May 14, 2001
Business Editors
Kahala Corp. Announces Earnings for the First Quarter of 2001; Provides Details On Expansion Plans
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 14, 2001
Kahala Corp., a Florida corporation formerly known as Sports Group International Inc. (OTC BB: KAHA.OB) (the "company") -- Monday announced that it earned $109,915 during its first quarter ended March 31, 2001, compared to a net loss of $181,413 during the first quarter of 2000.
Kevin Blackwell, the company's president and chief executive officer, commented, "Based on the seasonality of our business, the first quarter of each year is always the most challenging. With that said, everyone at Kahala Corp. is extremely pleased to have returned to profitability during this three month period compared to last year."
The company also announced that during the first four and one-half months of 2001, it has already opened 10 new locations of its concepts, all but one of which are franchised. These 10 new locations were in Arizona, California, Michigan, Texas, and the country of Qatar, and included three Frullati Cafe & Bakery outlets, four Surf City Squeeze stores, two Tahi Mana outlets, and one Rollerz location.
The company plans to open an additional 20 to 25 franchised and corporately-owned locations of its four concepts throughout the United States and select foreign markets by year end.
Blackwell further remarked, "This expansion is evidence that the company is executing its business plan to grow all four of its retail food concepts primarily through franchising throughout the United States and select foreign markets, with 400 franchised and corporately-owned units of the company's current concepts planned by the end of 2003."
About Kahala Corp.
Kahala Corp. currently owns Surf City Squeeze, Frullati Cafe & Bakery, Rollerz, and Tahi Mana. Both Surf City Squeeze and Frullati Cafe & Bakery are franchisors of juice bars/smoothie stores and healthy food cafes throughout the United States, Canada, and the Middle East that offer the company's signature line of smoothies, sandwiches, salads, soups and other healthy snacks.
Rollerz is a franchisor and operator of retail stores serving gourmet rolled sandwiches and blended fruit drinks/smoothies, and Tahi Mana is a franchisor and operator of scaled down health food supplements store centered around a juice bar, primarily in health clubs and other strategic retail locations.
There are currently approximately 220 outlets open nationwide of the company's four concepts. To learn more about the company and its four concepts, please visit its website at www.kahalacorp.com.
The information in this press release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws.
Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the company.
Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.
Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitors, and general economic risks and uncertainties.
Surf City Squeeze and Frullati Cafe & Bakery are registered trademarks of Kahala Corp. or one of its wholly owned subsidiaries. Rollerz and Tahi Mana are trademarks of Kahala Corp. or one of its wholly owned subsidiaries.
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