other assets 200,588 165,239
------- -------
Total assets $2,998,835 $4,519,122
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $203,665 $62,781
Accounts payable and accrued liabilities
from discontinued operations 154,953 110,202
Current portion of long-term debt 4,808 4,203
----- -----
Total current liabilities 363,426 177,186
Deferred rent 355,756 20,059
Deferred revenue 100,000 -
Long-term capital lease 10,142 14,951
Long-term liabilities from discontinued
operations 53,253 187,423
------ -------
Total liabilities 882,577 399,619
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,
2,761,336 and 2,518,350 shares issued
and outstanding at December 31, 2009
and 2008, respectively 2,761 2,518
Additional paid-in capital 7,154,117 6,794,179
Stock subscriptions receivable - (150)
Compensation payable in stock 19 -
Deficit (5,040,639) (2,677,044)
---------- ----------
Total stockholders' equity 2,116,258 4,119,503
--------- ---------
Total liabilities and
stockholders' equity $2,998,835 $4,519,122
========== ==========
HEALTHY FAST FOOD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Audited)
For the year ended
------------------
December 31, December 31,
2009 2008
------------ ------------
(RESTATED)
Revenues
Cafe sales, net
of discounts $1,322,663 $-
Franchise
royalties and
fees 18,731 -
------ ---
Total revenues 1,341,394 -
========= ===
Cafe operating costs
Food, beverage and packaging
costs 398,699 -
Labor and related expenses 361,448 -
Occupancy and related expenses 261,298 20,059
Marketing and advertising 129,302 41,127
General and administrative 591,293 530,908
Officer compensation 594,038 318,805
Investor relations fees - 184,740
Intellectual property
acquired from related parties - 180,000
Pre-opening costs 17,025 -
Depreciation and amortization 133,558 2,864
Total costs and expenses 2,486,661 1,278,503
--------- ---------
Loss from operations (1,145,267) (1,278,503)
Interest expense (2,347) (220)
Interest income 7,691 53,987
----- ------
Loss from continuing
operations before income taxes (1,139,923) (1,224,736)
Provision for income taxes - -
--- ---
Income from continuing
operations (1,139,923) (1,224,736)
Discontinued operations:
Loss from operations of
discontinued Fresh and Fast
restaurant component (including
loss on disposal
of $1,119,451) 1,223,672 378,430
Income tax benefit - -
--- ---
Loss on discontinued
operations (1,223,672) (378,430)
---------- --------
Net loss $(2,363,595) $(1,603,166)
=========== ===========
Earnings per share -basic
Loss from continuing
operations $(0.45) $(0.56)
Loss from discontinued
operations (0.48) (0.17)
----- -----
Net loss per common share -
basic and fully diluted $(0.93) $(0.73)
====== ======
Weighted average common shares
outstanding - basic and diluted 2,536,995 2,186,110
========= =========
ABOUT U-SWIRL INTERNATIONAL, INC.
U-SWIRL International is a wholly owned subsidiary of Healthy Fast Food, Inc., and is launching a national chain of self-serve frozen yogurt cafes called U-SWIRL Frozen Yogurt®. U-SWIRL allows guests the ultimate choice in frozen yogurt by providing up to 20 non-fat flavors, including tart, traditional, no sugar-added options, and up to 70 toppings, including seasonal fresh fruit, sauces, candy and granola. Guests serve themselves and pay by the ounce instead of by the cup size. A healthier alternative to a coffee shop hang out, locations are furnished with couches and tables, and patio seating. In addition to its development of Company–owned cafes, U-SWIRL International has also launched its franchise program to roll out the concept nationwide in those states in which the Company is qualified to offer franchises.
ABOUT HEALTHY FAST FOOD, INC.
Headquartered in Henderson, Nevada, Healthy Fast Food, Inc. is on a mission to deliver consumers a smarter alternative to America's favorite meals and snacks. In September 2008, the Company and its wholly-owned subsidiary, U-SWIRL International, Inc., acquired the worldwide rights to the U-SWIRL Frozen Yogurt system. Sole ownership of the system was transferred to U-SWIRL International, Inc., and it has been executing an aggressive strategy to build the brand into a globally recognized chain of highly experiential frozen yogurt cafes.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of the Healthy Fast Food, Inc.'s ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Healthy Fast Food's periodic filings with the Securities and Exchange Commission, including without limitation, the Company's Annual Report for the year ended December 31, 2009. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. Healthy Fast Food undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
FOR MORE INFORMATION, PLEASE CONTACT |
|
Elite Financial Communications Group, LLC |
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Dodi Handy, President and CEO (Twitter: @dodihandy) or |
|
Kathy Addison, Director of Elite Media Group (Twitter: @kathyaddison) |
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407-585-1080 or via email at [email protected] |
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SOURCE Healthy Fast Food, Inc.
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