Ark Restaurants Announces Financial Results
For The Third Quarter and Nine Months Ended June 28, 2003
Press Release
NEW YORK, New York - August 4, 2003 - Ark Restaurants Corp. (NASDAQ:ARKR)
reported financial results for the third quarter and nine-month periods ended
June 28, 2003.
For the three months ended June 28, 2003 total revenues were $31.9 million
versus $33.3 million in the comparable quarter last year. Net income for the
third quarter was $1.6 million, or $0.50 per diluted share, compared to $1.8
million, or $0.57 per diluted share in the year ago quarter. EBITDA for the
quarter was $3.5 million versus $4.5 million last year.
Total revenues for the nine-month period ended June 28, 2003 were $84.7 million
versus $85.5 million in the nine-month period ended June 29, 2002. Net income
for the nine-month period ended June 28, 2003 was $1.5 million versus $2.6
million in last year's comparable period. Fully diluted earnings per share were
$0.48 for the just ended nine-month period compared to $0.82 last year. EBITDA
for the nine-month period ended June 28, 2003 was $5.9 million compared to $9.2
million for the nine-month period ended June 29, 2002.
As of June 28, 2003 borrowings on the Company's credit facility had been reduced
to $11,200,000 versus $17,890,000 as of June 29, 2002.
Las Vegas continued to perform strongly, and same store-sales increased 5%
during the third quarter of 2003 compared to the third quarter of 2002. Revenues
in Las Vegas increased to 47.3% of company wide revenues for the third quarter
of 2003 compared to 44.7% during the third quarter of 2002. For the 39-week
period ended June 28, 2003, revenues in Las Vegas increased to 51.7% of Company
wide revenues compared to 49.9% during last year's nine-month period.
Record rainfall during the third quarter of the year permitted limited use of
the Company's significant number of outdoor cafe seats in New York and
Washington D.C. In these two markets an additional 1,500 outdoor seats are added
to several restaurants with a combined indoor seating capacity of 1,400. On a
combined basis, same-store sales at restaurants with outdoor seating in New York
and Washington D.C. decreased 16.5% during the third quarter of this year
compared to last year. Same-store sales in restaurants without outdoor seating,
in these two markets, decreased by only 1.8% in the same comparable quarter.
Ark Restaurants owns and operates 25 restaurants, 12 fast food concepts,
catering operations and wholesale and retail bakeries. Twelve restaurants are
located in New York City; 8 in Las Vegas, Nevada; 4 in Washington, DC; and one
in Islamorada, Florida. The Las Vegas operations include three restaurants
within the New York-New York Hotel & Casino Resort and operation of the Resort's
room service, banquet facilities, employee dining room and eight food court
concepts. Four restaurants and bars are within the Venetian Casino Resort as
well as four food court concepts. One restaurant is within the Forum Shops at
Caesar's Shopping Center and one restaurant is in the Neonopolis Center at
Freemont Street in downtown Las Vegas.
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.
Ark Restaurants Corp.
Consolidated Income Statement
For the 13 weeks ended June 28, 2003 and June 29, 2002
and the 39 weeks ended June 28, 2003 and June 29, 2002
(unaudited: in thousands except for per share amounts)
39 weeks to 39 weeks to 13 weeks to 13 weeks to
28-Jun-03 29-Jun-02 28-Jun-03 29-Jun-02
--------- --------- --------- ---------
REVENUES:
Food & beverage sales 83,589 85,190 31,642 33,261
Other income 1,103 355 229 70
--------- --------- --------- ---------
Total Revenues 84,692 85,545 31,871 33,331
COST & EXPENSES:
Food & beverage cost of sales 21,112 21,463 8,035 8,378
Payroll expenses 28,408 27,861 10,070 10,232
Occupancy expenses 13,442 12,852 4,742 4,674
Other operating costs and expenses 11,121 9,880 4,142 3,948
General & administrative expenses 4,528 4,517 1,594 1,586
Depreciation and amortization expenses 3,294 3,911 1,089 1,220
Asset impairment 667 0 0 0
Total costs and expenses 82,572 80,484 29,672 30,038
Operating Income 2,120 5,061 2,199 3,293
OTHER (INCOME) EXPENSE:
Interest expense 645 981 217 300
Interest income (125) (102) (33) (36)
Other income (475) (193) (197) (35)
--------- --------- --------- ---------
Total other (income) expense 45 686 (13) 229
--------- --------- --------- ---------
Income before income taxes 2,075 4,375 2,212 3,064
Provision for income taxes 541 1,755 593 1,229
--------- --------- --------- ---------
NET INCOME 1,534 2,620 1,619 1,835
========= ========= ========= =========
EBITDA Reconciliations
Pre Tax Earnings 2,075 4,375 2,212 3,064
Depreciation 3,294 3,911 1,089 1,220
Interest 520 879 184 264
--------- --------- --------- ---------
EBITDA (a) 5,889 9,165 3,485 4,548
========= ========= ========= =========
INCOME per share:
Income basic $0.48 $0.82 $0.51 $0.58
Income diluted $0.48 $0.82 $0.50 $0.57
Basic Shares 3,181,299 3,181,299 3,181,299 3,181,299
Diluted Shares 3,197,040 3,199,089 3,206,755 3,216,010
(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 the
non-GAAP financial measure EBITDA 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,
operating income, 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, net income, is included
above.