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Franchise Holdings International (Worksport Tonneau Covers) announces record 2019 revenues

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Worksport

U.S. revenues, helped by securing minimum 10-year rights to Worksport brand and logo, jumped a record 347% in 2019 to $1,860,563 from $416,331 in same period last year

Non-competing private label sales also advanced 619%

Highlights of year ending December 31, 2019 (all amounts in US$)

  • 2019 sales up 300% over comparable period last year:

$1,926,405, compared to $481,521 in 2018

  • U.S. 2019 revenue jumped 347% to $1,860,563 from $416,331 in same period last year

(Higher share of existing customer sales, more product available, intellectual property secured)

  • Company now owns sole U.S. rights for a minimum of 10 years to the Worksport name for light truck tonneau covers; also secured three U.S. patents in 2019 and applied for others internationally
  • Non-competing private label sales increased 619% to $1,912,401 from $265,969 in same period last year
  • Online sales increased to $174,793 in 2019 from $151,285, a 16% increase, year over year, now accounting for 8% of revenue, when compared with 32% for the year ended Dec. 31, 2018.
  • Net loss decreased 76% to $414,607, compared with $1,763,038 in the same period last year, due to decreases in operating expenses and non-recurring items, including gain on debt settlement – and paving the way for future earnings. Gross profit increased to $292,840 in the year ended Dec. 31, 2019, when compared with $96,614 in the same period last year, an increase of $196,226 or 203%.

Toronto, Ontario, May 15, 2020 – Steven Rossi, CEO Franchise Holdings International Inc. (OTC: FNHI), and its Worksport subsidiary (“the Company”), announced that for the year ended December 31, 2019, revenue from the entire line of Worksport tonneau covers for the light truck market jumped a record 300% to $1,926,405, as compared to $481,521 for the same period last year. In addition, U.S. 2019 revenue increased a record 347% to $1,860,563 from $416,331 in same period last year, due to higher share of existing customer sales, more Worksport product available, and exclusive 10-year rights to Worksport name and logo granted by U.S. Patent Office (USPO).

“To say the least, we are very pleased by achieving these record revenues for the 12-month period. A 300% increase is really impressive,” said Rossi. “It clearly demonstrates that we have successfully executed on and greatly exceeded our highly ambitious strategic plan to accomplish record growth and profitability for the company. With issues like the gain on debt settlement behind us, we are zeroing in on profitability, with lien operations. With anticipated forthcoming funding, we believe the results would be even stronger, with faster development of the exciting

new high tech tonneau cover products in the pipeline and increased inventory and distribution. It’s just the beginning, as we build towards becoming a cornerstone middle-market U.S brand.”

Private Label Strategy Advances

Rossi cited Worksport’s surge in private label sales as a major growth engine for the company. “Private label sales of non-competing customized product proved to be a runaway success, accounting for the upward trajectory and the majority of our sales. Meanwhile, we are focused on ramping up the Worksport brand, after finally securing complete U.S. patent office protection of our name and logo, after a long and hard effort,” Rossi said. “The ratio of Worksport branded product to private label tonneau covers is expected to even out in the future, with both driving the company’s growth in the U.S., our primary market.”

Worksport expects to continue to grow private label sales as it invents unique and non-competing tonneau covers to offer other prospective clients in the U.S. and Canadian markets, Rossi said. “The Company acquired more share of sales to existing customers and achieved more consistent product availability to fill orders in both the U.S. and Canada,” said Rossi.

Online Retail Also Grows

Worksport believes that the trend of increasing sales through online retailers will continue to outpace traditional distribution business models. Moreover, reputable online retailer customers tend to provide larger sales volumes, greater profit margins as well as greater protection against price erosion, Rossi said.

Sales from online Worksport retailers increased to $174,793 in 2019 from $151,285, a 16% increase, year over year, and now accounting for 8% of revenue, when compared with 32% for the year ended Dec. 31, 2018. These revenues occurred before the coming of the global COVID-19 Pandemic. “Worksport’s foresight in developing an online sales channel positions the Company to thrive in the ‘social distancing’ environment,” Rossi added.

Intellectual Property Secured

In addition to the flood of private label sales, Rossi cited a number of important factors that resulted in Worksport’s dramatic record growth. “First of all, securing Worksport’s intellectual property has significantly transformed the Company. Winning three USPO patents in one year and being granted final exclusive rights to our trademark has enabled the 347% leap in U.S. revenues as we can freely operate and develop our U.S market. Secondly, we now operate through three sales channels: online, largely through Amazon.com, Worksport-branded product sold via distributors, and non-competitive private label products that are exclusive to several important national retailers and distributors.

COVID-19

“Our hearts go out to COVID-19 victims all around the globe. We urge everyone to stay safe,” Rossi said. “Although the virus is having devastating global effects, Worksport’s factories in China, after a very brief pause, are again back in operation as of the week of March 16, 2020, subsequent

to the year end. Rossi said that the Company’s supply chain is fully intact and working on new and future products for the booming light truck market.

Net Loss Decreases, Gross Profit Rises

The Company’s net loss dropped 76% to $414,607, compared with $1,763,038 in the same period last year, due to decreases in operating expenses from $1,307,741 for 2018 to $831,973 for 2019, a decrease of $475,768 or 36%. Also factored into the net loss were non-recurring items, including gain on debt settlement as well as a 38% decrease in professional services including accounting, legal, consulting, listing and filing fees, which decreased to $531,694 for the year ended December 31, 2019 from $864,160 in the comparable period last year. Gross profit increased to $292,840 in the year ended Dec. 31, 2019, when compared with $96,614 in the same period last year, an increase of $196,226 or 203%.

Debt Settlement

To provide additional detail concerning the debt settlement, during the year ended December 31, 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-stock split, reserved shares were released and returned to the Company
  • 5,944,449 pre-stock split (990,742 post stock split) shares already issued were also returned to and cancelled
  • Issued and outstanding shares were reduced accordingly
  • A gain on debt settlement of $250,778 was then recorded.

The company closed the unwinding in August 2019.

Cost of Sales

Keeping pace with Worksport’s year of large-scale growth in revenues, cost of sales increased by 339% from $384,908 for the year ended December 31, 2018 to $1,687,857 for the year ended December 31, 2019. Worksport’s cost of sales, as a percentage of sales, was approximately 88% and 80% for the years ended December 31, 2019 and 2018, respectively. The decrease in percentage of sales resulted in a gross margin decrease from 20% for the year ended December 31, 2018 to 12% for the year ended December 31, 2019. This decrease in gross margin is related to the fluctuation in foreign exchange rates used to translate Canadian dollar sales into U.S. dollars for purposes of financial reporting as well as the increased cost for cost of goods sold and cost associated with warehousing inventory, to fulfil just in time sales, in the U.S. market.

“When looking at a growth company like Worksport, which is experiencing significant revenue increases, the cost of sales and how they are controlled can be a key determinant of future profitability,” Rossi said. “The task ahead is to increase gross margins consistently to the previously enjoyed 20% or greater range and keep these margins commensurate with anticipated future growth in each sales channel.”

General Outlook

“Everything is coming together rapidly for Worksport, and it’s happening much faster than anyone expected,” Rossi concluded. “We have the products, secure intellectual property and the incredible global team to make a great leap forward in the U.S., our principal market, and also in Canada, our home. In the year ahead, we hope to achieve profitability and greater penetration of the U.S. market, while focussing on improving our revenues sustainably with a keen focus on profitability and building the Worksport brand. The Pandemic will affect us, as it will be a tough year for everyone, but we are confident that as we continue to open up again, Worksport will be there providing much-needed, technologically advanced products for its branded, online and private label markets.”

##

About Worksport Ltd.

Worksport Ltd., a fully owned subsidiary of Franchise Holdings International. Inc. is an innovative manufacturer of high quality, functional, and aggressively priced tonneau/truck bed covers for light trucks like the F150, Sierra, Silverado, Canyon, RAM, and Ford F-Series. For more information please visit www.worksport.com

About Franchise Holdings International

Listed on the OTCQB Market under the trading symbol “FNHI” and currently in the process of a dual listing on a Canadian Stock Exchange, Franchise Holdings International’s strategy is to acquire business in the fastest growing business segments and to create shareholder value in the process. Once a business of interest is acquired, our mission is to further develop and accelerate the growth for all of our acquired subsidiaries. Currently the Corporation has one fully owned subsidiary, Worksport Ltd.

For further information please contact:

Mr. Steven Rossi CEO & Director Franchise Holdings International

T: 1-888-554-8789 E: Investors@franchiseholdingsinternational.com

BenzingaEditorial

This Week Will Be About More Than Inauguration Day Alone

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Since 2020 March lows, the market saw a nothing short of extraordinary record-shattering rally. But how much higher can it go as COVID continues to rage across the US and Europe? That answer will become a bit clearer as traders have returned from the long holiday weekend and equity markets have reopened. This week will be defined by the first days of the Biden administration and by another batch of corporate earnings reports.

Inauguration in times of COVID-19

On Wednesday, president-elect Joe Biden’s inauguration ceremony will take place as a dialed-down event, due to the ongoing pandemic. Americans have been urged to avoid the city on the day, given the risk of violence surrounding the event. Last Wednesday, Airbnb (NASDAQ: ABNB) announced it would block and cancel reservations in the D.C. metro area this week, refunding guests and reimbursing hosts who already made bookings. Interestingly, the stock rallied nearly 6% upon the announcement. Marriott (NASDAQ: MAR) which has close to 200 hotels in the D.C. area and owns brands including The Ritz-Carlton said it would honor existing reservations, along with IntercontinentalHotelGroup (NYSE: IHG), Hilton (NYSE: HLT), Hyatt (NYSE: H) and Expedia-owned VRBO (NASDAQ: EXPE).

Biden also said he aims to roll out 100 million vaccines in his first 100 days in office, which would significantly accelerate the pace of current efforts to counteract the pandemic. On January 20th, Biden is seeking to sign about a dozen executive actions to address the pandemic, as well as a virus-stricken economy, climate change and racial equity.

Earnings

One of this week’s key earnings reports will come from Netflix (NASDAQ: NFLX) on Tuesday after market close. Last quarter’s results showed disappointing signs that the skyrocketing user growth that Netflix enjoyed during pandemic was slowing down. The streaming giant missed even its own conservative third-quarter new subscriber guidance for the summer, adding just 2.2 million new members as opposed the 2.5 million the company had expected. For the fourth quarter, Netflix expects 6 million net paid additions to its streaming platform, representing another YoY decline after adding 8.8 million in the fourth quarter of 2019.

Netflix, while still the leader among U.S. streaming platforms when it comes to total users, has also faced increasing competition over the past year, especially from relative newcomer Disney+ (NYSE: DIS). Disney’s streaming service had 86.8 million paying subscribers as of December 2nd, compared to the more than 195 million Netflix reported at the end of September. Disney also revealed it would be raising the monthly price of its streaming subscription starting in March, suggesting the entertainment giant believes it has the user demand and pricing power to command higher fees. Netflix needs to prove it can maintain its status as the king of streaming among this intense competition.

Wall Street expects earnings $1.38 per share on revenue of $6.61 billion, compared to the year-ago quarter when earnings were $1.30 per share on $5.47 billion in revenue.

Also, on Tuesday, Tuesday: Halliburton (NYSE: HAL), Charles Schwab (NYSE: SCHW), Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS) will report their earnings before market open.

Wednesday

Morgan Stanley (NYSE: MS), US Bancorp (NYSE: USB), Citizens Financial Group (NYSE: CFG), Bank of New York Mellon Co. (NYSE: BK), Procter & Gamble (NYSE: PG), UnitedHealth Group (NYSE: UNH) will report before market open whereas Alcoa (NYSE: AA) and United Airlines (NASDAQ: UAL) will report after market close. Wall Street expects United Airlines to lose $6.58 per share on revenue of $3.46 billion. This compares to the year-ago quarter when earnings came to $2.67 per share on revenue of $10.89 billion. United had some $24 billion of capital expenditure commitments as of Q3 so amid the decline in travel demand, its aim is to reduce that spending as much as possible. Investors will be looking at such economic improvements to justify the argument that UAL is better positioned than other airlines to survive this downturn.

Thursday will feature IBM and Intel

Wall Street expects International Business Machines Corporation (NYSE: IBM) to earn $1.79 per share on revenue of $20.63 billion but what investors are really wondering is when will the real turnaround begin? Its cloud ambitions have promised to return value to shareholders, but shares still haven’t regained even their pre-COVID levels while the rest of the market has seen record highs. Cloud leaders such as Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG)(NASDAQ: GOOGL) are seemingly too far ahead for IBM to catch up. The new CEO Arvind Krishna is tasked with elevating Big Blue into a leading cloud and AI position, while distancing the company from the legacy business. Investors want to hear progress on these fronts.

Truist Financial (NYSE: TFC), Baker Hughes (NYSE: BKR), Union Pacific (NYSE: UNP) will also report on the same day before market open and Intel (NASDAQ: INTC) will make its appearance after market close.  Wall Street expects Intel to earn $1.10 per share on revenue of $17.48 billion, whereas the same quarter last year saw earnings of $1.52 per share on revenue of $20.21 billion. Intel shares have soared more than 10% Wednesday after the company confirmed that CEO Bob Swan will step down on February 15 and be replaced by Pat Gelsinger, the current CEO of VMWare (NYSE: VMW). On several important chip development fronts, Intel has lost ground to rivals AMD (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA). On Thursday, it must show the right things to support the confidence that Gelsinger can turn things around and quickly.

The week will be closed on Friday with earnings from Kansas City Southern (NYSE: KSU), Schlumberger (NYSE: SLB) and Ally Invest (NYSE: ALLY) who will all report before the stock market opens.

The inauguration may signal a dramatic shift and increase in government spending, but it remains to be seen whether hopes of a transformation can survive the reality of a narrowly divided Congress.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

This Week’s IPOs

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This week brings us four IPOs which are aiming to raise $1.8 billion. These four companies operate in different markets and they come from different countries, but they share at least one thing, they all want to go public.

RLX Technology

RLX Technology (NYSE: RLX) is a leading e-cigarette brand in China. The company announced its terms for its IPO on Friday, and it plans to $1.0 billion through offering 116.5 million units at a price between $8 and $10. That means RLX Technology would have a market cap of $14.0 billion. This company is profitable and fast-growing. In 2019, it was holding around 63% of the e-vapor market share in China. RLX believes in the strength of the retails sales, therefore it has more than 110 authorized distributors, so their products are present in more than 250 cities in China, through 5,000 branded stores and over 100,000 other retail outlets. As of the end of September 2020, the revenues have doubled compared to 2019. This is all very promising having in mind that the company was founded in 2018.

Patria Investments

One of the leading private markets investment firms in Brazil and Latin America, Patria Investments Limited (NASDQAQ: PAX), announced that it has launched its IPO. The company offers 26,650,000 Class A common shares in total. The estimated price range of the offered units is between $14 and $16, so the plan is to raise $400 million at a $2.0 billion market cap. The net proceeds from the offering are planned to be used for general corporate purposes, expansion of the company’s operations (through new distribution channels, acquisitions of asset managers and portfolios), and to fund capital commitments to its existing and new contracts. As one of the leading PE firms in Brazil, the company’s investment portfolio includes over 55 companies and it has raised more than $8.7 billion since 2015.

MYT Netherlands

MYT Netherlands (NYSE: MYTE), a Germany-based luxury fashion site, which operates under the brand name Mytheresa, likes to say it offers the Finest Edit in Luxury Fashion. As in the company’s store with the same name (The Mytheresa store in Munich), fashion “doyens” can find some of the renowned brands like Balmain, Gucci, Prada, Saint Laurent, and Fendi, and their latest collections. As the pandemic has ravaged the luxury goods sector, the salvation might be in the online sales of luxury goods, which rose between 12% and 23%. Therefore, Mytheresa decided to go public, planning to raise $266 million at a $1.5 billion market cap and to focus on offering clothing, shoes, and accessories from many luxury brands through its e-commerce platform.

Dream Finders Homes 

After successful completion of several acquisitions and expanding nationally, the Florida-based homebuilder Dream Finders Homes (NASDAQ: DFH) decided to launch its IPO and to raise $130 million at a $1.2 billion market cap. For the first nine months of 2020, the company announced an increase of 29% of pro forma revenues (pro forma – a method of calculating financial results using certain projections or presumptions) and an increased EBITDA margin of 9%.

These companies and their IPOs are offering a lot of variety and potential. So far, 2021 looks promising.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaPRs

Ideanomics Announces MEG December and Q4 Sales Activity

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NEW YORKJan. 15, 2021 /PRNewswire/ — Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Company”) announces its Mobile Energy Global (MEG) division’s sales activities for the month of December and Q4 2020.

For the period starting December 1, 2020, through December 31, 2020, MEG delivered a total of 439 units, of which 356 were for the taxi/ride-hailing business segment, and the remaining 83 were for the rental car business segment. All units, invoiced during the period from July through December 2020, were delivered. The fourth quarter’s activities also include the delivery of one charging system and 13 CATL battery systems which are part of an ongoing order for converting diesel-powered buses to battery electric vehicles (BEVs). The fourth quarter results do not include any units from the recently announced deal with BYD and Didi for 2,000 units of their D1 ride hailing vehicle.

About Ideanomics

Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. Our Mobile Energy Global (MEG) division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under our innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry. Together, MEG and Ideanomics Capital provide our global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and our shareholders with the opportunity to participate in high-potential, growth industries.

The company is headquartered in New York, NY, with offices in BeijingHangzhou, and Qingdao, and operations in the U.S., ChinaUkraine, and Malaysia.

Safe Harbor Statement

This press release contains certain statements that may include “forward looking statements”. All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Investor Relations and Media Contact

Ideanomics,Inc.
Tony Sklar, SVP of Investor Relations
1441 Broadway, Suite 5116, New York, NY 10018
ir@ideanomics.com

Valerie Christopherson / Lora Wilson
Global Results Communications (GRC)
+1 949 306 6476
valeriec@globalresultspr.com

 

SOURCE Ideanomics

This article appeared first on here.

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