ARC — Investor Presentation (April 2019)
16 slides from ARC's investor presentation, Apr 17, 2019
Slide 1: Investor Presentation
- Exhibit 99.1 Investor Presentation April 17, 2019 OTCQB: ARCK
Slide 2: Safe Harbor
Safe Harbor This presentation 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, in
Slide 3: Offering Summary
Offering Summary ARC Group, Inc. OTCQB / ARCK PIPE Up to 1,785,715 units, each unit comprised of one share of Series B Convertible Preferred Stock and one Warrant to purchase one share of Common Stock $1.40 per unit $500,000 $2,500,000, unless increased at the mutual discretion of us and Maxim Group
Slide 4: About ARC Group
About ARC Group * Restaurant management company with a focus on diversified, full service restaurants and brands * Parent company of Dick’s Wings and Gril + Family-oriented regional restaurant chain with locations in FL and GA ES GR ers + 4 company-owned restaurants and 3 company-owned concession st
Slide 5: Senior Management Team
Senior Management Team Seenu G. Kasturi, Chairman, CEO & CFO. Mr. Kasturi has served as our Chief Executive Officer since January 2, 2019 and has served as our Chief Financial Officer and Chairman of our board of directors since January 2017. He served as our President from January 2017 to January 2
Slide 6: Market Overview — Casual Dining
Market Overview — Casual Dining * Total restaurant-industry sales reached almost $800 billion in 2017) * Restaurant sales accounted for 4 percent of the U.S. GDP in 2017/2) * Casual dining is the most common of all restaurant types, comprising one- third of all venues in the U.S. 2) * The market has
Slide 7: Holding Structure/Value Proposition
Holding Structure/Value Proposition * Diversified portfolio of growing brands * Ability to leverage franchising, marketing, operational, logistics and financial expertise across brands ¢ Disciplined focus on driving sales, reducing costs and expanding margins * Increased purchasing power * Economies
Slide 8: Dick's Wings & Grill: Financial Performance
Dick’s Wings & Grill: Financial Performance * After our ownership change in 2013, ARC Group increased average sales volume per location from $699,000 in 2013 to $1,032,000 in 2018 — target average sales volume of $1 million per location * Innovative menu & unique brand products * Gift card programs
Slide 9: Multi-Pronged Growth Strategy
Multi-Pronged Growth Strategy Utilize proven strategies to drive sales growth Open new company-owned restaurant locations © Focus on key markets and what we believe to be most profitable brands for those markets Employ aggressive marketing campaign to drive growth in new franchise locations o Hire n
Slide 10: Acquisition Strategy
Acquisition Strategy * Intend to focus on growing, profitable businesses and underperforming businesses that could benefit from our experienced management team, training business programs, business model and partnerships * We believe the middle-market provides attractive multiples: targeting 3-6X EV
Slide 11: Fat Patty's Acquisition
Fat Patty’s Acquisition * Completed acquisition of Fat Patty’s in August 2018 * Own and operate 4 locations in West Virginia and Kentucky * Offers a number of specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners in a family friendly, casual dining environ
Slide 12: Tilted-Kilt Acquisition
Tilted-Kilt Acquisition ¢ Announced plans to acquire Tilted Kilt Pub and Eatery® * Goal to close in Q1 2019 * 29 locations in operation in 15 states and Canada * The Tilted Kilt franchise generated almost $14 million in revenue during 2017 * Requires us to raise approximately $2 million prior to clo
Slide 13: Financial Overview
Financial Overview IARC Group - Summary Income Statement For the Years Ended December 31, IARC Group - Summary Balance Sheet December 31, (in $USD) 2018 2017 (in $uso) 2018 2017 (Restated) Revenue: Assets Restaurant sales $ 8,374,022 $ 3,424,865 Cash and cash equivalents $ 345,228 $ 145,346 Franchis
Slide 14: Investment Highlights
Investment Highlights OTC: ARCK \rcGROUP 14
Slide 15: Key Statistics
Key Statistics Ticker: ARCK Exchange: OTCQB Share price (as of 4/12/2019): $1.70 Common stock outstanding (as of 4/12/2019): 7.3M Series A convertible preferred stock (as of 4/12/2019): 450K Shares of common stock underlying other convertible securities (as of 4/12/2019): 910K Market capitalization
Slide 16: Thank you.
Thank you. For additional information: Crescendo Communications, LLC David K Waldman/ Natalya Rudman Tel: 212-671-1021 Email: ARCK@crescendo-ir.com GROUP 16