LAFAYETTE, La., Nov. 14, 2013 /PRNewswire/ -- American Restaurant Concepts, Inc. (OTCBB: ANPZ / ANPZD), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, announced financial results for its third quarter of the 2013 fiscal year, highlighted by continued strong growth in royalties and royalties per restaurant.
Q3 2013 Highlights
- Revenue was $367,546 for the nine months ended September 29, 2013 compared to $364,977 for the nine months ended September 30, 2012.
- Royalty revenue increased 18% to $119,012 for Q3 2013 from $101,060 for Q3 2012.
- Average royalty revenue per active restaurant increased 18% to $7,438 for Q3 2013 from $6,316 for Q3 2012.
- Richard W. Akam and Daniel Slone were appointed as the Company's CEO and CFO, respectively.
- The Company secured a $1M revolving line-of-credit facility from Blue Victory Holdings, Inc.
"I am very pleased with our achievements during our third fiscal quarter," stated Richard Akam, CEO of American Restaurant Concepts. "We continued to increase our royalties and royalties per restaurant. As anticipated, our operating expenses increased during the quarter, leading to a net loss from operations. These expenditures were necessary and were associated with the growth of the Company and our preparation for major transactions that we intend to make over the next few months. Our credit facility with Blue Victory will enable us to complete these transactions and execute upon the next steps of our aggressive growth plan."
Recent Events and Outlook
The Company has been very active since its third fiscal quarter ended on September 29, implementing the following corporate actions:
- The reopening of the Dick's Wings restaurant in the Nocatee development in Ponte Vedra, FL.
- The completion of a 1-for-7 reverse stock split of its outstanding shares of common stock.
- The reduction of its outstanding debt from $493,287 on September 29 to $11,000 on November 5.
"After completing the turnaround of our franchisees' operations, we wanted to complete our reverse stock split and settle virtually all of our debt," stated Akam. "We are now implementing the next phase of our strategic plan, which is the expansion of American Restaurant Concepts into new brands that we will franchise."
"We expect to close at least two major transactions before the end of the year that will provide us with new revenue streams," added Akam. "The first of these transactions is expected to be with a quickly growing yogurt chain that has 20 locations in Florida. We expect to close the transaction later this month and finance it through a combination of cash and stock. These transactions will set the stage for accelerated growth during the remainder of 2013 and 2014."
The Company intends to continue opening additional Dick's Wings restaurants in Florida and other locations across the country. This revenue component, coupled with the revenue that it will derive from its upcoming corporate transactions, will be the primary revenue driver during the remainder of 2013 and into 2014. The Company expects to continue benefiting from the 2013-2014 collegiate and professional sports seasons, and advertising and promotional campaigns slated for the remainder of the year.
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Lafayette, Louisiana, is the operator and franchisor of the Dick's Wings & Grill® full-service restaurants and Dick's Wings Express® express restaurants. The Company prides itself on its award-winning chicken wings, for which it boasts 365 mouth-watering flavors. It 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. The Company currently has 15 full-service restaurants and one express restaurant. For more information, please visit the Company's website at www.dickswingsandgrill.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company's future financial position, business strategy, plans and objectives, 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 SEC. 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 forward-looking statements.
SOURCE American Restaurant Concepts, Inc.