SAN DIEGO, CA--(Marketwired - Oct 7, 2015) - Fresh Healthy Vending International, Inc., North America's leading healthy vending franchisor, reports financial results for the fiscal year ended June 30, 2015.
Revenues
We had revenues of $6,273,722 for the year ended June 30, 2015, compared to revenues of $5,258,027 for the year ended June 30, 2014. This represented an increase in revenues of $1,015,695 or 19.3%. The increase was primarily a result of expanded marketing efforts, including our national radio advertising campaign and Internet marketing. The increase in total revenues also included an increase in royalties of $135,917 from $49,474 in fiscal 2014 to $185,391 in fiscal 2015.
Gross Margin
Gross margin for the year ended June 30, 2015 was $3,333,194 compared to $2,718,730 for the year ended June 30, 2014, representing an increase of $614,464 or 22.6%. Gross margin percentage was 53.1% and 51.7% for the years ended June 30, 2015 and 2014, respectively. The increase in gross margin percentage of 1.4% in fiscal 2015 from 2014 was due primarily to an increase in royalties and agency sales, which carry a higher gross margin percentage.
Operating Expenses
Total operating expenses increased $205,738 or 4% from $5,095,063 in fiscal 2014 to $5,300,801 in fiscal 2015. As a percentage of revenue, operating expenses decreased 1.3% from 9.7% in fiscal 2014 to 8.4% in fiscal 2015.
The increase in operating expenses was primarily attributable to an increase in personnel and marketing costs, offset by a reduction in professional fees.
Net Loss
Our net loss was $2,117,075 for the year ended June 30, 2015 compared to a net loss of $2,428,851 for the year ended June 30, 2014. This represents a decrease in our net loss of $311,776 or 12.8% from fiscal 2014 to 2015.
Basic and diluted net loss per share during the year ended June 30, 2015 was $.08 as compared to $.10 for the year ended 2014.
Financial Position
At June 30, 2015, the Company had a cash balance of $325,337 and total current assets of $3,749,924. Furthermore, at June 30, 2015 and 2014, the Company had deferred revenues of $6,428,156 and $5,456,969, respectively. The increase in deferred revenues was directly related to our increase in bookings during the year, in addition to our increase in recognized revenue.
"Fiscal 2015 saw continued restructuring in order to bolster our ability to secure a higher number of qualified locations for our franchisees monthly. We believe that this will result in us delivering more units per quarter, which allows us to recognize the $6.4 million of deferred revenues in a more timely manner," stated Nicholas Yates, Company Chairman. "We look forward to executing on our plan with continued improvement in fiscal 2016."
We have effected changes to our operations in order to restore our previous levels of revenues enjoyed in prior years in the hope that such changes will also position our Company for future growth in fiscal 2016 and beyond. Among the changes implemented or in the process of being implemented were the following:
- We launched our new Fresh Micro Market, a self-checkout kiosk designed for corporate break rooms, hotel lobbies, auto dealerships and other retail establishments;
- We raised approximately $1.3 million in debt and convertible debt needed for general corporate purposes and expansion of our micro market business;
- We have expanded our industry public relations initiatives and announcements in various print and other media to provide end customers and potential franchisees better awareness of the benefits of our product and franchisee offerings;
- We engaged an investor relations firm to expand our outreach in the public market;
- We achieved record monthly bookings and secured locations;
- We booked our largest deal to date totaling 58 machines and aggregating $556,250 in anticipated future revenue;
- We installed our 50th corporate-owned micro market;
- We settled our matter with the California Department of Business Oversight and now market our franchises in 47 states;
- We formed an alliance with the American Diabetes Association as an element of participation in their Wellness Lives Here program;
- We appointed JoAnna Abrams, a business strategist, innovator and collaborator, as the first member of our newly created Advisory Board; and
- During the third quarter of fiscal 2015, the Company entered into a short-term bridge loan which it promptly repaid during the fourth quarter
