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Ark Restaurants Announces Financial Results for the Second Quarter and Six Months Ended March 28, 2009
Contact:
Robert Towers
(212) 206-8800
bob@arkrestaurants.com
NEW YORK, New York -- May 11, 2009 -- Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the second quarter and six month periods ended March 28, 2009.
Total revenues from continuing operations for the three month period ended March 28, 2009 were $23.8 million versus $24.4 million in the same period last year. Total revenues from continuing operations for the six month period ended March 28, 2009 were $50.5 million versus $54.7 million in the same period last year.
EBITDA from continuing operations for the three month period ended March 28, 2009 was a negative $367,000 versus a positive $920,000 during the same three month period last year. EBITDA from continuing operations for the six month period ended March 28, 2009 was $1,598,000 versus $3,905,000 during the same six-month period last year.
Michael Weinstein, the Chairman and Chief Executive Officer of Ark Restaurants Corp. said "The results of this quarter were negatively impacted by two non-recurring expenses totaling $529,000, one involving a litigation legal expense and the other a real estate tax expense. While we definitely felt the pressure of the economy during the quarter, we do sense that the decline in customer counts has flattened."
For the three months ended March 28, 2009, the Company's net loss from continuing operations was $712,000, or $0.20 per share ($0.20 per diluted share), compared to net income of $186,000, or $0.05 per share ($0.05 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.
For the six months ended March 28, 2009, the Company's net income from continuing operations was $136,000, or $0.04 per share ($0.04 per diluted share), compared to $1,694,000, or $0.47 per share ($0.46 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.
Company-wide same store sales decreased 10.0% compared to the same three month period last year and decreased 12.5% compared to the same six month period last year.
The net loss for the three-month period ended March 28, 2009 was a $712,000 versus net income of $346,000 in the three months ended March 29, 2008. Net income for the six month period ended March 28, 2009 was $136,000 versus $1,830,000 in the six months ended March 29, 2008.
As of March 28, 2009, the Company had cash, cash equivalents and short term investments totaling $7,414,000. As of the same date, the Company had no long-term debt other than $609,000 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.
Ark Restaurants owns and operates 20 restaurants and bars, 30 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, one is 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. 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 week and 26 week periods ended March 28, 2009 and March 29, 2008
(In Thousands, Except per share amounts)
13 weeks ended 13 weeks ended 26 weeks ended 26 weeks ended
March 28, March 29, March 28, March 29,
2009 2008 2009 2008
TOTAL REVENUES $ 23,756 $ 24,369 $ 50,549 $ 54,687
COST AND
EXPENSES:
Food and
beverage cost of 6,087 6,425 12,798 14,160
sales
Payroll expenses 8,118 8,357 17,042 17,897
Occupancy 3,737 3,545 7,530 7,564
expenses
Other operating
costs and 3,860 3,061 7,846 7,146
expenses
General and
administrative 2,552 2,183 4,639 4,334
expenses
Depreciation and
amortization 863 705 1,770 1,382
expenses
Total costs and 25,217 24,276 51,625 52,483
expenses
OPERATING INCOME (1,461 ) 93 (1,076 ) 2,204
(LOSS)
OTHER INCOME:
Interest income 12 134 204 263
- net
Other income 28 44 387 163
Total other 40 178 591 426
income
Income (loss)
from continuing
operations (1,421 ) 271 (485 ) 2,630
before income
taxes
Provision
(benefit) for (584 ) 85 (260 ) 937
income taxes
Loss
attributable to 125 - 361 1
non-controlling
interests
Income (loss)
from continuing (712 ) 186 136 1,694
operations
DISCONTINUED
OPERATIONS:
Income from
operations of - 248 - 211
discontinued
restaurants
Provision for - 88 - 753
income taxes
Income from
discontinued - 160 - 136
operations
NET INCOME $ (712 ) $ 346 $ 136 $ 1,830
(LOSS)
PER SHARE
INFORMATION -
BASIC AND
DILUTED:
Continuing $ (.20 ) $ .05 $ .04 $ .47
operations basic
Discontinued $ 0 $ .05 $ 0 $ .04
operations basic
Net basic $ (.20 ) $ .10 $ .04 $ .51
Continuing
operations $ (.20 ) $ .05 $ .04 $ .46
diluted
Discontinued
operations $ 0 $ .05 $ 0 $ .04
diluted
Net diluted $ (.20 ) $ .10 $ .04 $ .50
WEIGHTED AVERAGE
NUMBER OF 3,490 3,597 3,497 3,597
SHARES-BASIC
WEIGHTED AVERAGE
NUMBER OF 3,490 3,609 3,497 3,625
SHARES-DILUTED
Continuing
Operations
EBITDA
Reconciliation
Pre tax earnings
(net of $ (1,296 ) $ 271 $ (124 ) $ 2,630
non-controlling
interests)
Depreciation and 863 705 1,770 1,382
amortization
Interest (12 ) (134 ) (204 ) (263 )
EBITDA (a) $ (445 ) $ 842 $ 1,442 $ 3,749
Continuing
Operations
EBITDA adjusted
for non-cash
stock option
expense
EBITDA (as $ (445 ) $ 842 $ 1,442 $ 3,749
defined) (a)
Non-cash stock 78 78 156 156
option expense
EBITDA adjusted
for non-cash $ (367 ) $ 920 $ 1,598 $ 3,905
stock option
expense
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
(a) 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.
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