$SAKL
Date: August 24, 2016
SAKL – Q2 Revenue up 278% to $5.6M – Strong Growth, Plus Additional $2M Pre-Sales Booked
Salt Lake City, UT -- August 24, 2016 -- Sack Lunch Productions, Inc. (OTC Pink: SAKL), that it has filed its unaudited Quarterly Report for the period ended June 30, 2016, reporting strong revenue growth with substantial pre-sales booked as deferred revenues.
Some Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s Financial Statement Highlights:
•· Gross revenues of $5.6 million and $6.9 million for the three and six months ended June 30, 2016, compared to $1.5 million and $2.4 million, increases of $4.1 million or 278% and $4.5 million or 189%, over the comparable periods in 2015;
•· Deferred revenues of $2.0 million, compared to $1.8 million for the comparable period ended June 30, 2015, an increase of $163,972 or 9%;
CEO, Richard Surber, commented, “We made what is in my opinion a substantial improvement to the balance sheet and working capital position of SAKL, but due to the way we report ticket sales, these improvements are obfuscated by a $2.0 million deferred revenue liability. At the time of this press release, it is a near certainty that SAKL will recognize nearly 100% of those revenues by December 31, 2016, which means that close to the entire $2.0 million will be removed from the liability section of the balance sheet and added to top line revenues on our income statement.”
Sack Lunch Productions, Inc. (OTC Pink: SAKL) also recently confirmed news reports that Slide the City® will be coming to California this year. Slide the City® is scheduled for Tahoe on August 27 and Redding on September 17.
More recently, Sack Lunch Productions, Inc. (OTC PINK: SAKL), reported total sales of $1,354,741 across all corporate and franchised events in North America for the month of July. Ticket sales for all North American corporate and franchised events were $1,032,547 and $322,194, respectively.
Richard Surber, CEO of SAKL, commented, “During the month of July we held 39 events directly or through franchisees including: 31 Slide the City®, 1 Lantern Fest®, 3 Dirty Dash® and 4 Color Me Rad®. Shareholders can expect to see a spike in realized revenues for Q3 based upon the number of events being held including a spike in franchise fees collected.”
Surber, continued, “Some additional bright spots in this report are a high proportion of corporate ticket sales versus franchisee ticket sales as well as ticket sales for The Lantern Fest trending up. The last 4 days in July The Lantern Fest sold over $100,000 in tickets, the result of opening events for the fall.”
The company’s modest $12.1 million market capitalization according to OTC markets implies a price-sales multiple of just 1.3x, which is significantly lower than the industry’s 2.0-2.4x average, according to Morningstar data. If the company’s shares were to trade with a 2.0x ratio, it would translate to a $21.4 million market capitalization that’s nearly double its current valuation – and that would be on the low end of the industry average range.
Over the coming quarters, the company also plans to complete an audit and become more fully compliant with regulators. These moves could open the door to a potential up-listing and encourage more institutional investors to become involved with the stock. In turn, this could reduce the high level of volatility and potentially bring shares closer to their fair value.
Sack Lunch Productions Inc. (OTC Pink: SAKL)'s current event portfolio includes:
• Slide the City – A 1,000-foot vinyl slide that’s placed in the center of a city to create a fun and exciting block party event for the entire family.
• The Lantern Fest – An unforgettable nighttime party that’s lit up with thousands of lanterns lit by participants and released into the sky.
• Color Me Rad – A 5K race where participants are coated with liquids, powders, and gels of blue, green, pink, purple, and yellow until they’re tie-dyed on every side.
• The Dirty Dash – A mud run obstacle course where a military boot camp meets an inner five-year-old fantasy.
• Trike Riot – A race on Razor tricycles that takes participants down city streets and through obstacles to the finish line.
For more information, visit the company’s website at www.sacklunchproductions.com.
Overall, Sack Lunch Productions, Inc. (OTC Pink: SAKL) stands in a formidable position within the active entertainment industry. The Company continues to expand its presence and brand across North America and reach the 2017 earnings forecasts, and the company could easy see its market cap jump into the mid-teen millions over the next year.
SAKL May not be at these levels much longer.
IMO
