Healthy Fast Food Announces Second Quarter 2009 Results

Date AddedAugust 28, 2009 01:01:02 PM

Author

HENDERSON, Nev., Aug. 6 /PRNewswire-FirstCall/ -- Healthy Fast Food, Inc. (OTC Bulletin Board: HFFI), the owner and franchisor of U-SWIRL(R) Frozen Yogurt stores, today announced its financial and operational results for the three and six months ended June 30, 2009.

Financial Highlights for Six Months Ended June 30, 2009 Compared to Six Months Ended June 30, 2008:

    * Total revenues were $834,000, up 123% from $374,000.
          o Net sales generated by the Company's new wholly-owned subsidiary, U-SWIRL International, totaled $395,000, up from $0. The Company launched its new U-SWIRL operations in 2009 with the opening of its first two Company-owned stores in the Las Vegas valley, which occurred in late March and late April 2009, respectively.
          o Net sales posted by the Company's former EVOS(R) franchise operations (representing sales by two EVOS stores in the Vegas market, now rebranded Fresh and Fast), increased 17% to $439,000 from $374,000.
          o Franchise fee income totaled $11,000, down from $23,000.
    * On a consolidated basis, loss from operations increased 7% to $557,000 from $522,000.
          o The operating income reported for U-SWIRL International was $29,000, compared to $0.
          o The operating loss reported for EVOS increased to $154,000, up from $84,000.
    * Net loss increased to $553,000, or $0.22 per basic and diluted share, from $497,000, or $0.23 per basic and diluted share.

Financial Highlights for Three Months Ended June 30, 2009 Compared to Three Months Ended June 30, 2008:

    * Total revenues climbed 234% to $574,000 from $172,000.
    * On a consolidated basis, loss from operations was $208,000, down 13% from 238,000.
    * Net loss was $205,000, or $0.08 per basic and diluted share, dropping 5% from $216,000, or $0.10 per basic and diluted share.

As of June 30, 2009, Healthy Fast Food had cash and cash equivalents of $1.66 million, working capital of $1.70 million, long-term liabilities of $13,000 and total stockholders' equity of $3.57 million.

Commenting on the results, Hank Cartwright, Chairman and CEO of Healthy Fast Food, noted, "Our decision to abandon the EVOS franchising strategy in favor of supporting the national roll-out of U-SWIRL Frozen Yogurt self-serve stores is proving to be right on the mark. U-SWIRL's financial results are indeed supporting that our business model is sound and incredibly lucrative. Each of our stores has fast attracted a league of devoted and loyal customers, who are returning time and time again with friends and family members to enjoy unique dessert creations and the overall U-SWIRL experience."

Continuing, Cartwright said, "We are also proud of the tremendous response we are receiving to the launch of our national franchise program and look forward to announcing several new partners in this regard in coming quarters. With three new Company-owned stores under construction; with five additional Company-owned stores expected to commence construction in the third and fourth quarter; and with current and anticipated franchising opportunities coming into play, the future of U-SWIRL holds tremendous promise for robust growth, rapidly expanding brand awareness and long term success and prosperity for Healthy Fast Food and our valued business partners and shareholders."