GENERATION NEXT FRANCHISE BRANDS COMPLETES FISCAL 2018 WITH $50 MILLION IN AGGREGATE BOOKINGS AND ADDITIONAL COMMITMENTS OF APPROXIMATELY $110 MILLION FOR ITS FRANCHISE CONCEPT REIS & IRVY’S
The Franchise Company Also Completes its Fourth Quarter of Fiscal 2018 with Robust Bookings of 240 Robots Aggregating Over $10 Million
San Diego, CA -- July 09, 2018 -- InvestorsHub NewsWire -- Generation NEXT Franchise Brands (OTCQB: VEND) reports franchise bookings and deferred revenues of $50 million as of June 30, 2018, before certain adjustments. Furthermore, the company has additional booking commitments of approximately $110 million. The franchise company whose Reis & Irvy’s frozen yogurt robots launched in April of 2016, finished the year ended June 30, 2018 with over 250 franchisees.
Other notable items during the fiscal year ended June 30, 2018 are as follows:
Cash on hand of $10 million, compared to $1.8 million in the prior fiscal year;
Cash in escrow of $3.8 million, compared to $2,000 in the prior fiscal year;
Total assets of $45 million, compared to $18 million in the prior fiscal year and $4 million two years’ prior;
The Company raised proceeds totaling $18.3 million in the form of an equity offering;
On June 20th, announced business relationship with five-time Major Golf Champion Phil Mickelson and his career-long business manager and business partner Steve Loy as franchisees in San Diego;
Signed a master franchise agreement in Atlanta with potential future revenues aggregating up to $21 million;
Signed a master franchise agreement in Australia with potential future revenues aggregating up to $18 million;
Signed an exclusive franchise agreement in Miami-Dade Metro area with potential future revenues aggregating up to $22.3 million;
Signed an exclusive franchise agreement in Los Angeles and Orange County markets with potential future revenues aggregating up to $23 million;
Signed master franchise agreements in Israel and Oman with potential future revenues aggregating up to $5.5 million;
Signed a master franchise agreement in Canada with potential future revenues aggregating up to $17.1 million;
Signed an exclusive agreement in Pennsylvania with future revenues aggregating up to $4.1 million;
Signed an exclusive agreement in Ohio with potential future revenues aggregating up to $3.8 million;
Debuted our frozen yogurt robot at CinemaCon, International Franchise Expo and the National Restaurant Association;
Delivered and installed our first redesigned robots in June 2018;
“Fiscal 2018 was an exhilarating year for Generation Next Franchise Brands. We successfully booked over $50 million in franchise sales, and generated booking commitments for approximately $110 million. While the delay in our manufacturing process did cause some angst amongst us all, I’m pleased to announce that our first installations kicked off this past June and these units are operating with great fanfare across multiple states,” said Nick Yates, the company’s Chairman and Founder. “In fiscal 2019, we look forward to substantial revenue growth, profitability and the launch of our second robotic vending concept.”
The company’s net loss increased in the fiscal year ended June 30, 2018, compared to the prior fiscal year, as the result of significantly increased research and development and personnel expenses. At the same time, the company’s cash on hand has increased by more than five times -- from $1.8 million to $10 million -- and assets have more than doubled from $18 million to $45 million. Most importantly, the Company is well prepared to increase production and delivery of its robots after having completed its first installations in June.
