ARCPOINT TO HOST CONFERENCE CALL TO PROVIDE BUSINESS UPDATE AND DISCUSS 2022 Q4 AND FULL YEAR FINANCIAL RESULTS
Greenville, South Carolina, April 13, 2023 (GLOBE NEWSWIRE) — ARCpoint Inc. (TSXV: ARC) (the “Company” or “ARCpoint”) a leading US-based franchise system providing drug testing, alcohol screening, DNA and clinical lab testing services announces that it will host a conference call on Monday, April 17, 2023 at 11:30 am Eastern time to review the Company’s 2022 Q4 financial results and audited financial results for the year ended December 31, 2022, and provide an operational update.
The dial-in number for the conference call is as follows:
Canada / USA Toll Free 1-800-319-4610
International Toll 1-604-638-5340
Callers should dial in 5 – 10 min prior to the scheduled start time and ask to join the ARCpoint call:
ARCpoint’s President and CEO, John Constantine commented “With the costs associated with developing a new, integrated technology platform, building new operations systems and becoming a public company now largely behind us, we have taken aggressive steps to reduce our monthly cash burn and protect the US$7.1 million cash on hand at year end”.
As reported March 8, 2023, effective April 1, 2023, the Company enacted a headcount reduction representing approximately 30% of the Company’s salary costs. The majority of these cuts took place at the upper management and executive levels allowing the Company to continue to serve its franchisees with the same direct contacts. As part of the cost-cutting process, the Company also enacted cost-saving measures representing approximately 20% of operating costs.
As at December 31, 2022, the Company had total cash on hand of approximately US$7.1 million, comprised of US$6 million in unrestricted cash and cash equivalents and US$1.1 million in Brand Fund restricted cash. Use of Brand Fund restricted cash is at the Company’s discretion and is used to increase sales and the brand presence of the Company’s entities and franchisees.
Mr. Constantine added, “We are also working hard to increase our revenues by continuing to add new franchisee locations and increasing the amount of business flowing through all locations. The rollout of our new integrated technology platform will be key to increasing our revenues. We expect it to help better monetize our current 134 locations by making it easier for franchisees to transact more business and offer new products and services. The platform will also make it easier for individual consumers to find and order the ARCpoint tests and services they want, as well as review their test results. And, our new platform will also allow third-party businesses to offer our products and services to their customers”.
The Company has now largely completed its integrated technology platform comprised of MyARCpointLabs and Total Reporting. The MyARCpointLabs portal for direct to consumer testing and deployment in alternative channels is expected to be transformative in how consumers will be able to find and order the clinical tests that are available through the ARCpoint system. Total Reporting, the Company’s Business to Business portal, will allow ARCpoint’s franchisees to market more services, such as background checks and employer physicals through a more efficient, integrated platform. Both MyARCpointLabs and Total Reporting are currently in “soft launch” and are expected to be in full roll out mode during the second quarter of 2023.
Summary of Q4 Financial Results
All results below are reported under International Financial Reporting Standards and in US dollars.
- Total revenue for the three months ended December 31, 2022 was $1.3 million compared to $5.8 million for the three months ended December 31, 2021. During Q4 2021, high complexity PCR testing and low complexity rapid tests volumes were significantly higher due to the COVID pandemic.
- Net loss for the three months ended December 31, 2022 was $6.1 million compared to net income of $1.5 million for the three months ended December 31, 2021.
- Operating cash flow for the three months ended December 31, 2022 was negative $0.3 million compared to positive $0.9 million for the three months ended December 31, 2021.
Summary of 2022 Year-End Audited Financial Results
- Total revenues of $10.9 million for the twelve months ended December 31, 2022 compared to $19.2 million for the twelve months ended December 31, 2021. The COVID pandemic resulted in a significant rise in testing revenue for ARCpoint, including revenue from both high complexity PCR testing and low complexity rapid tests.
- Net loss of $8.3 million for twelve months ended December 31, 2022 compared to net income of $5.7 million for the twelve months ended December 31, 2021.
- Operating cash flow for the twelve months ended December 31, 2022 was negative $0.1 million compared to $5.2 million in positive operating cash flow for the twelve months ended December 31, 2021.
For more information, please see the audited annual financial statements and the annual Management Discussion & Analysis of the Company under the Company’s profile at www.sedar.com.
About ARCpoint Inc.
ARCpoint is a leading US-based franchise system providing drug testing, alcohol screening, DNA and clinical lab testing, corporate wellness programs, and employment and background screening, among other services. The Company is based in Greenville, South Carolina, USA. ARCpoint Franchise Group LLC, formed under the laws of the state of South Carolina in February 2005, is the franchisor of ARCpoint Labs and supports over 130 independently owned locations. ARCpoint sells franchises to individuals throughout the United States and provides support in the form of marketing, technology and training to new franchisees. ARCpoint Corporate Labs LLC develops corporate-owned labs committed to providing accurate, cost-effective solutions for customers, businesses and physicians. AFG Services LLC serves as the innovation center of the ARCpoint group of companies as it builds a proprietary technology platform and a physician network to equip all ARCpoint labs with best-in-class tools and solutions to better serve their customers. The platform also digitalizes and streamlines administrative functions such as materials purchasing, compliance, billing and physician services for ARCpoint franchise labs and other clients.
For more information, please contact:
Jason Tong, Chief Financial Officer
Phone: (604) 889-7827
E-mail: [email protected]
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.
All statements that address activities, events or developments that ARCpoint expects or anticipates will, or may, occur in the future, including statements about ARCpoint’s future growth, business prospects, future trends, plans and strategies, expected benefits from business activities and the Company’s prospects for new business are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Although the management of ARCpoint believes that the assumptions made and the expectations represented by such statements are reasonable.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of ARCpoint to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the healthcare services industry can be found in the Company’s 2022 Annual MD&A and its continuous disclosure record available on SEDAR. Although ARCpoint has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. Forward-looking information included in this press release includes, but is not limited to, statements in respect of the expected timeline for deploying ARCpoint’s online portals and the expected benefits of such online portals.
Such cautionary statements qualify all forward-looking statements made in this press release. ARCpoint undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Any forward-looking information speaks only as of the date on which it is made, and except as required by law, the Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering the forward-looking information contained herein, readers should keep in mind the risk factors and other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
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