Canada NewsWire
VANCOUVER, BC, Aug. 31, 2021
The Company Experienced A 67% Increase in Food Order Volume
from the Second to the Third Quarter of 2021
TSXV: JK
VANCOUVER, BC, Aug. 31, 2021 /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 is pleased to announce it has filed its unaudited financial results for the third quarter of the fiscal year ending June 30, 2021, the highlights of which are included in this news release. The full set of Condensed Interim Consolidated 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
Management Commentary
"We are pleased with the financial and operating results for the third quarter of 2021 as they are beginning to more accurately reflect JustKitchen's rapid and continuing growth. The significant increase in revenues by way of the step-change in food order volume reflects our growing number of ghost kitchen locations, food brands and menu offerings," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen. "Our investments in new locations, partnerships and markets, as well as into our people and technology, are generating a steady pipeline of development opportunities for JustKitchen to pursue for the foreseeable future," added Mr. Chen.
Summary of Key Financial Measures
Three months | Three months | Nine months | 217 days | |
Revenue | 3,346,897 | 479,664 | 7,482,348 | 712,801 |
Adjusted EBITDA1 | (2,056,192) | (629,351) | (5,178,122) | (990,578) |
Loss for the period | (2,836,847) | (832,286) | (7,796,806) | (1,335,132) |
Loss per share | (0.05) | (0.03) | (0.17) | (0.07) |
The following is a reconciliation of Adjusted EBITDA to Income (Loss) from Operations:
Three months | Three months | Nine months | 217 days | |
Income (Loss) from operations | (2,836,847) | (832,286) | (7,796,806) | (1,335,132) |
Interest expense | 28,400 | 17,796 | 78,654 | 46,945 |
Depreciation expense | 259,208 | 99,989 | 652,121 | 212,459 |
EBITDA1 | (2,549,239) | (714,501) | (7,066,031) | (1,075,728) |
Stock-based compensation | 493,047 | 85,150 | 1,887,909 | 85,150 |
Adjusted EBITDA1 | (2,056,192) | (629,351) | (5,178,122) | (990,578) |
1. | 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 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. |
2. | Represents the period from acquisition of control on November 27, 2019. |
Corporate Highlights Subsequent to June 30, 2021
The Company:
Similar to the outlook provided previously, and despite the significant increase in revenues on both a quarterly and annual basis, the Company anticipates that operating costs will remain proportionally elevated in the near term to support its rapid expansion in Taiwan and 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 the United States and 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 the expected rapid and continuing growth of its business 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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