Ark Restaurants Corp. (NASDAQ: ARKR) today reported financial
results for the second quarter ended March 30, 2019.
Total revenues for the 13 weeks ended March 30, 2019 were
$35,311,000 versus $35,276,000 for the 13 weeks ended March 31,
2018.
Total revenues for the 26 weeks ended March 30, 2019 were
$75,859,000 versus $74,628,000 for the 26 weeks ended March 31,
2018. The 26 weeks ended March 30, 2019 and March 31, 2018 include
revenues of $1,039,000 and $1,207,000, respectively, related to
Durgin-Park which was closed January 12, 2019.
Company-wide same store sales increased 0.9% for the 26 weeks
ended March 30, 2019 compared to the same period in the prior
year.
The Company’s EBITDA, adjusted for non-controlling interests,
non-cash stock option expense and losses incurred on the closure of
Durgin-Park discussed below, for the 13 weeks ended March 30, 2019
was $1,323,000 versus $769,000 during the same period in the prior
year.
The Company’s EBITDA, adjusted for non-controlling interests,
non-cash stock option expense and losses incurred on the closure of
Durgin-Park discussed below, for the 26 weeks ended March 30, 2019
was $3,867,000 versus $2,841,000 during the same period in the
prior year.
As of December 29, 2018, the Company determined that it would
not be able to operate Durgin-Park profitably due to decreased
traffic at the Faneuil Hall Marketplace in Boston, MA, where it is
located, and rising labor costs. As a result, included in the
Statements of Operations for the 13 and 26 weeks ended March 30,
2019 are losses on closure in the amounts of $39,000 and
$1,106,000, respectively, consisting of: (i) impairment of
trademarks of $721,000, (ii) accelerated depreciation of fixed
assets of $333,000, and (iii) write-offs of prepaid and other
expenses of $52,000. The restaurant was closed on January 12,
2019.
Net loss for the 13 weeks ended March 30, 2019, which includes
losses as a result of non-cash write-offs on the closure of
Durgin-Park in the amount of $39,000, was $669,000, or $0.19 per
basic and diluted share compared to a net loss of $637,000, or
$0.19 per basic share and diluted share for the same period last
year.
Net loss for the 26 weeks ended March 30, 2019, which includes
losses as a result of non-cash write-offs on the closure of
Durgin-Park in the amount of $1,106,000, was $731,000, or $0.21 per
basic and diluted share compared to net income of $990,000, or
$0.29 per basic share ($0.28 per diluted share), for the same
period last year. The 26 weeks ended March 31, 2018 includes a
discrete income tax benefit of $1.2 million related to changes in
the tax law.
Ark Restaurants owns and operates 19 restaurants and bars, 19
fast food concepts and catering operations primarily in New York
City, Florida, Washington, D.C., Las Vegas, Nevada and the gulf
coast of Alabama. Five restaurants are located in New York City,
two are located in Washington, D.C., five are located in Las Vegas,
Nevada, three are located in Atlantic City, New Jersey, two are
located on the east coast of Florida and two are located on the
Gulf Coast of Alabama. The Las Vegas operations include four
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; 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 and a restaurant
in the Tropicana Hotel and Casino. The operations at the Foxwoods
Resort Casino consist of one fast food concept. The Florida
operations include the Rustic Inn in Dania Beach, Shuckers, located
in Jensen Beach, the operation of five fast food facilities in
Tampa, and seven fast food facilities in Hollywood, each at a Hard
Rock Hotel and Casino operated by the Seminole Indian Tribe. In
Alabama, the Company operates two Original Oyster Houses, one in
Gulf Shores, Alabama and one in Spanish Fort, Alabama.
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
Statements of OperationsFor the 13 and 26-week periods ended
March 30, 2019 and March 31, 2018
(In Thousands, Except per share
amounts)
13 Weeks EndedMarch 30,2019
13 Weeks EndedMarch 31,2018
26 Weeks EndedMarch 30,2019
26 Weeks EndedMarch 31,2018
TOTAL REVENUES $ 35,311 $ 35,276
$ 75,859 $ 74,628 COSTS AND EXPENSES:
Food and beverage cost of sales 9,791 9,729 20,268 19,959 Payroll
expenses 12,979 12,991 27,084 26,700 Occupancy expenses 3,808 4,119
8,812 9,150 Other operating costs and expenses 5,236 5,196 10,211
10,314 General and administrative expenses 2,193 2,525 5,601 5,603
Loss on closure of Durgin-Park 39 — 1,106 — Depreciation and
amortization 1,187 1,278
2,393 2,582 Total costs and
expenses 35,233 35,838
75,475 74,308 OPERATING INCOME
(LOSS) 78 (562 ) 384 320 INTEREST EXPENSE, NET (331 )
(273 ) (629 ) (492 )
LOSS BEFORE PROVISION (BENEFIT) FOR
INCOMETAXES
(253
)
(835
)
(245
)
(172
)
Provision (benefit) for income taxes 423
(145 ) 446 (1,223 )
CONSOLIDATED NET INCOME (LOSS) (676 ) (690 ) (691 ) 1,051 Net
(income) loss attributable to non-controlling interests 7
53 (40 )
(61 )
NET INCOME (LOSS) ATTRIBUTABLE TO
ARKRESTAURANTS CORP.
$
(669
)
$
(637
)
$
(731
)
$
990
NET INCOME (LOSS) PER ARK RESTAURANTS
CORP.COMMON SHARE:
Basic $ (0.19 ) $ (0.19 ) $ (0.21 ) $ 0.29
Diluted
$ (0.19 ) $ (0.19 ) $ (0.21 ) $ 0.28
WEIGHTED AVERAGE NUMBER OF COMMON
SHARESOUTSTANDING:
Basic 3,475 3,434
3,475 3,433 Diluted 3,475
3,434 3,475
3,552 EBITDA Reconciliation: Pre-tax loss $ (253 ) $ (835 )
$ (245 ) $ (172 ) Depreciation and amortization 1,187 1,278 2,393
2,582 Interest expense, net 331 273
629 492 EBITDA (a)
$ 1,265 $ 716 $ 2,777 $
2,902
EBITDA adjusted for non-controlling
interests, non-cash stockoption expense and loss on closure of
Durgin-Park
EBITDA (as defined) (a) $ 1,265 $ 716 $ 2,777 $ 2,902 Net (income)
loss attributable to non-controlling interests 7 53 (40 ) (61 )
Non-cash stock option expense 12 — 24 — Loss closure of Durgin-Park
39 — 1,106
— EBITDA, as adjusted $ 1,323 $
769 $ 3,867 $ 2,841 (a)
EBITDA is defined as earnings before interest, taxes, depreciation
and amortization. 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, is included above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190513005594/en/
Anthony J. Sirica (212)
206-8804ajsirica@arkrestaurants.com
Ark Restaurants (NASDAQ:ARKR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ark Restaurants (NASDAQ:ARKR)
Historical Stock Chart
From Sep 2023 to Sep 2024