ARC Group, Inc. Announces Second Quarter 2016 Results
Aug 18, 2016, 08:30 ET
LAFAYETTE, La., Aug. 18, 2016 /PRNewswire/ -- ARC Group, Inc. (OTCQB: ARCK), the owner, operator and franchisor of the award-winning Dick's Wings & Grill® concept, announced strong financial results for the second quarter of 2016, highlighted by earnings per share of $0.02.
Financial Highlights
The Company achieved the following financial results for its fiscal quarter ended June 30, 2016:
- Revenue increased 22% to $299,201 for the second quarter of 2016 from $244,990 for the second quarter of 2015.
- Revenue increased 30% to $607,816 for the six months ended June 30, 2016, from $468,006 for the corresponding period in 2015.
- Operating expenses decreased 14% to $179,018 for the second quarter of 2016 from $207,649 for the second quarter of 2015.
- Operating expenses decreased 16% to $366,447 for the six months ended June 30, 2016, from $438,137 for the corresponding period in 2015.
- The Company generated net income of $149,532, or $0.02 per share, for the second quarter of 2016 compared to $40,398, or $0.01 per share, for the second quarter of 2015.
- The Company generated net income of $250,174, or $0.04 per share, for the six months ended June 30, 2016, compared to $16,034, or $0.00 per share, for the corresponding period in 2015.
- Net cash provided by operating activities was $193,860 during the six months ended June 30, 2016, compared to cash used by operating activities of $28,155 for the corresponding period in 2015.
"We are excited about the momentum that we are continuing to build each quarter," commented Richard W. Akam, Chief Executive Officer of ARC Group, Inc. "Royalties from our three newest franchised stores helped drive revenue growth during our second fiscal quarter. Royalties for the second quarter of 2016 grew by $32,941 over the first quarter of 2016 and grew by $73,726 over the second quarter of 2015. Our revenue growth, combined with reduced operating expenses, helped us achieve net income from operations of $149,532. Our 'all fronts' approach to revenue generation through 2016 remains the focus of our efforts. Growth in our franchised restaurants will result in recurring revenue growth as well as better rebate opportunities from our vendors."
Outlook
"We expect the third quarter of 2016 to continue these favorable trends," stated Akam. "Our royalties will benefit from the recent opening of our Hazelhurst, Georgia restaurant during the second quarter of 2016. Additionally, we expect to open our newest location in Atlantic Beach, Florida in early September 2016. The combination of increased royalties with generally flat expenses should support continued growth in our bottom line."
Dick's Wings® restaurants are family fun fooderys® where both families and sports fans can go to enjoy a unique restaurant experience from first bite to last call®. Dick's Wings offers a variety of boldly-flavored menu items highlighted by its award-winning, Buffalo, New York-style chicken wings and hog wings and its Dick's Blingz® boneless chicken wings, for which it boasts 365 mouth-watering flavors. It also offers customers a variety of fresh sandwiches, burgers, wraps, salads and signature waffle fries. Guests enjoy these menu items in an elevated sports-themed environment that includes flat screen TVs located throughout each restaurant and children's areas filled with video games and other forms of children's entertainment.
Dick's Wings is actively offering franchise opportunities in the Orlando, Tampa, Gainesville and Mobile/Pensacola metropolitan areas. For more information about Dick's Wings exciting menu offering and locations, and for additional franchising information, please visit www.dickswingsandgrill.com.
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 22nd year of operation, Dick's Wings prides itself on its award-winning chicken wings and hog 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 six 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, two restaurants in Texas, one restaurant in Nevada and one restaurant in 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.