JACKSONVILLE, Fla. - May 22, 2013 // PRNewswire // - American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, announced strong financial results for its first quarter 2013 fiscal year. The Company generated an increase in royalty revenue along with a significant reduction in its outstanding debt, resulting in net income of $210,000 or $0.01 per share.
In March 2013, American Restaurant Concepts entered into a settlement and release agreement with Bank of America, its largest debt holder, with respect to its outstanding debt obligation. The Company paid Bank of America $50,000 in full and final settlement of the approximately $370,000 of outstanding debt, accrued interest and other related charges that were owed. The settlement of this debt resulted in a 68% reduction in the Company's outstanding debt obligations and an 86% reduction in the amount of interest expense incurred by the Company on an annual basis.
The Company also successfully strengthened the sales, operations and general business of its franchisees, via additional support personnel, point of sale improvements and store image enhancements, resulting in substantial growth in franchisee sales and profitability.
"I am very pleased with our results this quarter and the goals we have been able to achieve thus far," stated Michael Rosenberger , CEO of American Restaurant Concepts. "Debt reduction has been a key focal area and I am proud of our team's ability to substantially reduce our outstanding debt and annual interest payments. In addition to our debt reduction efforts, I'm encouraged by the pace at which we've been able to grow royalty revenues per restaurant in such a short period of time. We continue to make improvements that benefit our customers, franchisees and shareholders."
"Our strategy to improve the existing franchisees' operations was pivotal to achieving our aggressive growth plan we announced at the end of last year," added Rick Akam , COO of American Restaurant Concepts. "During the quarter, we took steps to work closely with each of our franchisees and educate them on how to implement an effective marketing campaign to improve sales and lower costs through operational improvements. We also supported them by funding a new point-of-sale technology system, which will enable us to better track our franchisees' operational results. Lastly, to ensure quality and consistency of the Dick's Wings & Grill brand, we have replaced two of our franchisees due to under performance against our brand tenets."
American Restaurant Concepts, Inc., headquartered in Jacksonville, Florida, is the operator and franchisor of 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. Dick's Wings currently has 15 full-service restaurants and 2 express restaurants. Sixteen of the restaurants are located in Florida, with one located in Georgia. For more information, please visit its website at www.BestWingsEver.com.
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 30, 2012 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.