UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 12, 2007
Commission file number 0-14030
New York 13-3156768
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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85 Fifth Avenue
New York, NY 10003
(Address of principal executive offices, with zip code)
(212) 206-8800
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
The information in this Current Report is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On February 12, 2007, Ark Restaurants Corp. issued a press release announcing its financial results for its fist quarter ended December 30, 2006, the text of which is furnished herewith as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARK RESTAURANT CORP.
By: /s/ Michael Weinstein
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Chief Executive Officer
Date: February 12, 2007
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INDEX TO EXHIBITS
Exhibit Description
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99.1 Press Release dated February 12, 2007 entitled "Ark Restaurants
Announces First Quarter Financial Results."
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Exhibit 99.1
Ark Restaurants Announces First Quarter Financial Results
NEW YORK--(BUSINESS WIRE)--Feb. 12, 2007--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 30, 2006.
Total revenues from continuing operations for the three-month period ended December 30, 2006 were $28,202,000 versus $25,963,000 in the three months ended December 31, 2005.
EBITDA from continuing operations for the three-month period ended December 30, 2006 was $3,302,000 versus $2,522,000 during the same three-month period last year. The Company's income from continuing operations for the three-month period ended December 30, 2006 was $1,822,000, or $0.51 per share ($0.51 per diluted share), as compared to $1,307,000, or $0.37 per share ($0.37 per diluted share), for the same three-month period last year.
Compared to last year's first quarter, Company-wide same store sales increased 7.0%. Compared to the same period last year, same store sales in the Company's New York City operations increased by 17.2%, same store sales in the Company's Las Vegas operations increased by 3.8% and same store sales in the Company's Washington D.C. operations decreased by 1.0%. Sales from the Company's Las Vegas operations represented 55.4% of the Company's total sales during the three-month period ended December 30, 2006.
Net income for the three-month period ended December 30, 2006 was $6,590,000 versus $916,000 in the three months ended December 31, 2005. Net income for the three-month period ended December 30, 2006 includes a $5,196,000 net gain after taxes from the sale of the Company's Lutece and Tsunami facilities at the Venetian Casino Resort.
As of December 30, 2006, the Company had no debt and cash and short term investments totaling $19,183,000. Subsequently, on February 1, 2007, the Company paid approximately $12 million in dividend payments related to its special dividend of $3.00 per share and its regular quarterly dividend of $0.35 per share which were declared on December 20, 2006.
Also, on January 8, 2007, the Company began operating the Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts.
Ark Restaurants owns and operates 24 restaurants and bars, 25 fast food concepts, catering operations and wholesale and retail bakeries. Eight restaurants are located in New York City, four are located in Washington, D.C., eight are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, three are located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and nine food court concepts; two bars within the Venetian Casino Resort as well as three food court concepts. In Las Vegas, the Company also owns and operates one restaurant within the Forum Shops at Caesar's Shopping Center. The Florida operations under management include five fast food facilities in Tampa, Florida and eight fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace.
Except for historical information, this news release contains forward-looking statements, which 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 fillings 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.
13 weeks ended 13 weeks ended
December 30, December 31,
2006 2005
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TOTAL REVENUES $ 28,202 $ 25,963
COST AND EXPENSES:
Food and beverage cost of sales 7,032 6,349
Payroll expenses 8,898 8,338
Occupancy expenses 3,992 4,081
Other operating costs and expenses 3,238 3,161
General and administrative expenses 1,983 1,722
Depreciation and amortization expenses 638 566
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Total costs and expenses 25,781 24,217
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OPERATING INCOME 2,421 1,746
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OTHER INCOME:
Interest income 110 25
Other income 243 210
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Total other income 353 235
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Income from continuing operations before
income taxes 2,774 1,981
Provision for income taxes 929 674
Limited partner interest in income of
variable interest entity (23) -
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Income from continuing operations 1,822 1,307
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DISCONTINUED OPERATIONS:
Income (loss) from operations of
discontinued restaurants 7,156 (593)
Provision (benefit) for income taxes 2,398 (202)
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Income (loss) from discontinued
operations 4,758 (391)
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Income before cumulative effect of change
in accounting principle 6,580 916
Cumulative effect of change in accounting
principle 10 -
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NET INCOME $ 6,590 $ 916
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PER SHARE INFORMATION - BASIC AND
DILUTED:
Continuing operations basic $ .51 $ .37
Discontinued operations basic $ 1.33 $ (.11)
Cumulative effect of change in accounting
principle $ .00 $ .00
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Net basic $ 1.84 $ .26
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Continuing operations diluted $ .51 $ .37
Discontinued operations diluted $ 1.33 $ (.11)
Cumulative effect of change in accounting
principle $ .00 $ .00
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Net diluted $ 1.84 $ .26
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WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,571 3,462
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WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED 3,576 3,546
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Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 2,774 $ 1,981
Depreciation and amortization 638 566
Interest (110) (25)
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EBITDA (a) $ 3,302 $ 2,522
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Continuing Operations EBITDA adjusted for
non-cash stock option expense
EBITDA (as defined) (a) $ 3,302 $ 2,522
Non-cash stock option expense 174 187
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EBITDA adjusted for non-cash stock option
expense $ 3,476 $ 2,709
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(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 the non-GAAP financial measure EBITDA 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, operating income, 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, net income, is included above.
CONTACT: Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com