Exhibit 99.1
Ark Restaurants Announces Financial Results for the
Third Quarter and Nine Months Ended June 26, 2004
CONTACT:
Robert Towers
(212) 206-8800
bob@arkrestaurants.com
NEW YORK, New York - August 9, 2004 -- Ark Restaurants Corp. (NASDAQ:ARKR) today
reported financial results for the third quarter and nine month periods ended
June 26, 2004.
For the three months ended June 26, 2004, total revenues were $33.8 million
versus $29.2 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. Revenues from the Company's
Las Vegas operations represented 50.3% of the Company's total revenues during
the three months ended June 26, 2004. The Company's income from continuing
operations increased to $3,031,000, or $0.90 per share ($0.86 per diluted
share), during the third quarter of 2004, up from $1,794,000, or $0.56 per share
($0.56 per diluted share), for the same period last year.
Total revenues for the nine-month period ended June 26, 2004 were $85.3 million
versus $76.3 million in the nine months ended June 28, 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. Revenues from the Company's Las Vegas operations represented 57.8%
of the Company's total revenues during the nine months ended June 26, 2004. The
Company's income from continuing operations increased to $4,142,000, or $1.26
per share ($1.21 per diluted share), during the first nine months of the
Company's 2004 fiscal year, up from $2,199,000, or $0.69 per share ($0.69 per
diluted share), for the same period last year.
Company-wide same store sales increased 16.5% during the third quarter ended
June 26, 2004 compared with last year's third quarter. Same store sales in the
third quarter increased by 12.8% in Las Vegas, 21.8% in New York and 17.9% in
Washington D.C. compared to the third quarter of 2003.
For the three months ended June 26, 2004, EBITDA from continuing operations was
$5,571,000 versus $3,662,000 in the third quarter last year. EBITDA from
continuing operations for the nine-month period ended June 26, 2004 was
$9,372,000 versus $6,543,000 during the same nine-month period last year.
The Company also named three new members to the Board of Directors: Arthur
Stainman, Edward Lowenthal and Vincent Pascal. Mr. Stainman is the senior
managing director of First Manhattan Co. of New York City, a money management
firm, and has over twenty years experience managing money for high net worth
individuals. Mr. Lowenthal has been the President of Ackeman Management, LLC, a
real estate investment firm, since April of 2002 and, prior to that, was the
President of Wellsford Real Properties, also a real estate investment firm, and
predecessor companies, from October 1986 through March 2002. Mr. Pascal, Senior
Vice
President - Operations and Secretary of the Company for more than twenty
years, rejoins the Board after a one-year absence.
The Company's long-time chairman, Ernest Bogen, resigned from the Board and will
be replaced as chairman by Michael Weinstein. Mr. Bogen was given the title of
"Chairman Emeritus" by the Board in recognition of his many years of outstanding
service.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants Corp., stated
"We are extremely pleased with the Company's performance during the quarter.
Each of the Las Vegas, New York and Washington, D.C. markets benefited from
increased tourism and an improved business climate. During this quarter and most
of this year, our Las Vegas operations have improved due to 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. We are
also excited by the strong performance we have seen from our new operations in
each of the Hard Rock Hotel and Casinos in Tampa, Florida and Hollywood,
Florida."
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 nine food court concepts;
four restaurants and bars within the Venetian Casino Resort as well as four food
court concepts. In Las Vegas, 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. The Florida operations include five fast
food facilities in Tampa, Florida and eight fast food facilities in Hollywood,
Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian
Tribe at these locations.
The Company will broadcast its conference call to discuss third quarter results
over the Internet. The broadcast will be held on Tuesday, August 10, 2004 at
11:00 a.m. Eastern Time. To access the broadcast, please visit
http://www.viavid.net. A replay of the broadcast will be available within one
hour of the call.
The dial-in numbers to participate in the conference call are:
Toll-Free - 1- 800-936-9754
Toll/International - 1-973-935-2048
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 39 week periods ended June 26, 2004 and June 28, 2003
(In Thousands, Except per share amounts)
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13 Weeks Ended 39 Weeks Ended
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June 26, June 28, June 26, June 28,
2004 2003 2004 2003
---- ---- ---- ----
TOTAL REVENUES $33,767 $29,223 $85,252 $76,318
COST AND EXPENSES:
Food and beverage cost of sales 8,542 7,258 21,848 18,842
Payroll expenses 9,823 9,039 27,119 25,326
Occupancy expenses 4,441 4,222 12,510 11,869
Other operating costs and expenses 4,031 3,546 10,408 9,535
General and administrative expenses 1,531 1,594 4,491 4,528
Depreciation and amortization expenses 853 1,028 2,901 3,051
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Total costs and expenses 29,221 26,687 79,277 73,151
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OPERATING INCOME 4,546 2,536 5,975 3,167
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OTHER (INCOME) EXPENSE:
Interest expense, net 55 183 98 520
Other income (172) (98) (496) (325)
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Total other (income) expense (117) 85 (398) 195
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Income from continuing operations
before income taxes 4,663 2,451 6,373 2,972
Provision for income taxes 1,632 657 2,231 773
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Income from continuing operations 3,031 1,794 4,142 2,199
DISCONTINUED OPERATIONS:
Loss from operations of discountinued restaurants (91) (239) (985) (897)
Benefit for income taxes (32) (64) (345) (233)
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Loss from discontinued operations (59) (175) (640) (664)
NET INCOME $ 2,972 $ 1,619 $ 3,502 $ 1,535
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PER SHARE INFORMATION - BASIC AND DILUTED:
Continuing operations basic $ .90 $ .56 $ 1.26 $ .69
Discountinued operations basic $ (.02) $ (.05) $ (.20) $ (.21)
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Net basic $ .88 $ .51 $ 1.06 $ .48
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Continuing operations diluted $ .86 $ .56 $ 1.21 $ .69
Discontinued operations diluted $ (.02) $ (.06) $ (.19) $ (.21)
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Net diluted $ .84 $ .50 $ 1.02 $ .48
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WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,377 3,181 3,275 3,181
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WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED 3,509 3,216 3,417 3,197
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EBITDA Reconciliation
Pre tax earnings $ 4,572 $ 2,212 $ 5,388 $ 2,075
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Depreciation and amortization 853 1,028 2,901 3,051
Interest 55 183 98 520
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EBITDA (a) $ 5,480 $ 3,423 $ 8,387 $ 5,646
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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.