U-Swirl, Inc. Reports Unaudited Earnings Results for the Second Quarter and First Half Ended August 31, 2014
October 14, 2014 at 08:10 am EDT
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U-Swirl, Inc. reported unaudited earnings results for the second quarter and first half ended August 31, 2014. Total revenue increased 47% to approximately $2.5 million in the second quarter of fiscal 2015, against approximately $1.7 million in the corresponding period of the previous fiscal year. Income from operations decreased 46% to $93,817, compared with $172,450 in the quarter ended August 31, 2013, primarily due to the non-recurring restructuring charges noted above, which involved certain expenses related to management changes and the closure or sale of certain assets. The company reported net income of $86,678, or $0.00 per basic and diluted share, for the second quarter of fiscal 2015, which represented a 46% decrease when compared with net income of $159,792 in the second quarter of fiscal 2014. The decline in earnings was due to over $503,000 of non-recurring restructuring and asset impairment charges. Income before income taxes was $86,000 against $160,000 a year ago. Non-GAAP, adjusted EBITDA was $744,000 against $291,000 a year ago.
For the six months ended August 31, 2014, total revenue increased 46% to approximately $5.0 million in the six months ended August 31, 2014, versus approximately $3.4 million in the first half of fiscal 2014. Income from operations increased 33% to $473,229, compared with $354,892 in the six months ended August 31, 2013, primarily due to increased franchise royalties and fees, partially offset by non-recurring restructuring and acquisition-related charges related to management changes, the closure or sale of certain assets, and the acquisitions of three frozen yogurt franchising companies in January and February of 2014. The company reported net income of $463,241, or $0.02 per basic and $0.01 per diluted share, for the first half of fiscal 2015, which represented a 41% improvement in earnings when compared with net income of $327,871, or $0.02 per basic and diluted share, in the first half of fiscal 2014. The company generated $1,886,561 in net cash from operations during the six months ended August 31, 2014, compared with $311,914 in net cash from operations in the six months ended August 31, 2013. Income before income taxes was $463,000 against $328,000 a year ago. Non-GAAP, adjusted EBITDA was $860,000 against $355,000 a year ago.
U-Swirl, Inc. is engaged in providing frozen yogurt. The Company offers U-Swirl Frozen Yogurt concept, which offers guests with a choice in frozen yogurt by providing an assortment of non-fat and low-fat flavors, including tart, traditional and no sugar-added (NSA) options and various toppings, including seasonal fresh fruit, sauces, candy and granola. The Company offers a menu to search for flavors, sort columns, and check nutritional information and ingredients. The Company offers Nonfat Frozen Yogurt, Original Tart Frozen Yogurt, Greek Nonfat Frozen Yogurt, Lowfat Frozen Yogurt, Premium Frozen Yogurt, NSA Frozen Yogurt, Frozen Custard and Non-Dairy Sorbet. As of August 31, 2015, the Company had nine Company-owned cafes and 243 franchised cafes. The Company's U-Swirl-n-Go Store franchises are limited-product stores within non-traditional locations, such as convenience stores, airports, hotels and other mass gathering areas. The Company's subsidiary is U-Swirl International, Inc.