Connect with us

Feedm

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

Published

on

FNHI 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

Even Oil Giants Are Under Tremendous Pressure

Published

on

Canadian Oil

The global oil market is in a state of hysteria. And not only COVID-19 is to blame, although its impact is being felt all over the globe. It is inevitable for the near future to be filled with bankruptcies, cost savings and cuts in spending as businesses are looking for ways to get through this historically difficult period.

The troubled industry

The year already began with over supply thanks to decades worth of expansion in U.S. onshore production. The price war between OPEC and Russia only further amplified the oversupply problem. That issue has at least been resolved. But the real hit was the global economic shutdown from COVID-19 which resulted in a drop in demand. With too much oil and too little demand, oil prices have plummeted to historic lows.

Cutting dividends

The current headwinds are intense, and have led many energy companies to trim their dividends. Royal Dutch Shell (NYSE:RDS.B) and Equinor are two direct competitors that have taken this drastic step to ensure they have ample cash to survive and they have a long histories of reliably returning cash to investors. Even Helmerich & Payne (NYSE:HP) which had a streak of 47 annual dividend hikes under its belt along with a rock-solid balance sheet still felt it necessary to cut the dividend in March.

It’s only logical to question whether or not peers ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) will be forced to do the same.

Chevron cutting jobs

Chevron has increased its dividend annually for 33 consecutive years. At the end of the first quarter, Chevron’s total long-term debt had increased roughly 20% from the start of the year. At the end of May, it announced a 15 percent cut of its global workforce.

Exxon has no layoff plans

Exxon’s dividend streak is even longer as it has increased its dividend annually for 37 consecutive years. But Exxon’s long-term debt jumped even more than Chevron since the beginning of the year as it rose by nearly a third.

Top and bottom lines at Exxon and Chevron are clearly driven by the price of oil which reached historic lows. Even Russia’s second-largest oil producer PJSC Lukoil (OTC:LUKOY) hurt by lower oil prices as it reported a first-quarter net loss of $669 million on Wednesday.

Shell and Equinor Vs Exxon and Chevron

Thus, Shell and Equinor chose to preserve cash by cutting their dividends. Starting out with much lower leverage, Exxon and Chevron have more balance sheet flexibility and they are using to protect their dividends, for now. Paying a consistent and growing dividend is important to the boards of these energy giants. But the energy market is at a painful place right now.

The boards of Exxon and Chevron will make the hard call to cut their dividends if need be.

Whichever the scenario, the big guys actually have a shot at pulling through thanks to the help of the Trump Administration, unlike many of their small peers which won’t even be able to afford Chapter 11 bankruptcies.

Uncertain future

There have been multiple ups and downs in the historically cyclical energy sector over the last three decades. But the biggest change is yet to take place: the green revolution. Exxon and Chevron have taken steps toward the low-carbon future. Exxon is developing biofuels from algae, while Chevron has invested in solar, wind and geothermal power sources. But environmental activists say they haven’t done enough. So, even with the support of the Trump administration, oil has an uncertain future. And even oil giants will need to fight for survival in the post-COVID-19 era.

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

Continue Reading

BenzingaEditorial

COVID-19 Has Catapulted Zoom Into a Powerhouse

Published

on

Microsoft News

As expected, Zoom Video Communications Inc (NASDAQ:ZM) reported a blockbuster first quarter. The platform became the place for video chats while half of the world’s population was in self-isolation forcing companies to install home offices. Its quarter results were impressive on almost every measure. Consequently, its share price increased 152% over the past year. This resulted in its market value expanding from $19bn to $58bn since the start of 2020.

Q1 Earnings Report

Revenue for the quarter was $382 million. This is a 169% increase from the same quarter a year ago. More impressively, customer growth almost tripled. New customers accounted for 71% of revenue growth during the quarter, with the remainder coming from subscriptions added by existing customers. The biggest growth was among individuals and smaller organizations with fewer than 10 employees. These two groups contributed almost 1/3 of the revenue during the quarter. This is an increase compared to a 20% share in the previous quarter. This infrastructure also influenced the billing mix, as these customers typically pay monthly fees rather than opting for annual contracts.

This top line resulted in a GAAP net income of $27.0 million, or $0.09 per share. To give you a better idea, one year ago it was $0.2 million, or $0.00 per share. Cash at the end of the quarter totaled $1.1 billion.

Zoom expects the good times to continue through the year as it almost doubled its revenue guidance for the fiscal year from $910 million to $1.79 billion.

Privacy issues- the only dark spot

Zoom’s CEO admitted that the company could have done better regarding various security flaws that came to light as Zoom use rocketed among individual consumers. But Zoom attracted new criticism by announcing users will have to pay for the end-to-end encryption. Or perhaps the CEO’s justification that the company wants to work together with FBI and local law enforcement in case some people use Zoom for bad purposes was just not well framed.

Google, Microsoft and Facebook muscling in on Zoom’s video boom

Deep-pocketed rivals including Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG) and Facebook (NASDAQ:FB) have immediately jumped to take their own piece of the video conferencing pie. Microsoft announced it would launch a version of its video-conferencing service for individual consumers in March. In April, Facebook introduced a group video-calling feature called Messenger Rooms. The social media giant managed to cause a dip in Zoom’s share price. Also in April, Google announced its own contender called Meet.

Zoom’s strategy- “best of breed” in video and voice

Despite its experience of the past few months, Zoom is sticking to its focus on larger enterprise customers as its major growth opportunity. Its aim is to be the go-to provider of video and voice for business customers. The company is happy to leave other aspects of digital teamwork, such as messaging and content sharing to Slack Technologies Inc (NYSE:WORK), Microsoft Teams, Box (NYSE:BOX) and Dropbox Inc (NASDAQ:DBX). It’s betting on a best-of-breed strategy. The CEO also reiterated his belief in extending into cloud-based PBX with the Zoom Phone service as a significant opportunity to build on the success of the video conferencing service. If anything, Zoom seems not to be at all afraid of its big tech rivals.

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

Continue Reading

BenzingaEditorial

COVID-19 Was Powerless Against FAANG Stocks- But There Are More Battles to Be Won!

Published

on

Facebook Earnings News

FAANG is an acronym that stands for the five most popular and best-performing US technology stocks in the market. They are Facebook Inc (NASDAQ:FB), Amazon.com Inc (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet’s Google (NASDAQ:GOOG). Well, Facebook, Amazon and Netflix hit record highs recently but this doesn’t mean all is bright.

Alphabet Trails Behind Facebook. But Despite Hitting Highs- Controversies Remain.

Facebook’s stock (NASDAQ:FB)  is up by about 16% since early 2018 which is below 28% gain for Google’s parent Alphabet’s stock (NASDAQ: GOOGL) over the same period. Facebook’s revenues have expanded 74% between 2017 and 2019. This is 1.6x those of Google in the same period. Facebook’s higher revenue growth over recent years and its higher multiple imply higher potential earnings growth in the future. The hype is led by its big push into e-commerce with the launch of Shops.  And it took Shopify Inc (NYSE:SHOP) for the ride as well, which became Canada’s most valuable company. But controversies remain at Facebook’s side as Zuckerberg recently refused to act against President Trump’s posts.

Alphabet’s Potential Could Be Stronger Than We Realize

It can be argued that the company has a higher quality revenue mix, especially due to its highest-growing segment, Google’s Cloud business that gives more resilience to Google’s revenues. Google has very large advertising exposure but unlike Facebook that earns 98% of revenues from it, ads contribute 80% to Google’s revenues. So Google’s pay per click advertising, for which marketers only pay when their ads get results, could hold up stronger than anticipated. While many of Google’s offerings don’t make much money yet, they could imply that Google is being undervalued.

Amazon Stock May Have Soared With Restarted Non-Essential Deliveries But Its Biggest Weakness Remained

The company is at a crossroads as it is facing sharp criticism over its treatment of employees – and the way the company responds to the objections may well determine its future.

The e-commerce giant made it easier for employees to juggle day care amid the COVID-19 pandemic. It announced ten days of subsidized emergency backup child or adult care. By covering more more than 90% of the cost of care, the e-commerce giant will invest several million dollars to offer this benefit during the next few months. What we don’t know is if the spending is part of the $4 billion Amazon took aside for its COVID-19 response during the current quarter.

But it is unclear whether the importance the company now seems to be placing on its employees is just a forced response to the criticism or if it truly reflects its commitment to the wellbeing of frontline employees. After all, the company was known for its poor working conditions long before the pandemic.

You could think that Amazon performed well anyway but workforce management also matters to investors. In last week’s shareholder meeting, they showed concern for the company’s reputation to be permanently damaged by this increased scrutiny. Bezos is being pressured to improve the treatment of Amazon’s workforce.

Apple

Shares of Apple have been on a good track for a while. Investors have applauded the company’s shift from a business model that is dependent on hardware revenue to a more services-based structure. As a reward, its stock went up 80% over the past year. Since surpassing a $1 trillion market cap in 2019, shares of Apple have continued to climb sharply. The company’s value has come near $1.4 trillion. Further robust growth in Apple’s services and wearables businesses and strong operational tailwinds over the next for years will help the tech company go forward. But with sales of the iPhone having hit a saturation point, which is why Apple has only grown its revenue by a total of 20% over the last three years, the switch or innovation is a must.

Netflix Achieved Record Figures but Analyst Fear Collapse

Despite short term headwinds, Netflix gathered a fast-growing member base of 182.86 million. It blew away expectations by adding 15.77 million new subscribers in the first quarter. But sceptics are not a fan of its high cash burn as Netflix is heavily spending on content. It burned more than $3.2 billion in cash last year. Also, whether Netflix will continue to be able to raise prices to offset its rising costs in light of this increased competition.

Outlook

The overall performance of the FAANG stocks is optimistic for the global economic recovery. No one seems to be afraid of holding any of FAANG stocks right now. But that doesn’t mean each doesn’t have its own concern.

The most ‘threatened’ seems to be Amazon. Amazon should direct all its resourcefulness and superior operational capabilities towards employees.  Bezos must see Amazon’s workforce as an energizing wheel that propels the company’s productivity and not as a hit to the bottom line. In other words, Amazon must give the same attention to its employees as it did to its customers.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic 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 Questions about this release can be send to ivana@iamnewswire.com

Continue Reading
Advertisement

Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly

Trending