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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 (NYSE: GM), Canyon, RAM (MUTF: DODGX), and Ford F-Series (NYSE: F). 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

BenzingaPRs

Worksport Investing in Increased Manufacturing Capacity to meet Anticipated Demand Surge

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TORONTO – March 2nd, 2021 — Worksport Ltd (OTC: WKSP) (or the “Company”) is updating its shareholders regarding its strategic manufacturing investments. The company is in final phases of discussions with a few very-high-value strategic partners – Tier-1 and Tier-2 OEM manufacturing power houses in Canada – to expand its manufacturing into North American state-of-the-art facilities with 20,000 – 50,000 sq. ft. of operating space. These discussions involve logistics for the best & most effective ways to support the growth of Worksport.

One of the most important operational facets is ensuring scalability in Worksport’s manufacturing processes.  The chosen factory will be able to support Worksport’s forthcoming rapid operational acceleration which is vital as the Company grows with an expanding and maturing footprint.  “This also means that the Company will have more control over capital expenses, greatly reducing risks of overextending its financials during periods of intense demand as we forge ahead in major-player Automotive, Freight & Transport, Marine, and Rail ecosystems,” said Worksport CEO Steven Rossi.  And elaborating on the facility requirements, Mr. Rossi adds, “Worksport is only considering factory candidates that offer the highest quality infrastructure, conducive for hosting Company-specific systems so as to avoid risks of any major inadequacies.”

With its recent U.S.-based Private Label customer growth, these manufacturing investments are sure to help Worksport exceed those customer expectations relating to quality, efficacy, and reliability of work, all conducive to overall customer satisfaction.

It is also worth noting that as the Company finalizes plans to set the playing field for a powerful manufacturing presence in North America, their optimized Design-for-Manufacturing (DFM) processes will provide capabilities to utilize Just-in-Time (JIT) manufacturing methods for producing products and fulfilling orders on-demand, while also ensuring the highest level of quality assurance.

To stay up-to-date on all the latest Worksport news… investors, shareholders, and supporters are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.  Worksport will continue to update investors, shareholders, and supporters to maintain the highest level of disclosure and information dissemination as Worksport continues to grow and develop at a very rapid pace.

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer adventures & emergency/ disaster-recovery purposes, where portable energy is a necessity.  The modular, redefining Worksport TerraVis™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker – for work and play – to sustainably supply extra energy for those additional miles.  Its allied TerraVis COR™ mobile energy storage system (ESS), expected to launch by end of 2021, will be another redefining product targeted for vacationers, second-home owners, and campers.  Plans are also being constructed to address the dire adoption & scaling needs of the EV markets with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs.  For more information, please visit www.worksport.com and www.goterravis.com.

 

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

LinkedIn

Twitter
Worksport Ltd

T: 1-888-554-8789
E: srossi@worksport.com

 

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport™ operations or to the environment in which it operates, which are based on Worksport™ operations, estimates, forecasts and projections. These statements are not guarantees of future Company performance and may involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport™ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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Worksport Provides Update on Growing Profitable Private Label Sales

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Worksport Terravis Solar System On Electric Pickup Truck

TORONTO – Feb. 25, 2021 — Worksport Ltd (OTC: WKSP) (or the “Company”) is providing an update to its shareholders regarding its Private Label Business. The company has shipped over 1,900 covers to its newest U.S.-based Private Label customer. Meanwhile, Worksport’s Sales team is in active discussions with two more Private Label customers in the US. Each customer represents a multi-national middle market brand but will remain private under the terms of the supply partnership.

“Worksport has begun to further build out its Private Label Business. We have been gaining substantial traction, garnering very valuable attention, and bringing in new customers as a result,” says Worksport CEO Steven Rossi. “Although the identity of our customers must remain private, we look forward to cooperating with each of them as their respective ecosystems include large, nationally recognized brands in the USA and globally. This type of private label business is how Worksport was able to nearly achieve profitability in the year preceding the COVID-19 pandemic and will continue to be a solid driving factor helping elevate the Company to new heights.”

As is Worksport’s standard practice, it will create bespoke tonneau cover designs exclusively for these multinational companies, from its original, non-solar, patented product lines. Assuredly, these products will not compete with Worksport’s branded product offerings, and are accretive to company income as the technology, designs, and manufacturing processes are already in place.

“This is the win-win value proposition that Worksport brings to the automotive aftermarket, which no one does better,” Rossi said. “These orders prove that the demand for Worksport’s advanced tonneau covers have attracted the interest of bigger market players and are a testimony to the success of our advanced products in North America.  It should also be stated that we are devoting most of our marketing thrust to expanding our Worksport-branded tonneau cover business in both its solar and conventional formats.”

Worksport has also received notable interest and demand from two globally recognized brands for private label implementations of its highly anticipated and forthcoming TerraVis Solar Tonneau Cover and COR Battery Systems.

To stay up-to-date on all the latest Worksport news… investors, shareholders, and supporters are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.  Worksport will continue to update investors, shareholders, and supporters to maintain the highest level of disclosure and information dissemination as Worksport continues to grow and develop at a very rapid pace.

 

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer adventures & emergency/ disaster-recovery purposes, where portable energy is a necessity.  The modular, redefining Worksport TerraVis™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker – for work and play – to sustainably supply extra energy for those additional miles.  Its allied TerraVis COR™ mobile energy storage system (ESS), expected to launch by end of 2021, will be another redefining product targeted for vacationers, second-home owners, and campers.  Plans are also being constructed to address the dire adoption & scaling needs of the EV markets with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs.  For more information, please visit www.worksport.com and www.goterravis.com.

 

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

LinkedIn

Twitter
Worksport Ltd

T: 1-888-554-8789
E: srossi@worksport.com

 

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport™ operations or to the environment in which it operates, which are based on Worksport™ operations, estimates, forecasts and projections. These statements are not guarantees of future Company performance and may involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport™ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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Worksport Receives First Trademark Registration in China for Worksport Brand

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EV Updates

TORONTO – February 18, 2021 — Worksport Ltd (OTC: WKSP) (or the “Company”) has received official notice from the trademark office in China that it has been granted exclusive use of its Worksport trademark in the People’s Republic of China for the next ten (10) years.  A first for Worksport, the China-based trademark allows Worksport to expand its international presence and grow globally without fear of losing brand equity from similar products or trademarks either made in or exported from the vast 1.4 billion-person-strong Chinese market.  Worksport is the leading manufacturer of solar and conventional tonneau covers for the international light-truck markets.

“Winning trademark protection in China is the first part of Worksports ambitious strategy to not only set the stage for a global footprint in solar-powered, light-truck tonneau cover markets, but also to expand our TerraVis™ solar technology systems in a market that is ripe for a fresh new player providing differentiating solutions for renewable, sustainable power production, storage, and deployment.  The TerraVis™ technology will go beyond just automotive light-truck markets. Worksport is already working on an outgrowth TerraVis™ offering of modular, mobile, solar-charging stations for smaller form-factor EVs – and plans to support all EV sizes – as well as roll out implementations for recreation, marine, and transportation vehicle markets,” Worksport CEO Steven Rossi said.

Rossi said that the Company was “very excited” about this achievement.  It is indeed a major addition to its growing international Intellectual Property Portfolio of 30+ patents and trademarks, which is rapidly becoming an increasingly valuable Company asset.  This China-based trademark is the Company’s second trademark protection announced this year, with the first being for its TerraVis COR™ line of mobile battery packs in the U.S.  The company looks forward to continuously developing and building the Worksport brand into a reputable force, one that will be a major player in the nearly $15-trillion GDP Chinese economy.  “We expect to expand expeditiously, penetrating the broadening global markets in parallel with our patent- and trademark-protected products in North America,” Rossi said.  “We aim to be a global household brand name, and this achievement is another milestone contributing to our history of successes.”

To stay up-to-date on all the latest Worksport news investors, supporters, and shareholders are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.  Worksport will continue to update shareholders, supporters, and investors to maintain the highest level of disclosure and information dissemination as Worksport continues to grow and develop at a very rapid pace.

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer adventures & emergency/ disaster-recovery purposes, where portable energy is a necessity.  The modular, redefining Worksport TerraVis™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker – for work and play – to sustainably supply extra energy for those additional miles.  Its allied TerraVis COR™ mobile energy storage system (ESS), expected to launch by end of 2021, will be another redefining product targeted for vacationers, second-home owners, and campers.  Plans are also being constructed to address the dire adoption & scaling needs of the EV markets with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs.  For more information, please visit www.worksport.com and www.goterravis.com.

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

Worksport, Ltd

T: 1-888-554-8789
E: srossi@worksport.com

 

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport™ operations or to the environment in which it operates, which are based on Worksport™ operations, estimates, forecasts and projections. These statements are not guarantees of future Company performance and may involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport™ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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