San Diego, CA - (NewMediaWire) - October 7, 2015
- Fresh Healthy Vending International,
Inc. (OTCQB: VEND),
North America's leading healthy vending franchisor, reports
financial results for the fiscal year ended June 30,
2015.
Revenues
We had revenues of $6,273,722 for the year ended June 30, 2015,
compared to revenues of $5,258,027 for the year ended June 30,
2014. This represented an increase in revenues of $1,015,695 or
19.3%. The increase was primarily a result of expanded marketing
efforts, including our national radio advertising campaign and
Internet marketing. The increase in total revenues also
included an increase in royalties of $135,917 from $49,474 in
fiscal 2014 to $185,391 in fiscal 2015.
Gross Margin
Gross margin for the year ended June 30, 2015 was $3,333,194
compared to $2,718,730 for the year ended June 30, 2014,
representing an increase of $614,464 or 22.6%. Gross margin
percentage was 53.1% and 51.7% for the years ended June 30, 2015
and 2014, respectively. The increase in gross margin percentage of
1.4% in fiscal 2015 from 2014 was due primarily to an increase in
royalties and agency sales, which carry a higher gross margin
percentage.
Operating Expenses
Total operating expenses increased $205,738 or 4% from
$5,095,063 in fiscal 2014 to $5,300,801 in fiscal 2015. As a
percentage of revenue, operating expenses decreased 1.3% from 9.7%
in fiscal 2014 to 8.4% in fiscal 2015.
The increase in operating expenses was primarily attributable to
an increase in personnel and marketing costs, offset by a reduction
in professional fees.
Net Loss
Our net loss was $2,117,075 for the year ended June 30, 2015
compared to a net loss of $2,428,851 for the year ended June 30,
2014. This represents a decrease in our net loss of $311,776 or
12.8% from fiscal 2014 to 2015.
Basic and diluted net loss per share during the year ended June
30, 2015 was $.08 as compared to $.10 for the year ended
2014.
Financial Position
At June 30, 2015, the Company had a cash balance of $325,337 and
total current assets of $3,749,924. Furthermore, at June 30, 2015
and 2014, the Company had deferred revenues of $6,428,156 and
$5,456,969, respectively. The increase in deferred revenues was
directly related to our increase in bookings during the year, in
addition to our increase in recognized revenue.
"Fiscal 2015 saw continued restructuring in order to bolster our
ability to secure a higher number of qualified locations for our
franchisees monthly. We believe that this will result in us
delivering more units per quarter, which allows us to recognize the
$6.4 million of deferred revenues in a more timely manner," stated
Nicholas Yates, Company Chairman. "We look forward to executing on
our plan with continued improvement in fiscal 2016."
We have effected changes to our operations in order to restore
our previous levels of revenues enjoyed in prior years in the hope
that such changes will also position our Company for future growth
in fiscal 2016 and beyond. Among the changes implemented or in the
process of being implemented were the following:
- We launched our new Fresh Micro Market, a self-checkout kiosk
designed for corporate break rooms, hotel lobbies, auto dealerships
and other retail establishments
- We raised approximately $1.3 million in debt and convertible
debt needed for general corporate purposes and expansion of our
micro market business
- We have expanded our industry public relations initiatives and
announcements in various print and other media to provide end
customers and potential franchisees better awareness of the
benefits of our product and franchisee offerings
- We engaged an investor relations firm to expand our outreach in
the public market
- We achieved record monthly bookings and secured locations
- We booked our largest deal to date totaling 58 machines and
aggregating $556,250 in anticipated future revenue
- We installed our 50th corporate-owned micro market
- We settled our matter with the California Department of
Business Oversight and now market our franchises in 47 states
- We formed an alliance with the American Diabetes Association as
an element of participation in their Wellness Lives Here
program
- We appointed JoAnna Abrams, a business strategist, innovator
and collaborator, as the first member of our newly created Advisory
Board
- During the third quarter of fiscal 2015, the Company entered
into a short-term bridge loan which it promptly repaid during the
fourth quarter
For more information on Fresh Healthy Vending, the franchise
program, or to receive a free healthy vending machine in your
school or business, visit www.freshvending.com or call toll
free 888-902-7558.
About Fresh Healthy Vending
Fresh Healthy Vending, based in San Diego, California, is North
America's leading healthy vending franchisor. Fresh Healthy Vending
pioneered the concept of vending machines stocked with
tried-and-tested fresh, healthy snack options and capitalizes on a
growing market of health conscious consumers. The Company has over
230 active franchisees throughout the United States, Canada, Puerto
Rico and the Bahamas, and continually looks to partner with
like-minded entrepreneurs who share its vision.
The Company has booked over 3,000 machines for placement in
schools, universities, hospitals, community centers, military
bases, airports, fitness facilities, YMCAs, libraries and many
other locations.
Fresh Healthy Vending's stock is traded on the OTC Markets,
Symbol:
VEND.
Cautionary note on forward-looking statements
Except for historical information contained in this release,
statements in this release may constitute forward-looking
statements regarding assumptions, projections, expectations,
targets, intentions or beliefs about future events that are based
on management's belief, as well as assumptions made by, and
information currently available to, management. While the Company
believes that expectations are based upon reasonable assumptions,
there can be no assurances that goals, results and strategy will be
realized. Numerous factors, including risks and uncertainties,
terms and availability of financing, may affect actual results and
may cause results to differ materially from those expressed in
forward-looking statements made by the Company or on its behalf. In
addition to statements, which explicitly describe risks and
uncertainties, readers are urged to consider statements labeled
with such terms as "believes," "belief," "expects," "intends,"
"feels," "anticipates," "proposes," "proposed," or "plans" to be
uncertain and forward-looking. More detailed information on these
and additional factors that could affect Fresh Healthy Vending's
actual results are described in Fresh Healthy Vending's filings
with the Securities and Exchange Commission, including its most
recent Forms 10-Q for the quarterly periods ended March 31, 2015,
December 31, 2014, September 30, 2014 and its annual report on Form
10-K for the fiscal year ended June 30, 2014. All forward-looking
statements in this news release speak only as of the date of this
news release and are based on Fresh Healthy Vending's current
beliefs and expectations. Fresh Healthy Vending undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by law.
Source: Fresh Healthy Vending