Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial
results for the third quarter ended July 2, 2016.
Total revenues for the three-month period ended July 2, 2016
were $41,233,000 versus $40,375,000 for the three months ended June
27, 2015. The three-month period ended July 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 $2,398,000. Last year’s
three-month period included revenues of $1,142,000 related to two
properties closed during or subsequent to the quarter due to lease
expirations.
Total revenues for the nine-month period ended July 2, 2016 were
$111,614,000 versus $105,282,000 for the nine months ended June 27,
2015. The nine-month period ended July 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 Southwest Porch in Bryant Park, NY, which was
opened on July 1, 2015, totaling $7,279,000. Last year’s nine-month
period included revenues of $3,170,000 related to four properties
closed subsequent to the quarter-end due to lease expirations.
Company-wide same store sales decreased 1.6% for the three-month
period ended July 2, 2016 compared to the same three month period
last year and were unchanged for the nine-month period ended July
2, 2016 compared to the same nine month period last year.
The Company’s EBITDA, adjusted for non-cash stock option expense
and non-controlling interests, for the three-month period July 2,
2016 was $6,021,000 versus $5,570,000 during the same three-month
period last year. Net income for the three-month period ended July
2, 2016 was $3,367,000, or $0.99 per basic share ($0.96 per diluted
share), as compared to net income of $3,241,000, or $0.95 per basic
share ($0.92 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 nine-month period ended July
2, 2016 was precisely the same as last year’s nine-month period,
$8,392,000 versus $8,392,000. Net income for the nine-month period
ended July 2, 2016 was $3,043,000, or $0.89 per basic share ($0.87
per diluted share), as compared to net income of $3,381,000, or
$1.00 per basic share ($0.97 per diluted share), for the same
nine-month period last year.
Included in net income for the three and nine-month periods
ended July 2, 2016 is the reversal of accrued liabilities relating
to the resolution of a legal matter resolved in the Company’s favor
and the correction of an immaterial error in previously issued
financial statements related to an overstatement of a rent
liability. The adjustments totaled $1,206,000 and were recorded as
a reduction of occupancy expenses in the three month period ended
July 2, 2016 with corresponding adjustments to tax expense and net
income attributable to non-controlling interests in the amounts of
$229,000 and $337,000, respectively ($0.19 per basic and $0.18 per
diluted share). Excluding these adjustments net income and EBITDA,
adjusted for non-cash stock option expense and non-controlling
interests would have been $2,728,000 and $5,153,000, respectively,
for the three –month period ended July 2, 2016 and $2,403,000 and
$7,523,000, respectively, for the nine-month period ended July 2,
2016.
As of July 2, 2016 the Company had cash and cash equivalents
totaling $8,519,000. 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 $8,546,000, net of the
unamortized balance of deferred financing costs in the amount of
$99,000 at July 2, 2016.
Ark Restaurants owns and operates 21 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, two 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, 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 39-week
periods ended July 2, 2016 and June 27, 2015
(In Thousands,
Except per share amounts)
13 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended
July 2, June 27, July 2, June 27,
2016
2015
2016
2015
TOTAL REVENUES
$ 41,233
$ 40,375 $
111,614 $ 105,282
COST AND EXPENSES: Food and beverage cost of
sales 10,656 10,573 29,440 28,491 Payroll expenses 12,895 12,019
38,100 34,158 Occupancy expenses 3,309 4,351 11,891 12,367 Other
operating costs and expenses 4,999 4,858 14,485 13,473 General and
administrative expenses 2,956 2,769 8,996 8,200 Depreciation and
amortization
1,109
1,104 3,384
3,308 Total costs and expenses
35,924 35,674
106,296 99,997
OPERATING INCOME
5,309
4,701 5,318
5,285 OTHER (INCOME) EXPENSE:
Interest (income) expense, net 104 69 280 171 Other (income)
expense, net
(217 )
(42 ) (439
) (164 ) Total other
income (expense), net
(113 )
27 (159
) 7 INCOME BEFORE
PROVISION FOR INCOME TAXES 5,422 4,674 5,477 5,278 Provision
for income taxes
1,362
1,051 1,398
1,219 CONSOLIDATED NET INCOME 4,060
3,623 4,079 4,059 Net income attributable to non-controlling
interests
(693 )
(382 ) (1,036
) (678 ) NET
INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.
$
3,367 $ 3,241
$ 3,043 $
3,381 NET INCOME PER ARK RESTAURANTS
CORP. COMMON SHARE: Basic
$ 0.99
$ 0.95 $
0.89 $ 1.00
Diluted
$ 0.96 $
0.92 $ 0.87
$ 0.97 WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING: Basic
3,418 3,403
3,418 3,388 Diluted
3,494 3,517
3,504 3,500
EBITDA Reconciliation: Pre tax income $ 5,422 $ 4,674
$ 5,477 $ 5,278 Depreciation and amortization 1,109 1,104 3,384
3,308 Interest expense, net
104
69 280
171 EBITDA (a)
$
6,635 $ 5,847
$ 9,141 $
8,757 EBITDA adjusted for non-cash stock
option expense, and non-controlling interests: EBITDA (as defined)
(a) $ 6,635 $ 5,847 $ 9,141 $ 8,757 Net income attributable to
non-controlling interests (693 ) (382 ) (1,036 ) (678 ) Non-cash
stock option expense
79
105 287
313 EBITDA, as adjusted
$
6,021 $ 5,570
$ 8,392 $
8,392
(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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160811005901/en/
Ark Restaurants Corp.Robert Stewart,
212-206-8800bstewart@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