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If this ship does go down I hope you stir it south, I sure could use some sun. Do you want to be the capeton or the first mate.
I'm still holding and adding some more at this level. If this ship sink I'm going down with them as well LOL.
CEO is quiet, volume almost Zero and nobody on board.
Form 8-K for NEXCEN BRANDS, INC.
--------------------------------------------------------------------------------
15-Jan-2010
Entry into a Material Definitive Agreement, Creation of a Direct Financial Ob
Item 1.01 Entry into Material Definitive Agreement
On January 14, 2010, NexCen Brands, Inc. (the "Company") amended its existing bank credit facility (the "Facility") by entering into a Waiver and Sixth Amendment (the "Waiver and Sixth Amendment") by and among the Company, NexCen Holding Corporation, a wholly owned subsidiary of the Company ("Issuer"), certain of the Issuer's subsidiaries ("Subsidiary Borrowers") and BTMU Capital Corporation ("BTMUCC").
This Waiver and Sixth Amendment modified certain provisions of the Facility to provide relief from certain requirements related to free cash flow margin and an obligation to issue a warrant covering 2.8 million shares of the Company's common stock that would have been triggered on December 31, 2009. The material terms of the Waiver and Sixth Amendment:
· extended from December 31, 2009 to February 28, 2010 the trigger date on which BTMUCC would be entitled to receive a warrant covering up to 2.8 million shares of the Company's common stock at an exercise price of $0.01 per share if the Class B franchise notes are not repaid by the trigger date;
· modified the cash distribution waterfall such that in February 2010, provided that the Company's unrestricted cash balance is less than $1,000,000 and subject to certain other restrictions, the Company will be entitled to receive up to $500,000 to be used to pay operating expenses, provided that such payment will result in a subsequent proportional reduction in the overall reimbursable operating expenditure limits for the 2010 calendar year; and
· waived existing and expected defaults related to the Issuer and Subsidiary Borrowers' free cash flow margin for the twelve months ended December 31, 2009 and the Company's failure to grant BTMUCC the warrant discussed above on December 31, 2009.
The foregoing description of the Waiver and Sixth Amendment and the modifications contained therein does not purport to be complete and is qualified in its entirety by the terms and conditions of such Waiver and Sixth Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K. Additional information regarding the terms and conditions of the Facility are included in the Company's Current Reports on Form 8-K filed with the Securities Exchange Commission on August 21, 2008, December 29, 2008, January 29, 2009, July 20, 2009 and August 7, 2009.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant
As discussed above in Item 1.01, the Company amended its existing bank credit facility. The descriptions in Item 1.01 are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
10.1 Waiver and Sixth Amendment dated January 14, 2010, by and among NexCen Brands, Inc., NexCen Holding Corporation, the Subsidiary Borrowers parties thereto, and BTMU Capital Corporation.
I agree also. Thats why Ive been buying more shares at .13 and .14 every now and then.
Agree! I also feel that PPS not going to trade any lower.
NEXC === At this price how could you go wrong. I don't feel that it is going to trade any lower cuse of the the consolidating that has been going on of late.
Strong volume some one is loading up shares.
Put in a bid for more shares at .14 but yet there not selling me the shares at .14 there selling me shares at .13 why? My guess there trying to push down the price.
Im still here. Wish this thing would move up. Just don't know why its not moving.
ANY ONE HOME? NEWS...
NexCen Brands Announces Opening of First Shoebox New York® Store in Caribbean
Store Opened in Aruba
Press Release Source: NexCen Brands, Inc. On Tuesday January 5, 2010, 7:30 am
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc. (PINK SHEETS: NEXC.PK - News) today announced the opening of the first Shoebox New York® franchised store in Aruba. The store opened in Palm Beach Plaza in Aruba under an existing master franchise agreement with Shogun Trade International N.V.
Kenneth J. Hall, Chief Executive Officer of NexCen Brands, Inc., stated, “With the opening of this Shoebox New York franchised store, we are delighted to introduce this retail concept in Aruba. As we continue to extend the global footprint of our franchised brands, we look forward to exploring additional opportunities throughout the Caribbean.”
Chris Dull, President of NexCen Franchise Management, Inc., the franchising subsidiary of NexCen Brands, stated, “The opening of Shoebox New York in Palm Beach Plaza, a well known, premier shopping destination in Aruba, was a success. We believe that this location will allow us to increase brand visibility for Shoebox New York and to gain new and repeat customers with its high-quality, high-fashion shoes and accessories.”
About NexCen Brands
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF® and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
About Shoebox New York
The Shoebox New York® concept had its genesis from The Shoe Box, one of New York's premier women's multi-brand retailers for luxury footwear, handbags and accessories. Established in 1954 and known for its vast product assortment and trend-setting styles from top European and American designers, The Shoe Box garnered a dedicated following of sophisticated women. Shoebox New York continues this tradition by offering high-quality, high-fashion shoes and accessories in franchised stores in the U.S. in New York and Florida and internationally in Vietnam, South Korea, Kuwait and now Aruba.
Forward-Looking Statement Disclosure
This press release contains “forward-looking statements,” as such term is used in the Securities Exchange Act of 1934, as amended. Such forward-looking statements include those regarding expected cost savings, expectations for the future performance of our brands or expectations regarding the impact of recent developments on our business. When used herein, the words “anticipate,” “believe,” “estimate,” “intend,” “may,” “will,” “expect” and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. They are not guarantees of future performance or results. The Company’s actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include: (1) international development agreements may not result in the actual opening of the stores provided for under those agreements, which could negatively impact anticipated franchise fees, store opening fees and monthly royalty payments over the life of the agreements; (2) economic conditions may deteriorate in international and domestic markets, which could negatively impact the sale or operations of new and existing franchise stores; (3) we depend on the success of our franchisees to develop and grow our franchise systems both domestically and internationally; (4) we and/or our franchisees may not be successful in operating or expanding our brands or integrating them into an efficient overall business strategy, (5) our marketing, licensing and franchising concepts and programs may not result in increased revenues, expansion of our franchise network or increased value for our trademarks and franchised brands, (6) other factors discussed in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
FDLeigh Parrish / Stephanie Rich212-850-5600
Happy New Year to all NEXC shareholders!
I wanted to wish all NEXC shareholders a Merry Christmas and happy new year.
NexCen Brands Announces Expansion of Great American Cookies® into Chile
First Expansion of Company’s Quick Service Restaurant Franchised Brands in South America
Press Release
Source: NexCen Brands, Inc.
On 7:30 am EST, Monday December 14, 2009
Buzz up! 0 Print
Companies:Nexcen Brands, Inc.
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc. (PINK SHEETS: NEXC.PK - News) today announced the signing of a master franchise agreement with Demaso S.A. for the development of a minimum of 15 Great American Cookies® franchised stores in Chile over a 10-year term. This agreement will allow for the first expansion of the Company’s Quick Service Restaurant brands into South America.
Related Quotes
Symbol Price Change
NEXC.PK 0.15 +0.02
kenneth J. Hall, Chief Executive Officer of NexCen Brands, Inc., stated, “We are excited about our initial entry into the South American market with one of our QSR brands. The expansion of Great American Cookies into Chile continues our strategy to extend the global footprint of NexCen Brands. With Chile, our franchised brands have entered 20 new countries in the last two years.”
Chris Dull, President of NexCen Franchise Management, Inc., the franchising subsidiary of NexCen Brands, stated, “We believe this master franchise agreement underscores our commitment to partnering with proven, quality operators. Demaso S.A. is part of a family business that has had a stellar reputation in Chile for more than 100 years, and we look forward to working with them to grow Great American Cookies in Chile.”
About NexCen Brands
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF® and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
About Great American Cookies®
Great American Cookies was founded in Atlanta, Georgia in 1977 on the strength of an old family chocolate chip cookie recipe. For over 30 years, Great American Cookies has maintained the heritage and integrity of its products by producing original cookie dough exclusively from its plant in Atlanta. Made famous by their signature cookie cakes, trademark flavors and menu of gourmet products the brand now leads the mall-based cookie system with nearly 300 locations.
Forward-Looking Statement Disclosure
This press release contains “forward-looking statements,” as such term is used in the Securities Exchange Act of 1934, as amended. Such forward-looking statements include those regarding expected cost savings, expectations for the future performance of our brands or expectations regarding the impact of recent developments on our business. When used herein, the words “anticipate,” “believe,” “estimate,” “intend,” “may,” “will,” “expect” and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. They are not guarantees of future performance or results. The Company’s actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include: (1) international development agreements may not result in the actual opening of the stores provided for under those agreements, which could negatively impact anticipated franchise fees, store opening fees and monthly royalty payments over the life of the agreements; (2) economic conditions may deteriorate in international and domestic markets, which could negatively impact the sale or operations of new and existing franchise stores; (3) we depend on the success of our franchisees to develop and grow our franchise systems both domestically and internationally; (4) we and/or our franchisees may not be successful in operating or expanding our brands or integrating them into an efficient overall business strategy, (5) our marketing, licensing and franchising concepts and programs may not result in increased revenues, expansion of our franchise network or increased value for our trademarks and franchised brands, (6) other factors discussed in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
FDLeigh Parrish/Stephanie Rich, 212-850-5600
It is certain that were established a strong supported that enhance a good buying opportunity herein. I will continue place my bet at this level base on cheap share and also base on restructure financing news I think will be announce before the year end.
As you know the outstanding loans have been restructured into three separate tranches.
$47.6 million is due on January 1, 2010.and I bet BTMUCC will allow them to restructure with a better term. JMHO
Good buying opportunity if you are looking for more shares.
More filings today. Look like insiders scooping these shares up eom
The company's capital structure will be address in the coming months.
Mr. Hall concluded, “With the timely filing of our third quarter financial reports, we have reached another important milestone in our turnaround efforts. The timeliness of the filing, combined with our significantly improved financial results, demonstrates that we have achieved our immediate goals of stabilization of the Company and reporting compliance. However, we recognize that for long-term growth, viability and shareholder value, we must address the burden of our debt and the Company’s capital structure. These issues, as well as driving revenue growth, continue to be the focus of our corporate strategy in the coming months.”
Yes it was me but not as that much LOL.
I'm sorry I am not able to respond right a way.
Yes the 3rd quarter results are put them on track to be list on OCT. IMO.The only reason this stock has done poorly is because they have not proven they can erase their debt. I noticed all the expense have been reduced and continue show 3 straight quarters earning net profit that are extremely successful turn around. With all new stores coming all products generating revenue in the US and other country, I see all pieces are slowly being put into place now so that this will become a successful company.
NexCen Brands Named as One of "Top Five Friendliest Franchises for Minorities"
Franchisor Ranks Near Top of Annual Listing by National Minority Franchising Initiative
Press Release
Source: NexCen Brands
On 7:30 am EST, Wednesday November 18, 2009
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc., (PINK SHEETS: NEXC.PK - News) owner of multiple QSR and retail franchise concepts, has been recognized as one of the top five friendliest franchises for minorities by the National Minority Franchising Initiative (NMFI). This is the second year in a row that NexCen has been included in NMFI’s “50 Top Franchises for Minorities”. As part of this ranking, NexCen was included in a special “Franchising Today” section in the October 2nd edition of the national newspaper USA Today. NexCen Brands’ TAF™, previously known as The Athlete’s Foot®, was included in the first NMFI rankings when the list was initiated in 2007.
Continuing to identify and explore new growth markets, both here in the U.S. and internationally, is a primary focus for our company," said Chris Dull, president of NexCen Franchise Management, the franchising subsidiary of NexCen Brands. "Our multi-brand franchisee family consists of hundreds of diverse franchisees and we’re always looking for innovative and exciting ways to effectively engage highly qualified entrepreneurs who can bring our products to new locations and customers.”
The NMFI Top 50 list is compiled annually to recognize companies that have demonstrated a focus on recruiting and supporting minority franchisees into their systems. Inclusion is based on the companies’ overall minority recruitment programs, percentage of minority franchisees currently within their systems and the percentage of minorities in key positions within the franchisors’ management.
“I have worked with NexCen for many years and continue to be impressed with their commitment to the recruitment of minorities and, more importantly, their support of franchisees as well as their focus on expanding their brands through superior products,” said Rob Bond, co-founder of the NMFI.
The NMFI selected the 50 Top Franchises from a wide variety of participating companies. Franchisors seeking consideration had to have more than 50 operating units and were asked to complete a basic questionnaire including, among other things, details on their minority franchisee representation and incentive programs. Each participating franchisor was also required to submit its most recent Franchise Disclosure Document (FDD) and marketing materials. The complete 2009 listing of the 50 Top Franchises for Minorities can be viewed here: http://www.worldfranchising.com/download/2009Top50Article.pdf.
About NexCen Brands, Inc. (www.nexcenbrands.com)
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF™ and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
Contact:
FDLeigh Parrish/Stephanie Rich, 212-850-5600
Somebody picked up some cheep shares today, Good for them, now maybe this thing well start to trend upward.
Was that you buying a half million shares yesterday?
Last time financials were about to be discussed the stock moved nowhere and began dropping.
This time around we are already up 40% in just a couple days going into the announcement.
Going much higher, or so it seems!
Powerbattles, the discussion of the 3rd quarter results on Monday next week would put NEXC back into being "on time" in its reporting from this point forward, wouldn't it?
Not too shabby to have audited financials on the first three quarters of a pinksheet stock, is it?
I couldn't understand why the stock had fallen down to $0.14 after a run to $0.35 with such good results. Restructring of debt, income, etc....Hopefully, only HIGHER from here!
Let's see NEXC to $0.50+ by year's end!
NexCen Brands to Discuss Third Quarter Financial Results
Press Release
Source: NexCen Brands, Inc.
On 7:30 am EST, Thursday November 12, 2009
Buzz up! 0 Print
Companies:Nexcen Brands, Inc.
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc. (PINK SHEETS: NEXC.PK - News) today announced that management will host a conference call and audio webcast on Monday, November 16, 2009, at 5:00 p.m. ET to discuss its financial results for the third quarter of 2009. In addition, the Company intends to file with the Securities and Exchange Commission on November 16, 2009 its Quarterly Report on Form 10-Q for the period ended September 30, 2009.
Related Quotes
Symbol Price Change
NEXC.PK 0.17 +0.00
{"s" : "nexc.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""} The conference call may be accessed by dialing 800-944-8766 or 317-713-0002, access code: 27689. Additionally, a webcast of the call can be accessed at http://www.nexcenbrands.com/investor.html and will be archived online shortly after the conference call until December 31, 2009. If you are unable to participate in the live conference call, a replay of the call will be available from November 17th at approximately 10:00 a.m. Eastern Time until November 23rd at 11:59 p.m. Eastern Time. To access, please dial 1-866-281-6782, access code: 154227.
About NexCen Brands, Inc.
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF™ and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
Contact:
FDLeigh Parrish/Stephanie Rich, 212-850-5600
NexCen Brands Reports Significant Improvement in Operating Income in Second Quarter 2009
Second Consecutive Quarter of Operating Income and Positive Cash Flow from Operations
Operating Income of $1.6 Million in Second Quarter 2009 vs. Operating Loss of $113.4 Million in Second Quarter 2008
Cash Generated from Operations of $0.2 Million in Second Quarter 2009 vs. Cash Used in Operations of $1.4 million in Second Quarter 2008
Loss from Continuing Operations of ($0.01) Per Diluted Share in Second Quarter 2009 vs. ($1.99) Per Diluted Share in Second Quarter 2008
Press Release
Source: NexCen Brands, Inc.
On 4:00 pm EST, Thursday November 5, 2009 Companies:Nexcen Brands, Inc.
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc. (PINK SHEETS: NEXC - News) today reported unaudited financial results for the second quarter of 2009, and announced that it has filed its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009 with the Securities and Exchange Commission (SEC).
Related Quotes
Symbol Price Change
NEXC.PK 0.17 0.00
second Quarter 2009 Operating Results and Financial Highlights
The operating results and financial highlights for the second quarter ended June 30, 2009 are as follows:
Total revenues in the second quarter of 2009 decreased 1% to $11.8 million, compared to $11.9 million in the second quarter of 2008. The slight decrease in revenues is the result of a decline in royalty and factory revenues due to current economic conditions, partially offset by an increase in franchise fee revenues.
Total operating expenses in the second quarter of 2009 decreased to $10.2 million from $125.3 million in the second quarter of 2008. Operating income in second quarter of 2009 increased to $1.6 million from an operating loss of $113.4 million in the second quarter of 2008. Loss from continuing operations in the second quarter of 2009 narrowed to $0.8 million, or ($0.01) per fully diluted share, from $112.8 million, or ($1.99) per fully diluted share, in the second quarter of 2008.
The results for the second quarter of 2008 included impairment charges related to intangible assets of $109.7 million, $1.9 million in professional fees related to special investigations, and $0.8 million in restructuring costs. Excluding these special items specific to the events of 2008, adjusted operating expenses for the second quarter of 2009 decreased 21%, or $2.7 million, from adjusted operating expenses of $12.8 million for the second quarter of 2008. Adjusted operating income for the second quarter of 2009 increased 286%, or $2.5 million, from an adjusted operating loss of $0.9 million for the second quarter of 2008. Adjusted loss from continuing operations narrowed to $0.7 million, or ($0.01) per fully diluted share, compared to an adjusted loss from continuing operations of $4.5 million, or ($0.08) per fully diluted share, in the second quarter of 2008. See Table 4 for details regarding these non-GAAP adjustments.
Cash generated from operations was $0.2 million in second quarter of 2009 compared to cash used in operations of $1.4 million in second quarter of 2008.
The Company had total cash of $8.0 million as of June 30, 2009, compared to total cash of $8.3 million at March 31, 2009 and $8.3 million at December 31, 2008.
The Company’s outstanding debt balance was $142.6 million at June 30, 2009, compared to $142.5 million at March 31, 2009 and $142.3 million at December 31, 2008.
The Company’s average effective interest rate for its credit facility was 6.6% in the second quarter of 2009, compared to 6.8% in the first quarter of 2009 and 8.6% in the fourth quarter of 2008. The Company’s interest expense was $2.7 million in the second quarter of 2009, compared to $2.8 million in the first quarter of 2009 and $3.1 million in the fourth quarter of 2008.
Total franchised locations were 1,770 stores at June 30, 2009 versus 1,881 stores at June 30, 2008. The net decrease of 111 stores, or 6%, reflects closures, initiated either by the franchisee or the Company, of underperforming and non-compliant stores.
The Company executed franchise agreements for 20 new franchise units across its franchise businesses in the second quarter of 2009, versus franchise agreements for 24 new franchise units in the first quarter of 2009.
Deferred revenue related to the pipeline for franchise stores to be opened pursuant to executed letters of intent and franchise agreements was approximately $2.6 million at June 30, 2009, a decrease of approximately $0.4 million or 14% from approximately $3 million at March 31, 2009. Total deferred revenue, including deferred revenue related to vendor rebates, was $2.9 million at June 30, 2009.
Kenneth J. Hall, Chief Executive Officer, stated, “We are pleased with our performance during the second quarter. This is the second consecutive quarter in which we generated operating income and positive cash flow from operations since we implemented our strategic plan to turn around our business. We maintained revenues at prior-year levels, despite the dramatic drop in mall traffic and retail spending. We also realized improvements in our financial results by right-sizing our operating expenses and improving efficiencies in our business. We are heartened that our strategic plan is yielding a positive impact on our results.”
Six Months Operating Results
The operating results for the six months ended June 30, 2009 are as follows:
Total revenues for the six months ended June 30, 2009 increased 7% to $23.7 million, compared to $22.2 million for the same period in 2008. The increase in revenues is primarily the result of full quarter revenues for Great American Cookies acquired on January 29, 2008.
Total operating expenses for the six months ended June 30, 2009 decreased to $20.3 million from $138.1 million for the same period in 2008. Operating income for the six months ended June 30, 2009 increased to $3.4 million for the six months ended June 30, 2009 from an operating loss of $115.9 million for the same period in 2008. Loss from continuing operations for the six months ended June 30, 2009 narrowed to $1.5 million, or ($0.03) per fully diluted share, from $119.2 million, or ($2.10) per fully diluted share, for the same period in 2008.
The results for the six months ended June 30, 2008 included impairment charges related to intangible assets of $109.7 million, $1.9 million in professional fees related to special investigations, and $0.8 million in restructuring costs. Excluding these special items specific to the events of 2008, adjusted operating expenses for the six months ended June 30, 2009 decreased 21%, or $5.4 million, to $20.2 million from adjusted operating expenses of $25.6 million for the same period in 2008. Adjusted operating income for the six months ended June 30, 2009 increased 201%, or $6.9 million, to $3.5 million compared to an adjusted operating loss of $3.4 million for the same period in 2008. Adjusted loss from continuing operations for the six months ended June 30, 2009 narrowed to $1.4 million, or ($0.03) per fully diluted share, from an adjusted loss from continuing operations of $9.7 million, or ($0.17) per fully diluted share, for the same period in 2008. See Table 4 for details regarding these non-GAAP adjustments.
Cash flow from operations for the six months ended June 30, 2009 improved by $6.2 million to $0.6 million of cash generated from operations, compared to cash used in operations of $5.6 million for the six months ended June 30, 2008.
Mr. Hall concluded, “NexCen Brands is operating as a fundamentally stronger business than a year ago. We believe that through the execution of our turnaround plan, we have been able to weather both the downturn in the economy and the internal challenges that have impacted our Company. In 2009, we have continued to improve our operations and make investments in our business and brands, while significantly reducing expenses. We also have completed key hires to bolster our management team. Further, we have continued to enhance our offerings to franchisees, such as opening a new ‘Innovation Lab’ with additional capabilities to produce new ice cream, cookies and pretzels products for each of our QSR franchised brands. Despite our progress to date, we recognize that the continued difficult macroeconomic environment, including the lack of readily available financing for franchisees, has affected our business and our financial results, and may continue to do so. As such, we will maintain a conservative approach to managing our expenses, while at the same time, strive to capitalize on innovation and expansion opportunities. We also understand that we must further bolster our financial condition and address our debt level. In short, we are encouraged by our financial performance through the first half of 2009, but not complacent.”
Conference Call Information
The Company will be holding a conference call today at 5:00 pm ET to review its financial results for the second quarter of 2009. The conference call may be accessed by dialing 800-944-8766 or 317-713-0002, access code: 27689. A replay of the call will be available through November 13, 2009, by dialing 1-866-281-6782, access code: 154227. The broadcast will be available through the ‘Investor Relations’ link at http://www.nexcenbrands.com/ and will be archived online shortly after the conference call until December 31, 2009.
The Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009 is available on the Company’s website at http://www.nexcenbrands.com, under the “Investor Relations” tab, or through the SEC’s website at http://www.sec.gov.
About NexCen Brands, Inc.
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF™ and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
Forward-Looking Statement Disclosure
This press release contains “forward-looking statements,” as such term is used in the Securities Exchange Act of 1934, as amended. Such forward-looking statements include those regarding the expected timing for filing additional SEC reports, expectations for the future performance of the Company’s brands and expectations regarding the impact of recent developments on its business. When used herein, the words “anticipate,” “believe,” “estimate,” “intend,” “may,” “will,” “expect” and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. They are not guarantees of future performance or results. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include: (1) the Company’s efforts to focus on the franchise business as its core business may not be successful and may not improve the performance of the Company; (2) economic conditions may deteriorate or fail to materially improve in international and domestic markets, which could negatively impact the Company’s business and financial performance, (3) the Company’s inability to file its financial reports within the prescribed timeframes and the failure to hold an annual meeting of stockholders for the fiscal year ended December 31, 2007 may subject the Company to governmental investigations or third-party claims, (4) past delays in the Company’s compliance with the Securities and Exchange Commission’s filing requirements may negatively impact the Company, (5) increases in LIBOR, which affects the interest rate on approximately 60% of the debt outstanding under the Company’s current bank credit facility, will increase its interest expenses, (6) the substantial debt service obligations and extensive covenants in the Company’s current bank credit facility may restrict its ability to respond to changing market conditions, and (7) other factors discussed in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Table 1
NEXCEN BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
Three Months Ended
June 30,
Six Months Ended
June 30,
2009 2008 2009 2008
Revenues:
Royalty revenues $ 6,144 $ 6,452 $ 11,986 $ 11,811
Factory revenues 4,320 4,761 8,777 7,736
Franchise fee revenues 1,066 397 2,396 1,980
Licensing and other revenues 251 314 582 622
Total revenues 11,781 11,924 23,741 22,149
Operating Expenses:
Cost of sales (2,670 ) (2,974 ) (5,507 ) (5,296 )
Selling, general and administrative expenses:
Franchising (3,470 ) (4,335 ) (6,561 ) (8,663 )
Corporate (1,912 ) (3,468 ) (3,996 ) (7,834 )
Professional fees:
Franchising (560 ) (354 ) (970 ) (630 )
Corporate (652 ) (1,010 ) (1,489 ) (2,008 )
Special investigations (52 ) (1,932 ) (85 ) (1,932 )
Impairment of intangible assets - (109,733 ) - (109,733 )
Depreciation and amortization (863 ) (674 ) (1,725 ) (1,165 )
Restructuring charges - (815 ) - (815 )
Total operating expenses (10,179 ) (125,295 ) (20,333 ) (138,076 )
Operating income (loss) 1,602 (113,371 ) 3,408 (115,927 )
Non-Operating income (expense):
Interest income 47 84 102 334
Interest expense (2,749 ) (2,472 ) (5,583 ) (4,751 )
Financing charges 31 (889 ) (2 ) (926 )
Other income (expense), net 372 (193 ) 720 (676 )
Total non-operating expense (2,299 ) (3,470 ) (4,763 ) (6,019 )
Loss from continuing operations before income taxes (697 ) (116,841 ) (1,355 ) (121,946 )
Income taxes:
Current (81 ) (107 ) (155 ) (184 )
Deferred - 4,126 - 2,936
Loss from continuing operations (778 ) (112,822 ) (1,510 ) (119,194 )
Income (loss) from discontinued operations, net of taxes of $0, $14,916, $0, $15,083, respectively
362 (83,027 ) 229 (81,960 )
Net loss $ (416 ) $ (195,849 ) $ (1,281 ) $ (201,154 )
Loss per share (basic and diluted) from continuing operations $ (0.01 ) $ (1.99 ) $ (0.03 ) $ (2.10 )
Income (loss) per share (basic and diluted) from discontinued operations 0.00 (1.47 ) 0.00 (1.45 )
Net loss per share - basic and diluted $ (0.01 ) $ (3.46 ) $ (0.03 ) $ (3.55 )
Weighted average shares outstanding – basic and diluted 56,952 56,621 56,812
56,444
Table 2
NEXCEN BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
Six Months Ended
June 30,
2009 2008
Cash flow from operating activities:
Net loss $ (1,281 ) $ (201,154 )
Add: net (income) loss from discontinued operations (229 ) 81,960
Net loss from continuing operations (1,510 ) (119,194 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Impairment of intangible assets - 109,733
Restructuring - 443
Depreciation and amortization 1,793 1,165
Stock based compensation 288 2,230
Deferred income taxes - (2,936 )
Unrealized (gain) loss on investment in joint venture (260 ) 220
Amortization of debt discount 274 224
Amortization of deferred financing costs 483 845
Accrued interest on Deficiency Note 1,109 -
Changes in assets and liabilities, net of acquired assets and liabilities:
Decrease (increase) in trade receivables, net of allowances 1,459 (1,193 )
(Increase) decrease in other receivables (147 ) 1,129
(Increase) decrease in inventory (36 ) 410
Decrease (increase) in prepaid expenses and other assets 685 (1,070 )
(Decrease) increase in accounts payable and accrued expenses (2,416 ) 2,795
(Decrease) increase in restructuring accruals (146 ) 327
Decrease in deferred revenues (1,161 ) (637 )
Net cash provided by (used in) operating activities from continuing operations 415 (5,509 )
Net cash provided by (used in) operating activities from discontinued operations 229 (127 )
Net cash provided by (used in) operating activities 644 (5,636 )
Cash flows from investing activities:
Decrease in restricted cash 190 5,151
Purchases of property and equipment (185 ) (477 )
Investment in joint venture - (725 )
Purchase of trademarks, including registration costs - (46 )
Distributions from joint venture - 216
Acquisitions, net of cash acquired (131 ) (95,000 )
Cash used in discontinued operations for investing activities - (765 )
Net cash provided by (used in) investing activities (126) (91,646 )
Cash flows from financing activities:
Proceeds from debt borrowings - 70,000
Financing costs - (1,670 )
Principal payments on debt (774 ) (3,918 )
Proceeds from the exercise of options and warrants - 5
Cash used in discontinued operations for financing activities - (1,100 )
Net cash (used in) provided by financing activities (774 ) 63,317
Net decrease in cash and cash equivalents (256 ) (33,965 )
Cash and cash equivalents, at beginning of period 8,293 46,569
Cash and cash equivalents, at end of period $ 8,037 $ 12,604
Cash paid for interest $ 4,770 $ 4,862
Cash paid for taxes $ 203 $ 135
Table 3
NEXCEN BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS EXCEPT SHARE DATA)
June 30,
2009
(Unaudited)
December 31,
2008
ASSETS
Cash and cash equivalents $ 8,037 $ 8,293
Trade receivables, net of allowances of $1,469 and $1,367, respectively 4,158 5,617
Other receivables 940 834
Inventory 1,268 1,232
Prepaid expenses and other current assets 1,951 2,439
Total current assets 16,354 18,415
Property and equipment, net 3,278 4,395
Investment in joint venture 389 87
Trademarks and other non-amortizable intangible assets 78,422 78,422
Other amortizable intangible assets, net of amortization 5,668 6,158
Deferred financing costs and other assets 4,816 5,486
Long-term restricted cash 740 940
Total assets $ 109,667 $ 113,903
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable and accrued expenses $ 7,692 $ 9,220
Restructuring accruals 7 153
Deferred revenue 2,884 4,044
Current portion of long-term debt, net of debt discount of $514 and $541, respectively 1,768 611
Acquisition related liabilities 1,330 4,689
Total current liabilities 13,681 18,717
Long-term debt, net of debt discount of $605 and $852, respectively 139,714 140,262
Acquisition related liabilities 298 480
Other long-term liabilities 3,506 3,937
Total liabilities 157,199 163,396
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2009 and December 31, 2008, respectively — —
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 56,951,730 and 56,670,643 shares issued and outstanding as of June 30, 2009 and December 31, 2008, respectively 571 569
Additional paid-in capital 2,684,840 2,681,600
Treasury stock (1,757 ) (1,757 )
Accumulated deficit (2,731,186 ) (2,729,905 )
Total stockholders’ deficit (47,532 ) (49,493 )
Total liabilities and stockholders’ deficit $ 109,667 $ 113,903
Table 4
NEXCEN BRANDS, INC.
NON-GAAP ADJUSTMENTS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Total revenues $ 11,781 $ 11,924 $ 23,741 $ 22,149
Total operating expenses (10,179 ) (125,295 ) (20,333 ) (138,076 )
Adjustments for special items:
Special investigations (1) 52 1,932 85 1,932
Impairment of intangible assets (2) - 109,733 - 109,733
Restructuring charges (3) - 815 - 815
Total operating expenses, as adjusted (10,127 ) (12,815 ) (20,248 ) (25,596 )
Operating income (loss), as adjusted 1,654 (891 ) 3,493 (3,447 )
Total non-operating expenses (2,299 ) (3,470 ) (4,763 ) (6,019 )
Loss from continuing operations before income taxes, as adjusted (645 ) (4,361 ) (1,270 ) (9,466 )
Income taxes (81 ) 4,019 (155 ) 2,752
Adjustments for deferred income taxes (2) - (4,126 ) - (2,936 )
Income taxes, as adjusted (81 ) (107 ) (155 ) (184 )
Loss from continuing operations, as adjusted $ (726 ) $ (4,468 ) $ (1,425 ) $ (9,650 )
Loss per share (basic and diluted) from continuing operations, as adjusted $ (0.01 ) $ (0.08 ) $ (0.03 ) $ (0.17 )
Weighted average shares outstanding - basic and diluted 56,952 56,621 56,812 56,444
(1) The Company incurred outside legal fees related to special investigations, namely, investigations conducted at the direction of the Audit Committee of the Board of Directors, the Company and the SEC, respectively, regarding the Company's public disclosures on May 19, 2008 of previously undisclosed terms of a January 2008 amendment of our credit facility.
(2) During 2008, the Company determined that it was necessary to evaluate goodwill and trademarks for impairment between annual tests due to a decline in the Company's stock price and deterioration of the economy. As a result, the Company recognized deferred tax benefit related to the reversal of deferred tax liabilities associated with the intangible assets.
(3) Restructuring charges relate primarily to employee separation benefits for employees terminated.
Contact:
FDLeigh Parrish/Stephanie Rich212-850-5600
Good to read. I will be looking forward to the announcement!
NexCen Brands to Discuss Second Quarter 2009 Financial Results
Press Release
Source: NexCen Brands, Inc.
On 7:30 am EST, Monday November 2, 2009
Buzz up! 0 Print
Companies:Nexcen Brands, Inc.
NEW YORK--(BUSINESS WIRE)--NexCen Brands, Inc. (PINK SHEETS: NEXC - News) today announced that management will host a conference call and audio webcast on Thursday, November 5, 2009, at 5:00 p.m. ET to discuss its financial results for the second quarter of 2009. In addition, the Company intends to file with the Securities and Exchange Commission on November 5, 2009 its Quarterly Report on Form 10-Q for the period ended June 30, 2009.
Related Quotes
Symbol Price Change
NEXC.PK 0.18 -0.01
{"s" : "nexc.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""} The conference call may be accessed by dialing 800-944-8766 or 317-713-0002, access code: 27689. Additionally, a webcast of the call can be accessed at http://www.nexcenbrands.com/investor.html and will be archived online shortly after the conference call until December 31, 2009. If you are unable to participate in the live conference call, a replay of the call will be available from November 6th at approximately 10:00 a.m. Eastern Time until November 13th at 11:59 p.m. Eastern Time. To access, please dial 1-866-281-6782, access code: 154227.
About NexCen Brands, Inc.
NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF™ and Shoebox New York®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies®, MaggieMoo's®, Marble Slab Creamery®, Pretzelmaker® and Pretzel Time®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.
Contact:
FDLeigh Parrish/Stephanie Rich
Always tough to predict a bottom on any stock, but I hope that $0.21-$0.22 was it!
I imagine they should be reporting in NOvember? They haven't mentioned anything yet, but if they are really trying to be "on track" now, and assuming all the bad news has been put out, we should be getting the lastest quarter earninns announced next month, don't you think?
Buying opportunity here!
OT: No, I didn't. Haven't had the time to research it as yet. Thanks for your suggestion.
NEXC === looks like there just may be some good times coming here. let's just hope their e report is well received.
VERYLONG4NEXC Did you buy any of what we talked about? I have been in it for as long as the other one but this one we talked about has 7 million float. Don't know when and if it will hit but its a Lotto. Pretty much like alot of stocks.
Message 560 deleted.
How long will it take NEXC to get to a dollar? That is the $640,000 question, don't you think?
If only I really knew, I would have bought much more earlier this year, LOL.
I had expected the financials for 2007 and 2008 to be out by March 31st and then again by July 31st along with the first two quarters of 2009. No such luck. The ONLY reasonable reason I can make of why the 2008 financials were delayed so long was to coincide with the financials of 2009 to offset such a bad outcome that year, but I don't know why it was promised earlier if they planned to show the 2009's as well.
I see the stock as very undervalued if they are on course for future increases. You would have to go back to 2006 and see the financials and share struture to see what kind of earnings per share gave the stock a $10+ value and make a comparative parallel as one way of predicting the share price.
My personal hope hss been to get to a dollar+ by the end of December 2009, but that will depend on what happened these past two quarters and hoping to read about SEC filings for these financials by November this year.
I am not happy with the stock dipping down, but I should have anticipated this with the way the stock price did not move higher just before the financials were announced (unlike back in August 11th when it moved up over 30% before the announcement). Guess I will have to remember that the next time, LOL
VERYLONG4NEXC That took 1 and a half years I was in CWDW and it finally went. Im in 1 other Shell that hasn't moved yet. I can't send it to you private.
OT: Wow!... and many congrats on your 1800% gainer! Do you know of any others that may be ready to sprout such a move? what else are you in that hasn't yet taken off?
Whenever I have bought into a stock that was ridiculously low and already made a move up, it was only a matter of time, sometimes days, weeks or even hours before it would crash, owing to all the fluff and the fact that most were selling into the rise and lack of real substance.
The trick with them, is in simply taking profits and finding another one before the crash, lol.
With NEXC, I am only regretting not having bought much more under a dime. I am still hopeful for dollarland by December, but the company will have to have continuing increased revenues and profits.
I don't see the numbers as good, maybe better than before..but the lender statements and going concern statement doesn't sound good at all. the debt is still a big problem.
Hi All just letting everyone know im still here. The Fins they posted sound good to me. At least there posting Financials again. I am in know hurry. I just hit a 1800 percent stock so that made me happy.
More opportunities to be buying low? If you are right in your prediction, the 2nd quarter earnings will shine.
Hopefully, they are on the right track now. And, since they are finally reporting in over 2 years, with the report of the second quarter, they will prove to again be a fully reporting company and I will expect over time get off these pinksheets.
I firmly believe refinance debt can be arrangement, they did it before and they can do it again. I'm betting very heavy If I'm wrong, I'll be wrong pretty big too LOL.
As I view the number is right then I do not care if the share prices increase 20% or 50%. I bought more base on Operating income of $1.8 Million in First Quarter 2009
Vs. Operating Loss of $2.6 Million in First Quarter 2008
First Quarter 2009 Revenues Increased 17%, Operating Expenses
Reduced 21%, with Ending Cash Balance of $8.3 Million
stay tune I expects much better number in second quarter 2009 eom
I like to be posted when you buy. You seem to have a good feel for this stock.
WE should be up at least 20% by the 6th, don't you think?
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NexCen owns and manages seven brands covering Quick Service Restaurants ("QSR"), retail and apparel, generating revenue through the franchising of those brands worldwide. NexCen's franchised brands include five QSR brands: Great American Cookies, MaggieMoo's, Marble Slab Creamery, Pretzel Time and Pretzelmaker and two franchised retail concepts: The Athlete's Foot and Shoebox New York. NexCen currently has approximately 1,900 franchised and licensed stores across its brands, located in over 42 countries worldwide.
The Company's strategy is to create value for its stakeholders (including shareholders and franchisees) through the franchising and marketing of its brands. NexCen, through its advertising, marketing and public relations teams, markets its brands to continually drive greater consumer awareness and brand equity for each of its brands and grow its presence worldwide through its network of franchised retail outlets. NexCen also recognizes that, as a royalty-based business, its success depends upon the success of its franchisees and through its franchisee support network, advanced information-technology systems, and real estate and store opening support teams, continually seeks to provide a turn-key solution and create value for its business partners.
RETAIL FRANCHISING
http://www.nexcenbrands.com/port_taf.html
http://www.nexcenbrands.com/port_shoebox.html
QUICK SERVICE
RESTAURANT (QSR) FRANCHISING
http://www.nexcenbrands.com/port_qsr_maggiemoos.html
http://www.nexcenbrands.com/port_qsr_marbleslab.html
http://www.nexcenbrands.com/port_qsr_pretzelmaker.html
http://www.nexcenbrands.com/port_gac.html
*From Mrs. Fields Famous Brands, LLC.
1330 Avenue of the Americas
40th Floor
New York, NY 10019-5400
United States - Map
Phone: 212-277-1100
Fax: 212-277-1160
Web Site: http://www.nexcenbrands.com
DETAILS
Index Membership: N/A
Sector: Financial
Industry: Diversified Investments
Mr. David S. Oros , 49
Founder and Chairman
No Photo Available
KENNETH J. HALL
Chief Executive Officer
Mr. Hall joined the Company on March 25, 2008 as Executive Vice President, Chief Financial Officer and Treasurer. He was appointed Chief Executive Officer on August 15, 2008. Mr. Hall is a seasoned executive with more than 25 years of cross-functional operating, strategic and financial leadership experience. He has driven growth and bottom-line results for public and private companies across a variety of industries. As an executive of middle-market global companies with revenues up to $1 billion, his experience has spanned all core operations and market sectors.
He has held executive leadership positions with NYSE and NASDAQ listed companies as well as private companies, including Global DirectMail, Icon CMT Corp., the National Football League and Mercator Software, where he helped lead its financial turnaround following a financial restatement and SEC investigation. Ken has worked closely with the Wall Street community and has successfully executed company mergers and acquisitions and interacted extensively at the board level on strategic and Corporate Governance matters.
Prior to joining NexCen, Mr. Hall most recently served as Chief Financial Officer and Treasurer of Seevast Corp, a leading online-media holding company comprised of ad networks, Pulse 360 and Kanoodle, as well as a domain asset management company, Moniker, for which Mr. Hall led a successful sale process.
Mr. Hall holds a B.S. in Finance from Lehigh University and a M.B.A. from Golden Gate University. He is a member of the National Association of Corporate Directors.
BUSINESS SUMMARY
NexCen Brands, Inc. engages in the acquisition, management, and licensing of intellectual property (IP) and IP-centric businesses. The company acquires, manages, and develops intellectual property of IP-centric companies, which own, license, or otherwise possess rights to trademarks, trade names, copyrights, patents, trade secrets, and other intangible assets. It focuses on assembling a diversified portfolio of IP-centric companies operating in the consumer branded products, including apparel, footwear, sporting goods, home furnishings, and other hard and soft consumer branded products; franchise industries; quick service restaurant franchising; and retail franchising. The company also involves in the marketing, promotion, and quality control of products and services that make use of its IP, as well as provides certain merchandising, purchasing, and training support services with respect to franchise operations. NexCen Brands was founded in 1996. It was formerly known as Aether Holdings, Inc. and changed its name to NexCen Brands, Inc. in 2006. The company is headquartered in New York, New York.
State Of Incorporation
DE
Jurisdiction Of Incorporation
USA
SEC Reporting Status
SEC Reporting Company
CIK
0001093434
Outstanding Shares
56.6 mil
Float
48.0 mil
Number of Share Holders of Record
469 as of Mar 16, 2007
Transfer Agent
ComputerShare Investor Services
P.O. Box 43023
Providence, RI 02940-3023
Accountants
KPMG LLP
111 South Calvert St. 25th Floor
Baltimore, MD 21202
Phone: 410-949-8500
Fax: 410-949-2815
_____________________________
http://finance.yahoo.com/q?s=nexc
Headlines
http://finance.yahoo.com/q/h?s=NEXC
_____________________________
Community News
January 29, 2008 - 4:15 PM EST
NexCen Brands Acquires the Great American Cookie Company(R) From Mrs. Fields Famous Brands Acquisition Will Bolster NexCen's Quick Service Restaurant ('QSR') Operating Segment And Increases Franchise Locations From, 1,600 To 1,900
NEW YORK, Jan. 29 /PRNewswire-FirstCall/ -- NexCen Brands, Inc. (Nasdaq: NEXC) ('NexCen') announced today that it has acquired the Great American Cookie Company ('Great American Cookies') from Mrs. Fields Famous Brands, LLC ('Mrs. Fields'). The purchase price of the transaction is $93.7 million, and consists of approximately $89.0 million of cash and NexCen common stock valued at approximately $4.7 million. This transaction adds another premium treat brand to the four brands in NexCen's quick service restaurant (QSR) portfolio, which include the premium, hand-mixed ice cream chains MaggieMoo's and Marble Slab Creamery, as well as the hand-rolled pretzel chains Pretzel Time and Pretzelmaker. The Great American Cookies acquisition marks the ninth brand added to NexCen Brands portfolio and increases its franchise locations from 1,600 to 1,900 locations worldwide.
Founded in 1977, the Great American Cookie Company provides cookies, cupcakes, brownies, and smoothies to a diverse and loyal customer base. The company has demonstrated more than 30 years of consistent growth and is the number one mall-based cookie system in the United States. As of December 31, 2007, Great American Cookies had nearly 300 franchised units primarily located in the continental United States.
Commenting on the acquisition, Robert W. D'Loren, President and CEO of NexCen, stated, 'Great American Cookies is a great opportunity for us to enter the cookie business with a premium cookie brand that has grown consistently over the years. The brand is representative of the acquisition opportunities NexCen has targeted to grow our QSR segment and to increase sales in our existing ice cream and pretzel concepts. The addition of this brand to our QSR portfolio provides NexCen with nearly 300 additional doors for the delivery of quality treat products, and broadens our franchise offering for interested franchisees, both domestically and internationally.'
Stephen Russo, President and Chief Executive Officer of Mrs. Fields, added, 'NexCen Brands' acquisition of Great American Cookies will enable Mrs. Fields to focus on our core business strategy, with the comfort and belief that NexCen's franchise model will continue to build this brand. We are exploring opportunities to make additional investments in our brands in accordance with our indenture requirements, and are pleased with our progress to date.'
For a portion of the purchase price, NexCen accessed its debt facility with BTMU Capital Corporation, which was increased from $150 million to $181 million. Theodore J. Gaffney, Executive Vice President of BTMU Capital Corporation, commented: 'We are pleased with our relationship with NexCen Brands and its recent business activities. Our facility has continued to allow NexCen to finance its acquisitions under the terms of the master loan agreement and build a well diversified pool of assets.'
For the 12 months ended December 31, 2007, aggregate pro forma unaudited revenues and operating income for the Great American Cookie Company were approximately $26 million and $13 million, respectively. NexCen expects this transaction to be accretive beginning in 2008. Forward twelve months revenues and operating income are expected to be $27 million and $14 million, respectively.
About Great American Cookies(R)
Founded in 1977 on the strength of an old family chocolate chip cookie recipe, the Great American Cookie Company has set the standard for gourmet cookie sales in shopping centers nationwide. With a strategy and quality product that has propelled over 30 years of consistent growth, Great American Cookies now leads as the number one mall-based cookie system. At Great American Cookies, the customer is able to enjoy the things that make life sweet. Whether they want a delicious fresh cookie, brownie or cookie cake, they will find a celebratory, fun environment with high quality, superior products.
________________________________________________________________
NexCen Brands to Offer Freshens Products
05/08/2008 @ 5:20AM
Source : Business Wire
NexCen Brands Inc. (Nasdaq: NEXC), owner of the Marble Slab Creamery, MaggieMoo’s, Pretzel Time, Pretzelmaker, and Great American Cookies franchised brands, has entered into a co-branding agreement with Freshëns® Quality Brands, a provider of freshly-blended fruit smoothies in more than 1,200 locations nationwide.
The companies have agreed to offer NexCen’s pretzel and cookie franchisees the opportunity to add Freshëns smoothies in a co-branded store. This opportunity is available to approximately 650 NexCen franchised stores.
“Freshëns smoothies offer a complementary new product line to our pretzel and cookie franchise stores that will drive increased store sales,” said NexCen CEO Robert W. D’Loren. “We have conducted product tests with Freshëns for a number of months, with very favorable results. Many of our franchisees are enthusiastically planning to add Freshëns products.” “This is an ideal opportunity to extend the distribution of Freshëns products through a growing network of premium quality franchise operators,” said John Stern, CEO of Freshëns. “We look forward to working with NexCen to extend our strong history of beverage innovation to a new partner.” The NexCen-Freshëns strategic agreement also includes testing of co-branded ice cream and yogurt stores. The agreement is part of an ongoing initiative to expand the menus in NexCen’s 1,250 franchised quick service restaurants. http://www.freshens.com/home.html
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