Attached files
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| 8-K - ARK RESTAURANTS CORP | c73816_8k.htm |
EXHIBIT 99.1
Ark Restaurants Announces Financial Results
for the
Second Quarter of 2013
CONTACT:
Robert Stewart
(212) 206-8800
bstewart@arkrestaurants.com
NEW YORK, New York – May 13, 2013 -- Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the second quarter ended March 30, 2013.
Company-wide same store sales decreased 4.4% for the three-month period ended March 30, 2013 compared to the same three month period last year. This decrease was primarily the result of poor weather conditions in the Northeast as compared to last year.
Total revenues for the three-month period ended March 30, 2013 were $29,090,000 versus $29,892,000 for the three months ended March 31, 2012.
The Company’s Continuing Operations EBITDA adjusted for non-cash stock option expense and non-controlling interests for the three-month period ended March 30, 2013 was $677,000 versus $1,006,000 during the same three-month period last year. The Company’s net loss from continuing operations for the three-month period ended March 30, 2013 was $265,000, or $0.08 per basic and diluted share, as compared to a loss from continuing operations of $249,000, or $0.08 per basic and diluted share, for the same three-month period last year. Included in the Company’s income from continuing operations for the three-month period ended March 30, 2013 are professional fees related to the unsolicited bid made for the Company by Landry’s, Inc.
As of March 30, 2013 the Company had cash, cash equivalents and short term investments totaling $4,209,000 and notes payable in the amount of $4,688,000 resulting from the purchase of 250,000 shares of treasury stock in December 2011, the purchase of membership interests in Ark Hollywood/Tampa Investment, LLC and the purchase of our interests in the New Meadowlands Racetrack LLC.
Ark Restaurants owns and operates 19 restaurants and bars, 22 fast food concepts and catering operations in New York City, Washington, D.C. and Las Vegas, NV. Five restaurants are located in New York City, three 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 one restaurant. 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, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements 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 filings 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. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.
ARK RESTAURANTS CORP.
Consolidated Condensed Statements of Operations
For the 13 and 26-week periods ended March 30, 2013
and March 31, 2012
| (In Thousands, Except per share amounts) | ||||||||||||||||
| 13 weeks ended | 13 weeks ended | 26 weeks ended | 26 weeks ended | |||||||||||||
| March 30, | March 31, | March 30, | March 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| TOTAL REVENUES | $ | 29,090 | $ | 29,892 | $ | 60,426 | $ | 62,752 | ||||||||
| COST AND EXPENSES: | ||||||||||||||||
| Food and beverage cost of sales | 7,434 | 7,670 | 15,183 | 16,028 | ||||||||||||
| Payroll expenses | 10,118 | 10,350 | 20,962 | 21,057 | ||||||||||||
| Occupancy expenses | 4,086 | 4,533 | 8,621 | 8,991 | ||||||||||||
| Other operating costs and expenses | 4,057 | 4,062 | 8,397 | 8,093 | ||||||||||||
| General and administrative expenses | 2,756 | 2,250 | 5,166 | 5,031 | ||||||||||||
| Depreciation and amortization | 921 | 942 | 2,097 | 1,880 | ||||||||||||
| Total costs and expenses | 29,372 | 29,807 | 60,426 | 61,080 | ||||||||||||
| OPERATING INCOME (LOSS) | (282 | ) | 85 | — | 1,672 | |||||||||||
| Other (income) expense, net | (84 | ) | (372 | ) | (163 | ) | (406 | ) | ||||||||
| INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | (198 | ) | 457 | 163 | 2,078 | |||||||||||
| Provision (benefit) for income taxes | (58 | ) | 159 | 56 | 537 | |||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS | (140 | ) | 298 | 107 | 1,541 | |||||||||||
| Loss from discontinued operations, net of tax | — | (309 | ) | — | (436 | ) | ||||||||||
| CONSOLIDATED NET INCOME (LOSS) | (140 | ) | (11 | ) | 107 | 1,105 | ||||||||||
| Net income attributable to non-controlling interests | (125 | ) | (393 | ) | (364 | ) | (422 | ) | ||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ | (265 | ) | $ | (404 | ) | $ | (257 | ) | $ | 683 | |||||
| AMOUNTS ATTRIBUTABLE TO ARK RESTAURANTS CORP.: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (265 | ) | $ | (249 | ) | $ | (257 | ) | $ | 899 | |||||
| Loss from discontinued operations, net of tax | — | (155 | ) | — | (216 | ) | ||||||||||
| Net income (loss) | $ | (265 | ) | $ | (404 | ) | $ | (257 | ) | $ | 683 | |||||
| NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE: | ||||||||||||||||
| From continuing operations: | ||||||||||||||||
| Basic | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.27 | |||||
| Diluted | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.27 | |||||
| From discontinued operations: | ||||||||||||||||
| Basic | $ | — | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | ||||||
| Diluted | $ | — | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | ||||||
| From net income (loss): | ||||||||||||||||
| Basic | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.08 | ) | $ | 0.20 | |||||
| Diluted | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.08 | ) | $ | 0.20 | |||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
| Basic | 3,245 | 3,245 | 3,245 | 3,338 | ||||||||||||
| Diluted | 3,245 | 3,245 | 3,245 | 3,364 | ||||||||||||
| EBITDA Reconciliation: | ||||||||||||||||
| Pre tax income (loss) | $ | (198 | ) | $ | 457 | $ | 163 | $ | 2,078 | |||||||
| Depreciation and amortization | 921 | 942 | 2,097 | 1,880 | ||||||||||||
| EBITDA (a) | $ | 723 | $ | 1,399 | $ | 2,260 | $ | 3,958 | ||||||||
| EBITDA adjusted for non-cash stock option expense and non-controlling interests: | ||||||||||||||||
| EBITDA (as defined) (a) | $ | 723 | $ | 1,399 | $ | 2,260 | $ | 3,958 | ||||||||
| Net income attributable to non-controlling interests | (125 | ) | (393 | ) | (364 | ) | (422 | ) | ||||||||
| Non-cash stock option expense | 79 | — | 159 | — | ||||||||||||
| EBITDA, as adjusted | $ | 677 | $ | 1,006 | $ | 2,055 | $ | 3,536 |
| (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. |