Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial
results for the fourth quarter and full year ended October 3,
2015.
Total revenues for the three-month period ended October 3, 2015
were $40,581,000 versus $37,072,000 for the three months ended
September 27, 2014. The three-month period ended October 3, 2015
includes revenues of $705,000 related to our second Rustic Inn
property in Jupiter, FL which was opened on January 26, 2015 and
$855,000 related to our Southwest Porch property in Bryant Park, NY
which was opened on July 1, 2015. Last year’s three-month period
ended September 27, 2014 included revenues of $399,000 related to
two properties closed during the first fiscal quarter of 2015 due
to lease expirations.
Total revenues for the year ended October 3, 2015 were
$145,863,000 versus 139,357,000 for the year ended September 27,
2014. The year ended October 3, 2015 includes revenues of
$15,668,000 related to our first Rustic Inn property in Dania
Beach, FL, which was acquired on February 24, 2014. During the
previous fiscal year ended September 27, 2014 the first Rustic Inn
property in the seven months it was owned and operated by us,
generated revenue of $8,753,000. The year ended October 3, 2015
also includes revenues of $3,227,000 related to our second Rustic
Inn property in Jupiter, FL which was opened on January 26, 2015
and $855,000 related to our Southwest Porch property in Bryant
Park, NY which was opened on July 1, 2015, respectively. The year
ended September 27, 2014 included revenues of $4,974,000 related to
two properties closed during the third fiscal quarter of 2014 and
two properties closed during the first fiscal quarter of 2015 all
due to lease expirations.
Company-wide same store sales increased 7.4% for the three-month
period ended October 3, 2015 compared to the same three month
period last year. For fiscal 2015 company-wide same store sales
increased 0.9% compared to last year.
The Company’s EBITDA, adjusted for non-cash stock option expense
and non-controlling interests, for the three-month period October
3, 2015 was $4,626,000 versus $4,236,000 during 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 October 3, 2015 was $13,018,000 versus $11,814,000
last year.
Net income for the three-month period ended October 3, 2015 was
$2,009,000, or $0.59 per basic share ($0.57 per diluted share), as
compared to $2,288,000, or $0.68 per basic share ($0.66 per diluted
share), for the same three-month period last year. Net income for
the year ended October 3, 2015 was $5,390,000, or $1.59 per basic
share ($1.54 per diluted share), as compared to $4,915,000, or
$1.49 per basic share ($1.43 per diluted share), for the last
year.
As of October 3, 2015 the Company had cash and cash equivalents
totaling $9,735,000. The Company has a bank note used for the
purchase of membership interests in Ark Hollywood/Tampa Investment,
LLC and the purchase of The Rustic Inn in Dania Beach, Florida with
an outstanding balance of $5,524,000 at October 3, 2015.
On October 22, 2015, the Company completed its acquisition of
Shuckers Inc. in Jensen Beach, Florida for a total purchase price
of approximately $5,650,000. The acquisition was financed with a
bank loan in the amount of $5,000,000 and cash from operations. In
connection with this transaction, the Company also entered into a
Credit Agreement (the “Revolving Facility”) with Bank Hapoalim B.M.
(the “Bank”) which expires on October 21, 2017. Borrowings under
the Revolving Facility will be evidenced by a promissory note (the
“Revolving Note”) in favor of the Bank in the amount of up to
$10,000,000 and will be payable over five years with interest at an
annual rate equal to LIBOR plus 3.5% per year. Borrowings under the
Revolving Facility are secured by a senior secured interest in all
of the Company’s and several of its subsidiaries’ personal and
fixture property, but generally not in any directly held investment
property or general intangibles.
Ark Restaurants owns and operates 22 restaurants and bars, 19
fast food concepts and catering operations primarily in New York
City, Florida, Washington, D.C. and Las Vegas, NV. Six restaurants
are located in New York City, three are located in Washington,
D.C., five 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 three are located in 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; 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 two Rustic Inn’s, one in Dania Beach, Florida
and one in Jupiter, Florida, a restaurant, Shuckers, located in
Jensen Beach 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 14 and 53 week periods ended October 3, 2015
and the 13 and 52 week periods ended September 27, 2014
(In Thousands, Except per share
amounts) 14 weeks ended 13 weeks ended 53 weeks ended
52 weeks ended October 3, September 27, October 3, September
27,
2015
2014
2015
2014
TOTAL REVENUES
$ 40,581
$ 37,072 $
145,863 $ 139,357
COST AND EXPENSES: Food and beverage cost of
sales 10,944 10,126 39,435 37,091 Payroll expenses 12,745 11,438
46,903 44,427 Occupancy expenses 4,423 4,473 16,790 17,388 Other
operating costs and expenses 5,022 4,285 18,494 17,802 General and
administrative expenses 2,685 2,611 10,885 10,402 Depreciation and
amortization
1,107
1,235 4,415
4,619 Total costs and expenses
36,926 34,168
136,922 131,729
OPERATING INCOME
3,655
2,904 8,941
7,628 OTHER (INCOME) EXPENSE:
Interest (income) expense, net 20 15 191 156 Other (income)
expense, net
(74 )
(186 ) (238
) (488 ) Total other
income, net
(54 )
(171 ) (47
) (332 )
INCOME BEFORE PROVISION FOR INCOME TAXES 3,709 3,075 8,988 7,960
Provision for income taxes
1,377
593 2,596
1,775 CONSOLIDATED NET INCOME
2,332 2,482 6,392 6,185 Net income attributable to
non-controlling interests
(323 )
(194 ) (1,002
) (1,270 ) NET
INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.
$
2,009 $ 2,288
$ 5,390 $
4,915 NET INCOME PER ARK RESTAURANTS
CORP. COMMON SHARE: Basic
$ 0.59
$ 0.68 $
1.59 $ 1.49
Diluted
$ 0.57 $
0.66 $ 1.54
$ 1.43 WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING: Basic
3,408 3,374
3,393 3,296 Diluted
3,526 3,481
3,509 3,430
EBITDA Reconciliation: Pre tax income $ 3,709 $ 3,075
$ 8,988 $ 7,960 Depreciation and amortization 1,107 1,235 4,415
4,619 Interest expense, net
20
15 191
156 EBITDA (a)
$
4,836 $ 4,325
$ 13,594 $
12,735 EBITDA adjusted for non-cash
stock option expense, and non-controlling interests: EBITDA (as
defined) (a) $ 4,836 $ 4,325 $ 13,594 $ 12,735 Net (income) loss
attributable to non-controlling interests (323 ) (194 ) (1,002 )
(1,270 ) Non-cash stock option expense
113
105 426
349 EBITDA, as adjusted
$ 4,626 $
4,236 $ 13,018
$ 11,814
(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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151223005041/en/
Ark Restaurants Corp.Robert Stewart,
212-206-8800bstewart@arkrestaurants.com
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