American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick’s Wings & Grill® restaurants, announced strong financial results for its first quarter 2013 fiscal year. The Company generated an increase in royalty revenue along with a significant reduction in its outstanding debt, resulting in net income of $210,000 or $0.01 per share.
Q1 2013 Financial Highlights
— Royalty revenue increased 8% to $90,254 during Q1 2013, from $83,676 for
Q1 2012.
— Average royalty revenue per active restaurant increased 21% to $5,641
for Q1 2013, as compared to$4,649 during the year ago period.
— Debt obligations decreased 38% to $256,652 as of March 31, 2013 compared
to $413,603 during the same period last year.
— Net income was $209,828, or $0.01 per share, during Q1 2013, compared to
a net loss of $94,658 during Q1 2012.
Q1 2013 Achievements
In March 2013, American Restaurant Concepts entered into a settlement and release agreement with Bank of America, its largest debt holder, with respect to its outstanding debt obligation. The Company paid Bank of America $50,000 in full and final settlement of the approximately $370,000 of outstanding debt, accrued interest and other related charges that were owed. The settlement of this debt resulted in a 68% reduction in the Company’s outstanding debt obligations and an 86% reduction in the amount of interest expense incurred by the Company on an annual basis.
The Company also successfully strengthened the sales, operations and general business of its franchisees, via additional support personnel, point of sale improvements and store image enhancements, resulting in substantial growth in franchisee sales and profitability.
“I am very pleased with our results this quarter and the goals we have been able to achieve thus far,” stated Michael Rosenberger, CEO of American Restaurant Concepts.
“Debt reduction has been a key focal area and I am proud of our team’s ability to substantially reduce our outstanding debt and annual interest payments. In addition to our debt reduction efforts, I’m encouraged by the pace at which we’ve been able to grow royalty revenues per restaurant in such a short period of time. We continue to make improvements that benefit our customers, franchisees and shareholders.”