Revenue Increases 60.0% to $7.7 Million in Fiscal 2014
Royalty Fees Increased 85.3% to $1.8 Million
Shareholders’ Equity Increases to $3.3 million at the End of Fiscal 2014 Compared to $2.4 Million at the End of Fiscal 2013
ST. AUGUSTINE, Fla. - February 03, 2015 - (BUSINESS WIRE) - Creative Learning Corporation (OTCBB: 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 fiscal year ended September 30, 2014.
Brian Pappas, CEO of Creative Learning, commented: "We are pleased to report positive financial results for the fiscal year ended September 30, 2014. We continue to see top and bottom line growth, with revenue increasing 60.0% to $7.7 million and our high margin, recurring royalty fees increasing 85.3%. Notably, we achieved $1.4 million of EBITDA and net income of $799,171 for fiscal 2014, which includes earlier than expected recognition of certain expenses in the fourth quarter of 2014 that should enhance our bottom line in 2015. We attribute our strong growth to the rapid roll-out of our Bricks 4 Kidz® franchises and the early success we have experienced with Challenge Island®. At the same time, our balance sheet continues to improve as we increased shareholders’ equity to $3.3 million as of September 30, 2014."
"To date, we have awarded 702 franchises, 657 Bricks 4 Kidz ® franchises and 45 Challenge Island ® franchises. With respect to Sew Fun Studios®, we have revamped the model to become a mobile business model, which has proven successful with Bricks 4 Kidz® and Challenge Island® by lowering the capital requirements for the franchisees. Our goal is to award no less than 15 Sew Fun Studios® franchises in fiscal 2015. We continue to grow rapidly internationally and are in 35 countries to date. Our master franchise model generates significant cash flow along with high margins, and we currently have 18 master franchises. Looking ahead to fiscal 2015, we expect to continue our strong growth and further enhance our profitability. Specifically, we look forward to adding at least 120-150 new Bricks 4 Kidz franchises and entering at least 5 new countries bringing our total to over 40 countries. Our goal is to add at least 30 new Challenge Island® franchises and enter at least 3 new countries outside of the U.S. by the end of 2015."
"2014 has been a year of transition as we strengthened our internal infrastructure to support our anticipated growth. We are in the process of further enhancing our corporate governance and financial controls. Our plan is to list on a senior national exchange in 2015. In advance of this, we plan to expand the senior management team, and look forward to appointing new independent directors in the upcoming quarters. Overall, we are extremely well positioned in the market and believe the internal steps we have taken in 2014 and continue to take in 2015, along with the rapid growth in our high margin, recurring royalty revenue, position us to significantly enhance shareholder value in the coming years."
Revenue for the fiscal year ended September 30, 2014 increased 60.0% to $7.7 million versus $4.8 million for the fiscal year ended 2013. The increase in revenue of $2,890,087 was the result of increased awarded franchises and nearly doubling of royalty income. Operating income for fiscal 2014 was $1.4 million versus operating income of $1.0 million for fiscal 2013. Net income for fiscal 2014 was $799,171 or $0.07 per diluted share, versus net income of $947,956 or $0.08 per diluted share in fiscal 2013.
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 35 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.
View Original for Full Data Table
View Original for Full Data Table
SOURCE Creative Learning Corporation
David Waldman
Natalya Rudman
Crescendo Communications, LLC
212-671-1020 x 304
clcn@crescendo-ir.com
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.