ST. AUGUSTINE, FL - (Marketwired - August 18, 2014) - Creative Learning Corporation (OTCQB: CLCN), owner and developer of Bricks 4 Kidz®, and Challenge Island®, the highly-popular children's education and enrichment programs, today announced financial results for the three and nine months ended June 30, 2014.
Brian Pappas, CEO of Creative Learning, commented, "We are pleased with our continued strong top line revenue growth, which reflects the rapid pace at which we are adding new franchises. I am especially pleased to report we recently surpassed 600 franchises worldwide and our recurring royalty fees increased over 80% compared to the same period last year. We attribute this success to our highly differentiated business model focusing on the underserved market of educational and enrichment programs. Specifically, there is growing interest in after-school and other programs that emphasize creativity and problem solving over standardized testing."
"Bricks 4 Kids has been extremely well received by the market, and Challenge Island is well positioned for similar growth worldwide. We recently announced our third franchise concept, Sew Fun Studios, and plan to launch additional franchise brands following this successful model."
Mr. Pappas concluded, "We have developed a scalable business model with minimal capex requirements and high margin, recurring revenue. Moreover, we have consistently generated very high ROI from our advertising and lead generation initiatives. We recently stepped up our advertising initiatives targeting new franchisees, which we believe will help drive our global expansion. We also increased our personnel and certain overhead, which will allow us to support our continued growth including the launch of Sew Fun Studios. We have also invested considerable resources on the international front. As a result, we expect to add several large international franchisees before year-end. Despite these investments in the business, we achieved profitability and continue to generate solid cash flow. At the same time, we maintained a strong balance sheet with over $3 million cash."
Revenue for the three months ended June 30, 2014 was $2.1 million, an increase of 33.3% compared to $1.6 million for the same period last year. Operating income for the third quarter of fiscal 2014 was $510,444 compared to $565,523 for the same period in fiscal 2013. Operating income for the third quarter of fiscal 2014 included increased personnel and international expenses, as well higher marketing expense as the company launched new advertising initiatives. Net income for the third quarter of fiscal 2014 was $318,073, or $0.03 per share, compared to net income of $565,063, or $0.05 per share, for the same period last year. Net income for the third quarter of fiscal 2014 included a $199,167 income tax expense, which was not incurred for the same period last year.
Revenue for the nine months ended June 30, 2014 was $6.0 million, an increase of 72.3% compared to $3.5 million for the same period last year. Operating income for the nine months ended June 30, 2014 was $1.5 million compared to $674,036 for the same period in fiscal 2013. Net income for the nine months ended June 30, 2014 was $962,574 million, or $0.08 per share, compared to net income of $650,969, or $0.06 per share, for the same period last year. Net income for the nine months ended June 30, 2014 included a $588,016 income tax expense, which was not incurred for the same period last year.
Creative Learning Corporation, operating under the trade names of Bricks 4 Kidz® and Challenge Island®, offers educational and enrichment programs to children ages 3-12+. Through a unique franchise business model that includes a proprietary curriculum and marketing strategies, plus a proprietary Franchise Marketing Tool (FMT), the Company provides a wide variety of programs designed to enhance students' problem solving and critical thinking skills. Creative Learning Corp is now operating in 30 countries.
This press release may contain "forward-looking statements" that are made pursuant to the "safe harbor" provisions as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," and similar expressions. These statements are based upon management's current expectations as of the date of this press release. Such forward-looking statements may include statements regarding the Company's future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses and other future or expected performances. The Company cautions readers there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC under the "Risk Factors" sections and elsewhere in those filings.
|CREATIVE LEARNING CORPORATION|
|Condensed Consolidated Statements of Operations|
|For The Three||For The Nine|
|Months Ended||Months Ended|
|June 30,||June 30,||June 30,||June 30,|
|Initial franchise fees||$||1,605,899||$||1,280,871||$||4,674,372||$||2,731,471|
|Corporate Creativity Center sales||3,618||26,006||70,818||86,559|
|Franchise consulting and commissions:|
|Franchise training and expenses||122,700||82,963||348,355||202,768|
|Salaries and payroll taxes||264,774||136,610||700,200||405,081|
|Stock based compensation||(0||)||-||21,537||-|
|Other general and administrative expenses||147,243||95,836||479,415||351,824|
|Total operating expenses||1,603,338||1,020,530||4,490,553||2,802,447|
|Income from operations||510,444||565,523||1,500,325||674,036|
|Other income (expense):|
|Other income (expense)||6,796||(460||)||50,267||(21,072||)|
|Total other income (expense)||6,796||(460||)||50,265||(23,067||)|
|Income before provision for income taxes||517,240||565,063||1,550,590||650,969|
|Provision for income taxes (Note 1)||199,167||-||588,016||-|
|Net Income per share|
|Basic Weighted average number of common shares outstanding||11,809,409||11,611,770||11,809,409||11,611,770|
|Diluted Weighted average number of common shares outstanding||11,854,528||11,611,770||11,854,528||11,611,770|
|CREATIVE LEARNING CORPORATION|
|Condensed Consolidated Balance Sheets|
|June 30,||September 30,|
|Accounts receivable, less allowance for doubtful accounts of $9,402 and $10,000, respectively||383,022||310,150|
|Other receivables - current portion||125,093||94,301|
|Deferred tax asset||1,058||1,058|
|Total Current Assets||3,965,617||2,411,282|
|Note receivable from related party||70,000||70,000|
|Other receivables - net of current portion||50,867||37,491|
|Property and equipment, net of accumulated depreciation of $87,863 and $60,073, respectively||330,961||294,863|
|Liabilities and Stockholders' Equity|
|Accrued marketing fund||161,259||100,754|
|Income tax payable||221,221||13,131|
|Total Current Liabilities||1,125,934||484,030|
|Notes payables - net of current portion||5,000||5,297|
|Preferred stock, $.0001 par value; 10,000,000 shares authorized; -0- and -0- shares issued and outstanding, respectively||-||-|
|Common stock, $.0001 par value; 50,000,000 shares authorized; 11,809,409 and 11,809,409 shares issued and outstanding, respectively||1,181||1,181|
|Additional paid-in capital||2,179,210||2,157,673|
|Total Stockholders' Equity||3,418,690||2,434,579|
|Total Liabilities and Stockholders' Equity||$||4,549,624||$||2,923,906|
Crescendo Communications, LLC
(212) 671-1020 x 304
Crescendo Communications, LLC
(212) 671-1020 x 304
BRICKS 4 KIDZ programs provide an extraordinary atmosphere for students to build unique creations, play games, and have loads of fun using LEGO(R) bricks.