News

Acquisitions, operational efficiencies lead to strong financial report for U-Swirl

July 15, 2014

U-Swirl Inc. today reported significantly improved operating results for the quarter ended May 31, 2014.

First quarter revenue increased 46 percent to approximately $2.5 million, compared with approximately $1.7 million in the first quarter of the previous fiscal year, primarily due to the January 2014 acquisitions of three self-serve frozen yogurt franchising companies that more than tripled the number of cafés operated by the company and its franchisees.

U-Swirl recorded net income of $376,563, which represented a 124-percent increase when compared with net income of $168,079 in the quarter ended May 31, 2013.

"We are very pleased to report that U-Swirl's net income increased 124 percent, on a 46 percent increase in revenue, during the first quarter of fiscal 2015 as compared to the first quarter of Fiscal 2014," CEO Rico Conte said in a company press release. "These impressive results reflect the closure of underperforming units and the acquisitions of the CherryBerry, Yogli Mogli and Fuzzy Peach frozen yogurt franchising companies, which more than tripled the number of cafés in our retail network in the fourth quarter of our previous fiscal year. We are beginning to realize the anticipated economies of scale and cost savings inherent in our strategy of consolidation within the self-serve frozen yogurt segment of the $6 billion away-from-home frozen desserts industry and look forward to further progress during the balance of the current fiscal year."

Additional highlights from the report include:

• Net sales derived from company-owned frozen yogurt cafés increased 7 percent.
• Franchise royalties and fees rose 202 percent.
• The company earned $812,000 in the most recent quarter, compared with net income of $316,000 in during the same period last year.
• The company's balance sheet increased almost five-fold to over $3.5 million as of May 31, 2014, compared with $701,748 at the end of its most recent fiscal year on February 28, 2014.