Coho Collective Kitchens Inc. Reports Financial Results For The
Fifteen Months Ending March 31, 2022
Vancouver, British Columbia-- (August 4, 2022) - Coho Collective Kitchens Inc. (TSXV: COHO) ("Coho" or the "Company"), a commercial real estate and food technology company that provides private and shared kitchen and food production space to a variety of businesses, is pleased to announce that it has filed its audited annual financial results for the fifteen months ending March 31, 2022 (the "Consolidated Financial Statements"), the highlights of which are included in this news release. The full set of Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company's website at www.cohocommissary.com or its profile page on SEDAR at www.sedar.com.
Quarterly revenues of $546,124 for the three-month period ended March 31, 2022 compared to $471,536 for the three-month period ended December 31, 2021, an improvement of $74,588.
Revenues of $2,347,807 for the fifteen-month period ended March 31, 2022, compared to $1,057,956 for the twelve-month period from January 1, 2020 to December 31, 2020.
Commissary members grew to 100 members at the end of March 31, 2022 (up from 90 at the end of the fourth quarter of 2020), which is an increase of 11%. Further, Average Revenue per Member increased by 9% (from $1,294 to $1,410) during this time.
Quarterly net loss was $875,687 for the three-month period ended March 31, 2022 compared to $1,050,720 for the three-month period ended December 31, 2021, an improvement of $175,033
Net loss was $10,438,086 for the fifteen-month period ended March 31, 2022, as compared to $489,307 for the twelve-month period from January 1, 2020 to December 31, 2020. Of the $10,438,086 loss in the fifteen-month period ended March 31, 2022, $6,730,787 is the share based payment associated with the acquisition of Phantom Kitchen Inc. ("Phantom").
Net operating loss for the fifteen-month period ended March 31, 2022 was $3,707,299 as compared to $549,307 for the twelve-month period from January 1, 2020 to December 31, 2020. Included in the net operating loss for the fifteen-month period ended March 31, 2022 was $345,935 in share based compensation in comparison to $Nil for the twelve-month period from January 1 2020 to December 31, 2020.
"We are pleased that within Coho's operating entities we continue to focus on and drive high quality, high margin businesses. Our membership satisfaction remains strong with less than a 5% churn rate in 2021, we maintain a waitlist 400% greater than the existing membership base, and have seen a growth of more than 10% in our existing facilities," said Andrew Barnes, Co-Founder and Chief Executive Officer of Coho Collective Kitchens Inc.
"Due to the investment in new facilities, markets, and partnerships, we are confident to continue to develop a strong roadmap to achieve our goals. We are operating in a burgeoning growth industry, and are poised to capture the opportunities that lay ahead," added Mr. Barnes.
Signed six new lease agreements across Canada for facilities scheduled to open in 2022/2023. Two of these locations have already opened since March 2021 and another two are expected to open imminently.
Completed the acquisition of Phantom, a ghost kitchen brand that is focused on the high-end restaurant segment and has agreements to provide ghost kitchen services to the award-winning Toptable Group, owners of leading restaurants from Vancouver to New York (including Araxi, Bar Oso, and Blue Water Café).
Raised gross proceeds of $3,000,000 in seed financing round in February 2021.
Closed an initial public offering and listing on the TSX Venture Exchange, raising over $5,000,000 in gross proceeds.
Maintained 100% uptime in existing facilities despite significant challenges introduced by Covid-19 and the British Columbia Heat Dome during the summer of 2021.
Operated online food delivery brand, Coho Market, featuring 50+ member brands, most notably, Beiju Waffles, as seen on Dragon's Den, Kula Foods, and Panela Lemon Stuffed Cookies.
Grew staff from 11 to 39 employees to support growth, company expansion, and retail openings. Key hires includes senior management: Michael Yam (Senior Director of Finance and Operations), Harley Darnel (Director of Retail), and Andrew Gray (Director of Commissary Operations).
Launched development of shared kitchen management software, slated for release in 2022.
Enhanced expertise and governance to support next stage of growth with key appointments to Coho's board of directors. Additions include Alex Macdonald, CFO of Enthusiast Gaming, Justin Morel, COO of the Toptable Group, and Tara Finnegan, Sr. Vice President at CBRE.
Continued to drive member success through national media coverage and support from Coho Market.
Coho is a growth stage, community-driven, commercial real estate and food technology company that provides private and shared kitchen and production space to food companies from start-ups to restaurant groups seeking turnkey solutions and business services. Each of the Company's customers, called "Members", are revenue generating companies that have signed a membership agreement with Coho for an agreed upon term. The concept falls in line with a rapidly growing trend in the food-delivery industry creating a market for delivery-only and/or virtual restaurant concepts. For more information about how Coho is growing and innovating in the commissary space, visit https://www.cohocommissary.com.
Andrew Barnes, Chief Executive Officer
Non-IFRS Financial Measures
This news release makes to reference to certain non-IFRS measures and ratios, hereafter, referred to as "non-IFRS measures". These measures, such as "Average Revenue per Member", are not recognised measures under IFRS, and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. Coho's management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. As required by Canadian securities laws, Coho defines and reconciles these non-IFRS measures below:
Average Revenue per Member
"Average Revenue per Member" is defined as the mean amount billed across all locations divided by the amount of active member companies.
"Average Revenue per Member" is determined by on monthly reconciliation of member payments across facilities.
"Average Revenue per Member" is frequently used to measure the unit value of members to Coho's space, and their ability to further monetize members by offering value add services and adjusting prices based on market conditions.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Forward‐looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward‐looking information. Such risks and uncertainties include, but are not limited to, the ability of the Company to execute on its strategy and the factors discussed under "Risk Factors" in the final long-form prospectus of the Company dated May 27, 2022. Coho disclaims any obligation to update these forward-looking statements.
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.