As we approach the midway point in the summer vacation season, people continue to search for summer activities to stay cool in the heat and enjoy the remainder of the summer season. Active events and amusement facilities continue to be among the popular options for families, kids, and Millennials searching for summer fun. Considering that the continuing trend with consumers is a greater emphasis on the need to acquire memories rather than objects and products, companies that offer active, fun summer activities for the whole family are surely to please.

According to Global Strategy Analysts, Inc., the global theme/amusement park market will reach $44.3 billion by 2020. In addition, the United States continues to remain the largest amusement park market in the world. However, the largest growth belongs to Asia, where the region expects to see compound annual growth rate (CAGR) of 12.2% through 2020. This is important for amusement and event entertainment companies to recognize that the U.S. continues to be the largest market for the industry, but positioning for the high-growth in Asia should be a priority moving forward.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions Source: strategyr.com 1

One such company that operates in the social, active, event entertainment industry is Sack Lunch Productions, Inc. (OTC Pink: SAKL).

Sack Lunch Productions, Inc. (OTC Pink: SAKL) Overview

One such company that operates in the social, active, event entertainment industry is Sack Lunch Productions, Inc. (OTC Pink: SAKL). Sack Lunch Productions, Inc. (OTC Pink: SAKL) Overview

Sack Lunch Productions, Inc. (OTC Pink: SAKL) operates in the action-oriented events entertainment industry. Through its corporate entity and franchising partners, the company is able to deliver its lineup of unique, fun, and popular events across the United States and internationally. Sack Lunch Productions, Inc. (OTC Pink: SAKL) has international franchisees in Europe, Asia, and South America. In addition, the events entertainment company is forecasting between 71 international Slide the City and Color Me Rad events in 2016.

Aside from the company’s active events entertainment business, Sack Lunch Productions, Inc. (OTC PINK: SAKL) maintains a film production and distribution business and also maintains a 87.9% stake in Green Endeavors, Inc. (OTC Pink: GRNE), which operates two AVEDA Lifestyle salons and a retail store.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions – Slide the City 1

Sack Lunch Productions, Inc. (OTC Pink: SAKL) has five main events:

  • Slide the City-1,000 foot waterslide
  • Color Me Rad-color-based 5K race
  • The Dirty Dash-obstacle course and mud run
  • The Lantern Fest-nighttime event, featuring lighting and launching of spiritual lanterns
  • Trike Riot-adult-size tricycle race/ride

As of July 2016, Sack Lunch Productions, Inc. (OTC Pink: SAKL) is forecasting full year 2016 revenues of $17.2 million on net income of $1.2 million. For full year 2017, management sees total revenue of $18.3 million on net income of $2.7 million. The earnings growth is expected to be backed by continued international expansion, strategic acquisitions, and further organic growth of its events entertainment business in the United States.

SAKL: Events Revenue Breakdown

Among the most popular of Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s events is the Slide the City event. Slide the City features a 1,000 foot slip and slide that is great fun for the whole family. Breaking down the revenue generation of a Slide the City event, Sack Lunch Productions, Inc. (OTC Pink: SAKL) is able to generate an average of $29 in revenue per participant in the event. Considering the event can hold at least 2,500 participants, one Slide the City event can generate at least $72,500 in revenue for the company. Management is forecasting a total of 104 Slide the City events in 2016: 59 corporate-ran, 25 domestic franchise-ran, and 20 international franchise-ran events.

The Color Me Rad 5K Color Run event is another widely popular event that is able to generate an average of $35 in revenue per participant. Sack Lunch Productions, Inc. (OTC Pink: SAKL) estimates at least 2,500 participants per event, which translates to $87,000 in revenue per Color Me Rad 5K Color Run event. According to management, there will be 40 corporate-run Color Me Rad 5K Color Run, 17 North American franchise-host run event, and 15 international franchise-hosted run events. This gives total worldwide Color Me Rad 5K Color Runs events of 72 in 2016.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions

The Dirty Dash event is for those that do not mind a little mud! The event features a mud run and obstacle course that participants navigate through. Sack Lunch Productions, Inc. (OTC Pink: SAKL) is able to generate an average of $42 in revenue per participant. With at least 3,100 participants at each event, Sack Lunch Productions, Inc. (OTC Pink: SAKL) walks away with around $130,000 in revenue per Dirty Dash event. Management is forecasting 10 Dirty Dash races that will be held in 2016, all controlled and run by corporate organizers.

The Lantern Fest event is a nighttime event that predominantly takes place in the Spring and Fall, in which, participants build and release lanterns into the night sky symbolizing new beginning, healing, or simply enjoying the view. Sack Lunch Productions, Inc. (OTC Pink: SAKL) generates an average of $29 per participant and can accommodate as many as 4,000 participants at each Lantern Fest event. This means each Lantern Fest event is able to generate around $116,000 in revenue for the firm. Furthermore, the company is forecasting a total of 31 Lantern Fest events to take place in 2016. This includes 30 corporate-ran Lantern events and 1 international franchise event.

Lastly, Trike Riot is the latest event that Sack Lunch Productions, Inc. (OTC Pink: SAKL) has begun to offer in 2016. The event features adult-sized tricycle racing and riding and will be initially be offered in the U.S. and Canada. However, Sack Lunch Productions, Inc. (OTC Pink: SAKL) estimates they can make an average of $90 per Trike Riot participant. With at least 2,000 participants at each event, the company is looking at revenues of around $180,000 per Trike Riot event. According to Sack Lunch Productions, Inc. (OTC Pink: SAKL), there will only be one corporate-ran Trike Riot event in 2016.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions – Trike Riot 1

SAKL Financials and Competitor Analysis

Turning to the financials and analysis of Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s potential competitors to help gain a sense of valuation compared to peers.

Currently, Sack Lunch Productions, Inc. (OTC Pink: SAKL) has a market cap of $9.78 million, as of July 2016. Furthermore, the entertainment events company listed 990 million authorized shares, 144.9 million shares outstanding, and a float of nearly 61.1 million shares, as of April 2016. During full year 2015, Sack Lunch Productions, Inc. (OTC Pink: SAKL) reported total revenue of $10.66 million and net income of $8,000. Management is forecasting full year 2016 total revenues of $17.2 million and net income of $1.2 million, which shows substantial growth from full year 2015 if the company is able to reach its forecast.

In addition, it is important to note that due to the nature of the company’s business model, ticket sales for future events will be listed as “deferred revenue” under Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s liabilities. However, once the event occurs, the deferred revenue is taken off of liabilities and added to total revenue in the company’s assets. As of March 2016, Sack Lunch Productions, Inc. (OTC Pink: SAKL) listed total deferred revenues of nearly $2.322 million.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions – The Lantern Fest 1

Sack Lunch Productions, Inc. (OTC Pink: SAKL) is a unique company that has no exact competitors, being that the company is in the event entertainment business, film development business, and owns a majority interest in Green Endeavors, Inc. (OTC Pink: GRNE), an operator of high-end salons. However, being that Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s events entertainment business is the bigger driver of growth and focus of the company, we will analyze competitors that offer other event entertainment or amusement entertainment.

NightCulture, Inc. (OTCQB: NGHT) is an event and festivals company that focuses on Electronic Dance Music (EDM). The company operates across major Texas cities and produces two major music festivals: “Something Wicked Halloween” and “Something Wonderful Festival.” As of July 2016, the company had a market value of $900,000. As of April 2016, the NightCulture, Inc. (OTCQB: NGHT) posted 500 million authorized shares, 99.99 million shares outstanding, and a float of nearly 22.49 million shares. During full year 2015, NightCulture, Inc. (OTCQB: NGHT) reported total revenues of $5.83 million, but a net loss of $1.67 million.

The Movie Studio, Inc. (OTC Pink: MVES) engages in the production and distribution of motion pictures in Hollywood, Florida. As of July 2016, The Movie Studio, Inc. (OTC Pink: MVES) had a market value of $456,516. Furthermore, the movie company listed 750 million authorized shares, 60.9 million shares outstanding, and a float of 17.88 million shares, as of May 2016. During fiscal 2015, The Movie Studio, Inc. (OTC Pink: MVES) reported total revenues of $35,000, but a net loss of $312,000.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions Color Me Rad 5K Color Run 1

Tix Corporation (OTCQX: TIXC) is in the business of selling discount tickets for shows, attractions, dinners, tour and other events across Las Vegas, Nevada. As of July 2016, Tix Corporation (OTCQX: TIXC) had a market cap of around $39.8 million. Furthermore, the ticket sales company listed 100 million authorized shares, 17.3 million shares outstanding, and a float of 4.8 million shares, as of March 2016. During full year 2015, Tix Corporation (OTCQX: TIXC) reported total revenue of $23.42 million and net income of nearly $16.8 million.

Live Nation Entertainment, Inc. (NYSE: LYV) engages in the promotion, ticket sales, sponsorship, advertising, and artist management in the live entertainment industry, specifically music. As of July 2016, Live Nation Entertainment, Inc. (NYSE: LYV) was worth nearly $4.9 billion, lists outstanding share count of 202.93 million, and a share float of 146.28 million. During full year 2015, Live Nation Entertainment, Inc. (NYSE: LYV) reported total revenue of $7.25 billion in revenue, but net loss of $32.51 million.

Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions
Sack Lunch Productions, Inc. (OTC Pink: SAKL) $17 Million Growth from International Expansion & Strategic Acquisitions – The Dirty Dash 1

Six Flags Entertainment Corporation (NYSE: SIX) owns and operates 18 theme and water parks under its Six Flags brand, across North America. In addition to rollercoasters and water attractions, Six Flags Entertainment Corporation (NYSE: SIX) also offers concerts, shows, games, and other events throughout the peak season. The theme park company listed a market cap of $5.44 billion, outstanding shares of 93.27 million, and a float of 73.68 million shares, as of July 2016. Furthermore, Six Flags Entertainment Corporation (NYSE: SIX) reported total revenue of $1.3 billion and net income of $154.7 million, during full year 2015.

Overall, Sack Lunch Productions, Inc. (OTC Pink: SAKL) stands in a formidable position within the active entertainment industry. As previously mentioned, the company is forecasting 2017 total revenue to come in at $18.3 million and $2.7 million net income. If Sack Lunch Productions, Inc. (OTC Pink: SAKL) continues to expand its presence and brand across North America and reach the 2017 earnings forecasts, the company could easy see its market cap jump into the mid-teen millions over the next year.

People continue to desire new outdoor activities, particularly in the summertime. Rather than spending time inside or buying an expensive item, more consumers are finding that long-lasting memories are more valuable. Sack Lunch Productions, Inc. (OTC Pink: SAKL)’s Slide the City event, Color Me Rad, The Dirty Dash, Lantern Fest, Trike Riot and more provides a key service and gives people a chance to get out, get active, have a great time, and be social.

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