HENDERSON, Nev., May 13 /PRNewswire-FirstCall/ -- Healthy Fast Food, Inc. (BULLETIN BOARD: HFFI) , parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® cafes, today announced its first quarter financial results for the three months ended March 31, 2010.
Financial Highlights for Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009:
-- Revenues from the U-SWIRL Frozen Yogurt operations increased to $556,501 from $15,699. The Company launched its new U-SWIRL business in March 2009 with the opening of its first Company-owned store. -- As of March 31, 2010, there were a total of six Company-owned cafes in operation - one opened in the first quarter ended March 31, 2009; one opened in the second quarter ended June 30, 2009; three opened in the third quarter ended September 30, 2009; and one opened mid-way through the first quarter ended March 31, 2010. -- In addition, the Company had two franchised cafes in operation as of March 31, 2010 - one located in Henderson, Nevada and one in Reno, Nevada. -- After factoring in cafe operating costs, excluding pre-opening expenses of $8,744 related to staff training, supplies and grand-opening promotions, U-SWIRL achieved an operating profit of $131,687 from Company cafe operations. -- Net loss declined 24% to $262,668, or $0.09 per basic and diluted share, from $347,280, or $0.14 per basic and diluted share.
For more detailed information on the financial results, please refer to the financial charts reflected below and the Form 10Q filed with the U.S. Securities & Exchange Commission earlier today.
Operational Highlights for the First Quarter 2010: -- In February 2010, http://www.u-swirl.com/, the Company's new web site, was officially unveiled. -- During the first quarter, U-SWIRL's Facebook fan page welcomed its 5,000th fan. -- On February 19, 2010, the Company hosted the official grand opening of its sixth company-owned U-SWIRL self-serve frozen yogurt cafe, located at 9360 W. Flamingo Road in Las Vegas, Nevada. Boasting nearly 2600 square feet of space, the new cafe comfortably accommodates 65 guests inside and up to 56 on the outside patio.
Commenting on the results, Hank Cartwright, Chief Executive Officer of Healthy Fast Food, stated, "Despite enduring a relatively brutal winter and late arriving spring in Nevada, we are pleased with U-SWIRL's overall operating performance. With the summer months fast approaching, we expect much greater sales momentum in the second and third quarters as the demand for our cool, refreshing frozen yogurt treats heats up. Moreover, as our new franchise partners succeed in opening new U-SWIRL cafes in Reno, New Jersey and Arizona, as previously announced, franchise fees and royalties will begin to have more meaningful impact on our financial results in the quarters ahead."
FINANCIAL CHARTS TO FOLLOW HEALTHY FAST FOOD, INC. CONDENSED CONSOLIDATED BALANCE SHEET Unaudited March 31, December 31, 2010 2009 ---------- ------------- ASSETS Current assets Cash $118,167 $516,925 Accounts receivable 6,064 5,597 Due from U-Create Enterprises 3,339 1,481 Inventory 62,619 61,658 Prepaid expenses 168,600 147,814 Current assets from discontinued operations - 8,426 --- ----- Total current assets 358,789 741,901 Leasehold improvements, property and equipment, net 2,209,979 2,056,346 Other assets Deposits 53,414 56,762 Other asset 56,949 58,475 Other assets from discontinued operations 42,676 85,351 ------ ------ Total other assets 153,039 200,588 ------- ------- Total assets $2,721,807 $2,998,835 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $165,854 $203,665 Accounts payable and accrued liabilities from discontinued operations 125,422 154,953 Current portion of long-term debt 4,973 4,808 ----- ----- Total current liabilities 296,249 363,426 Deferred rent 345,600 355,756 Deferred revenue 130,000 100,000 Long-term capital lease 8,836 10,142 Long-term liabilities from discontinued operations 31,882 53,253 ------ ------ Total liabilities 812,567 882,577 Commitments and contingencies Stockholders' equity Preferred stock; $0.001 par value; 25,000,000 shares authorized, no shares issued and outstanding - - Common stock; $0.001 par value; 100,000,000 shares authorized, 2,779,836 and 2,761,336 shares issued and outstanding at 03/31/10 and 12/31/09, respectively 2,780 2,761 Additional paid-in capital 7,209,704 7,154,117 Compensation payable in stock 63 19 Accumulated deficit (5,303,307) (5,040,639) ---------- ---------- Total stockholders' equity 1,909,240 2,116,258 --------- --------- Total liabilities and stockholders' equity $2,721,807 $2,998,835 ========== ========== - - HEALTHY FAST FOOD, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited For the three months ended -------------------------- March 31, March 31, 2010 2009 ---------- ---------- Restated Revenues Restaurant sales, net of discounts $550,699 $15,699 Franchise royalties and fees 5,802 - ----- --- Total revenues 556,501 15,699 ------- ------ Restaurant operating costs Food, beverage and packaging costs 167,573 5,180 Labor and related expenses 157,427 15,802 Occupancy and related expenses 94,012 5,153 Marketing and advertising 21,659 6,477 General and administrative 130,462 109,326 Officer compensation 154,357 126,292 Investor relations fees 15,000 - Pre-opening costs 8,744 19,803 Depreciation and amortization 70,760 5,383 Total costs and expenses 819,994 293,416 ------- ------- Loss from operations (263,493) (277,717) Interest expense (499) (637) Interest income 34 3,005 --- ----- Loss from continuing operations before income taxes (263,958) (275,349) Provision for income taxes - - --- --- Loss from continuing operations (263,958) (275,349) Discontinued operations: (Income) expense from operations of discontinued Fresh and Fast restaurant component (1,290) 71,931 Income tax benefit - - --- --- Gain (loss) on discontinued operations 1,290 (71,931) ----- ------- Net loss $(262,668) $(347,280) ========= ========= - Earnings per share - basic - Loss from continuing operations $(0.09) $(0.11) Loss from discontinued operations 0.00 (0.03) ==== ===== Net loss per common share -basic and fully diluted $(0.09) $(0.14) ====== ====== Weighted average common shares outstanding - basic and diluted 2,779,633 2,518,350 ========= ========= 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 cafes called U-SWIRL Frozen 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 up to 70 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 cafes, 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 cafes. For more information, please visit http://www.u-swirl.com/. You can also follow us on Facebook (U-SWIRL Frozen Yogurt) and on Twitter (U_SWIRL).
Special Note Regarding Forward-Looking Statements
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, 2009. 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. Since our common stock is considered a "penny stock," we are ineligible to rely on the Safe Harbor for forward-looking statements provided in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
FOR MORE INFORMATION, PLEASE CONTACT Elite Financial Communications Group, LLC Dodi Handy, President and CEO (Twitter: @dodihandy) or Kathy Addison, Director of Elite Media Group (Twitter: @kathyaddison) 407-585-1080 or via email at HFFI@efcg.net
Healthy Fast Food, Inc.
CONTACT: Elite Financial Communications Group, LLC, Dodi Handy,
President and CEO (Twitter: @dodihandy) or Kathy Addison, Director of Elite
Media Group (Twitter: @kathyaddison), +1-407-585-1080, HFFI@efcg.net
Web Site: http://www.u-swirl.com/
