FT. LAUDERDALE, FL--(Marketwired - August 20, 2015) - The Grilled Cheese Truck, Inc. (OTCQB: GRLD), an emerging growth public company capitalizing on opportunities within the burgeoning gourmet food truck sector, announced today the financial results for the second quarter ending June 30, 2015. The announcement was made by Al Hodges, Chief Executive Officer for The Grilled Cheese Truck.
Summary of Second Quarter Ended June 30, 2015
- Net revenues were $960,000
- Gross profit was $494,647
- The net loss was $749,498
Analysis of Financial Results
Net revenues were $960,352 in the quarter ended June 30, 2015, compared to approximately $944,934 for the same period in 2014. Gross profit increased to $494,647 in the second quarter, compared to ($25,371) in gross profit for the same period in 2014. The material improvement in gross profit is principally a result of the strategic initiatives executed by Mr. Hodges since his engagement by the company in January 2015.
Highlights of the Fiscal Third Quarter and Subsequent Events
- Commencing January of 2015, the company devoted significant effort to cost management and improving efficiencies. This resulted in the $738,605 gross profit in 2015 versus ($107,358) for the same 6 month period ending June 2014 with comparable gross revenues.
- During the quarter ending June 30, the company operated with a higher level of per truck stop revenue due to focusing sales on better locations, more venues, larger scale events and, in turn, reduced stops that were less profitable.
- The company's food and beverage costs have been reduced due to better purchasing, cost containment and logistics.
- The company implemented a tighter inventory management system resulting in reducing par levels and managing the quantities of F&B ordered pursuant to weekly revenue forecasting.
- Labor has been greatly reduced as a percentage due to management focus on higher unit revenues. The company has reduced labor percentage by an average 35% and schedule management resulting in less overtime pay which has improved productivity.
"Over the last two quarters we have been able to demonstrate the explosive unit operating profit capabilities of our company units," stated Al Hodges, Chief Executive Officer. "Our per unit ability to produce rapid results are rare in the industry and our unit performance over the last two quarters is the most dynamic I have seen in my 34 year career managing retail operations. Our strategic focus on the big gates of revenue is working and I believe, as we complete our acquisitions and rapidly deploy more mobile units, we will reach the scale, same unit growth and profile we have worked hard for and invested in over the last three years."
"This restructuring program, which included substantial additional operating controls being implemented, I believe will support substantial revenue increases while maintaining excellent operating margins," continued Mr. Hodges. "As a result of our strategic focus, we have made dramatic improvement in our gross margins. We are now positioned for very substantial growth over the next four quarters."
Mr. Hodges concluded, "I am excited to lead the charge as the first mover in the rapidly growing gourmet food truck industry and achieving incremental revenues and profits combining our model with our anticipated store acquisitions. I believe that in the near future we will show ourselves as the 'Uber' of the fast food industry."
About The Grilled Cheese Truck, Inc.
The Grilled Cheese Truck, Inc. is an American entrepreneurial "emerging growth" company with a brand and menu that is widely followed throughout the nation within the Gourmet Food Truck space. The company currently operates and licenses grilled cheese food trucks in the Los Angeles, Tacoma and Phoenix areas and is rolling out into additional markets with the goal of becoming the largest operator in the gourmet food truck space in the US. The company is pursuing major "gates" of revenue while building significant market share in the gourmet food truck industry. The company and brand maintain a growing following of customers, social media followers and general media attention all attracted to The Grilled Cheese Truck's leading position in the rapidly growing industry. The company is among the first movers seeking to consolidate the Gourmet Grilled Cheese restaurant space with an aggressive strategic growth plan that includes significant and accretive acquisitions. The company's business strategy includes The Grilled Cheese Truck offerings at stadiums, military bases, universities, casinos and related venues, festivals, motorsports, action sports, team sports, large outdoor events/concerts, large churches and schools. Management has extensive experience and success in managing rapid roll-ups in early stage, highly fragmented industries. The Company seeks to franchise its Gourmet Grilled Cheese Trucks operations and intends to offer franchised grilled cheese trucks to veterans, having invested significant time and resources over the last two years to develop a business model that creates jobs, business opportunities and support for veterans. For more information about The Grilled Cheese Truck, Inc., please visit www.thegrilledcheesetruck.com.
Forward-Looking Statements
Statements in this press release and of the management or representatives of The Grilled Cheese Truck, Inc. (the "Company") in connection therewith that relate to beliefs, plans, objectives, goals, expectations, anticipations, intentions and future financial condition, results of operations or business performance constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's current expectations about future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and by words such as "may," "could," "should," "would," "believe," "expect," "project," "anticipate," "estimate," "intend," "plan" or other similar words or expressions. This can occur as a result of inaccurate assumptions or as a consequence of significant known or unknown risks and uncertainties, including the risks related to the Company's ability to penetrate markets such as military bases, universities and casinos. The Company addresses these risks, as applicable to them, in the risk factors discussed in their filings with the SEC. Copies of these filings are available at www.sec.gov. Because of these risks and uncertainties, the Company's actual results may differ materially from those that might be anticipated from its forward-looking statements. Therefore, you are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.