Ark Restaurants Announces Financial Results For The First Quarter Of 2012

Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 31, 2011.

As of December 31, 2011 the Company had cash, cash equivalents and short term investments totaling $6,144,000 and long-term debt in the amount of $2,036,000 resulting from the purchase of 250,000 treasury shares in December 2011.

Company-wide same store sales increased 8.9% for the three-month period ended December 31, 2011 compared to the same three month period last year.

Total revenues for the three-month period ended December 31, 2011 were $33,218,000 versus $32,541,000 in the three months ended January 1, 2011.

EBITDA adjusted for non-cash stock option expense and non-controlling interests for the three-month period ended December 31, 2011 was $2,383,000 versus $1,047,000 during the same three-month period last year. The Company’s net income for the three-month period ended December 31, 2011 was $1,086,000, or $0.32 per basic share ($0.31 per diluted share), as compared to a net loss of $213,000, or $0.06 per basic and diluted share, for the same three-month period last year. Included in general and administrative expenses for the 13-weeks ended December 31, 2011 is $475,000 related to resignation of the Company’s President and Chief Operating Officer.

Ark Restaurants owns and operates 20 restaurants and bars, 28 fast food concepts and catering operations in New York City, Washington, D.C. and Las Vegas, NV. Six restaurants are located in New York City, three are located in Washington, D.C., seven are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include five 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 three 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. The operations at the Foxwoods Resort Casino include one fast food concept and six fast food concepts at the MGM Grand Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations under management include 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 Condensed Statements of Operations
For the 13 week periods ended December 31, 2011 and January 1, 2011
 

(In Thousands, Except per share amounts)
 
 
13 weeks ended 13 weeks ended
December 31, January 1,
2011 2011
 

TOTAL REVENUES (includes $5,044 and $4,767 for the 13 weeks ended December 31, 2011 and January 1, 2011, respectively, related to VIEs)
$ 33,218   $ 32,541  
 
COST AND EXPENSES:
 
Food and beverage cost of sales 8,509 8,583
Payroll expenses 10,975 11,246
Occupancy expenses 4,618 4,405
Other operating costs and expenses 4,106 4,652
General and administrative expenses 2,781 2,447
Depreciation and amortization   957     1,150  
 
Total costs and expenses (includes $4,080 and $4,046 for the 13 weeks ended December 31, 2011 and January 1, 2011, respectively, related to VIEs)
  31,946     32,483  
 
OPERATING INCOME   1,272     58  
 
OTHER (INCOME) EXPENSE:
 
Interest (income) expense, net - 1
Other (income) expense, net   (183 )   (70 )
Total other (income) expense, net   (183 )   (69 )
 
Income before provision for income taxes 1,455 127
 
Provision for income taxes   340     31  
 
CONSOLIDATED NET INCOME 1,115 96
 
Net income attributable to non-controlling interests   (29 )   (309 )
 
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. $ 1,086   $ (213 )
 
 
NET (INCOME) LOSS PER ARK RESTAURANTS CORP. COMMON SHARE:
 
Basic $ 0.32   $ (0.06 )
Diluted $ 0.31   $ (0.06 )
 
WEIGHTED AVERAGE NUMBER OF SHARES-BASIC   3,432     3,492  
 
WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED   3,449     3,492  
 
EBITDA Reconciliation:
Pre tax income $ 1,455 $ 127
Depreciation and amortization 957 1,150
Interest   -     1  
EBITDA (a) $ 2,412   $ 1,278  
 
EBITDA adjusted for non-cash stock option expense and
non-controlling interests:
EBITDA (as defined) (a) $ 2,412 $ 1,278
Net income attributable to non-controlling interests (29 ) (309 )
Non-cash stock option expense   -     78  
EBITDA, as adjusted $ 2,383   $ 1,047  

(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 (loss), is included above.

Copyright Business Wire 2010

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