American Restaurant Concepts, Inc. Announces Strong 2012 Financial Results Revenue Increases as Operational Improvements Reduce Net Loss by Almost 80%
JACKSONVILLE, Fla., April 2, 2013 /PRNewswire/ -- American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, today announced strong financial results for the 2012 fiscal year. The Company generated an increase in revenue, while reducing operating expenses by approximately 60% and reducing net loss almost 80%.
2012 Financial Highlights
- Revenue increased 4% to $450,946 in 2012, compared to $433,627 in 2011.
- Operating expenses decreased $1,132,666, or almost 62%, to $710,431 in 2012 from $1,843,097 in 2011.
- Loss from operations decreased 82% to $259,485 in 2012, compared to $1,409,470 in 2011.
- Net loss decreased almost 80% to $353,832 in 2012, from $1,651,970 in 2011, resulting in a net loss per share of $0.01 in 2012, compared to a net loss per share of $0.05 in 2011.
"I am very pleased with our financial results for 2012," stated Michael Rosenberger, CEO of American Restaurant Concepts. "We implemented several operational improvements during the year that were designed to reduce our operating costs. As part of this plan, we made a concentrated effort to partner with our existing Dick's Wings franchisees to improve their operations and profitability, which resulted in the closure of two underperforming restaurants. Our ability to reduce our net loss by 80% this year, while also increasing annual revenue, underscores our accomplishments and sound business model, despite the challenging economic conditions we experienced."
In addition to achieving strong financial results, the Company benefited from a variety of events that took place during the latter half of 2012 and early part of 2013. First, American Restaurant Concepts entered into a number of financing transactions with Blue Victory Holdings, a private equity firm focused primarily on the acquisition, rehabilitation and management of restaurant assets, for the purpose of maximizing shareholder value.
Second, the Company hired Rick Akam as its COO and appointed Fred Alexander to the Company's Board of Directors. Mr. Akam has served in a variety of executive officer roles during the past 20 years for such restaurant franchisors as Hooters of America, Twin Peaks Restaurants, First Watch Restaurants and Raving Brands, including serving as the President and Chief Executive Officer of Hooters of America from 1995 until 2003. Mr. Akam will direct operational improvements and growth strategies for the Company, and provide seasoned expertise in brand development strategies.
Mr. Alexander is an accomplished business executive who currently serves as the Vice President of Business Development for Blue Victory Holdings. At Blue Victory, Mr. Alexander is responsible for the identification, acquisition and financing of branded restaurants. He also has more than 30 years of experience identifying, acquiring, developing and rehabilitating a variety of real estate assets including apartment buildings, condominiums and shopping centers.
"The additions of Rick and Fred to our team are very significant events for American Restaurant Concepts," added Mr. Rosenberger. "Rick has many years of experience successfully running high-profile restaurant franchisors, while Fred has overseen the acquisition of nearly 80 restaurant franchises as the Vice President of Blue Victory. Fred's appointment to our Board of Directors also cements our working relationship with Blue Victory. We anticipate these additions will support our goal to transform American Restaurant Concepts from a small, regional franchisor of Dick's Wings restaurants to a national franchisor of numerous branded restaurant franchises."
The Company expects to achieve continued growth in revenue and a return to profitability during the next 12 months, resulting from the high-growth strategy that it previously implemented. Primary elements of this strategy include:
- The conversion of underperforming branded restaurants of other restaurant franchises into Dick's Wings restaurants;
- The expansion of Dick's Wings restaurants into new territories throughout the United States through area development agreements with experienced restaurateurs;
- The acquisition of branded restaurant franchises and individual branded restaurants, as well as financial interests in a variety of branded restaurant franchises; and
- A substantial reduction in the amount of the Company's outstanding debt and accounts payable.
"We are taking a multi-faceted approach to growing American Restaurant Concepts," concluded Mr. Rosenberger. "We first plan to complete the overhaul of our existing franchisees' operations, reduce our debt and increase our liquidity. These initial steps will put us in the best operational and financial position to achieve the remaining elements of our strategic plan, including the addition of new Dick's Wings restaurants and the acquisition of other branded restaurant franchises."
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. Dick's Wings currently has 14 full-service restaurants and 2 express restaurants. Fifteen of the restaurants are located in Florida, with one located in Georgia. For more information, 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 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.