American Restaurant Concepts, Inc. Announces 2011 Financial Results
Revenue Grew by 17% as Cash Outflows from Operations Were Reduced by 40%
JACKSONVILLE, Fla., July 30, 2012 // PRNewswire // -- American Restaurant Concepts, Inc. (OTCBB: ANPZ), the operator and franchisor of Dick's Wings & Grill restaurants, today announced its financial results for the 2011 fiscal year. The Company posted strong results as revenue increased 17% while cash outflows from operating activities decreased 40% and total cash outflows from operating, investing and financing activities decreased 98%.
2011 Financial Highlights
- Revenue increased 17% to $433,627 in 2011, compared to $369,672 in 2010.
- Cash outflows from operating activities decreased 40% to $70,606 in 2011, from $116,926 in 2010.
- Total cash outflows from operating, investing and financing activities decreased 98% to $1,606 in 2011, compared to $104,176 the prior year.
- Excluding equity-based, non-cash compensation expense and one-time, non-recurring losses, 2011 net loss was $268,123, or $0.01 per share.
The Company attributes the growth in revenue and decrease in cash outflows to a significant restructuring of operations led by Michael Rosenberger, the Company's CEO, during the second half of the 2011 fiscal year.
The multi-step restructuring included hiring Richard Ungaro as a consultant to strengthen its franchisees' operations. Mr. Ungaro has 40 years of experience as a hands-on senior executive with key leadership roles in the building, turnaround and rapid expansion of such companies as Burger King Corporation, Wendy's International, Starbucks Coffee Company and Blockbuster Entertainment Group. Mr. Ungaro assisted the Company's franchisees in growing sales, while reducing operating expenses to make the franchisees more profitable.
In addition, the Company hired several experienced business consultants to strengthen its strategic management, financial and communications capabilities, providing the Company with entity-wide reductions in costs and an aggressive, yet realistic growth plan for the future.
"I am very pleased with our financial results for 2011," stated Michael Rosenberger, CEO of American Restaurant Concepts. "We implemented numerous actions during the latter half of 2011 that were pivotal to the increase in revenue and decrease in cash outflows that we achieved during the year. Our achievements further underscore our sound business model, despite the challenging economic conditions our country is experiencing."
Mr. Rosenberger added, "We began receiving numerous inquiries from prospective franchisees near the end of 2011 as a result of our increased marketing efforts and the rollout of our new website at www.dickswingsandgrill.com. This interest has continued into the fiscal 2012 year and has grown in intensity."
The Company expects to achieve continued growth in revenue and a return to profitability during the next 12 months, resulting from a high-growth strategy that the Company implemented earlier this year. Key elements of this strategy are as follows:
- The opening of 8-9 additional franchised restaurants through internal marketing efforts, targeting potential franchisees located in the Company's existing Florida territory.
- The expansion into new territories in the South and Southeastern United States through area development agreements with sophisticated restaurant franchisees.
- The execution of collaboration agreements with restaurant owners and franchisees to grow the Company through the acquisition of financial interests in large numbers of franchised restaurants.
"The growth of our Dick's Wings franchise is vital to the success of our growth strategy," stated Mr. Rosenberger. "We plan to accomplish this through internal growth in our existing Florida markets and the use of area development agreements in untapped new territories located primarily in the South and Southeastern United States."
Mr. Rosenberger continued, "Through mutually beneficial agreements with professional restaurant developers, we intend to acquire interests in other restaurants. This will provide us with the option of converting the acquired restaurants to Dick's Wings restaurants or diversifying the Company to include not only the Dick's Wings brand, but the brands of other successful restaurant chains."
The Company has been actively negotiating with a number of restaurant developers who have the necessary knowledge, experience and financial resources to execute upon the Company's expansion plans. The Company intends to support this growth by hiring individuals affiliated with the restaurants that it acquires. This will serve the dual purposes of enhancing the management team, while ensuring a seamless integration of operations.
The Company will soon provide additional details regarding its growth strategy for the next 12 months.
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Jacksonville, Florida, is the owner, operator and franchisor of the Dick's Wings & Grill® full-service restaurants and Dick's Wing Express® express restaurants. The Company prides itself on the 365 original mouth-watering flavors it has created for its premium grade chicken wings. Dick's Wings® offers customers the freshest wings, sandwiches, burgers, wraps, salads and signature waffle fries, all in a unique setting that combines a family-friendly environment with a sports-themed restaurant. Dick's Wings & Grill's® chicken wings have won numerous awards in Florida and Georgia, including having been voted "Best Chicken Wings in Northeast Florida" 12 consecutive years by Folioweekly magazine. Dick's Wings currently has 16 full-service restaurants and 2 express restaurants. Fifteen of the restaurants are located in Florida, with one located in Georgia and two located in Canada. For more information on the Company, please visit its website at www.dickswingsandgrill.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the company's future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors set forth in the company's Annual Report on Form 10-K for the year ended December 25, 2011 and its other filings and submissions with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the company assumes no obligation to update or revise any of the information contained in this press release.
SOURCE American Restaurant Concepts, Inc.