LAFAYETTE, La., April 21, 2016 /PRNewswire/ -- ARC Group, Inc. (OTCQB: ARCK), the owner, operator and franchisor of the award-winning Dick's Wings & Grill® concept, announced financial results for its 2015 fiscal year. The Company reported record revenue and achieved income from operations for the first time since its initial public offering in 2010.
2015 Financial Highlights
The Company achieved the following financial results for its full 2015 fiscal year:
- Revenue increased 64% to $966,931 for 2015 from $588,856 for 2014.
- Royalty revenue increased 53% to $816,619 for 2015 compared to $532,318 for 2014.
- The Company generated income from operations of $46,446 compared to a loss from operations of $(199,955) during 2014.
- Net cash used by operating activities decreased 74% to $57,353 during 2015 from $221,617 during 2014.
"We are very pleased with our 2015 financial results," stated Richard W. Akam, Chief Executive Officer of ARC Group, Inc. "We produced record revenue for the year, driven primarily by an increase in royalties generated through our franchisees. As anticipated, operating expenses increased during the year. However, the growth in our full-year revenue exceeded the increase in full-year operating expenses, which resulted in income from operations of $46,446. This is the first time we have generated income from operations since becoming a publicly-traded company in 2010. It is a tremendous achievement for the Company."
The Company achieved many operational goals and objectives during 2015. In particular, the Company opened four new Dick's Wings restaurants, with locations in Tifton and Baxley, Georgia, and Fleming Island and Panama City Beach, Florida. In addition, it expanded its partnership with the NFL's Jacksonville Jaguars to include a second concession stand at EverBank Field, while also extending the partnership for an additional two football seasons.
"Our customers remain our top focus and the key to our ongoing success," Akam continued. "We now have a total of 22 Dick's Wings Restaurants and two concession stands at EverBank Field, home of the NFL's Jacksonville Jaguars. We intend to continue investing heavily in our growth initiatives, primarily through the opening of new restaurant locations and the acquisition of interests in other brands. The revenue and income that we expect to generate through these efforts, coupled with our focus on delivering solid earnings, will help keep us positioned for continued growth and increased shareholder value."
Outlook for 2016
The Company intends to continue executing upon a multi-faceted growth strategy during 2016. The first component of its growth strategy focuses on the ongoing strengthening and expansion of its legacy Dick's Wings® brand. The second component of the Company's growth strategy is identifying the right strategic opportunities to acquire controlling and non-controlling financial interests in leading restaurant brands, which offer our Company product and geographic diversification.
"Moving forward, we intend to continue executing our plan for growth fueled by the opening of additional restaurant locations through low-cost conversions, while also seeking additional acquisition opportunities in premium restaurant brands, similar to our investment in Wing Nutz®," added Akam. "We expect these initiatives to drive growth into the future. We are very excited about what 2016 has in store for us."
About ARC Group, Inc.
ARC Group, Inc., headquartered in Lafayette, Louisiana, is the owner, operator and franchisor of the Dick's Wings & Grill concept and the co-owner of the owner, operator and franchisor of the Wing Nutz concept. Now in its 20th year of operation, Dick's Wings prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings. Wing Nutz offers a large selection of premium baked chicken wings and other baked products. Wing Nutz also offers its own proprietary line of craft beers under the name "Nut Job Beers". Dick's Wings has 17 restaurants in Florida and five restaurants in Georgia. It also has two concession stands at EverBank Field, home of the NFL's Jacksonville Jaguars. Wing Nutz has nine restaurants in Utah, one restaurant in Las Vegas, Nevada, one restaurant in Garland, Texas and one restaurant in Nampa, Idaho.
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 31, 2015 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 ARC Group, Inc.