Exhibit 99.1
Ark Restaurants Announces
First Quarter Financial Results
CONTACT:
Robert Towers
(212) 206-8800
NEW YORK, New York - February 9, 2004 - Ark Restaurants Corp. (NASDAQ: ARKR)
today reported financial results for the first quarter ended December 27, 2003.
For the three months ended December 27, 2003 total revenues were $27.1 million
versus $25 million in the first fiscal quarter of last year. Revenues for both
periods were adjusted as a result of the sale of two restaurants, one located in
Islamorada, Florida, and one located in New York City, and their
reclassification to discontinued operations as required by Generally Accepted
Accounting Principles. Net income for the first quarter was $556,000 compared to
a net loss of $116,000 in the year ago first quarter. Net basic income per share
was $0.18 during the first quarter of 2004 compared to a net basic loss per
share of $0.04 during the first quarter of 2003. EBITDA for the quarter was $2
million versus $1.2 million last year.
As of December 27, 2003 borrowings on the Company's credit facility had been
reduced to $7.8 million compared to $14.9 million as of December 28, 2002.
On a Company-wide basis same store sales increased 6.0% during the first quarter
ended December 27, 2003 compared with last year's first quarter. Las Vegas
continued to show strong growth with same stores sales increasing 12.4% over the
previous year's comparable quarter. Washington D.C. same store sales increased
6.1% while New York's decreased 2.0% during the first quarter of fiscal 2004
versus the first quarter of fiscal 2003.
Presently the Company is in construction to build fast food facilities at two
casino properties operated by the Seminole Indian Tribe in Tampa and Hollywood,
Florida. The Tampa property fast food facilities will have five concepts while
it is anticipated that the Hollywood fast food facilities will have eight. The
Company has partners in this venture who assumed the financial risk. The Tampa
operations are scheduled to open on March 1, 2004 followed by Hollywood on April
15, 2004.
Ark Restaurants owns and operates 24 restaurants, 26 fast food concepts
(including those mentioned above), 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 December 27, 2003 and December 28, 2002
(in thousands except for per share amounts)
13 weeks to 13 weeks to
12/27/2003 12/28/2002
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REVENUES:
Food & beverage sales $ 27,007 $ 24,867
Other income 98 98
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Total Revenues 27,105 24,965
COSTS & EXPENSES:
Food & beverage cost of sales 6,998 6,217
Payroll expenses 9,007 8,662
Occupancy expenses 4,373 4,130
Other operating costs and expenses 3,409 3,407
General & administrative expenses 1,473 1,591
Depreciation & amortization expenses 1,063 1,134
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Total costs and expenses 26,323 25,141
Operating income (loss) 782 (176)
OTHER (INCOME) EXPENSE:
Interest expense 93 222
Interest income (35) (7)
Other income (92) (255)
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Total other (income) expense (34) (40)
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Income (loss) from continuing operations
before income taxes 816 (136)
Provision (benefit) for income taxes 286 (52)
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Income (loss) from continuing operations 530 (84)
DISCONTINUED OPERATIONS:
Income (loss) from operations of discontinued
restaurants (including gains on disposal
of $343,000 and $0, respectively) 40 (51)
Provision (benefit) for income taxes 14 (19)
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Income (loss) from discontinued operations 26 (32)
NET INCOME (LOSS) $ 556 (116)
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INCOME (LOSS) per share:
Continuing operations basic $ 0.17 ($0.03)
Discontinued operations basic $ 0.01 ($0.01)
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Net basic $ 0.18 ($0.04)
Continuing operations diluted $ 0.16 ($0.03)
Discontinued operations diluted $ 0.01 ($0.01)
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Net diluted $ 0.17 ($0.04)
Basic Shares 3,181,299 3,181,299
Diluted Shares 3,321,947 3,196,770
EBITDA Reconciliation
Pre tax earnings $ 856 $ (187)
Depreciation and amortization 1,063 1,134
Interest 58 215
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EBITDA (a) $ 1,977 $ 1,162
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(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.