Ark Restaurants Announces Fourth Quarter and Full Year Results for 2003
CONTACT:
Robert Towers
(212) 206-8800
bob@arkrestaurants.com
NEW YORK, New York - December 18, 2003 - Ark Restaurants Corp. (NASDAQ:ARKR)
today reported financial results for the fourth quarter and full year ended
September 27, 2003.
For the fourth quarter ended September 27, 2003, total revenues were $31.9
million versus $30.0 million in the fourth quarter of fiscal 2002. Pre-tax
income was $2.3 million for the quarter ended September 27, 2003 versus pre-tax
income of $1.3 million for last year's fourth quarter. Net income for the fourth
quarter ended September 27, 2003 was $1.8 million, or $0.55 per fully diluted
earnings per share, while net income for the fourth quarter of 2002 was $1.6
million, or $0.50 per fully diluted earning per share. Fourth quarter 2003 net
income includes a tax provision of $515,000, or ($0.16) per fully diluted
earnings per share, versus 2002 fourth quarter net income which included a tax
benefit of $336,000, or $0.10 per fully diluted earnings per share. EBITDA for
the fourth quarter ended September 27, 2003 was $3.3 million versus $2.7 million
last year.
For the full fiscal year ended September 27, 2003, total revenues were $116.6
million versus $115.7 million for the year ended September 28, 2002. Net income
for the year ended September 27, 2003 was $3.3 million compared to $4.2 million
for the year ended September 28, 2002. Fully diluted earnings per share were
$1.03 for fiscal 2003 compared with $1.32 in fiscal 2002. Finally, EBITDA for
fiscal 2003 was $9.2 million versus $11.9 million in fiscal 2002.
As of September 27, 2003 borrowings on the Company's credit facility had been
reduced to $6,975,000 versus $14,908,000 as of September 28, 2002.
On a Company wide basis same store sales increased 6.6% during the fourth
quarter of 2003 compared with last year's fourth quarter. Las Vegas continued to
perform strongly during the fourth quarter of 2003 where same store sales
increased 14.5% over the comparable fourth quarter of 2002. Washington D.C. same
store sales increased 0.2% while New York same store sales decreased 0.5% during
the fourth quarter of 2003 compared to the fourth quarter of 2002.
Ark Restaurants owns and operates 24 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; and four in Washington, DC.
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 within the
Venetian Casino Resort as well as four food court concepts. The Company also
owns and operates one restaurant within the Forum Shops at Caesar's Shopping
Center and one restaurant at the Neonopolis Center at Fremont Street.
Ark Restaurants Corp
Consolidated Income Statement
For the 13 weeks ended September 27, 2003 and September 28, 2002
and the 52 weeks ended September 27, 2003 and September 28, 2002
(in thousands except for per share amounts)
52 weeks to 52 weeks to 13 weeks to 13 weeks to
9/27/2003 9/28/2002 9/27/2003 9/28/2002
----------- ----------- ----------- -----------
REVENUES:
Food & beverage sales $ 115,256 $ 115,107 $ 31,667 $ 29,917
Other income 1,337 550 234 68
---------- ---------- ---------- ----------
Total Revenues 116,593 115,657 31,901 29,985
COSTS & EXPENSES:
Food & beverage cost of sales 29,267 28,794 8,156 7,331
Payroll expenses 38,583 37,412 10,175 9,551
Occupancy expenses 18,200 17,306 4,757 4,454
Other operating costs and expenses 14,964 13,951 3,842 4,071
General & Administrative expenses 6,665 6,548 2,137 2,031
Depreciation and amortization expenses 4,286 5,172 992 1,261
Asset Impairment 667 -- -- --
---------- ---------- ---------- ----------
Total costs and expenses 112,632 109,183 30,059 28,699
Operating Income 3,961 6,474 1,842 1,236
OTHER (INCOME) EXPENSE:
Interest expense 732 1,212 87 231
Interest income (163) (133) (38) (31)
Other income (983) (253) (508) (177)
---------- ---------- ---------- ----------
Total other (income) expense (414) 826 (459) (37)
---------- ---------- ---------- ----------
Income before income taxes 4,375 5,648 2,301 1,273
Provision (benefit) for income taxes 1,056 1,419 515 (336)
---------- ---------- ---------- ----------
NET INCOME $ 3,319 $ 4,229 $ 1,786 $ 1,609
========== ========== ========== ==========
EBITDA Reconciliation
Pre Tax Earnings $ 4,375 $ 5,648 $ 2,301 $ 1,273
Depreciation 4,286 5,172 992 1,261
Interest 569 1,079 49 201
---------- ---------- ---------- ----------
EBITDA (a) $ 9,230 $ 11,899 $ 3,342 $ 2,735
========== ========== ========== ==========
INCOME per share:
Income basic $ 1.04 $ 1.33 $ 0.56 $ 0.51
Income diluted $ 1.03 $ 1.32 $ 0.55 $ 0.50
Basic Shares 3,181,299 3,181,299 3,181,299 3,181,299
Diluted Shares 3,212,885 3,205,792 3,259,892 3,208,981
(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.