American Restaurant Concepts, Inc., the operator and franchisor of America's award-winning Dick's Wings restaurants, announced today record financial results for its third fiscal quarter ended September 30, 2012. The Company improved substantially upon the financial results that it had achieved for its second fiscal quarter ended June 24, 2012, generating record revenue, net income and cash flows from operations.
Q3 2012 Financial Highlights
- Revenue increased 51% to $160,527 for Q3 2012 from $106,394 for Q2 2012.
- Operating expenses decreased 81% to $108,066 for Q3 2012 from $581,682 for Q3 2011.
- Income from operations was $52,461 and operating margin was 33% for Q3 2012 compared to an operating loss of $(467,317) for Q3 2011.
- Net income totaled $42,375 for Q3 2012 compared to net income of $5,426 for Q2 2012 and a net loss of $(520,934) for Q3 2011.
- Cash flows from operating activities were $44,363 for Q3 2012 compared to $5,181 and $(12,639) for Q2 2012 and Q3 2011, respectively.
"We are very proud of our stellar financial results," stated Michael Rosenberger , CEO of American Restaurant Concepts. "We were able to generate strong sequential revenue growth through a combination of increased franchise fees associated with the new Dick's Wings® restaurant under construction in Nocatee, Florida, and increased royalties associated with greater foot traffic from customers at our existing restaurants and the opening of our second restaurant in St. Augustine, Florida earlier this year."
Mr. Rosenberger continued, "American Restaurant Concepts continues to diligently execute upon the high-growth strategy that we set into motion at the beginning of the year. Our performance this quarter reflects the substantial effort we've made to grow our revenue, while keeping our operating costs in check. These are fundamental elements of our long-term business model. We also continued to strengthen our balance sheet and, as a result, have developed a stronger foundation on which to pursue our growth strategies. The work we are doing now will enhance our competitiveness, while positioning American Restaurant Concepts for sustainable and accelerated growth as well as long term value creation for our shareholders."
Outlook
The Company continues to maintain a positive outlook for the remainder of 2012 and for 2013, and expects to continue generating strong revenue, net income and cash flows for the foreseeable future. The Company is currently in negotiations for a number of new Dick's Wings® restaurants in Florida and other states, and expects the transaction between Mr. Rosenberger and Seenu Kasturi , CEO of Blue Victory Holdings, to close later this week. These events, coupled with modest improvements in the U.S. and Florida economies, and continued growth in the restaurant industry, will enable the Company to achieve sustainable growth in its top and bottom line in future periods.
"Many industry and market prospects are on balance, favorable to us," stated Mr. Rosenberger. "The U.S. and Florida economies are improving, and consumer preferences for eating out continue to trend upwards. As such, we are aggressively pursuing our key strategic initiatives of opening additional franchised restaurants in the Company's existing Florida territory, expanding into new territories in the South and Southeastern United States through area development agreements, and acquiring financial interests in large numbers of franchised restaurants located across the country."
"Our focus for the remainder of the year rests squarely on the execution of our strategic growth plan," continued Mr. Rosenberger. "We will continue to enhance our brand support through increased advertising and marketing, and accelerate innovative improvements to our menu to drive growth. Looking ahead, we are well positioned to deliver greater value to our shareholders. Given our performance thus far this year, we are very excited about what the future holds in store for us."
