Green Endeavors Inc. (fka GRNE)

[aries4747]

GRNED featured: Sack Lunch Productions (SAKL) Reminds the Market It's More Than Just an Events Company

http://www.smallcapnetwork.com/Sack-Lunch-Productions-SAKL-Reminds-the-Market-Its-More-Than-Just-an-Events-Company/s/via/1789/article/view/p/mid/1/id/715/

Sack Lunch Productions Inc (OTCMKTS:SAKL) may be the name behind fun events like Slide the City and Color Me Rad, but that's not all it does -- it's also a majority owner of a much less cyclical salon business called Green Endeavors Inc (OTCMKTS:GRNED), smoothing out the highs and lows of the organization's revenue.

By Bryan Murphy
Aug 9, 2016 8:06:38 AM PDT
When investors think of Sack Lunch Productions Inc (OTCMKTS:SAKL), they tend to think of the company's events.... giant slip-n-slides, mud run, lantern launches, and more. And, calling a spade a spade, Sack Lunch Productions has largely aimed to create that connection in people's minds - that is the organizations primary business model and growth engine. It's not all the company does though. SAKL is also the majority owner of a salon venture called Green Endeavors Inc (OTCMKTS:GRNED), and it contributes more to the company's top and bottom line than most trades might guess. Sack Lunch reminded the market of this reality today with an impressive update on the results GRNED is driving.

During the first six months of 2016, Green Endeavors generated $1.6 million worth of revenue, up 13% from the first six months of 2015. For the salon business, not to mention in a tepid economic environment, that's huge growth.

Perhaps more impressive is the fact that the year-ago loss of $632,000 was pared back to a loss of only $122,817 for the first six months of this year. At its current pace, Green Endeavors will be in the black by early next year, creating a positive cash flow for SAKL year-round.

The value of that consistent cash flow for Sack Lunch Productions can't be overstated. While margins on events like Trike Riot and Slide the City are high, the bulk of the company's business from events comes in the third quarter; Q1 and Q4 are slow. That, however, is actually a busy time for salons as weather and special events drive people to salons like the Landis salons operated by Green Endeavors.

Game changing? No, that might be going a little too far with the impact the company's piece of GRNED makes for SAKL. It will lead to slow-period flexibility though, allowing the company to focus on using the slow quarters to fully prepare for the busy time of year rather than worry about liquidity.

Go here to learn more about Sack Lunch Productions Inc.

Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.