JACKSONVILLE, Fla., Aug. 21, 2017 /PRNewswire/ — ARC Group, Inc. (OTC: ARCK), the owner, operator and franchisor of the award-winning Dick’s Wings & Grill® concept, announced financial results for its fiscal quarter ended June 30, 2017, reporting record revenue of $1,091,854 for the quarter.
The Company achieved the following financial results for its fiscal quarter ended June 30, 2017:
- Revenue increased 265% to $1,091,854 for the three months ended June 30, 2017 from $299,201 for the corresponding period in 2016.
- Revenue was $2,180,650 for the six months ended June 30, 2017 compared to $607,816 for the corresponding period in 2016
- Net income and net income per share were $87,764, or $0.01 per share, during the six months ended June 30, 2017 compared to $250,174 or $0.04 per share, during the six months ended June 30, 2016.
- EBITDA, a non-GAAP measure, was $111,319 during the six months ended June 30, 2017 compared to $247,259 during the six months ended June 30, 2016.
- Adjusted net income and adjusted earnings per share, which are non-GAAP measures, were $318,171, or $0.05 per share, during the six months ended June 30, 2017 compared to $267,234, or $0.04 per share, during the corresponding period in 2016.
- Cash flows from operating activities increased $82,037 to $275,897 during the six months ended June 30, 2017 from $193,860 during the corresponding period in 2016.
Balance Sheets — 6-30-17
Statements of Operations — 6-30-17
Reconciliation of GAAP to Non-GAAP — 6-30-17
A reconciliation of EBITDA, adjusted net income and adjusted earnings per share on a GAAP and non-GAAP basis is included in the table below entitled “Reconciliation of GAAP to non-GAAP Financial Measures”.
“The first six months of 2017 were a very exciting time for us,” stated Richard W. Akam, Chief Executive Officer of ARC Group. “We generated solid cash flows from operations on record revenue during this period. We are actively seeking to grow the number of Dick’s Wings & Grill restaurants that we have. We are also currently evaluating several acquisition targets that would add new restaurants of leading brands to our portfolio.”
“Our financial results and financial position continued to excel on a comparative basis to last year,” added Seenu G. Kasturi, President and Chief Financial Officer of ARC Group. “We generated $275,897 of cash flow from operations on record revenue of $2,180,650 for the first six months of 2017. The increase in revenue was due primarily to our December 2016 acquisition of Seediv, which owns two of our highest grossing Dick’s Wings & Grill restaurants. Seediv contributed $1,754,465 of revenue to ARC Group during the first half of 2017. We ended the second quarter in the strongest cash position that we have been in since becoming a publicly-traded company, and we recently paid down more than $250,000 in debt, leaving us with little outstanding debt.”
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 Florida, Georgia, Alabama, Louisiana, North Carolina and South Carolina. For more information about Dick’s Wings exciting menu offering and locations, and for additional franchising information, please visit www.dickswingsandgrill.com.
Non-GAAP Financial Measures
ARC Group, Inc. (the “Company”) prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial information prepared in accordance with GAAP, this release also includes non-GAAP EBITDA, non-GAAP adjusted net income and non-GAAP adjusted net income per share data for the periods presented. Management uses non-GAAP financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company’s management believes that these non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the company’s core business operations, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
These non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings. Accordingly, they may be different from similar non-GAAP financial measures presented by other companies. These non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP financial measures. Investors should consider these non-GAAP financial measures as a supplement to, and not as a substitute for, corresponding financial measures calculated in accordance with GAAP.
For the purposes of this press release, the following non-GAAP financial measures have the following meanings:
“EBITDA” means earnings before income taxes, depreciation and amortization, and is comprised of net income plus interest (income) / expense and depreciation expense.
“Adjusted net income” means EBITDA plus all remaining non-cash items, which are comprised of stock-based compensation expense and (income) / loss from investment in Paradise on Wings.
“Adjusted earnings per share” means adjusted net income divided by the weighted average number of shares outstanding – basic and fully diluted.
For further information, please refer to the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 18, 2017 and available online at www.sec.gov.
For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please see the table below entitled “Reconciliation of GAAP to Non-GAAP Financial Measures”.
About ARC Group, Inc.
ARC Group, Inc., headquartered in Jacksonville, Florida, is the owner, operator and franchisor of the Dick’s Wings & Grill concept. Now in its 23rd 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. It also offers its own proprietary line of craft beers under the name “Dick’s Craft 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.
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, 2016 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.