HENDERSON, Nev., May 30, 2013 /PRNewswire/ -- U-Swirl, Inc. (OTCQB: SWRL), parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® cafes, announced results of operations from January 1, 2013 to February 28, 2013 which encompasses fiscal year 2013. U-Swirl, Inc. changed its fiscal year to match that of Rocky Mountain Chocolate Factory (NASDAQ: RMCF), the majority shareholder of the Company.
At February 28, 2013, we had a working capital deficit of $61,045 and cash of $358,527. At December 31, 2012, we had working capital of $48,909 and cash of $187,298.
For the two months ended February 28, 2013, we had a net loss of $377,584. Operating activities provided cash of $94,164, with the principal adjustments to reconcile the net loss to net cash used by operating activities being issuance of common stock for non-employee services of $95,625 and depreciation and amortization of $70,146. During the comparable 2012 period, we had a net loss of $98,340, and operating activities used cash of $88,612. The principal adjustment to reconcile the net loss to net cash used by operating activities was depreciation and amortization of $51,248.
| Feb. 28, 2013 |
Feb. 29, 2012 |
|
| -Total Revenue |
$563,380 |
$389,348 |
| -Operating Expenses |
$934,645 |
$487,740 |
| -Net Loss |
$(377,584) |
$(98,340) |
| -Net Cash Provided (Used) by Operations |
$94,164 |
$(88,612) |
| -Cash End of Period |
$358,527 |
$215,136 |
The transaction costs related to the acquisitions during the period are reported at $187,117. They are broken down as follows:
- shares to our non-employee directors valued at $95,625
- legal fees in connection with the acquisition of $58,706
- consulting fees to facilitate the transition of our newly acquired franchisees of $32,786
Rico Conte, Chief Executive Officer, stated, "After eliminating the onetime costs associated with U-Swirl's acquisition of Yogurtini and Aspen Leaf frozen yogurt, it is clear that the economies of scale associated with this transaction show immediate potential in regards to operational efficiency." He continued, "Cash flow from operations actually produced over $90,000 rather than burning through almost as much last year this time. Although we are seeing signs of consolidation geographically, we believe the frozen yogurt sector can still gain market share within the frozen dessert industry. Executing on strategic acquisitions will allow us to enhance our ability to deliver premium products and services to the consumer while increasing margins."
You may find Information on U-Swirl, Inc. on the company's website http://www.u-swirl.com/.
The Company is headquartered in Henderson, Nevada, and its common stock is listed on the OTCQB under the symbol "SWRL". The common stock of Rocky Mountain Chocolate Factory, Inc. trades on The Nasdaq Global Market under the symbol "RMCF."
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of U-Swirl, Inc.'s ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in U-Swirl's periodic filings with the Securities and Exchange Commission, including without limitation, the Company's Transition Report for the two months ended February 28, 2013. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. U-Swirl, Inc. undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
For More Information Please Contact:
U-Swirl,Inc.
Office: 702-586-8700
Fax: 702-834-8444
Email: [email protected]
SOURCE U-Swirl, Inc.
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