Monday, April 1, 2019 8:00 AM
JACKSONVILLE, FL / ACCESSWIRE / April 1, 2019 / ARC Group, Inc. (OTCQB: ARCK), a restaurant holding company with a focus on diversified, full-service restaurants and brands, today announced financial results for the fourth quarter and year ended December 31, 2018.
2018 financial highlights:
Revenue increased 350% to $4,632,344 during Q4 2018 from $1,029,523 for Q4 2017.
Revenue increased 123% to $9,500,537 for the full 2018 year from $4,257,577 for full 2017 year.
Cash flows from operating activities increased 93% to $478,238 for 2018 from $248,345 for 2017.
Net loss was $282,483, or $(0.04) per share, during 2018 compared to net income of $344,740, or $0.05 per share, during 2017.
Total assets were $14,673,337 at December 31, 2018 compared to $558,226 at December 31, 2017.
Seenu G. Kasturi, CEO of ARC Group, stated, “We are pleased to report that our revenue increased 350% to approximately $4.6 million for the fourth quarter of 2018 as we continue to grow both organically and through our recent acquisition of Fat Patty’s®. I am also pleased to report that we generated approximately $500,000 of cash flow from operations for the year even though we are in the early growth stage. Moreover, we have built a highly scalable business model. While our investment in enhancing our franchising, marketing, and operational infrastructure resulted in us generating a net loss for the year, we expect to significantly improve our cash flow and profitability as we leverage this infrastructure across a growing number of brands.”
“On a standalone basis, our Dick’s Wings & Grill® franchise generated a 30% increase in revenue during 2018 compared to the same period last year, primarily due to the opening of new company-owned restaurants. At the same time, our integration of Fat Patty’s®, which generated $3,798,484 during 2018, is progressing seamlessly, further validating our business strategy of acquiring restaurant brands that are growing and profitable as well as restaurant brands that are underperforming but which can be acquired at an attractive multiple and turned around quickly.”
“We are close to completing our acquisition of the Tilted Kilt Pub and Eatery® which will bring our combined annualized revenue run rate to over $25 million. At the same time, we are evaluating a number of other attractive acquisition targets in the marketplace that would provide us with additional brands and offer us product and geographic diversification.”
About ARC Group, Inc.
ARC Group, Inc., headquartered in Jacksonville, Florida, is a holding company with a focus on the casual dining restaurant industry. ARC is the owner, operator and franchisor of Dick’s Wings & Grill®, a family-oriented restaurant chain with locations in Florida and Georgia. Now in its 23rd year of operation, Dick’s Wings serves over 25,000 wings daily, and prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings. ARC operates four company-owned restaurants, three company-owned concession stands, and has 19 franchise locations. ARC also owns the Fat Patty’s® concept, with four locations in West Virginia and Kentucky. Fat Patty’s offers a number of specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners in a family friendly, casual dining environment.
Pro Forma Financial Information
The pro forma financial information included in this press release was prepared by management for illustrative purposes only using unaudited financial information for Fat Patty’s and Tilted Kilt that was provided to ARC Group by Fat Patty’s and Tilted Kilt, respectively. The pro forma financial information is not necessarily indicative of the financial position or results of operations that would have been realized had ARC Group completed the acquisition of Fat Patty’s and Tilted Kilt on January 1, 2018, nor is it meant to be indicative of any anticipated financial position or future results of operations that ARC Group or Tilted Kilt will experience in the event the acquisition of Tilted Kilt is completed in the future. In addition, the pro forma financial information does not include any pro forma adjustments to reflect any operational efficiencies, cost savings or economies of scale that may be achievable, or the impact of any non-recurring charges and transaction-related costs that result directly from the proposed acquisition. Future results of operations are also subject to risks and uncertainties that could cause such results to differ materially from those reflected in the pro forma financial information. Readers are cautioned not to place undue reliance on the pro forma financial information presented in this press release. See “Safe Harbor Provision” below regarding forward-looking statements presented in this press release.
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, 2018 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.
David Waldman / Natalya Rudman
Crescendo Communications, LLC
SOURCE: ARC Group, Inc.