Creative Learning Corporation Reports Financial Results for the First Quarter of Fiscal 2015
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Creative Learning Corporation Reports Financial Results for the First Quarter of Fiscal 2015

Strong Outlook for the Remainder of Fiscal 2015

Royalty Fees Increased 84.6% to $554,859

32 New Franchises Sold This Quarter

ST. AUGUSTINE, Fla. - February 18, 2015 - (BUSINESS WIRE) - Creative Learning Corporation (OTC: CLCN), owner and developer of Bricks 4 Kidz®, Challenge Island® and Sew Fun Studios®, the highly-popular children’s education and enrichment programs, today announced financial results for the first quarter of fiscal 2015 ending December 31, 2014.

Brian Pappas, CEO of Creative Learning, commented, "In just a few short years, we have grown the company to an impressive 700+ global franchises. The strength of our business model is best illustrated by our high margin, recurring royalty fees which increased 84.6% to $554,859 versus $300,652 for the first quarter of fiscal 2014. Our overall revenues were not as strong in the first quarter of fiscal 2015, compared to the same period last year, due to the fact that we sold an unusually high number of international franchises and master franchises in the first quarter of fiscal 2014. Nevertheless, our outlook for the business is extremely positive. We are projecting for the fiscal year ended September 30, 2015, to add a total of 15-20 franchises each month, which we expect should contribute a total of 180-240 new franchises for this fiscal year end, not including any new master franchise sales which could add significant upside."

"Our future growth will depend on the pace at which we grow Challenge Island® and Sew Fun Studios®. Our recurring royalties revenue stream will continue to increase, further enhancing our future profitability. Earlier this year, we formally launched Sew Fun Studios® after revamping the strategy 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. We are on track to open at least 15 Sew Fun Studios® franchises in fiscal 2015. At the same time, we continue to gain momentum with Challenge Island® and are on pace to add at least 40 new franchises and enter at least 3 new countries outside of the U.S. by the end of 2015. Finally, we anticipate adding 120-150 new Bricks 4 Kidz franchises this year and we expect to enter at least 5 new countries, bringing our total franchises sold to over 40 countries."

Revenue for the fiscal first quarter ended December 31, 2014 was $1.2 million versus $1.9 million for the fiscal first quarter ended December 31, 2013. The decrease in revenue was primarily the result of an unusually high number of international franchises and master franchises sold in the first quarter of fiscal 2014. Master franchise fees are generally in the six-figure range and add significant revenue over the typical franchise fee. Operating loss for the first quarter of fiscal 2015 was ($33,657) versus operating income of $474,021 for the first quarter of fiscal 2014. Net loss for the first quarter of fiscal 2015 was ($21,878) or $0.00 per diluted share, versus net income of $296,815 or $0.03 per diluted share for the first quarter of fiscal 2014.

About Creative Learning Corporation

Creative Learning Corporation, operating under the trade names of Bricks 4 Kidz®, Challenge Island®, and Sew Fun Studios® 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 36 countries.

Safe Harbor Statement

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," "projects" 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.


Consolidated Statements of Operations

    For The Three Months Ended
    December 31,   December 31,
    2014   2013
Initial franchise fees   $ 668,156     $ 1,558,454
Royalties fees     554,859       300,652
Corporate Creativity Center Sales     283       14,640
      1,223,298       1,873,746
Operating expenses:              
Franchise consulting and commissions:              
Related parties     79,298       248,844
Other     307,679       315,391
Franchise training and expenses     103,217       97,519
Salaries and payroll taxes     318,838       193,384
Advertising     245,375       191,942
Professional fees     96,939       49,193
Office expense     33,238       91,582
Bad Debt expense     15,000      
Depreciation     11,064       9,540
Other general and administrative expenses     46,307       202,330
Total operating expenses     1,256,955       1,399,725
Income from operations     (33,657 )     474,021
Other income/(expense):              
Interest income/(expense)     279      
Other income (expense)           1,873
Total other income/(expense)     279       1,873
Income/(loss) before provision for income taxes     (33,378 )     475,894
Provision for income taxes     (11,500 )     179,079
Net Income (Loss)   $ (21,878 )   $ 296,815
Net income per share              
Basic     (0.00 )     0.03
Basic Weighted average number of common shares outstanding     11,857,833       11,809,409
Diluted     (0.00 )     0.03
Diluted Weighted average number of common shares outstanding     11,857,833       11,842,711




Consolidated Balance Sheets

    (Unaudited)   (Audited)

December 31,


September 30,





Current Assets:            
Cash   $ 2,775,973   $ 3,061,458
Restricted Cash     184,690     180,009
Accounts receivable, less allowance for doubtful accounts of $56,000 and $41,000, respectively     305,152     303,122
Prepaid expenses     20,339     7,850
Other receivables - current portion     125,093     126,339
Income Tax Receivable     127,325     115,825
Deferred tax asset     48,723     48,723
Total Current Assets     3,587,295     3,843,326
Note receivable from related party     68,600     70,000
Other receivables - net of current portion     92,155     67,749
Property and equipment, net of accumulated depreciation of $109,303 and $98,238, respectively     330,041     322,659
Intangible assets     170,754     125,754
Deposits     11,425     11,425
Total Assets   $ 4,260,270   $ 4,440,913
Liabilities and Stockholders’ Equity
Current Liabilities:            
Accounts payable   $ 263,458   $ 534,932
Unearned revenue     123,600    
Accrued stock based compensation         98,400
Accrued marketing fund     184,690     180,009
Customer deposits     57,465     96,737
Deferred tax liability     5,550     5,550
Notes payable     925     2,225
Legal settlement     141,250     161,250
Total Current Liabilities     776,938     1,079,103
Long-term deferred tax liability     22,230     22,230
Total Liabilities     799,168     1,101,333
Commitments and Contingencies            
Stockholders’ Equity:            

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; 11,894,409 and 11,829,409 shares issued and outstanding, respectively     1,189     1,183
Additional paid-in capital     2,406,895     2,263,501
Retained earnings     1,053,018     1,074,896
Total Stockholders’ Equity     3,461,102     3,339,580
Total Liabilities and Stockholders’ Equity   $ 4,260,270   $ 4,440,913



SOURCE Creative Learning Corporation


David Waldman
Crescendo Communications, LLC
212-671-1020, ext. 304

Natalya Rudman
Crescendo Communications, LLC
212-671-1020 ext. 304



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