FNHI.0821 HUGE NEWS REPORT.Toronto, Ontario, Aug. 16, 2019 (GLOBE NEWSWIRE) -- Franchise Holdings International Inc.(FNHI), (or the “Corporation”) Worksport Ltd.’s parent company, announced strong Q2 and six-month results, with first half total sales jumping 270 per cent to $1,089,000 when compared to $294,000 in the same period last year. For the six-month period, gross profit advanced 560 per cent to $284,000 when compared with $43,000 for the same period last year. For the second quarter ending June 30, 2019, Worksport gross revenue generated in the United States was $564,591 compared to $141,410 in Q2 2018, an increase of 399%.
“The first half and Q2 results are very gratifying and put Worksport in an excellent position to achieve its ambitious goals for future growth and success with its proprietary line of tonneau covers for the international light truck market,” said Steven Rossi, Worksport and FNHI CEO. “Coupled with important steps forward in securing trademarks and patents, a renewed presence in the U.S. market and moving forward with our application to become a reporting issuer in Canada, Worksport is becoming the company we have long believed it can be.”
In other results, FNHI and Worksport reported that for the six-month period ending June 30, 2019, when compared to the same period last year:
Cash increased to $129,698, from $25,323
Net sales increased to $517,000 from $141,281
Gross profit totalled $284,000, compared to $43,000 for the same period, representing a year over year increase of 560%
Consolidated Net Loss was reduced from $980,000 to $128,000, a reduction of 86%.
Gross revenue generated in the United States was $1,148,013 compared to $171,041 for the same period in 2018, an increase of 671 per cent
For the three months ended June 30, 2019, the Company’s net loss was $1,748 compared to a net loss of $288,242 for the same period last year, an improvement of $286,494. This signalled “near profit as a result from operations”, a significant milestone for growing businesses who are reporting issuers. This comes as management has focussed on sustainable strong growth from exclusive partnerships while keeping lean operational expenses and avoiding the issuance of shares from treasury. The company has no derivative liabilities or services to be paid for with shares.
“…improvements are mainly attributed to an increase in gross margin and a decrease in operating expenses.” Rossi said.
Rossi noted that: “In July 2019, the Company reached a legal settlement agreement (the unwinding’) with an individual investor to dissolve the Debt Settlement and Mutual Release Agreement entered into on January 12, 2018. In accordance to the settlement agreement, 19,055,551 pre-consolidation (3,175,925 post consolidation) reserved shares will be released and returned to the Company. In addition, 5,944,449 pre-consolidation (990,742 post consolidation) shares already issued will be returned to the Company’s treasury, to be cancelled, reducing the companies issued and outstanding shares accordingly. The company expects to close the unwinding in August 2019.”
Accordingly, the decrease in the net loss for the six-month period ended June 30, 2019 was mainly due to the loss of debt settlement in the amount of $495,943 and decrease in professional fees of $121,633 as discussed above. “We guard and protect our treasury with vigour,” Rossi added. “We envision greater revenue as we continue to build and develop our model while focussing on strategy development, Research and Development, Intellectual Property and patent research, and building out a finely tuned manufacturing process.”
Management at this time will not release forward looking statements relating to Q3 guidance, but is “working diligently towards growth,” Rossi said.
To view FNHI’s Q2 report please click here.
