Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial
results for the fourth quarter and full year ended September 27,
2014.
Total revenues for the three-month period ended September 27,
2014 were $37,072,000 versus $33,906,000 for the three months ended
September 28, 2013. The three-month period ended September 27, 2014
includes revenues of $3,477,000 related to The Rustic Inn, which
was acquired on February 24, 2014. The three-month period ended
September 28, 2013 includes revenues of $1,235,000 related to two
properties closed during the third quarter of fiscal 2014 due to
lease expirations.
Total revenues for the year ended September 27, 2014 were
$139,357,000 versus $130,598,000 for the year ended September 28,
2013. The year ended September 27, 2014 includes revenues of
$8,753,000 related to The Rustic Inn, which was acquired on
February 24, 2014 and $2,621,000 related to Broadway Burger Bar,
which was opened in the Tropicana Hotel and Casino during June
2013. The year ended September 27, 2014 also includes revenues of
$3,565,000 related to two properties closed during the third fiscal
quarter of 2014 due to lease expirations. The year ended September
28, 2013 includes revenues of $414,000 related to two properties
closed in the first quarter of fiscal 2013 due to lease
expirations.
Company-wide same store sales increased 2.3% for the three-month
period ended September 27, 2014 compared to the same three month
period last year. For fiscal 2014 company-wide same store sales
increased 0.5% compared to the same period last year.
The Company’s EBITDA, adjusted for non-cash stock option expense
and non-controlling interests, for the three-month period September
27, 2014 was $4,236,000 versus $3,458,000 during the same
three-month period last year. Net income for the three-month period
ended September 27, 2014 was $2,288,000, or $0.68 per basic share
($0.66 per diluted share), as compared to $1,453,000, or $0.45 per
basic share ($0.43 per diluted share), for the same three-month
period last year.
The Company’s EBITDA, adjusted for non-cash stock option expense
and non-controlling interests, for the year ended September 27,
2014 was $11,814,000 versus $10,703,000 last year. Net income for
the year ended September 27, 2014 was $4,915,000, or $1.49 per
basic share ($1.43 per diluted share), as compared to $3,824,000,
or $1.18 per basic share ($1.13 per diluted share), for the same
period last year.
On February 24, 2014, the Company completed its acquisition of
The Rustic Inn Crabhouse (“The Rustic Inn’) in Dania Beach, Florida
for a total purchase price of approximately $7,710,000. The
acquisition was financed with a bank loan in the amount of
$6,000,000 and cash from operations.
On July 18, 2014, the Company, through a wholly-owned
subsidiary, Ark Jupiter RI, LLC, entered into an agreement to
acquire certain assets and the related lease for a restaurant and
bar located in Jupiter, Florida for approximately $250,000. In
connection with this transaction the Company entered into an
amended lease for an initial period expiring through December 31,
2015. The Company has also entered into an additional lease through
2033 and the Company expects to open a Rustic Inn Crabhouse at this
location in January 2015.
As of September 27, 2014 the Company had cash and cash
equivalents totaling $8,662,000. The Company had a seller note from
the purchase of 250,000 shares of treasury stock in December 2011
with an outstanding balance of $177,000 at September 27, 2014. The
Company also had a bank note for the purchase of membership
interests in Ark Hollywood/Tampa Investment, LLC and the purchase
of The Rustic Inn with an outstanding balance of $7,140,000 at
September 27, 2014.
Ark Restaurants owns and operates 20 restaurants and bars, 21
fast food concepts and catering operations primarily in New York
City, Florida, Washington, D.C. and Las Vegas, NV. Five restaurants
are located in New York City, three are located in Washington,
D.C., six are located in Las Vegas, Nevada, three are located in
Atlantic City, New Jersey, one is located at the Foxwoods Resort
Casino in Ledyard, Connecticut, one is located in Boston,
Massachusetts and one is located in Dania Beach, Florida. 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; one bar within the Venetian Casino Resort, as well
as two 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 include one
fast food concept and one restaurant. In Boston, Massachusetts, the
Company operates a restaurant in the Faneuil Hall Marketplace. The
Florida operations include The Rustic Inn in Dania Beach, Florida
and the operation of 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 Statements of Income For the 13 week and 52
week periods ended September 27, 2014 and September 28, 2013
(In Thousands, Except per share amounts)
13 weeks ended 13 weeks ended 52 weeks ended 52 weeks ended
September 27, September 28, September 27, September 28,
2014
2013
2014
2013
TOTAL REVENUES
$ 37,072
$ 33,906 $
139,357 $ 130,598
COST AND EXPENSES: Food and beverage cost of
sales 10,126 8,648 37,091 32,791 Payroll expenses 11,438 10,722
44,427 42,488 Occupancy expenses 4,473 4,470 17,388 17,533 Other
operating costs and expenses 4,285 4,287 17,802 17,085 General and
administrative expenses 2,611 2,228 10,402 9,792 Depreciation and
amortization
1,235
1,124 4,619
4,303 Total costs and expenses
34,168 31,479
131,729 123,992
OPERATING INCOME
2,904
2,427 7,628
6,606 OTHER (INCOME) EXPENSE:
Interest (income) expense, net 15 29 156 62 Other (income) expense,
net
(186 ) (90
) (488 )
(508 ) Total other income, net
(171 ) (61
) (332 )
(446 ) INCOME BEFORE PROVISION FOR
INCOME TAXES 3,075 2,488 7,960 7,052 Provision for income
taxes
593 773
1,775 1,941
CONSOLIDATED NET INCOME 2,482 1,715 6,185 5,111 Net
income attributable to non-controlling interests
(194 ) (262
) (1,270 )
(1,287 ) NET INCOME ATTRIBUTABLE
TO ARK RESTAURANTS CORP.
$ 2,288
$ 1,453 $
4,915 $ 3,824
NET INCOME PER ARK RESTAURANTS CORP. COMMON SHARE: Basic
$ 0.68 $
0.45 $ 1.49
$ 1.18 Diluted
$
0.66 $ 0.43
$ 1.43 $
1.13 WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING: Basic
3,374
3,248 3,296
3,246 Diluted
3,481
3,395 3,430
3,371 EBITDA
Reconciliation: Pre tax income $ 3,075 $ 2,488 $ 7,960 $ 7,052
Depreciation and amortization 1,235 1,124 4,619 4,303 Interest
expense, net
15 29
156 62
EBITDA (a)
$ 4,325 $
3,641 $ 12,735
$ 11,417
EBITDA adjusted for non-cash stock option
expense, and non-controlling interests:
EBITDA (as defined) (a) $ 4,325 $ 3,641 $ 12,735 $ 11,417 Loss on
closure of restaurants - - - 256 Net (income) loss attributable to
non-controlling interests (194 ) (262 ) (1,270 ) (1,287 ) Non-cash
stock option expense
105
79 349
317 EBITDA, as adjusted
$
4,236 $ 3,458
$ 11,814 $
10,703 (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, is
included above.
Ark Restaurants Corp.Robert Stewart,
212-206-8800bstewart@arkrestaurants.com
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