Spicy Pickle, www.spicypickle.com – the adept “fast-casual” restaurant chain with a highly evolved product model that focuses on healthy/delicious Panini and sub sandwiches made of the finest quality meats and fresh baked artisan breads, reported its Q2 FY10 and six-month financials for the quarter ended June 30.
Newly appointed CEO of SPKL, Mark Laramie, pointed to several factors underlying the solidity of the Company’s operational profile, including a strong board, its proven Spicy Pickle and Bread Garden Urban Café brands, and a robust network of franchise operators, as key elements enabling SPKL to navigate choppy economic seas.
Laramie indicated that a program to strengthen franchisee relations/operations, and the hiring of a new marketing director, were among some of the efforts to further improve overall performance.
An overview of the financial data is as follows:
• Shareholder Equity of $2.6M ($0.32 per share)
• Total Assets, $5.4M
• Current Assets, $1.084M – $461k in cash and equivalents which fell slightly and $267k in trade accounts receivable which appreciated
• Current Liabilities, $1.456M – $441k in deferred franchise fee revenue (not cash, funds taken into revenue when franchisee opens/agreement terminated, but available as working capital immediately)
• Long-Term Debt non-existent compared to $467k in debt in FY09 (moved to current)
• Notes Payable to related parties up 44% to $1.211M
• Revenue
o Q2, virtually unchanged (off 0.7%) to $1.215M, with a majority of revenues deriving from seven company-owned stores, one of said stores that was open in Q2 FY09 is closed and being relocated
o Six-month, off 1.7% to $2.189M
• Franchise fees and royalties
o Q2, up 8.9% to $541k
o Six-month, up 11% to $896k
• Restaurant and bakery operating costs – general and administrative expenses
o Q2, down 1.4% to $782k and 11% to $581k respectively
o Six-Month, down 3% to $1.531M and up 14.6% to $1.597M respectively, with some $300k due to stock based compensation expenses in Q1 FY10
• Net loss attributable to common shareholders was up a penny in both cases
o Q2, down 28% to $230k
o Six-month, up 14% to $1.03M
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