Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial
results for the second quarter ended April 2, 2016.
Total revenues for the three-month period ended April 2, 2016
were $34,272,000 versus $31,548,000 for the three months ended
March 28, 2015. The three-month period ended April 2, 2016 includes
revenues related to Shuckers in Jensen Beach, FL which was acquired
in October 2015 and the Southwest Porch in Bryant Park, NY which
was opened in July 2015, totaling $1,944,000. Last year’s
three-month period included revenues of $952,000 related to two
properties closed during or subsequent to the quarter due to lease
expirations.
Total revenues for the six-month period ended April 2, 2016 were
$70,381,000 versus $64,906,000 for the six months ended March 28,
2015. The six-month period ended April 2, 2016 includes incremental
revenues related to the Rustic Inn in Jupiter, FL, which opened in
February 2015, Shuckers in Jensen Beach, FL, which was acquired in
October 2015, and to Southwest Porch in Bryant Park, NY, which was
opened on July 1, 2015, totaling $4,425,000. Last year’s six-month
period included revenues of $2,029,000 related to four properties
closed subsequent to the quarter-end due to lease expirations.
Company-wide same store sales increased 1.0% for the three-month
period ended April 2, 2016 compared to the same three month period
last year.
The Company’s EBITDA, adjusted for non-cash stock option expense
and non-controlling interests, for the three-month period April 2,
2016 was $588,000 versus $490,000 during the same three-month
period last year. Net loss for the three-month period ended April
2, 2016 was ($646,000), or ($0.19) per basic share and diluted
share, compared to a net loss of ($583,000), or ($0.17) per basic
share and 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 six-month period ended April
2, 2016 was $2,370,000 versus $2,821,000 during the same six-month
period last year. Net loss for the six-month period ended April 2,
2016 was ($324,000), or ($0.09) per basic share and diluted share,
as compared to net income of $140,000, or $0.04 per basic and
diluted share, for the same six-month period last year.
The decrease of $451,000 in EBITDA, as adjusted for non-cash
stock option expense and non-controlling interests, for the
six-month period ended April 2, 2016 as compared to the same period
of last year, resulted primarily from higher operating
payrolls.
As of April 2, 2016 the Company had cash and cash equivalents
totaling $5,924,000. The Company has notes payable outstanding, the
proceeds of which were used to finance the purchases of membership
interests in Ark Hollywood/Tampa Investment, LLC, the purchase of
The Rustic Inn in Dania Beach, Florida and the purchase of
Shuckers, with an outstanding balance of $9,188,000, net of the
unamortized balance of deferred financing costs in the amount of
$110,000 at April 2, 2016.
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 Inns, one in Dania Beach, Florida and
one in Jupiter, Florida, Shuckers in Jensen 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 and 26-week periods ended April 2, 2016 and March 28,
2015 (In Thousands, Except per share
amounts) 13 weeks ended 13 weeks ended 26 weeks ended
26 weeks ended April 2, March 28, April 2, March 28,
2016 2015
2016 2015
TOTAL REVENUES
$ 34,272
$ 31,548 $
70,381 $ 64,906
COST AND EXPENSES: Food and beverage cost of
sales 9,191 9,171 18,783 17,918 Payroll expenses 12,895 11,285
25,205 22,139 Occupancy expenses 4,037 3,823 8,583 8,016 Other
operating costs and expenses 4,924 4,374 9,486 8,614 General and
administrative expenses 2,712 2,431 6,040 5,431 Depreciation and
amortization
1,136
1,098 2,275
2,203 Total costs and expenses
34,895 32,182
70,372 64,321
OPERATING INCOME (LOSS)
(623 )
(634 ) 9
585 OTHER (INCOME)
EXPENSE: Interest (income) expense, net 98 45 177 102 Other
(income) expense, net
(160 )
(64 ) (222
) (121 ) Total other
income, net
(62 )
(19 ) (45
) (19 ) INCOME
(LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES (561 ) (615 ) 54
604 Provision (benefit) for income taxes
(103 ) (173
) 35
168 CONSOLIDATED NET INCOME (LOSS) (458
) (442 ) 19 436 Net income attributable to non-controlling
interests
(188 )
(141 ) (343
) (296 ) NET
INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.
$
(646 ) $ (583
) $ (324 )
$ 140 NET INCOME (LOSS) PER
ARK RESTAURANTS CORP. COMMON SHARE: Basic
$
(0.19 ) $ (0.17
) $ (0.09 )
$ 0.04 Diluted
$
(0.19 ) $ (0.17
) $ (0.09 )
$ 0.04 WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING: Basic
3,418 3,382
3,418 3,380 Diluted
3,418 3,382
3,418 3,490
EBITDA Reconciliation: Pre tax income (loss) $ (561 )
$ (615 ) $ 54 $ 604 Depreciation and amortization 1,136 1,098 2,275
2,203 Interest expense, net
98
45 177
102 EBITDA (a)
$ 673
$ 528 $
2,506 $ 2,909
EBITDA adjusted for non-cash stock option expense, and
non-controlling interests: EBITDA (as defined) (a) $ 673 $ 528 $
2,506 $ 2,909 Net (income) loss attributable to non-controlling
interests (188 ) (141 ) (343 ) (296 ) Non-cash stock option expense
103 103
207 208
EBITDA, as adjusted
$ 588
$ 490 $
2,370 $ 2,821
(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/20160512006472/en/
Ark Restaurants Corp.Robert Stewart,
212-206-8800bstewart@arkrestaurants.com
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