ARC Group, Inc. Announces Record 2017 Financial Results
PR Newswire
JACKSONVILLE, Fla., April 2, 2018
JACKSONVILLE, Fla., April 2, 2018 /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 2017 fiscal year highlighted by record revenue, net income and cash flows from operations.
2017 Financial Highlights
The Company achieved the following financial results for its 2017 fiscal year:
Revenue increased 248% to $4,445,663 for 2017 from $1,275,448 for 2016.
Loss from operations decreased $728,611 to $84,614 during 2017 compared to $813,225 during 2016.
Adjusted income from operations, a non-GAAP measure, was $388,591 during 2017 compared to $380,790 during 2016.
Net income was $344,740, or $0.05 per share, during 2017 compared to net loss of $813,713, or $0.12 per share, during 2016.
Adjusted net income, a non-GAAP measure, was $388,591 during 2017 compared to $380,790 during 2016.
Adjusted net income per share was $0.06 for 2017 and 2016.
Cash flows from operations was $248,345 during 2017 compared to cash used by operations of $10,087 during 2016, an improvement of $258,432.
A reconciliation of adjusted income from operations, 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".
"We are very excited about our 2017 results," stated Richard W. Akam, Chief Executive Officer of ARC Group. "The revenue, net income and cash flows that we generated this past year are by far the best we have achieved since becoming a publicly-traded company in 2011. Our financial results were positively impacted by the two company-owned restaurants that we purchased in December 2016 through our acquisition of Seediv. We generated $3,502,080 of sales through these restaurants during 2017, a substantial increase from the $130,861 that we generated during the short period that we owned them during 2016."
"Our results from continuing operations were very strong this past year when you consider the effects of certain non-cash expenses and other one-time items," stated Seenu G. Kasturi, President and Chief Financial Officer of ARC Group. "These charges collectively accounted for more than $470,000. With these charges added back, our adjusted income from operations was $388,591. Our cash flows were similarly very strong this year, as we generated $248,345 in positive cash flow from operating activities."
2017 Highlights and Outlook
The Company had several notable achievements during 2017, including the following:
Seenu G. Kasturi was appointed as the Company's President, Chief Financial Officer and Chairman of the Board of Directors.
The Company entered into a new partnership with the NFL's Jacksonville Jaguars under which it will serve as a sponsor of the Jaguars for the next five football seasons under the designation "Official Wings of the Jacksonville Jaguars" and operate two concession stands at TIAA Bank Field (formerly EverBank Field).
The Company implemented an innovative stock incentive program for its franchisees to promote and more closely align the interests of the Company's franchisees with those of its shareholders.
"We also hired Eide Bailly LLP, one of the largest accounting firms in the country, as our new independent accounting firm this past year," stated Akam. "Many of the steps that we took during 2017 were designed to position us for our next phase of growth. We intend to continue strengthening and growing our legacy Dick's Wings brand as well as acquiring financial interests in leading restaurant brands that will offer us product and geographic diversification. We also intend to continue to focus on our operational efficiencies and formalizing best practices throughout our franchise. This will help us achieve our long-term goal of transforming ARC Group into a holding company comprised of a diversified portfolio of leading brands and profitable businesses that are all strong contributors to 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 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.
