Heidi’s Earnings Reported Soft While Revenue Growth Is Firm

Heidi’s Frogen Yozurt Shoppes Inc. reported a loss of $240,623 for its fiscal 1987 third-quarter ended June 30, compared with net earnings of $152,815 for the same period a year earlier.

The Laguna Hills company reported total revenues for the quarter of $1.5 million, up 21.5% from $1.2 million a year earlier. Of that total, net sales accounted for $1.2 million, a 23% increase from $1,037,997 recorded in the comparable period a year ago.

Franchising revenue added $264,299 to total revenues, a 13.4% jump from $232,906 reported for the same period one year ago.

Cumulative results are for six months rather than nine because Heidi’s in January changed its fiscal year-end to Sept. 30 from Dec. 31 and eliminated the first quarter of its new fiscal 1987.

For the six months ended June 30, the company reported revenue of $2.9 million, up 64% from $1.8 million a year earlier. Of that, net sales accounted for $2.5 million, up from $1.5 million a year earlier, while franchising revenue added $466,612, compared with $271,596 a year earlier.

The fast-growing company said its net sales rose because of an increase in the number of company-owned shops and higher sales of equipment and supplies to new franchised stores.

As of Monday, said Heidi A. Miller, company president, 58 of the company’s 66 shops were franchised, and the company had sold an additional 105 franchises in five states--California, Arizona, Florida, Hawaii and Texas.

Heidi’s has been losing money this year, largely because of the increased operating costs steming from its growth. Additionally, the previous year’s results included a one-time gain of $108,000 from the sale of a company-owned shop, said Edwin Benson, vice-president of finance.

Benson said that he expects the company to enter profitability during the next fiscal year.