SANTA MONICA, CA–(Marketwired – Apr 17, 2015) – U-Vend, Inc. (OTCQB: UVND) (the “Company”), a consumer products and technology company that develops, distributes and markets next-generation self-serve electronic kiosks in a variety of retail environments across North America, today announced the filing of their financial results for the year ended December 31, 2014.
“Our first year of operations demonstrate that our business model has the potential for tremendous success. We added 28 new kiosks and selling locations in the southern California region during the fourth quarter that reflect relationships with well-known consumer product partners. We believe that the seasonality effects we experienced in our Chicago region will be balanced through this geographic expansion into Southern California. Our fourth quarter revenue was consistent with the third quarter at $86,700,” stated Raymond Meyers, CEO of U-Vend, Inc.
“In early 2015, we introduced our own consumer product, ‘Pucks Premium Ice Cream™’, and shortly thereafter, executed an exclusive licensing agreement with the National Hockey League to become the Official Ice Cream of the NHL. For a company that began operations just over 12 months ago I believe we have made significant progress in positioning U-Vend for considerable and sustained growth. I am very excited about the future of this company,” added Meyers.
Paul Neelin, U-Vend’s COO, stated, “The intelligent self-serve kiosk and merchandising industry is expanding rapidly. The growing acceptance and preferred method of frictionless shopping continues to modify the consumer buying experience, allowing for the escalation of these smart, interactive machines into the mainstream retail environment. It continues to be our focus and passion to become the leader in this market, from a significant brand presence in the retail space, to providing advanced technology and digital advertising solutions to both our product partners and the consumer.”
Select Financial Data for Fourth Quarter 2014 and Year Ended December 31, 2014
- Total revenues for 2014 were $268,800, reflecting our commencement of operations in the first quarter of 2014. There was no revenue in the comparable 2013 period.
- Total revenue for the fourth quarter 2014 was $86,700, which was consistent with third quarter 2014 revenue. Revenue production in the 2014 fourth quarter was negatively affected by seasonality and a particular cold winter season in the Company’s Chicago market.
- Gross profit for the year-end December 31, 2014 was 34% as compared to 42% as of the nine months ended September 30, 2014. The decline in margin during the fourth quarter reflects the results of a full quarter impact of depreciation expense included in cost of goods sold and a seasonal shortfall in Chicago-based sales. The Company expects to see variations in the gross profit percentage as the business expands geographically and with product diversity in future periods.
- The Company reported a net loss for the twelve months ended December 31, 2014 of $2,003,000, reflecting a loss of ($0.23) per share. Included in this net loss is approximately $1.1 million of non-cash expenses for acquisition activities, depreciation, amortization, and stock based compensation.
- The Company will continue to invest in revenue producing assets and expansion of geographic and product development in 2015.
A full analysis of results for the year ended December 31, 2014 is available in the Company’s Form 10-K, which is available on the Company’s website at www.u-vend.com or through the Securities and Exchange Commission’s Edgar database at www.sec.gov.
ABOUT U-VEND, INC.
U-Vend, Inc. is headquartered in Santa Monica, CA, with additional locations in: Stoney Creek, Ontario Canada, Chicago, IL., Los Angeles, CA. and Las Vegas, NV. U-Vend develops, distributes and markets various “next-generation” self-serve electronic kiosks in a variety of retail locations in North America. The Company owns and operates kiosks and has partnered with numerous national consumer product companies to deliver new and unique customer retail experiences in an automated setting. For more information on U-Vend, visit www.u-vend.com.
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FORWARD LOOKING STATEMENTS
Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to market acceptance for the Company’s products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC’s website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect U-Vend’s results of operations, financial position, and cash flows. There can be no assurance that future results will meet expectations. While the Company believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. The Company does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.