SAN DIEGO, CA–(Marketwired – Oct 7, 2015) – Fresh Healthy Vending International, Inc. (OTCQB: VEND), North America’s leading healthy vending franchisor, reports financial results for the fiscal year ended June 30, 2015.
We had revenues of $6,273,722 for the year ended June 30, 2015, compared to revenues of $5,258,027 for the year ended June 30, 2014. This represented an increase in revenues of $1,015,695 or 19.3%. The increase was primarily a result of expanded marketing efforts, including our national radio advertising campaign and Internet marketing. The increase in total revenues also included an increase in royalties of $135,917 from $49,474 in fiscal 2014 to $185,391 in fiscal 2015.
Gross margin for the year ended June 30, 2015 was $3,333,194 compared to $2,718,730 for the year ended June 30, 2014, representing an increase of $614,464 or 22.6%. Gross margin percentage was 53.1% and 51.7% for the years ended June 30, 2015 and 2014, respectively. The increase in gross margin percentage of 1.4% in fiscal 2015 from 2014 was due primarily to an increase in royalties and agency sales, which carry a higher gross margin percentage.
Total operating expenses increased $205,738 or 4% from $5,095,063 in fiscal 2014 to $5,300,801 in fiscal 2015. As a percentage of revenue, operating expenses decreased 1.3% from 9.7% in fiscal 2014 to 8.4% in fiscal 2015.
The increase in operating expenses was primarily attributable to an increase in personnel and marketing costs, offset by a reduction in professional fees.
Our net loss was $2,117,075 for the year ended June 30, 2015 compared to a net loss of $2,428,851 for the year ended June 30, 2014. This represents a decrease in our net loss of $311,776 or 12.8% from fiscal 2014 to 2015.
Basic and diluted net loss per share during the year ended June 30, 2015 was $.08 as compared to $.10 for the year ended 2014.
At June 30, 2015, the Company had a cash balance of $325,337 and total current assets of $3,749,924. Furthermore, at June 30, 2015 and 2014, the Company had deferred revenues of $6,428,156 and $5,456,969, respectively. The increase in deferred revenues was directly related to our increase in bookings during the year, in addition to our increase in recognized revenue.
“Fiscal 2015 saw continued restructuring in order to bolster our ability to secure a higher number of qualified locations for our franchisees monthly. We believe that this will result in us delivering more units per quarter, which allows us to recognize the $6.4 million of deferred revenues in a more timely manner,” stated Nicholas Yates, Company Chairman. “We look forward to executing on our plan with continued improvement in fiscal 2016.”
We have effected changes to our operations in order to restore our previous levels of revenues enjoyed in prior years in the hope that such changes will also position our Company for future growth in fiscal 2016 and beyond. Among the changes implemented or in the process of being implemented were the following:
- We launched our new Fresh Micro Market, a self-checkout kiosk designed for corporate break rooms, hotel lobbies, auto dealerships and other retail establishments;
- We raised approximately $1.3 million in debt and convertible debt needed for general corporate purposes and expansion of our micro market business;
- We have expanded our industry public relations initiatives and announcements in various print and other media to provide end customers and potential franchisees better awareness of the benefits of our product and franchisee offerings;
- We engaged an investor relations firm to expand our outreach in the public market;
- We achieved record monthly bookings and secured locations;
- We booked our largest deal to date totaling 58 machines and aggregating $556,250 in anticipated future revenue;
- We installed our 50th corporate-owned micro market;
- We settled our matter with the California Department of Business Oversight and now market our franchises in 47 states;
- We formed an alliance with the American Diabetes Association as an element of participation in their Wellness Lives Here program;
- We appointed JoAnna Abrams, a business strategist, innovator and collaborator, as the first member of our newly created Advisory Board; and
- During the third quarter of fiscal 2015, the Company entered into a short-term bridge loan which it promptly repaid during the fourth quarter
For more information on Fresh Healthy Vending, the franchise program, or to receive a free healthy vending machine in your school or business, visit www.freshvending.com or call toll free 888-902-7558.
About Fresh Healthy Vending
Fresh Healthy Vending, based in San Diego, California, is North America’s leading healthy vending franchisor. Fresh Healthy Vending pioneered the concept of vending machines stocked with tried-and-tested fresh, healthy snack options and capitalizes on a growing market of health conscious consumers. The Company has over 230 active franchisees throughout the United States, Canada, Puerto Rico and the Bahamas, and continually looks to partner with like-minded entrepreneurs who share its vision.
The Company has booked over 3,000 machines for placement in schools, universities, hospitals, community centers, military bases, airports, fitness facilities, YMCAs, libraries and many other locations.
Fresh Healthy Vending’s stock is traded on the OTC Markets, Symbol: VEND.
Cautionary note on forward-looking statements
Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management’s belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals, results and strategy will be realized. Numerous factors, including risks and uncertainties, terms and availability of financing, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. In addition to statements, which explicitly describe risks and uncertainties, readers are urged to consider statements labeled with such terms as “believes,” “belief,” “expects,” “intends,” “feels,” “anticipates,” “proposes,” “proposed,” or “plans” to be uncertain and forward-looking. More detailed information on these and additional factors that could affect Fresh Healthy Vending’s actual results are described in Fresh Healthy Vending’s filings with the Securities and Exchange Commission, including its most recent Forms 10-Q for the quarterly periods ended March 31, 2015, December 31, 2014, September 30, 2014 and its annual report on Form 10-K for the fiscal year ended June 30, 2014. All forward-looking statements in this news release speak only as of the date of this news release and are based on Fresh Healthy Vending’s current beliefs and expectations. Fresh Healthy Vending undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.