UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): May 12, 2008


ARK RESTAURANTS CORP.
(Exact name of registrant as specified in its charter)


Commission file number 1 -09453

New York

 

13-3156768

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

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 May 12, 2008, Ark Restaurants Corp. issued a press release announcing its financial results for its second quarter and six months ended March 29, 2008, 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

Chief Executive Officer

 
 

Date:

May 12, 2008

INDEX TO EXHIBITS

Exhibit

 

Description

 

99.1

Press Release dated May 12, 2008 entitled "Ark Restaurants Announces Financial Results for the Second Quarter and Six Months Ended March 29, 2008."

Exhibit 99.1

Ark Restaurants Announces Financial Results for the Second Quarter and Six Months Ended March 29, 2008

NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the second quarter and six month periods ended March 29, 2008.

For the three months ended March 29, 2008, the Company’s net income from continuing operations was $361,000, or $0.10 per share ($0.10 per diluted share), compared to $534,000, or $0.15 per share ($0.14 per diluted share), for the same period last year. Net income from continuing operations was negatively affected during the three months ended March 29, 2008 by $118,000 in pre-opening and early operating losses experienced at the Company’s Mexican Restaurant, Yolos, at the Planet Hollywood Resort and Casino in Las Vegas, Nevada, and in conjunction with the Company’s investment in a new concept, Pinch & S’Mac, in New York City.

Total revenues from continuing operations for the three month period ended March 29, 2008 were $26.4 million versus $25.4 million in the same period last year. Compared to the same period last year, total same store sales at the Company increased by 1.2%. Compared to the same period last year, same store sales in the Company’s New York City operations increased by 3.7%, same store sales in the Company’s Las Vegas operations increased by 1.2%, same store sales in the Company’s Atlantic City operations were unchanged and same store sales in the Company’s Washington D.C. operations decreased by 5.5%. Revenues from the Company’s Las Vegas operations represented 57.1% of the Company’s total revenues from continuing operations during the three-month period ended March 29, 2008.

Although the Company does not report the sales or the financial results of the Company’s Florida operations (the Company derives income from a management fee arrangement in part based on sales), same store sales at the Company’s Florida operations decreased by 2.8% compared to the same three month period last year. Sales at the Company’s Florida operations totaled $3,178,000 during the three month period ended March 29, 2008.

For the six months ended March 29, 2008, the Company’s net income from continuing operations was $1,869,000, or $0.52 per share ($0.51 per diluted share), compared to $2,376,000, or $0.66 per share ($0.66 per diluted share), for the same period last year. Net income from continuing operations was negatively affected during the six months ended March 29, 2008 by $300,000 in pre-opening and early operating losses experienced at Yolos and Pinch & S’Mac.

Total revenues from continuing operations for the six month period ended March 29, 2008 were $56.7 million versus $52.9 million in the same period last year. Compared to the same period last year, total same store sales at the Company increased by 2.9%. Compared to the same period last year, same store sales in the Company’s New York City operations increased by 8.1%, same store sales in the Company’s Las Vegas operations increased by 1.2%, same store sales in the Company’s Atlantic City operations increased by 0.2% and same store sales in the Company’s Washington D.C. operations decreased by 0.2%. Revenues from the Company’s Las Vegas operations represented 51.2% of the Company’s total revenues from continuing operations during the six month period ended March 29, 2008.

Same store sales at the Company’s Florida operations decreased by 2.0% compared to the same six month period last year. Sales at the Company’s Florida operations totaled $5,803,000 during the six month period ended March 29, 2008.

EBITDA from continuing operations for the three month period ended March 29, 2008 was $1,131,000 versus $1,520,000 during the same three month period last year. EBITDA from continuing operations for the six month period ended March 29, 2008 was $4,039,000 versus $4,832,000 during the same six-month period last year.

The Company had net income of $346,000 in the three month period ended March 29, 2008 compared to net income of $378,000 in the same three month period last year. Net income for the six-month period ended March 29, 2008 was $1,830,000 compared to $6,968,000 during the six-month period ended March 31, 2007. Net income was positively affected during the 26-week period ended March 31, 2007 as a result of the sale during the quarter of the Company’s Lutece and Tsunami locations to Venetian Casino Resort, LLC. Excluding the sale of the Company’s facilities to the Venetian Casino Resort, net income for the six-month period ended March 31, 2007 would have been $1,850,000.

As of March 29, 2008, the Company had cash, cash equivalents and short term investments totaling $9,147,000. As of the same date, the Company had no long-term debt other than $797,000 remaining due on a five year purchase money obligation undertaken in connection with the Company’s January 8, 2007 acquisition of the Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts. For the six months ended March 29, 2008, the Company expended approximately $3,000,000 in new development projects, including Yolos, Pinch & S’Mac and the Food Market, a food court at the newly constructed MGM Grand Casino at the Foxwoods Resort Casino in Ledyard, Connecticut.

Ark Restaurants owns and operates 22 restaurants and bars, 24 fast food concepts, catering operations and wholesale and retail bakeries. Seven restaurants are located in New York City, four are located in Washington, D.C., five 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; one bar 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 seven 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.

ARK RESTAURANTS CORP.
Condensed Consolidated Income Statement
For the 13 and 26 week periods ended March 29, 2008 and March 31, 2007

(In Thousands, Except per share amounts)

     
13 weeks ended 13 weeks ended 26 weeks ended 26 weeks ended
 
March 29, March 31, March 29, March 31,
2008 2007 2008 2007
 
TOTAL REVENUES $ 26,361 $ 25,373 $ 56,679 $ 52,895
 
COST AND EXPENSES:
 
Food and beverage cost of sales 6,961 6,656 14,695 13,471
Payroll expenses 8,949 8,709 18,490 17,376
Occupancy expenses 3,771 3,450 7,790 7,325
Other operating costs and expenses 3,410 3,203 7,495 6,315
General and administrative expenses 2,183 2,072 4,334 4,055
Depreciation and amortization expenses   723     668     1,400     1,300  
 
Total costs and expenses   25,997     24,758     54,204     49,842  
 
OPERATING INCOME   364     615     2,475     3,053  
 
OTHER INCOME:
 
Interest income - Net 134 38 263 148
Other income   44     237     163     479  
Total other income   178     275     426     627  
 
Income from continuing operations
before income taxes 542 890 2,901 3,680
 
Provision for income taxes 181 335 1,033 1,270
 
Limited partner interest in income of variable interest entity   -     (21 )   1     (34 )
 
Income from continuing operations   361     534     1,869     2,376  
 
DISCONTINUED OPERATIONS:
Income (loss) from operations of discontinued restaurants (23 ) (129 ) (60 ) 7,010
 
Provision (benefit) for income taxes   (8 )   27     (21 )   2,418  
 
Income (loss) from discontinued operations   (15 )   (156 )   (39 )   4,592  
 
NET INCOME $ 346   $ 378   $ 1,830   $ 6,968  
 
 
 
PER SHARE INFORMATION - BASIC AND DILUTED:
 
Continuing operations basic $ .10 $ .15 $ .52 $ .66
Discontinued operations basic $ (.00 ) $ (.04 ) $ (.01 ) $ 1.28  
Net basic $ .10   $ .11   $ .51   $ 1.94  
 
Continuing operations diluted $ .10 $ .14 $ .51 $ .66
Discontinued operations diluted $ (.00 ) $ (.04 ) $ (.01 ) $ 1.28  
Net diluted $ .10   $ .10   $ .50   $ 1.94  
 
 
WEIGHTED AVERAGE NUMBER OF SHARES-BASIC   3,597     3,590     3,597     3,580  
 
WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED   3,609     3,604     3,625     3,590  
 
Continuing Operations EBITDA Reconciliation
Pre tax earnings $ 542 $ 890 $ 2,901 $ 3,680
Depreciation and amortization 723 668 1,400 1,300
Interest   (134 )   (38 )   (263 )   (148 )
EBITDA (a) $ 1,131   $ 1,520   $ 4,038   $ 4,832  
 
Continuing Operations EBITDA adjusted for
non-cash stock option expense
EBITDA (as defined) (a) $ 1,131 $ 1,520 $ 4,038 $ 4,832
Non-cash stock option expense   78     78     156     252  
EBITDA adjusted for non-cash stock option expense $ 1,209   $ 1,598   $ 4,194   $ 5,084  
 
(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