Attached files
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| 8-K - ARK RESTAURANTS CORP. 8-K - ARK RESTAURANTS CORP | a6611075.htm |
Exhibit 99.1
Ark Restaurants Announces Financial Results for the First Quarter of 2011
NEW YORK--(BUSINESS WIRE)--February 14, 2011--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended January 1, 2011.
Effective October 3, 2010, the Company adopted amendments to ASC 810 (formerly FASB Statement of Accounting Standards (“SFAS”) No. 167—Amendments to FASB Interpretation No. 46(R) (“SFAS No 167”)). The new standard pertains to the consolidation of variable interest entities (“VIEs”) if the Company is determined to be the primary beneficiary of the VIE. As a result we were required to consolidate certain limited partnerships effective as of the adoption date. The Company did not retroactively apply this guidance.
As of January 1, 2011 the Company had no long-term debt and cash, cash equivalents and short term investments totaling $7,337,000 (including $648,000 of cash related to VIEs).
Total revenues for the three-month period ended January 1, 2011 were $32,541,000 (total revenues include $4,767,000 of consolidated VIE revenues) versus $25,576,000 in the three months ended January 2, 2010.
EBITDA adjusted for non-cash stock option expense and non-controlling interests for the three-month period ended January 1, 2011 was $1,047,000 versus $59,000 during the same three-month period last year. The Company’s net loss for the three-month period ended January 1, 2011 was $213,000, or $0.06 per basic and diluted share, as compared to $723,000, or $0.21 per basic and diluted share, for the same three-month period last year.
Compared to the same three month period last year, Company-wide same store sales increased 0.5%.
Ark Restaurants owns and operates 22 restaurants and bars, 28 fast food concepts and catering operations. Seven restaurants are located in New York City, four are located in Washington, D.C., seven 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 five 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; one bar within the Venetian Casino Resort as well as three 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. The operations at the Foxwoods Resort Casino include one fast food concept and six fast food concepts at the MGM Grand Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. 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.
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. | ||||||||
| Consolidated Condensed Statements of Operations | ||||||||
| For the 13 week periods ended January 1, 2011 and January 2, 2010 | ||||||||
| (In Thousands, Except per share amounts) | ||||||||
| 13 weeks ended | 13 weeks ended | |||||||
| January 1, | January 2, | |||||||
| 2011 | 2010 | |||||||
| TOTAL REVENUES (includes $4,767,000 for the 13 weeks ended | ||||||||
| January 1, 2011 related to VIEs) | $ | 32,541 | $ | 25,576 | ||||
| COST AND EXPENSES: | ||||||||
| Food and beverage cost of sales | 8,583 | 6,522 | ||||||
| Payroll expenses | 11,246 | 8,981 | ||||||
| Occupancy expenses | 4,405 | 4,218 | ||||||
| Other operating costs and expenses | 4,652 | 3,585 | ||||||
| General and administrative expenses | 2,447 | 2,445 | ||||||
| Depreciation and amortization | 1,150 | 897 | ||||||
| Total costs and expenses (includes $4,046,000 for the 13 weeks ended | ||||||||
| January 1, 2011 related to VIEs) | 32,483 | 26,648 | ||||||
| OPERATING INCOME (LOSS) | 58 | (1,072 | ) | |||||
| OTHER (INCOME) EXPENSE: | ||||||||
| Interest (income) expense, net | 1 | (48 | ) | |||||
| Other (income) loss, net | (70 | ) | 6 | |||||
| Total other income, net | (69 | ) | (42 | ) | ||||
| Income (loss) before provision (benefit) for income taxes | 127 | (1,030 | ) | |||||
| Provision (benefit) for income taxes | 31 | (223 | ) | |||||
| NET INCOME (LOSS) | 96 | (807 | ) | |||||
| Net (income) loss attributable to non-controlling interests | (309 | ) | 84 | |||||
| NET LOSS ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ | (213 | ) | $ | (723 | ) | ||
| Net loss per share of Ark Restaurants Corp. common stock | ||||||||
| Basic | $ | (0.06 | ) | $ | (0.21 | ) | ||
| Diluted | $ | (0.06 | ) | $ | (0.21 | ) | ||
| WEIGHTED AVERAGE NUMBER OF SHARES-BASIC | 3,492 | 3,490 | ||||||
| WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED | 3,492 | 3,490 | ||||||
| EBITDA Reconciliation: | ||||||||
| Pre tax income | $ | 127 | $ | (1,030 | ) | |||
| Depreciation and amortization | 1,150 | 897 | ||||||
| Interest | 1 | (48 | ) | |||||
| EBITDA (a) | $ | 1,278 | $ | (181 | ) | |||
| EBITDA adjusted for non-cash stock option expense | ||||||||
| and non-controlling interests: | ||||||||
| EBITDA (as defined) (a) | $ | 1,278 | $ | (181 | ) | |||
| Net (income) loss attributable to non-controlling interests | (309 | ) | 84 | |||||
| Non-cash stock option expense | 78 | 156 | ||||||
| EBITDA, as adjusted | $ | 1,047 | $ | 59 | ||||
|
(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 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 (loss), is included above. |
CONTACT:
Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com