TORONTO, ON, May 16, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – SNAKES & LATTES INC. (OTC: FUNN) is pleased to report a 103% increase in year over year Q3FY22 revenue at $1,497,209, up from $736,115 for Q3FY21, with gross profits up from $492,239 to $1,120,484.
We are actualizing a significant increase in gross profits from numerous operational efficiencies implemented over the past year. We continuously look for ways to increase this metric and are pleased with the result thus far.
Cash on hand at the end of the quarter was $53,427 with total assets of $3,900,204 over total liabilities of $9,067,708. The total outstanding common share count of the company is 757,486,406 as of March 31st, 2022. We have partially completed debt forgiveness from government subsidy loans during the pandemic. We expect several hundred thousand more to be forgiven at the end of the process. Until that is complete, the loans are listed under liabilities.
Cost of goods sold remains in line with expectations, hovering around 25%.
Expense changes in rent and payroll are mainly attributed to timing of government subsidies.
Despite being impeded during the first two months with significant closures/restrictions for some of our locations, we continue to sustain a healthy increase in comparative year-over-year revenues for the quarter. (Q3FY21 compared to Q3FY22) March in particular was very healthy with new revenue records for most locations in the US and Canada.
The January to March quarter is seasonally our slowest quarter post holidays and some level of gift returns. General patronage is usually a little lower as well. The pandemic certainly threw off some of the seasonality and we have seen a bit more variability than normal years. However, as previously reported our customer base is very strong and we continue to see higher and higher attendance rates at all our locations for the capacity they allow. As soon as we reopened any location, we saw a surge in patronage. For 'Tempe' in particular, there are more and more advanced reservations as wait times have become significant during our busy hours.
It was a great quarter for locations, adding two for a total of nine! The additions of Glendale, CA. and Provo, UT will start recognizing revenue this current quarter (Q4) and we are very excited for the future of these openings! We anticipate we will be in the double digits for locations prior to the year's end!
We are pleased to report that Susan Lawver, who was general manager of the 'Tempe' location has been promoted to Director of Operations USA. As 'Tempe' has set the bar as a flagship location, we want to leverage Susan's capabilities across all sites. She will cover all US locations, existing and new; maximizing operational efficiency in each for the best bottom-line.
Our new Director of Marketing continues to increase location localization on social media; connecting with our customers is paramount to success as we continue to build on our brand strength.
We continue to operate from our Key Performance Metrics, and are building a better executive dashboard. There are particular indicators important to the health of our locations, individual and aggregate. We previously gave an example set in our last financial release. We will be moving the reporting of the operational KPI dashboard to a newly planned comprehensive quarterly report. The first will be put out before the end of FYE Q4, to best correlate our trends with the fiscal year. These metrics are for operational health, separate from financial reporting. They are the levers management uses to focus on for maximizing operational success. As previously reported, the trend is definitely positive and heading in the right direction as we emerge from the pandemic and look forward to its continuation.
Looking forward: As business returns to all locations open full-time, we are optimistic for this current quarter and beyond. Q4 will be our best Quarter for the fiscal year:
- As of May 10th, we have exceeded $1 million in revenue, with over 45 days to go in the quarter
- Q4 revenue should be north of $2 million USD
- Our newest locations in Glendale, CA and Provo, UT will also be part of the revenue on future statements
The company continues to work on promising initiatives, which in turn are expected to continue to impact positively on the yearly aggregated growth. As all locations are opened up with full operating capacity, we anticipate continued and consistent year-over-year growth. We are in a continuous improvement mode as we continue to expand operations and increase revenue / improve efficiency in existing locations. Details will be released on new initiatives and/or locations as milestone information becomes available.
As always, a big thank you to all our supporters and loyal customers, we continue to serve in honor to create the best possible experience for our patrons. The future of Snakes and Lattes Inc. is very bright as we continue to add on new locations, take on lucrative strategic partnerships and build our brand. Creating memorable quality human interactive experiences keeps us going, and at all times we keep the mission of Snakes and Lattes locations coast to coast at the forefront of our strategy.
See you at Snakes & Lattes!
About Snakes & Lattes Inc.
Snakes & Lattes Inc. currently operates 9 tabletop gaming bars and cafes: 3 located in Toronto, Ontario, Canada, 1 in Guelph, Ontario, Canada, 1 in Tempe, Arizona, 1 in Tucson, Arizona, 1 in Provo, Utah, 1 in Chicago, Illinois & 1 in Glendale, California. The company is in the process of expanding throughout North America. Snakes & Lattes Inc. was the first board game bar and cafe in North America, and is believed to be the largest in the world. Our board game cafes have the largest circulating public library of board games in North America for customers to choose from.
For more information on Snakes & Lattes Inc., please visit the website at www.snakesandlattes.com.
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This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's OTC Market or Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should,", "will", "expect," "anticipate," "believe," "estimate," "confident," "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact:
Ben Castanie
Snakes & Lattes Inc.
Telephone: (416) 500-2911
Email: ben@snakesandlattes.com
