SAN DIEGO, CA -- March 4, 2019 -- InvestorsHub NewsWire -- Generation NEXT Franchise Brands, Inc. (OTCQB: VEND) announced its monthly report to stakeholders for the month of February today. The report is part of a continued effort announced last month to keep all Company stakeholders better informed of key operating metrics and in a transparent environment.
Key highlights and metrics for February:
Booked 41 new Reis & Irvy’s franchise commitments worth $2.2 million in deferred revenue (averaging $319,745 per franchise sale and $54,585 per robot sold).
Monthly revenue of $228,000 resulting from the installation of 6 robots at an average of $38,000 revenue recognized per robot.
Secured 47 new locations for Reis & Irvy’s kiosks.
In January, Generation Next announced the launch of 19 Degrees Corporate Service LLC (“19 Degrees”) to provide Reis & Irvy’s robots to locations outside of existing franchise territories and provide a structure to investors to own robotic frozen yogurt vending kiosks operated by the Company in return for passive income. In February, the 19 Degrees subsidiary:
Added 22 units of 19 Degrees which resulted in the Company collecting $291,000 of investment to be used for the purchase and installation of robots.
Secured seven new locations for 19 Degrees.
As of February 28th, the Company has: sold a total of 57 units of 19 Degrees, resulting in $1.0 million invested; secured 78 locations which are scheduled for installation between April and June 2019.
“We’ve received positive reports from our franchisees and locations about the performance of Reis & Irvy’s during February,” said Nick Yates, CEO of Generation Next Franchise Brands. “Our engineering solutions and manufacturing improvements are having the impact we expected. Our month-over-month results will continue to improve as we finish upgrading existing kiosks and gradually increase the pace of our new robot installations.”
Generation Next and its franchisees discovered defects in the first batch of kiosks assembled and installed during the second half of calendar year 2018, resulting in a production halt that persisted until late February, when the Company resumed kiosk production and began upgrading existing kiosks with redesigned hardware and software. February installation numbers were negatively impacted as a result of this production halt.
Yates recently received this note from a Houston franchisee regarding the upgrades:
“Nick,
Improvements have been observed in recent testing of the 0.71 software, along with Stoelting firmware updates, on one of our machines with a history of HVB Errors. We have been monitoring consistencies and temperature cycles as compressors cool the cylinders and then the hoppers, all working as would be expected. The units do not seem to be over-working, as they were in the past. This appears to be a good collaboration between Stoelting and ReThink. Thanks!
Regards,
Michael and Michelle Bingham”
From March through June 2019, the Company estimates it will install an additional 100 to 150 robots bringing the total robots installed for the fiscal year ended June 30, 2019 to between 290 and 340 with annual revenue recognized of $11.0 to $12.9 million. From July to December 2019, Generation Next expects to install 600 to 800 additional robots and recognize between $22.8 and $30.4 million in revenue.
