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 13, 2006
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 13, 2006, Ark Restaurants Corp. issued a press release announcing its first quarter financial results for 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 13, 2006
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INDEX TO EXHIBITS
Exhibit Description
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99.1 Press Release dated February 13, 2006 titled "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. 13, 2006--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the first quarter
ended December 31, 2005.
Total revenues from continuing operations for the three-month
period ended December 31, 2005 were $27,362,000 versus $26,683,000 in
the three months ended January 1, 2005.
Beginning with this quarter, the Company became subject to SFAS
No. 123(R), "Share-Based Payment", issued by the Financial Accounting
Standards Board. SFAS No. 123(R) requires that the Company expense
costs related to share-based payment transactions with employees. With
limited exceptions, SFAS No. 123(R) requires that the fair value of
share-based payments to employees be expensed over their vesting
period. By becoming subject to SFAS No. 123(R), the Company was
required to recognize $187,000 of additional compensation expense
during the quarter which resulted in a non-cash reduction in EBITDA of
$187,000 and a non-cash reduction in earnings per share of 3 1/2 cents
during the three-month period ended December 31, 2005 as compared to
the same three-month period last year.
EBITDA from continuing operations for the three-month period ended
December 31, 2005 was $2,561,000 versus $2,662,000 during the same
three-month period last year. The Company's income from continuing
operations for the three-month period ended December 31, 2005 was
$1,192,000, or $0.34 per share ($0.34 per diluted share), as compared
to $1,325,000, or $0.39 per share ($0.38 per diluted share), for the
same three-month period last year. The tax rate for this quarter was
34% compared to 29% in last year's comparable period.
Compared to last year's first quarter, Company-wide same store
sales increased 2.3%. Compared to the same period last year, same
store sales in the Company's Washington D.C. operations increased by
3.3%, same store sales in the Company's New York City operations
increased by 13.3% and same store sales in the Company's Las Vegas
operations decreased by 3.0%. Sales from the Company's Las Vegas
operations represented 56% of the Company's total sales during the
three-month period ended December 31, 2005.
As of December 31, 2005, the Company had no debt and a cash
balance of $3,381,000.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants
Corp., stated "The performance of our operations in New York City and
Washington, D.C., as well as Florida, remained strong. In Las Vegas,
the results of our operations at the New York-New York Hotel & Casino
were basically flat while the results of our operations at the
Venetian Casino Resort during the quarter were quite disappointing."
The Company will broadcast its conference call to discuss first
quarter results over the Internet. The broadcast will be held on
Tuesday, February 14, 2006 at 10:00 a.m. Eastern Time. To access the
broadcast, please visit http://www.viavid.net. A replay of the
broadcast will be available within one hour of the call.
The dial-in numbers to participate in the conference call are:
Toll-Free - 1-866-425-6191
Toll/International - 1-973-935-2981
Ark Restaurants owns and operates 23 restaurants and bars, 26 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., nine are located in Las Vegas, Nevada, and two are located in Atlantic City, New Jersey. 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; four restaurants and bars within the Venetian Casino Resort as well as four food court concepts. In Las Vegas, the Company also owns and operates one restaurant within the Forum Shops at Caesar's Shopping Center and one restaurant at the Neonopolis Center at Fremont Street. 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.
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.
13 weeks ended 13 weeks ended
December 31, January 1,
2005 2005
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TOTAL REVENUES $ 27,362 $ 26,683
COST AND EXPENSES:
Food and beverage cost of sales 6,697 6,662
Payroll expenses 8,940 8,581
Occupancy expenses 4,232 4,041
Other operating costs and expenses 3,420 2,986
General and administrative expenses 1,722 1,820
Depreciation and amortization expenses 780 821
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Total costs and expenses 25,791 24,911
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OPERATING INCOME 1,571 1,772
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OTHER INCOME:
Interest income (25) (25)
Other income (210) (69)
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Total other income (235) (94)
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Income from continuing operations
before income taxes 1,806 1,866
Provision for income taxes 614 541
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Income from continuing operations 1,192 1,325
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DISCONTINUED OPERATIONS:
Loss from operations of discontinued
restaurants (418) (199)
Benefit for income taxes (142) (58)
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Loss from discontinued operations (276) (141)
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NET INCOME $ 916 $ 1,184
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PER SHARE INFORMATION - BASIC AND DILUTED:
Continuing operations basic $ .34 $ .39
Discontinued operations basic $ (.08) $ (.04)
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Net basic $ .26 $ .35
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Continuing operations diluted $ .34 $ .38
Discontinued operations diluted $ (.08) $ (.04)
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Net diluted $ .26 $ .34
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WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,462 3,395
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WEIGHTED AVERAGE NUMBER OF SHARES-
DILUTED 3,546 3,533
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Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 1,806 $ 1,866
Depreciation and amortization 780 821
Interest (25) (25)
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EBITDA (a) $ 2,561 $ 2,662
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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