Los Angeles, Aug. 16, 2018 (GLOBE NEWSWIRE) -- Giggles N’ Hugs, Inc. (OTCQB: GIGL), owner and operator of family-friendly restaurants that bring together high-end, organic food with active, cutting-edge play and entertainment for children, today announced its financial performance for the second quarter ended July 1, 2018 and provided a shareholder update on recent business activities.
Second Quarter Highlights include:
- Completed Rights Offering, raising approx. $600,000
- Overall net sales increased 0.7% year-over-year to $579,937
- Net loss decreased 29.3% year-over-year
- 2Q18 EPS flat year-over-year at $0.00
“While we were pleased to close our Rights Offering in April, we fell short of our goal and are currently pursuing multiple alternatives for moving forward,” stated Joey Parsi, Founder and co-CEO of Giggle N’ Hugs. “Philip Gay, former CFO of California Pizza Kitchen and former CFO and CEO of Wolfgang Puck Food Company, who took a leadership role at Giggles N’ Hugs and now serves as co-CEO, brings invaluable experience to the process as we continue to explore a variety of options to expand Giggles N’ Hugs into new markets.”
Parsi continued, “Our performance demonstrates the demand for Giggles N’ Hugs is robust, and with the proper funding in place to execute on expansion plans, we believe we could scale the business profitably, creating and improving shareholder value over the long term.” “We have opportunities that we have been exploring in terms of expansion and potential growth capital ” Parsi stated. Parsi continued, “as such, Philip and I will be holding a shareholder update conference call to discuss all. Further details on the call can be found below”.
Net sales for the thirteen weeks ended July 1, 2018 and July 2, 2017 were $579,937 and $575,824 respectively. The increase of $4,113 (0.7%) was mostly attributable to increased foot traffic.
For the thirteen weeks ended July 1, 2018 and July 2, 2017, cost of operations were $466,786 and $429,164, respectively. The increase of $37,622 (or 8.8%) was mainly due to higher food cost (approximately $20,111 higher compared to the same period prior year) and utility expenses (approximately $11,000 higher than the prior quarter).
General and administrative expenses for the thirteen weeks ended July 1, 2018 and July 2, 2017 were $303,515 and $249,822, respectively. This increase of $53,693 (21.5%) was mainly attributable to higher professional fees incurred in relation to the equity offering offset by decrease in non-employee stock compensation.
The overall net losses of $260,627 and $371,470 for the thirteen weeks ended July 1, 2018 and July 2, 2017, respectively, reflects a decrease of $110,843 was mostly attributable to the elimination of loss on extinguishment of debt.
Investor Conference Call
Giggles N’ Hugs co-CEOs, Joey Parsi and Philip Gay, will host an investor conference call to further discuss recent developments and outline plans moving forward. The call will take place on Wednesday August 29 at 11am PST and will include a Q&A period open to current and prospective investors.
|CONFERENCE CALL DETAILS|
|Wednesday, August 29, 2018, 11:00 a.m. Pacific Time|
About Giggles N’ Hugs
Giggles N' Hugs is the first and only restaurant that brings together high-end, organic food with active, cutting-edge play and entertainment for children. Every Giggles N' Hugs location offers an upscale, family-friendly atmosphere with a dedicated play area that children 10 and younger absolutely love. We feature high-quality menus made from fresh and local foods, nightly entertainment such as magic shows, concerts, puppet shows and face painting, and hugely popular party packages for families that want to do something special.
Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
INVESTORS RELATIONS CONTACT: Bruce Haase RedChip Companies, Inc. 800.733.2447, ext. 131 email@example.com
Source:Giggles N Hugs INC