Greenville, South Carolina, Nov. 15, 2022 (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 announced today that it expects to release financial results for the third quarter of 2022 before the market open Monday, November 28, 2022.
The Company will host a conference call on Monday November 28, 2022 at 12:00 pm Eastern Time to review the results for the Q3 interim period, provide an operational update and discuss recent milestones.
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 “Our Company has been a tremendous financial beneficiary of the COVID pandemic. The increased revenue from COVID testing and the successful completion of the previously announced reverse take-over transaction have helped us amass a cash balance of approximately US$11 million as of September 30, 2022. In turn, we are using these funds to significantly improve our traditional core business services and offerings in drug and alcohol testing and expand into new areas of business, such as opiate-addiction therapy. Throughout 2022, we have all seen a significant change in how we deal with COVID and how it impacts us day to day. This is having near term effects on our operating performance. However, we strongly believe that the investments we are making today will significantly benefit our shareholders going forward”.
Preliminary Q3 Financial Results of ARCpoint Group
Since the interim period ended September 30, 2022 predated the completion of the previously announced reverse takeover of the Company by the members of ARCpoint Group LLC (“ARCpoint Group”), the Company will prepare separate interim financial statements for the Company and ARCpoint Group for the interim period.
ARCpoint announced the following preliminary unaudited consolidated financial results of ARCpoint Group for its quarter ended September 30, 2022. The Company is in the process of finalizing the Q3 2022 financial results of the Company and ARCpoint Group. All results below are reported for ARCpoint Group under International Financial Reporting Standards and in US dollars.
- Total revenue for the three months ended September 30, 2022 is anticipated to be around $1.7 million compared to $4.8 million for the three months ended September 30, 2021. During the Q3 2021, high complexity PCR testing and low complexity rapid tests volumes were higher due to the COVID pandemic.
- Net loss for the three months ended September 30, 2022 is anticipated to be around $1.9 million compared to the net income of $1.3 million for the three months ended September 30, 2021.
- Operating cash flow for the three months ended September 30, 2022 is anticipated to be -$1.3 million compared to $0.5 million for the three months ended September 30, 2021.
Year-to-date financial highlights of ARCpoint Group:
- $9.6 million in total revenues for the nine months ended September 30, 2022 compared to $13.3 million for the nine months ended September 30, 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.
- $2.2 million in net loss for nine months ended September 30, 2022 compared to the net income of $4.2 million for the nine months ended September 30, 2021.
- $0.2 million in operating cash flow for the nine months ended September 30, 2022 compared to $4.3 million for the nine months ended September 30, 2021.
The financial information contained in this press release relating to the interim period ended September 30, 2022 is preliminary and is based on the latest unaudited management accounts for the nine-months ended September 30, 2022. The information contained in this press release has not been, and is not based on information that has been audited or reviewed by ARCpoint’s independent auditor. Investors are cautioned not to place undue reliance on these preliminary estimates.
Business Updates
New Franchise Sales and Locations:
The Company started 2022 with 113 franchise locations and had originally forecasted 30 franchise agreements to be sold in 2022. Year to date, the Company has sold 36 new franchise agreements.
Technology and Platform:
We continue to invest the revenues we received from COVID testing in our foundation of B2B hiring/onboarding services and providing access to diagnostic testing to consumers.
Our two investments in 2022, MyARCpoint Labs portal for consumer testing, and Total Reporting for our Business to Business portal continue to be developed on track and on time for release in Q1, 2023. MyARCpointLabs.com is transformative in how consumers will be able to find and order the clinical tests that are available within the ARCpoint system. Total Reporting was acquired earlier in 2022 and is on track for testing in Q4, 2022. Deployment of these portals to our franchisee system will allow ARCpoint’s franchisees to market more services, such as background checks and employer physicals through a more efficient platform.
Business Management:
The time to open for our franchisees has been reduced from 303 days historically to 266 days YTD shortening the ramp up of our franchisees to joining ARCpoint.
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 120 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:
ARCpoint Inc.
Jason Tong, Chief Financial Officer
Phone: (604) 889-7827
E-mail: invest@arcpointlabs.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
Preliminary and unaudited financial results herein are subject to customary financial statement procedures by the Company and its auditors. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information.
Financial Outlook - this news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for ARCpoint Group’s forecasted revenue for the Q3 2022 ended September 30, 2022 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward Looking Information” below. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, since this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward Looking Information” below, it should not be relied upon as necessarily indicative of future results.
Future Looking Information – this news release contains “forward-looking information” within the meaning of applicable Canadian securities laws which are based on ARCpoint’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy. Forward-looking information included in this press release includes, but is not limited to, statements in respect to the Company’s forested financial results for ARCpoint Group’s Q3 interim period ended September 30, 2022 and the expected timeline for deploying ARCpoint’s online portals
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Froward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the ability of the Company to implement its business strategies, the COVID-19 pandemic; competition and other risks.
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.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.
