Exhibit 99.1
Ark Restaurants Announces Financial Results for the
Second Quarter and Six Months Ended March 27, 2004
CONTACT:
Robert Towers
(212) 206-8800
bob@arkrestaurants.com
NEW YORK, New York -- May 11, 2003 -- Ark Restaurants Corp. (NASDAQ:ARKR) today
reported financial results for the second quarter and six month periods ended
March 27, 2004.
As of March 27, 2004, the Company's borrowings on its credit facility had been
reduced to $2,925,000 as compared to $16,008,000 outstanding as of March 29,
2003. As of today's date, the Company has fully repaid all of its bank debt.
For the three months ended March 27, 2004, total revenues were $25.7 million
versus $23.3 million in the same period last year. Revenues for both periods
were adjusted as a result of the sale of the Company's Lorelei, La Rambla and
Jack Rose restaurants, the disposal of the Company's Lutece restaurant, and
their reclassification to discontinued operations as required by Generally
Accepted Accounting Principles. The Company's income from continuing operations
increased to $504,000, or $0.15 per diluted share, during the second quarter of
2004, up from $292,000, or $0.09 per diluted share, for the same period last
year. Income from continuing operations was positively effected in last year's
second quarter (2003) due to the recovery during this period of $366,000 in
insurance proceeds for repairs to The Grill Room, a restaurant located in the
World Financial Center, which was damaged in the attack on the World Trade
Center on September 11, 2001.
Total revenues for the six-month period ended March 27, 2004 were $51.4 million
versus $47.0 million in the six months ended March 29, 2003. Revenues for both
of these periods were likewise adjusted as a result of the sale or disposition
of the restaurants mentioned above and their reclassification to discontinued
operations as required by Generally Accepted Accounting Principles. The
Company's income from continuing operations increased to $1.0 million, or $0.30
per diluted share, during the first six months of the Company's 2004 fiscal
year, up from $323,000, or $0.10 per diluted share, for the same period last
year.
Company-wide same store sales increased 10.1% during the second quarter ended
March 27, 2004 compared with last year's second quarter. Same store sales in Las
Vegas increased by $1,735,000 or 11.1% in the second quarter compared to the
second quarter of 2003 as a result of continued strong business in Las Vegas,
coupled with the addition of 90 seats at Gallagher's Steakhouse in the New York
- - New York Hotel and Casino and the opening of a new tower of hotel rooms at the
Venetian Casino Resort, which positively effected the Company's operations in
that hotel. Same store sales in New York increased $301,000 or 5.7% during the
second quarter as the New York market showed signs of recovery. Same store sales
in Washington D.C. increased by $314,000 or 13.1% during the second quarter as
tourism has shown improvement in that market.
The Company had a net loss of $114,000, including discontinued operations, for
the second quarter compared to net income of $30,000 a year ago and experienced
a second quarter loss of $0.04 per fully diluted share versus a gain of $0.01
per share during the previous year's second quarter. For the six-month period
ended March 27, 2004, the Company had net income of $441,000, or $0.13 per
diluted share, compared to a net loss of $85,000, or $0.03 per diluted share,
for the six-months ended March 29, 2003. Net income during the second quarter of
2004 was negatively effected by a one-time expense of $470,000 related to
pension plan contributions required in connection with the closing of the
Company's Lutece restaurant in New York City. For the three months ended March
27, 2004, EBITDA was $917,000 versus $1.1 million in the second quarter last
year. EBITDA for the six-month period ended March 27, 2004 was $2.8 million
versus $2.2 million during the same six-month period last year.
The Company also opened five fast food facilities in Tampa, Florida during the
quarter and eight fast food facilities in Hollywood, Florida on the date of this
press release, each at a Hard Rock Hotel and Casino operated by the Seminole
Indian Tribe at these locations.
Michael Weinstein, President & CEO of Ark Restaurants Corp., stated "More than
half of our sales are being generated from our operations in Las Vegas gaming
facilities. Also, our newest facilities are now also open in the Tampa and
Hollywood Hard Rock Hotel and Casinos. Since the attack on the World Trade
Center on September 11, 2001, Ark has been able to completely repay
approximately $25 million of bank debt. Strong demand in our restaurants
continues. Same store sales for the month of April increased 16% compared to
the same month last year."
Ark Restaurants owns and operates 22 restaurants and bars, 26 fast food
concepts, catering operations and wholesale and retail bakeries. Nine
restaurants are located in New York City; nine 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.
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 and 26 week periods ended March 27, 2004 and March 29, 2003
(In Thousands, Except per share amounts)
- --------------------------------------------------------
13 Weeks Ended 26 Weeks Ended
-------------- --------------
March 27, March 29, March 27, March 29,
2004 2003 2004 2003
---- ---- ---- ----
TOTAL REVENUES $ 25,732 $ 23,392 $ 51,485 $ 47,055
COST AND EXPENSES:
Food and beverage cost of sales 6,692 5,715 13,306 11,584
Payroll expenses 8,751 8,111 17,297 16,287
Occupancy expenses 3,962 3,751 8,069 7,647
Other operating costs and expenses 3,143 2,862 6,376 5,989
General and administrative expenses 1,487 1,344 2,960 2,934
Depreciation and amortization expenses 1,039 1,017 2,048 2,023
-------- -------- -------- --------
Total costs and expenses 25,074 22,800 50,056 46,464
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OPERATING INCOME (LOSS) 658 592 1,429 591
-------- -------- -------- --------
OTHER (INCOME) EXPENSE:
Interest expense, net 54 122 113 337
Other income (171) (1) (256) (267)
-------- -------- -------- --------
Total other (income) expense (117) 121 (143) 70
-------- -------- -------- --------
Income (loss) from continuing operations
before income taxes 775 471 1,572 521
Provision (benefit) for income taxes 271 179 550 198
-------- -------- -------- --------
Income (loss) from continuing operations 504 292 1,022 323
DISCONTINUED OPERATIONS:
Income (loss) from operations of discontinued restaurants (951) (422) (893) (659)
Provision (benefit) for income taxes (333) (160) (312) (251)
-------- -------- -------- --------
Income (loss) from discontinued operations (618) (262) (581) (408)
NET INCOME (LOSS) $ (114) $ 30 $ 441 $ (85)
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PER SHARE INFORMATION - BASIC AND DILUTED:
Continuing operations basic $ .15 $ .09 $ .32 $ .10
Discontinued operations basic $ (.19) $ (.08) $ (.18) $ (.13)
-------- -------- -------- --------
Net basic $ (.04) $ .01 $ .14 $ (.03)
======== ======== ======== ========
Continuing operations diluted $ .15 $ .09 $ .30 $ .10
Discontinued operations diluted $ (.19) $ (.08) $ (.17) $ (.13)
-------- -------- -------- --------
Net diluted $ (.04) $ .01 $ .13 $ (.03)
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,267 3,181 3,224 3,181
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED 3,267 3,188 3,371 3,181
======== ======== ======== ========
EBITDA Reconciliation
Pre tax earnings $ (176) $ 49 $ 679 $ (138)
Depreciation and amortization 1,039 1,017 2,048 2,023
Interest 54 122 113 337
-------- -------- -------- --------
EBITDA (a) $ 917 $ 1,188 $ 2,840 $ 2,222
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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.