Sack Lunch Productions (SAKL) Uses Hybrid Business Model to Coordinate Events

Spotlight Companies  |

Event planning can be a bit chaotic and, not to mention expensive, but everyone has to have a form of balance in their lives to remain somewhat sane. What is the main problem when it comes to planning a fun, engaging type of event that is entertaining and memorable? I believe it is having enough participants commit by buying tickets and blocking off the event specific days on their calendars. The days of taking people at their word and relying on the hope that all your ‘friends’ will just show up are long gone. In the world of today, we have e-mail marketing, non-refundable deposits, social media sharing, and big prizes to ensure and fund a plethora of fun-filled family friendly events. Sack Lunch Productions, Inc. (SAKL) helps customers organize, plan, and effectuate events in very user-friendly and efficient manner.

In more specific terms, Sack Lunch is an entertainment company that operates and franchises action oriented events in the U.S. and internationally. SAKL's events include: Slide the City® (1,000 foot long water slide for families and kids), Color Me Rad® (5k color race), The Dirty Dash® (mud and obstacle run), The Lantern Fest® (night-time party with lantern lighting and launch) and Trike Riot®. Personally, I enjoy the competition, but, more importantly, the camaraderie that comes with events like these because it unplugs me from my technology just long enough for intimate interaction with my fellow humans like the good old days of an elementary school playground.

Now that is all fine and dandy from a public relations standpoint, but as an investor, I want to know what the gross profit margins are, and I want to know if Sack Lunch Productions has a viable business model. According to Richard Surber, CEO of SAKL, the profit margin for the entertainment company sits between the 40 and 50 percent range. Also, the company has a database of more than 4 million e-mails and over 3.5M Facebook followers that it markets its different events too on a seasonal calculated basis.

Fundamentally, Sack Lunch Revenues increased 278% over 2015. and August tickets sales reflect future events. This translates into realized revenues for August will be somewhat higher according to the company. The company recently reported total sales of corporate and franchised events in North America for the month of August. Ticket sales for all North American corporate and franchised events were $967,760 and $60,516, respectively. The lion's share of ticket sales for August were generated by corporately run Slide the City® and The Lantern Fest® events.

Mr. Surber commented in a recent press release, "Our realized revenues for the month of August are expected to be substantially greater than ticket sales reported in this release. We successfully held over 33 events system-wide in August. We also are happy to report that The Lantern Fest® has added events that will be hosted all the way through December. The consequence of adding additional Lantern Fest events during this period of time will mean a significant improvement to cash flows during the final quarter of the year. What's even more exciting, it appears that the average attendance at The Lantern Fest® events is going to exceed projections by as much as 40% on average with correlating increase in revenues. Our entire team is very excited about the tremendous amount of success we are enjoying with this segment of our business."

It’s obvious to see that there is a present and growing demand for this type of one-stop-shop, hybrid business model employed by Sack Lunch Productions. We are a society of having our cake and eating it too, so to speak, so we would rather pay for someone like Sack Lunch to bake our cake, organize the party, and invite all of our friends so, we can just block out the dates on our calendar and have fun too…

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