American Restaurant Concepts, Inc. Announces Q2 2012 Financial Results
Company Achieves Profitability and Positive Cash Flows from Operating Activities
JACKSONVILLE, Fla., Sept. 12, 2012 // PRNewswire // -- American Restaurant Concepts, Inc. (OTCBB: ANPZ), the operator and franchisor of America's award-winning Dick's Wings® restaurants, announced today record financial results for its second fiscal quarter ended June 24, 2012. The Company achieved net income and positive cash flows from operating activities for the first time since becoming a publicly-traded company.
Q2 2012 Financial Highlights
- Revenue increased 9% to $106,394 for Q2 2012 from $98,083 for Q1 2012.
- Excluding revenue from restaurants closed for renovations, revenue increased 15% to $106,394 for Q2 2012 from $92,373 for Q2 2011.
- Operating expenses were $91,710 for Q2 2012 compared to $176,146 and $181,758 for Q1 2012 and Q2 2011, respectively, representing decreases of 48% and 50%, respectively.
- Net income was $5,426 for Q2 2012 compared to net losses of $(94,658) and $(89,232) for Q1 2012 and Q2 2011, respectively.
- Cash flows from operating activities were $5,181 for Q2 2012 compared to $(48,704) and $(40,204) for Q1 2012 and Q2 2011, respectively.
American Restaurant Concepts attributes its substantial improvement in profitability and cash flows to the efforts it has made over the past year to improve its franchisees' profitability while concurrently reducing its operating expenses and debt obligations.
"I am very pleased with the financial results that we achieved during our second fiscal quarter of 2012," stated Michael Rosenberger, CEO of American Restaurant Concepts. "For us to turn the Company around as quickly and substantially as we have to the point that it is now generating net income and positive cash flows from operations is a remarkable achievement. This is the first time we have accomplished either of these feats since American Restaurant Concepts became a publicly-traded company almost two years ago."
"This is only the beginning for American Restaurant Concepts," continued Mr. Rosenberger. "Our strategic plan for the next 12 months is designed to promote strong revenue growth with a continued focus on reducing our operating expenses and outstanding debt. We expect this focus to produce sustained and accelerated growth in our profitability and cash flows, which will create considerable value for our shareholders."
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Jacksonville, Florida, is the 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.