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AMHG OTCM· Amergent Hospitality Group Inc.
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AMHG OTCM· Amergent Hospitality Group Inc.
Earnings report Q4 2022

AMHG Reports Slight Increase in Revenue for Latest Quarter

Segments of revenue

In the latest quarter, AMHG reported total revenue of $21.29 million, a slight increase from $20.65 million in the same quarter of the previous year. The breakdown of revenue by segment is as follows:

  • Restaurant sales, net: $19.68 million, slightly down from $19.80 million in the previous year's quarter.
  • Gaming income, net: $493,000, showing a slight increase from $403,000 in the same quarter of the previous year.
  • Franchise income: $1.12 million, a significant increase from $452,000 in the previous year's quarter.

Strengths

AMHG's revenue performance in the latest quarter demonstrates resilience and growth potential. Despite a slight decline in restaurant sales, the company managed to offset it with increased gaming income and a substantial surge in franchise income. This indicates the company's ability to diversify its revenue streams and capitalize on the franchise business model.

Challenges

AMHG faces challenges in managing restaurant cost of sales, which increased to $6.38 million from $6.17 million in the previous year's quarter. Additionally, the company experienced higher general and administrative expenses, reaching $5.58 million compared to $5.21 million in the same quarter of the previous year. These challenges highlight the need for cost control measures and operational efficiency.

Noteworthy

It is worth noting that AMHG received an employee retention credit and other grant income of $2.21 million in the latest quarter, which contributed to offsetting some of the operating losses. This income item is not a recurring source of revenue and should be considered as an extraordinary item.

Summary

AMHG's latest quarter showed a slight increase in revenue, primarily driven by growth in gaming income and franchise income. The company's ability to diversify its revenue streams is a strength, while challenges lie in managing restaurant costs and general administrative expenses. The receipt of employee retention credit and other grant income provided a temporary boost to offset operating losses. Overall, AMHG's performance in the latest quarter demonstrates resilience and potential for growth.

Source documents

Form 10-K  filed on Jul 15, 2023
21 pages scanned

Reference data

Company financials Q4 revenue 4.7M
Analyst estimates Q4 EPS missed by NaN%
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