Healthy Fast Food Announces Third Quarter 2009 Results
HENDERSON, Nev.− (PR NEWSWIRE) − Healthy Fast Food, Inc. (OTCBB: HFFI), parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® stores, today announced its financial and operational results for the three and nine months ended September 30, 2009.
Financial Highlights for Nine Months Ended September 30, 2009 Compared to Nine Months Ended September 30, 2008:
- Total revenues from the U-SWIRL Frozen Yogurt operations were $926,000. The Company launched its new U-SWIRL business in March 2009 with the opening of the first Company-owned store in Las Vegas.
- Currently, the Company has a total of five (5) Company-owned stores in operation and two (2) franchise /licensed stores in operation.
- After factoring restaurant operating costs, including pre-opening expenses related to staff training, supplies and grand-opening promotions, U-SWIRL achieved an operating profit of $239,000.
Fresh and Fast (formerly EVOS) Restaurants
- During the third quarter of 2009, Healthy Fast Food closed its two Fresh and Fast (formerly EVOS) restaurants to focus strictly on U-SWIRL's national expansion strategy. As a result of the closures, activities of the Fresh and Fast concept have been accounted for as discontinued operations. Revenues from discontinued operations totaled $469,000 compared to $524,000.
- After writing off all of the assets related to the Fresh and Fast concept, the Company reported a loss from discontinued operations of $1,155,000, up from $270,000.
- On a consolidated basis, net loss increased 100% to $1,786,000, or $0.71 per basic and diluted share, compared to $892,000, or $0.40 per basic and diluted share.
Financial Highlights for Three Months Ended September 30, 2009 Compared to Three Months Ended September 30, 2008:
- Total U-SWIRL revenues were $530,000 compared to $0.
- U-Swirl restaurant operating profits in the third quarter 2009 were $125,000.
- After factoring corporate expenses and $1.03 million in net costs stemming from the divestiture of the Fresh and Fast concept, net loss was $1,234,000, or $0.49 per basic and diluted share, compared to a net loss of $395,000, or $0.18 per basic and diluted share.
As of September 30, 2009, Healthy Fast Food had cash and cash equivalents of $726,000, working capital of $588,000 and total stockholders' equity of $2,375,000
"Healthy Fast Food was extraordinarily productive in the third quarter, accomplishing a number of key objectives essential to supporting the national expansion of our exciting and profitable U-SWIRL concept. This included closing the chapter on Fresh and Fast, which has freed us to concentrate solely on implementing strategies to build U-SWIRL into a respected industry brand and successful national franchise system," stated Hank Cartwright, Chairman and CEO of Healthy Fast Food. "In addition to expanding the U-Swirl network to seven stores, we also signed our first franchise agreement for the development of U-Swirl franchise locations in Reno, Nevada. Judging by our latest store opening in Reno, our self-serve concept and quality frozen treat offerings continue to be a resounding hit with local consumers."
Continuing, Cartwright noted, "Since mid-August, we started the expansion of our senior management team with the welcome addition of Rich Ungaro, a highly accomplished industry veteran, as our new Chief Operating Officer. In addition, in October we named Phil deMena, an industry recognized real estate expert as our new outsourced VP of Real Estate."
"With the fourth quarter well underway, our progress has not slowed by any measure. What's more, we have recently initiated construction on our sixth Company-owned store in Las Vegas and signed a franchise area development agreement for the Phoenix metro market, under which the new developer has committed to open a minimum of 18 new U-SWIRL Frozen Yogurt stores over the next five years. With 2010 fast approaching, we are very optimistic about U-SWIRL's promising outlook and are excited by the many expansion opportunities that we are actively pursuing," concluded Cartwright.
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 stores called U-SWIRLFrozen 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 more than 60 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 stores, 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 stores.
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, 2008. 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.
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