Generation Next Franchise Brands Q2: 143 Reese & Irvy's Units Ordered; Fresh Healthy Vending Revenue Dips 25%

Posted On: 3/1/2017

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TAGS: Generation Next Franchise Brands, Next Generation second fiscal quarter, Fresh Healthy Vending, Reese & Irvy's, Arthur S. Budman, frozen yogurt vending machine

SAN DIEGO -- Generation Next Franchise Brands reported financial results for its second fiscal quarter, ended Dec. 31, 2016.

In its original Fresh Healthy Vending division, revenue was down 25%, dropping to $1.2 million in the latest second quarter, from $1.6 million in the comparable period a year earlier. The company blamed the decline on its need to continue "to fulfill its remaining healthy vending obligations."

Also in the quarter, orders began for the San Diego vending machine franchisor's Reese & Irvy's frozen yogurt venders. The company sold 143 units valued at $5.5.

"I am pleased our new froyo concept has been so widely accepted and is continuing to show strong demand across the U.S.," said Generation Next Franchise brands chief executive Arthur S. Budman. "Looking forward, we are highly focused on completing development on our next-generation robot, driving both top-line growth and bottom-line profitability through continued sales expansion both domestically and internationally, as well as investing in new robotic vending concepts."

Other second-quarter highlights:

» Accounts receivables aggregated $9.6 million compared to $1.8 million.

» The company acquired all the intellectual property of Robofusion, a developer of frozen yogurt and ice cream robotic technology, for $2.4 million.

» Deferred revenue increased to $18.5 million, compared with $8.1 million.

» The company's net loss increased to $3 million from $900k. This included additional expenses related to the following: marketing ($189k); personnel ($281k); professional fees ($439k); research & development ($307k); Robofusion license fees ($395k), and derivative liability expense ($361k).

» The company's operations provided $799k cash compared to using $527,000 cash in the prior period.

» Major milestone achieved in booking its 500th froyo unit in December 2016.