Exhibit 99.1
Ark Restaurants Announces First Quarter Financial Results
NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 29, 2007.
Total revenues from continuing operations for the three-month period ended December 29, 2007 were $30,318,000 versus $27,521,000 in the three months ended December 30, 2006.
EBITDA from continuing operations for the three-month period ended December 29, 2007 was $2,908,000 versus $3,312,000 during the same three-month period last year. EBITDA and income from continuing operations was negatively affected by pre-opening expenses involved in the construction of Yolos, a Mexican grill and lounge located at the Planet Hollywood Hotel in Las Vegas, which opened on December 30, 2007, expenses related to the expansion and renovation of the banquet facilities in the New York-New York Hotel & Casino and the payment of year-end bonuses to Company employees in excess of those paid during the first quarter last year. The Company’s income from continuing operations for the three-month period ended December 29, 2007 was $1,509,000, or $0.42 per share ($0.41 per diluted share), as compared to $1,842,000, or $0.51 per share ($0.51 per diluted share), for the same three-month period last year.
Compared to last year’s first quarter, Company-wide same store sales increased 3.7%. Compared to the same period last year, same store sales in the Company’s New York City operations increased by 10.0%, same store sales in the Company’s Las Vegas operations increased by 0.3%, same store sales in the Company’s Washington D.C. operations increased by 4.2% and same store sales in the Company’s Atlantic City operations increased by 0.6%. Same store sales in Las Vegas were negatively affected by the closure of the banquet facilities in the New York-New York Hotel & Casino for expansion and renovations. Catering sales in these facilities decreased $410,000 in the first fiscal quarter of 2008 compared to the same period in 2007. Sales from the Company’s Las Vegas operations represented 47.1% of the Company’s total sales during the three-month period ended December 29, 2007.
Net income for the three-month period ended December 29, 2007 was $1,485,000 versus $6,590,000 in the three months ended December 30, 2006. Net income for the three-month period ended December 30, 2006 included a $5,196,000 net gain after taxes from the sale of the Company’s Lutece and Tsunami facilities at the Venetian Casino Resort.
As of December 29, 2007, the Company had cash, cash equivalents and short term investments totaling $12,140,000. As of the same date, the Company had no long-term debt other than $842,000 remaining due on a five year purchase money obligation undertaken in connection with the Company’s January 8, 2007 acquisition of the Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts.
Ark Restaurants owns and operates 22 restaurants and bars, 24 fast food concepts, catering operations and wholesale and retail bakeries. Seven restaurants are located in New York City, four are located in Washington, D.C., five are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, three are located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and nine food court concepts; one bar within the Venetian Casino Resort as well as three food court concepts. In Las Vegas, the Company also owns and operates one restaurant within the Forum Shops at Caesar's Shopping Center. 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. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace.
Except for historical information, this news release contains forward-looking statements, which 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 fillings 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.
ARK RESTAURANTS CORP. | |||||||
Condensed Consolidated Income Statement | |||||||
For the 13 week periods ended December 29, 2007 and December 30, 2006 | |||||||
(In Thousands, Except per share amounts) | |||||||
13 weeks ended | 13 weeks ended | ||||||
December 29, | December 30, | ||||||
2007 | 2006 | ||||||
TOTAL REVENUES | $ | 30,318 | $ | 27,521 | |||
COST AND EXPENSES: | |||||||
Food and beverage cost of sales | 7,734 | 6,816 | |||||
Payroll expenses | 9,541 | 8,666 | |||||
Occupancy expenses | 4,019 | 3,875 | |||||
Other operating costs and expenses | 4,084 | 3,111 | |||||
General and administrative expenses | 2,151 | 1,983 | |||||
Depreciation and amortization expenses | 677 | 632 | |||||
Total costs and expenses | 28,206 | 25,083 | |||||
OPERATING INCOME | 2,112 | 2,438 | |||||
OTHER INCOME: | |||||||
Interest income - net | 130 | 110 | |||||
Other income | 119 | 242 | |||||
Total other income | 249 | 352 | |||||
Income from continuing operations | |||||||
before income taxes | 2,361 | 2,790 | |||||
Provision for income taxes | 852 | 935 | |||||
Limited partner interest in income of variable interest entity | - | (13 | ) | ||||
Income from continuing operations | 1,509 | 1,842 | |||||
DISCONTINUED OPERATIONS: | |||||||
Income (loss) from operations of discontinued restaurants | (37 | ) | 7,139 | ||||
Provision (benefit) for income taxes | (13 | ) | 2,391 | ||||
Income (loss) from discontinued operations | (24 | ) | 4,748 | ||||
NET INCOME | $ | 1,485 | $ | 6,590 | |||
PER SHARE INFORMATION - BASIC AND DILUTED: | |||||||
Continuing operations basic | $ | .42 | $ | .51 | |||
Discontinued operations basic | $ | (.01 | ) | $ | 1.33 | ||
Net basic | $ | .41 | $ | 1.84 | |||
Continuing operations diluted | $ | .41 | $ | .51 | |||
Discontinued operations diluted | $ | (.01 | ) | $ | 1.33 | ||
Net diluted | $ | .40 | $ | 1.84 | |||
WEIGHTED AVERAGE NUMBER OF SHARES-BASIC | 3,597 | 3,571 | |||||
WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED | 3,641 | 3,576 | |||||
Continuing Operations EBITDA Reconciliation | |||||||
Pre tax earnings | $ | 2,361 | $ | 2,790 | |||
Depreciation and amortization | 677 | 632 | |||||
Interest | (130 | ) | (110 | ) | |||
EBITDA (a) | $ | 2,908 | $ | 3,312 | |||
Continuing Operations EBITDA adjusted for | |||||||
non-cash stock option expense | |||||||
EBITDA (as defined) (a) | $ | 2,908 | $ | 3,312 | |||
Non-cash stock option expense | 78 | 174 | |||||
EBITDA adjusted for non-cash stock option expense | $ | 2,986 | $ | 3,486 | |||
(a) EBITDA is defined as earnings before interest, taxes, depreciation |
CONTACT:
Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com