SAN DIEGO, CA -- May 31, 2017 -- InvestorsHub NewsWire --
Generation NEXT Franchise Brands (OTCQB: VEND) reports franchise bookings for its third
fiscal quarter and nine months ended March 31st 2017.
The franchisor, whose Reis & Irvy's frozen yogurt robots
launched in April of 2016, finished the three and nine months ended
March 31, 2017, with bookings aggregating $6.2 million and $20.7
million, respectively. Additionally, the company added 34 and 133
new Reis and Irvy's franchisees, respectively, for the same
periods.
Other notable items during the period are as follows:
- Accounts receivable aggregated $13.7 million at March 31,
2017;
Total assets aggregated $17.5 million at March 31, 2017;
Deferred revenues aggregated $23.5 million at March 31, 2017;
The company issued common stock for proceeds totaling $480,000
during the quarter;
Subsequent to March 31, 2017, the company issued common stock
totaling $980,000;
We raised $509,000 in debt proceeds during the nine months ended
March 31, 2017 and also repaid $334,000 in debt principal during
the same period. Also, various of the company's loan agreements
were extended through dates ranging from June 30, 2017 through
December 31, 2017. Subsequent to March 31, 2017, the company also
repaid an additional $455,000 in debt principal;
The company has launched a new subsidiary Generation NEXT Vending
Robots for its direct sales program to national and regional chains
as well as single site retail locations. These customers, which
already own their location, will expand our sales opportunities and
increase revenues. Typically, these will represent locations that
do not meet the qualifications for our franchise network.
Furthermore, the company will be offering equipment financing
options through a third party vendor.
We have initiated our international master license / distribution
program, whereby we will partner with in-country operators to
distribute our newly developed vending robots.
"We are extremely pleased with our first year of franchise sales
for Reis & Irvy's. Our aggregate bookings of $22.0 million have
laid the foundation for the franchise programs future," stated Nick
Yates, Chairman. "Now, as we prepare for the launch our direct
sales program and our international master license / distribution
program, we look to continue to expand our reach and revenues. In
addition, our development partner's progress has allowed our
manufacturing partner to provide us with a Q1fiscal 2018 production
schedule allowing for our first order of approximately 200 Reis and
Irvy's robots to begin rollout in September 2017, followed by an
aggressive month to month rollout thereafter. We are confident we
can install for our franchisees all robots sold through our March
31, 2017 quarter and recognize the deferred revenues prior to the
end of fiscal year 2018. And finally, we are moving in the right
direction with our cash flow, as we were slightly negative from
operating activities of $38,000 during the nine months ended March
31, 2017, compared to a negative $773,000 for the nine months ended
March 31, 2016. Furthermore, we had overall positive cash flows of
$49,000 for the nine months ended March 31, 2017, compared to
overall negative cash flows of $171,000 for the same period in the
prior year. We believe that we are on track to end fiscal 2017 cash
flow positive and maintain this throughout fiscal year 2018."
The company had revenues of $3.8 million and $4.4 million for
the nine months ended March 31, 2017 and 2016, respectively. The
decrease in revenues is directly related to the discontinuation of
new franchise sales of subsidiary franchise concept Fresh Healthy
Vending. Net loss for the nine months ended March 31, 2017 and 2016
was $8.4 million and $3.4 million, respectively. Included in the
net loss for the nine months ended March 31, 2017 was research and
development expenses of $743,000 related to the development of the
next generation frozen yogurt robot, $1.6 million of marketing and
advertising expense, $2.9 million of personnel expense, $1.0
million of professional fees, and $395,000 related to Robofusion
license fees. Furthermore, the Company incurred an aggregate of
$1.2 million of non-cash discount accretion and derivative
liability expense.
To learn more about Generation NEXT Franchise Brands or their
family of brands, including Reis & Irvy's, Fresh Healthy
Vending or 19 Degrees, please visit www.gennextbrands.com or call toll free
888-902-7558.
This information is not intended as an offer to sell, or the
solicitation of an offer to buy, a franchise. It is for information
purposes only. No Reis & Irvy's franchises will be sold to any
resident of any state until the offering has been exempted from the
requirements of, or duly registered in and declared effective by,
such state and the required FDD (if any) has been delivered to the
prospective franchisee before the sale in compliance with
applicable law. Currently, the following states in the United
States regulate the offer and sale of franchises: California,
Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York,
North Dakota, Oregon, Rhode Island, South Dakota, Virginia,
Washington, and Wisconsin. If you reside in one of these states, or
even if you reside elsewhere, you may have certain rights under
applicable franchise laws or regulations.
Generation NEXT Franchise Brands
Generation NEXT Franchise Brands, based in San Diego, California,
is a publicly traded company on the OTC Markets trading under the
symbol: VEND. Generation NEXT Franchise Brands is parent company to
Fresh Healthy Vending LLC, the market's leading healthy-choice
vending machine franchise, Reis and Irvy's, Inc., the world's first
robotic frozen yogurt vending kiosk, 19 Degrees, a
corporate-focused frozen yogurt robot brand and Generation NEXT
Vending Robots, our newly established owner/operator model. The
Company hosts over 350 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.
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 Generation NEXT's actual
results are described in Generation NEXT's filings with the
Securities and Exchange Commission, including its most recent Form
10-Q's for the quarterly periods ended March 31, 2017, December 31,
2016 and September 30, 2016, and its annual report on Form 10-K for
the fiscal year ended June 30, 2016. All forward-looking statements
in this news release speak only as of the date of this news release
and are based on Generation NEXT's current beliefs and
expectations. Generation NEXT 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.