The Company's Food and Beverage Sales and Order Volume Increased by 118% and 126%, Respectively, as its Number of Ghost Kitchen Locations Grew From 10 to 21 Locations on a Year-Over-Year Basis
VANCOUVER, BC, March 1, 2022 /CNW/ - Just Kitchen Holdings Corp. ("JustKitchen" or the "Company") (TSXV: JK) (OTC: JKHCF) (Frankfurt: 68Z), an operator of ghost kitchens specializing in the development of delivery-only food brands, is pleased to announce that it has filed its unaudited financial results for the first fiscal quarter ending December 31, 2021, the highlights of which are included in this news release. The full set of Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company's website at en.justkitchen.com or its profile page on SEDAR at www.sedar.com.
Financial Highlights
- Food and beverage sales of $4,166,683 for the three-month period ended December 31, 2021, which was an increase of 118% compared to the $1,911,170 reported for the three-month period ended December 31, 2020;
- Sales volume grew by 126% to 265,749 retail customer food orders in the first fiscal quarter of 2022 from 117,800 retail customer food orders for the same period in 2021;
- Number of ghost kitchens increased to 21 with an average retail delivery size of $14.34 per order in the first quarter of 2022, from 10 ghost kitchens with an average retail delivery size of $14.16 per order for the same period in 2021;
- Adjusted EBITDA loss was $2,585,411 for the three-month period ended December 31, 2021, as compared to an Adjusted EBITDA loss of $1,375,255 for the same period of the prior year, primarily as the result of the continued growth of the business that requires a higher level of general and administrative costs such as salaries and advertising and marketing expenses as well as non-cash stock-based compensation of $566,635 for the three-month period ended December 31, 2021; and
- Net loss was $3,571,603 for the three-month period ended December 31, 2021, as compared to $2,429,802 for the same period of the prior year, due to the same primary reasons listed above.
Management Commentary
"We are very pleased to look back from this first quarter of fiscal year 2022 to the same period last year and see everything that we've accomplished as a Company. More than doubling our food and beverage sales as well as our sales volume over that one-year period is a testament to our operational acumen, the strength of our brands and our high overall level of customer satisfaction. I am grateful to our employees, brand partners and other stakeholders for helping us to achieve these strong results," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen.
"Looking ahead, as previously announced, we started 2022 strongly by delivering approximately 146,000 total customer food orders in January, which was a record for JustKitchen. February's metrics continued along that trend after the resumption of business after the Chinese New Year holiday period. JustKitchen continues to expand its operational footprint geographically and its brand portfolio as well, while strengthening its JKOS technology stack and bolstering its management team on an ongoing basis," added Mr. Chen.
Summary of Key Financial Measures
|
Quarter ended
Dec. 31, 2021
$
|
Quarter ended
Dec. 31, 2020
$
|
|
Number of kitchens
|
21
|
10
|
|
Revenue from retail customers
|
$3,810,720
|
$1,667,633
|
|
Revenue from business
|
$355,963
|
$243,537
|
|
Total Revenue
|
$4,166,683
|
$1,911,170
|
|
Number of retail deliveries
|
265,749
|
117,800
|
|
Average retail delivery size
|
$14.34
|
$14.16
|
|
Net loss
|
$(3,571,603)
|
$(2,429,802)
|
|
Comprehensive loss
|
$(3,671,888)
|
$(2,402,328)
|
|
Basic loss per share
|
$(0.05)
|
$(0.06)
|
|
Diluted loss per share
|
$(0.05)
|
$(0.06)
|
The following is a reconciliation of Adjusted EBITDA to Income (Loss) from Operations:
|
Quarter ended
Dec. 31, 2021
$
|
Quarter ended
Dec. 31, 2020
$
|
|
Loss for the period
|
(3,571,603)
|
(2,429,802)
|
|
Interest expense
|
33,102
|
23,673
|
|
Depreciation expense
|
366,509
|
169,178
|
|
Amortization expense
|
19,946
|
-
|
|
EBITDA
|
(3,152,046)
|
(2,236,951)
|
|
Stock-based compensation
|
566,635
|
861,696
|
|
Adjusted EBITDA1
|
(2,585,411)
|
(1,375,255)
|
|
- Adjusted EBITDA is a financial measure that does not have a standardized meaning under IFRS. Adjusted EBITDA is defined as earnings before interest expense, depreciation, amortization, and stock-based compensation. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Company considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.
|
Corporate Highlights Subsequent to December 31, 2021
The Company:
- Signed a letter agreement to purchase a 46,000 square foot 'Mega Hub' facility.
- Acquired the WeChef specialized kitchen equipment and took over the kitchen facility lease agreement.
- Announced the opening of a second Hong Kong location and the Sanchong ghost kitchen in Taiwan.
- Signed a preferred licensing agreement with a global dark kitchen real estate operator for up to 20 locations.
- Became the exclusive fresh meal partner to Uber Eats Mart in Taiwan.
- Entered into an arrangement to create fresh meals for 7-Eleven convenience stores in Taiwan.
Similar to the statement provided in the announcement of the Company's previous financial results, and despite the significant increase in revenues and order volume on a year-over-year basis, the Company anticipates that operating costs will remain proportionally elevated in the near term to support its continued expansion in Taiwan, Hong Kong, the Philippines, Japan, Singapore and elsewhere internationally.
ABOUT JUSTKITCHEN
JustKitchen is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in Taiwan and Hong Kong with plans to expand operations to other Asian countries. JustKitchen uniquely utilizes a hub-and-spoke operating model, which features advanced food preparation taking place at larger hub kitchens and final meal preparation taking place at smaller spoke kitchens located in areas with higher population densities. The Company combines this operating model with online and mobile application-based food ordering fulfilled by third-party delivery companies, to minimize capital investments and operating expenses and reach more customers in underserved markets. The Company's other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add select grocery items to meals ordered through JustKitchen.
For more information about the Company, please visit investors.justkitchen.com. JustKitchen's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur including but not limited to the Company's comments regarding continued growth in and the expansion of its operational footprint geographically, including expansion into the Philippines, Japan, Singapore and elsewhere internationally; growth of its brand portfolio; and the strengthening and deployment of its JKOS technology stack. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, including those risk factors identified in the Company's prospectus dated March 26, 2021, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Just Kitchen Holdings Corp.
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