American Restaurant Concepts, Inc. Announces Q2 2013 Financial Results
LAFAYETTE, La. - Aug. 12, 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 second quarter of the 2013 fiscal year. Revenue increased 41% year-over-year due to strong growth in royalties and royalties per restaurant.
Q2 2013 Financial Highlights
- Revenue increased 41% to $150,209 for Q2 2013 from $106,394 for Q2 2012.
- Royalty revenue increased 36% to $114,869 for Q2 2013 from $84,556 for Q2 2012.
- Average royalty revenue per active restaurant increased 44% to $6,757 for Q2 2013 from $4,698 for Q2 2012.
- Debt obligations decreased 26% to $307,693 at June 30, 2013 compared to $413,603 at December 30, 2012.
- Net income was $83,227 during the six months ended June 30, 2013 compared to a net loss of $(89,232) during the six months ended June 24, 2012.
Q2 2013 Achievements
The Company generated $150,209 of revenue during its second fiscal quarter due to strong growth in royalty income. Royalties per restaurant increased 44% year-over-year as operational improvements implemented by the Company during the past two quarters generated positive results for franchisee sales and profits. This, combined with a decrease in the Company's outstanding debt obligations, helped the Company generate net income from operations of $83,227 during the first half of 2013.
"I am very pleased with the financial results that we generated during our second fiscal quarter," stated Richard Akam, Chief Executive Officer of American Restaurant Concepts. "We experienced continued strong growth in revenue, the primary driver of which was our royalties. Royalties and royalties per restaurant are some of the key financial metrics that we focus on in evaluating our success and overall health of our company. The royalties that we generated are a testament to the efforts we made during the past two quarters to improve our franchisees' operations."
The Company expects revenue to increase throughout the remainder of 2013 as it works with its franchisees to optimize their sales and profitability. Seasonal factors like the beginning of the 2013 NFL and NCAA football seasons will help drive sales, as will advertising and promotional campaigns that the Company plans to conduct. Macroeconomic factors are also expected to positively impact franchisee sales and profitability as consumer demand for chicken wings, and in particular boneless chicken wings, continues to rise while the cost of chicken wings has been trending down.
Mr. Akam added, "We have substantially completed the turnaround of our franchisees' operations and are now ready to focus on the more elaborate phase of our growth plan. This will include the opening of additional Dick's Wings restaurants in Florida and other locations across the country, and the expansion of the Company through new brands that we will franchise. This multifaceted approach will enable us to aggressively grow our top and bottom line while lowering our risk profile through brand and geographic diversification."
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Lafayette, Louisiana, is the operator and franchisor of Dick's Wings & Grill® full-service restaurants and Dick's Wings 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. The Company 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 the company's website at www.BestWingsEver.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 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.