News Column

Ark Restaurants Announces Financial Results for the Second Quarter of 2014

May 9, 2014

NEW YORK--(BUSINESS WIRE)-- Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the second quarter ended March 29, 2014.

Total revenues for the three-month period ended March 29, 2014 were $31,037,000 versus $29,090,000 for the three months ended March 30, 2013. The three-month period ended March 29, 2014 includes revenues of $1,642,000 related to The Rustic Inn, which was acquired on February 24, 2014 and $653,000 related to Broadway Burger Bar, which was opened in the Tropicana Hotel and Casino during June 2013.

Total revenues for the six-month period ended March 29, 2014 were $63,176,000 versus $60,426,000 for the six months ended March 30, 2013. The six-month period ended March 29, 2014 includes revenues of $1,642,000 related to The Rustic Inn, which was acquired on February 24, 2014 and $1,247,000 related to Broadway Burger Bar, which was opened in the Tropicana Hotel and Casino during June 2013. The six-month period ended March 30, 2013 includes revenues of $414,000 related to two properties closed in 2013.

Company-wide same store sales decreased 1.5% for the three-month period ended March 29, 2014 compared to the same three-month period last year. Company-wide same store sales increased 0.2% for the six-month period ended March 29, 2014 compared to the same six-month period last year.

The Company’s EBITDA adjusted for non-cash stock option expense and non-controlling interests for the three-month period ended March 29, 2014 was $1,124,000 versus $686,000 during the same three-month period last year. Net loss for the three-month period ended March 29, 2014 was ($174,000), or ($0.05)per basic and diluted share, as compared to ($265,000), or ($0.08)per basic and diluted share for the same three-month period last year.

The Company’s EBITDA adjusted for non-cash stock option expense and non-controlling interests for the six-month period ended March 29, 2014 was $3,325,000 versus $2,064,000 during the same six-month period last year. Net income for the six-month period ended March 29, 2014 was $389,000, or $0.12per basic share, $0.11 per diluted share, as compared to a net loss of ($257,000), or ($0.08)per basic and diluted share for the same six-month period last year.

On February 24, 2014, the Company completed its acquisition of The Rustic Inn Crabhouse (“The Rustic Inn’) in Dania Beach, Florida for a total purchase price of approximately $7,710,000. The acquisition was financed with a bank loan in the amount of $6,000,000 and cash from operations. The Consolidated Condensed Statement of Operations for the 13 and 26-weeks ended March 29, 2014 includes revenues and earnings of approximately $1,642,000 and $352,000, respectively related to The Rustic Inn. Transaction costs incurred in the amount of approximately $150,000 are included in general and administrative expenses in the Consolidated Condensed Statement of Operations for the 13 and 26-weeks ended March 29, 2014.

As of March 29, 2014, the Company had cash and cash equivalents totaling $5,567,000. The Company had a seller note from the purchase of 250,000 shares of treasury stock in December 2011 with an outstanding balance of $708,000 at March 29, 2014. The Company also had a bank note for the purchase of membership interests in Ark Hollywood/Tampa Investment, LLC and the purchase of The Rustic Inn with an outstanding balance of $7,849,000 at March 29, 2014.

Ark Restaurants owns and operates 21 restaurants and bars, 22 fast food concepts and catering operations in New York City, Washington, D.C.and Las Vegas, NV. Five restaurants are located in New York City, three are located in Washington, D.C., seven are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut, one is located in Boston, Massachusetts and one is located in Dania Beach, Florida. The Las Vegas operations include five restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; one bar within the Venetian Casino Resort, as well as three food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino include one fast food concept and one restaurant. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations include The Rustic Inn in Dania Beach, Florida and the operation of five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations.

Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve unknown risks, and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the Company's filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.

 
ARK RESTAURANTS CORP.
Consolidated Condensed Statements of Income
For the 13 and 26-week periods ended March 29, 2014 and March 30, 2013
       
(In Thousands, Except per share amounts)
 
13 weeks ended 13 weeks ended 26 weeks ended 26 weeks ended
 
March 29, March 30, March 29, March 30,

2014

2013

2014

2013

 
TOTAL REVENUES $31,037   $29,090   $63,176   $60,426  
 
COST AND EXPENSES:
 
Food and beverage cost of sales 8,373 7,434 16,227 15,183
Payroll expenses 10,559 10,118 21,038 20,962
Occupancy expenses 4,154 4,086 8,555 8,621
Other operating costs and expenses 4,322 4,057 8,529 8,397
General and administrative expenses 2,374 2,756 5,223 5,166
Depreciation and amortization   1,106     921     2,253     2,097  
 
Total costs and expenses   30,888     29,372     61,825     60,426  
 
OPERATING INCOME (LOSS)   149     (282)   1,351     -  
 
OTHER (INCOME) EXPENSE:
 
Interest (income) expense, net 33 9 46 9
Other income, net   (115)   (93)   (181)   (172)
Total other income, net   (82)   (84)   (135)   (163)
 
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 231 (198 ) 1,486 163
 
Provision (benefit) for income taxes   81     (58)   480     56  
 

CONSOLIDATED NET INCOME (LOSS)

150 (140 ) 1,006 107
 
Net income attributable to non-controlling interests   (324)   (125)   (617)   (364)
 
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. $(174)$(265)$389   $(257)
 
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
Basic $(0.05)$(0.08)$0.12   $(0.08)
Diluted $(0.05)$(0.08)$0.11   $(0.08)
 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic   3,262     3,245     3,259     3,245  
Diluted   3,262     3,245     3,405     3,245  
 
EBITDA Reconciliation:
Pre tax income (loss) $ 231 $ (198 ) $ 1,486 $ 163
Depreciation and amortization 1,106 921 2,253 2,097
Interest expense, net   33     9     46     9  
EBITDA (a) $1,370   $732   $3,785   $2,269  
 
EBITDA adjusted for non-cash stock option expense and non-controlling interests:
EBITDA (as defined) (a) $ 1,370 $ 732 $ 3,785 $ 2,269
Non-cash stock option expense 78 79 157 159
Net income attributable to non-controlling interests   (324)   (125)   (617)   (364)
EBITDA, as adjusted $1,124   $686   $3,325   $2,064  
 
 
(a) EBITDA is defined as earnings before interest, taxes, depreciation and amortization and cumulative effect of changes in accounting principle. Although EBITDA is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles (GAAP), the Company believes the use of this non-GAAP financial measure enhances an overall understanding of the Company's past financial performance as well as providing useful information to the investor because of its historical use by the Company as both a performance measure and measure of liquidity, and the use of EBITDA by virtually all companies in the restaurant sector as a measure of both performance and liquidity. However, investors should not consider this measure in isolation or as a substitute for net income (loss), operating income (loss), cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of EBITDA to the most comparable GAAP financial measure, pre-tax income, is included above.
 





Ark Restaurants Corp.

Robert Stewart, 212-206-8800

bstewart@arkrestaurants.com

Source: Ark Restaurants Corp.


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Source: Business Wire