Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial
results for the first quarter ended December 29, 2018.
Total revenues for the three-month period ended December 29,
2018 were $40,548,000 versus $39,340,000 for the three months ended
December 30, 2017.
Company-wide same store sales increased 2.9% for the three-month
period ended December 29, 2018 compared to the same three month
period in the prior year.
The Company’s EBITDA, adjusted for non-controlling interests,
non-cash stock option expense and losses incurred on the closure of
Durgin-Park discussed below, for the three-month period ended
December 29, 2018 was $2,543,000 versus $2,071,000 during the same
three-month period in the prior year.
As of December 29, 2018, the Company determined that it would
not be able to operate Durgin-Park profitably due to decreased
traffic at the Faneuil Hall Marketplace in Boston, MA, where it is
located, and rising labor costs. As a result, included in the
Statement of Operations for the 13 weeks ended December 29, 2018 is
a loss on closure in the amount of $1,067,000 consisting of: (i)
impairment of trademarks of $721,000, (ii) accelerated depreciation
of fixed assets of $333,000, and (iii) write-offs of prepaid
expenses of $13,000. The restaurant was closed on January 12,
2019.
Net income (loss) for the three-month period ended December 29,
2018, which includes losses as a result of non-cash write-offs on
the closure of Durgin-Park in the amount of $1,067,000, was
($62,000), or ($0.02) per basic and diluted share compared to net
income of $1,627,000, or $0.47 per basic share ($0.46 per diluted
share), for the same three-month period last year. The three-month
period ended December 30, 2017 includes a discrete income tax
benefit of $1.2 million related to changes in the tax law.
Ark Restaurants owns and operates 19 restaurants and bars, 19
fast food concepts and catering operations primarily in New York
City, Florida, Washington, D.C., Las Vegas, Nevada and the gulf
coast of Alabama. Five restaurants are located in New York City,
two are located in Washington, D.C., five are located in Las Vegas,
Nevada, three are located in Atlantic City, New Jersey, two are
located on the east coast of Florida and two are located on the
Gulf Coast of Alabama. The Las Vegas operations include four
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; 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 consist of one fast food concept. The Florida
operations include the Rustic Inn in Dania Beach, Shuckers, located
in Jensen Beach, the operation of five fast food facilities in
Tampa, and seven fast food facilities in Hollywood, each at a Hard
Rock Hotel and Casino operated by the Seminole Indian Tribe. In
Alabama, the Company operates two Original Oyster Houses, one in
Gulf Shores, Alabama and one in Spanish Fort, Alabama.
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
Statements of Operations For the 13 week periods ended
December 29, 2018 and December 30, 2017 (In
Thousands, Except per share amounts) 13 weeks ended
13 weeks ended December 29, December 30,
2018
2017
TOTAL REVENUES
$
40,548
$ 39,340 COST AND
EXPENSES: Food and beverage cost of sales 10,476 10,218
Payroll expenses 14,105 13,710 Occupancy expenses 5,005 5,031 Other
operating costs and expenses 4,975 5,117 General and administrative
expenses 3,409 3,079 Loss on closure of Durgin-Park 1,067 -
Depreciation and amortization
1,206
1,303 Total costs and expenses
40,243 38,458
OPERATING INCOME 305 882 INTEREST EXPENSE, net
(297 ) (219
) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME
TAXES 8 663 Provision (benefit) for income taxes
23 (1,078 )
CONSOLIDATED NET INCOME (LOSS) (15 ) 1,741 Net income
attributable to non-controlling interests
(47
) (114 ) NET
INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.
$
(62 ) $ 1,627
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON
SHARE: Basic
$ (0.02 )
$ 0.47 Diluted
$
(0.02 ) $ 0.46
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic
3,474 3,432
Diluted
3,474
3,549 EBITDA Reconciliation: Pre
tax income $ 8 $ 663 Depreciation and amortization 1,206 1,303
Interest expense, net
297
219 EBITDA (a)
$
1,511 $ 2,185
EBITDA, adjusted for non-controlling
interests, non-cash stock option expense and loss on closure of
Durgin-Park:
EBITDA (as defined) (a) $ 1,511 $ 2,185 Net income attributable to
non-controlling interests (47 ) (114 ) Non-cash stock option
expense 12 - Loss on closure of Durgin-Park
1,067 - EBITDA, as
adjusted
$ 2,543 $
2,071 (a) EBITDA is defined as earnings
before interest, taxes, depreciation and amortization. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190211005677/en/
Anthony J. Sirica(212)
206-8800ajsirica@arkrestaurants.com
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