SALT LAKE CITY, UT--(Marketwired - Nov 22, 2016) - Sack Lunch Productions, Inc. (OTC PINK: SAKL) filed its quarterly report with OTC Markets for the three and nine months ended September 30, 2016.
Revenues for the nine months ended September 30, 2016, increased 46% to $12,287,775 from $8,488,390 for the comparable period in 2015. Revenues of the three months ended September 30, 2016, decreased 11% to $5,355,167 from $6,020,335 for the comparable period in 2015. The quarterly revenues reflects a drop in the number of participants attending Slide the City events in 2016 compared to 2015. Management believes that it has identified many of the reasons behind the decrease and has plans to rectify those issues in 2017.
Deferred revenues were $950,918 at the end of the third quarter compared to $185,315 as of December 31, 2015. The Company expects to recognize a majority of its prior period deferred revenues by December 31, 2016. Thereby, decreasing the deferred revenue liability while improving working capital and increasing revenues by the same amount. Furthermore, management was able to substantially increase the number Lantern Fest events held in the fourth quarter which will offset a portion of the shortfall experienced by Side the City as well as flatten out revenues over the course of 2016.
Additional highlights contained in the report include:
- Net income attributable to stockholders for the three months ended September 30, 2016 was $236,707.
- The Company's working capital deficit as of September 30, 2016 increased to $4.7 from $3.4 million at December 31, 2015, the increase was due in part to the increase in the current portion of notes payable during the quarter.
- Service Revenues from the Landis Salon operations increased for the nine months ended September 30, 2016 to $1.9 million from $1.6 million for the same period in 2015 a 24% increase.
- For the nine month period ending September 30, 2016 revenues from events increased 59% to $9.7 million from $6.1 million in 2015 due to the overall increase in number of events held.
Richard Surber, the CEO of Sack Lunch, observed, "We have made tremendous progress so far in 2016. There has been a steep learning curve along with integration hurdles as a result of the Springbok acquisition. I believe we have overcome most of those hurdles. Sack Lunch remains on the right path boasting a 59% increase in event revenues as of September 30, 2016."
Surber continued, "My immediate goals are to complete our audited financial statements, and refinance unfavorable debt which I expect to be coupled with another game changing acquisition of a premier event consortium by the end of the first quarter in 2017.
About Sack Lunch Productions, Inc.:
Sack Lunch Productions, Inc. (OTC PINK: SAKL) is an entertainment company that operates and franchises action oriented events in the U.S. and internationally. SAKL's events include: Slide the City® (1,000 foot long water slide for families and kids), Color Me Rad® (5k color race), The Dirty Dash® (mud and obstacle run), The Lantern Fest® (night-time party with lantern lighting and launch), and Trike Riot®. Learn more about SAKL's operations at www.sacklunchproductions.com, www.slidethecity.com, www.thelanternfest.com, www.thedirtydash.com, www.colormerad.com, www.trikeriot.com, and www.green-endeavors.com.
SAKL strongly encourages the public to read the above information in conjunction with its reports filed at www.otcmarkets.com. The actual results that SAKL may achieve could differ materially from any forward-looking statements due to a number of risks and uncertainties, including but not limited to insufficient working capital during the off season, lawsuits involving delinquent creditors, adverse weather conditions, equipment failure, state and local health code laws which may impact obtaining permits and other risks associated with judgment calls made by various government officials. Investors should not invest more than they can afford to lose.