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No, it didn't.
The first one had a $4.5 million budget.
It made back $4.1 million. Even counting in video/dvd sales, it wouldn't be good enough, by all conventional logic, to warrant a sequel....
I guess the thinking is, if they make the sequel SUPER CHEAP, they might be able to gain a little bit of a profit. But I wouldn't say the first one "made money". It may have barely gained a small profit, at best. I mean, making the film direct-to-video alone is going to gurantee that it probably will break even (since most of the money spent on small movies like that is done in advertising and so on).
Either way..
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