Exhibit 99.1
Ark Restaurants Announces Financial Results for the
Third Quarter and Nine Months Ended July 2, 2005
CONTACT:
Robert Towers
(212) 206-8800
bob@arkrestaurants.com
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NEW YORK, New York - August 12, 2005 -- Ark Restaurants Corp. (NASDAQ:ARKR)
today reported financial results for the third quarter and nine month periods
ended July 2, 2005.
For the three months ended July 2, 2005, the Company's income from continuing
operations was $2,850,000, or $0.82 per share ($0.80 per diluted share), as
compared to $2,996,000, or $0.89 per share ($0.85 per diluted share), for the
same period last year.
Total revenues from continuing operations for the three-month period ended July
2, 2005 were $32.77 million versus $32.83 million in the same period last year.
Compared to the same period last year, same store sales in the Company's
Washington D.C. operations increased by 6.5%, same store sales in the Company's
New York City operations increased by 3.8% and same store sales in the Company's
Las Vegas operations decreased by 7.2%. Sales from the Company's Las Vegas
operations represented 48.7% of the Company's total sales during the three-month
period ended July 2, 2005.
For the nine months ended July 2, 2005, the Company's income from continuing
operations increased to $4,154,000, or $1.21 per share ($1.17 per diluted
share), from $3,996,000, or $1.22 per share ($1.17 per diluted share), for the
same period last year.
Total revenues from continuing operations for the nine-month period ended July
2, 2005 were $84.44 million versus $82.36 million in the same period last year.
Sales from the Company's Las Vegas operations represented 57.9% of the Company's
total sales during the nine-month period ended July 2, 2005.
EBITDA from continuing operations for the three-month period ended July 2, 2005
was $5,159,000 versus $5,547,000 during the same three-month period last year.
EBITDA from continuing operations for the nine-month period ended July 2, 2005
was $8,698,000 versus $9,103,000 during the same nine-month period last year.
Net income for the three-month period ended July 2, 2005 was $2,822,000 compared
to net income of $2,972,000 during the same three-month period last year. Net
income for the nine-month period ended July 2, 2005 was $4,561,000 compared to
$3,503,000 during the same nine-month period last year.
As of July 2, 2005, the Company had no long-term debt and a cash balance of
$3,123,000.
During the quarter, the Company joined the new Russell Microcap'TM' Index when
Russell
Investment Group reconstituted its family of U.S. indexes. Russell indexes are
widely used by investment managers and institutional investors for index funds.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants Corp., stated
"We are extremely pleased with the Company's performance during the quarter
considering that poor weather conditions during the quarter, as compared to last
year, had affected revenues from our outdoor cafe seats in the Northeast.
Otherwise, the performance of our operations in New York City and Washington,
D.C., as well as Florida, remained strong. The results of our operations in Las
Vegas during the quarter were somewhat disappointing, particularly with respect
to our operations at the Venetian Casino Resort."
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 hotel'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 operates one restaurant
at the Neonopolis Center at Fremont Street. The Florida operations under
management 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.
Russell, a global leader in multi-manager investment services, provides
investment products and services in more than 39 countries. Russell manages more
than $135 billion in assets and advises clients worldwide representing $2.3
trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is
headquartered in Tacoma, Wash., with additional offices in New York, Toronto,
London, Paris, Singapore, Sydney, Auckland and Tokyo.
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 July 2, 2005 and June 26, 2004
(In Thousands)
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13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
July 2, June 26, July 2, June 26,
2005 2004 2005 2004
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TOTAL REVENUES $32,767 $32,831 $84,440 $82,355
COST AND EXPENSES:
Food and beverage cost of sales 8,157 8,273 21,334 21,057
Payroll expenses 9,493 9,484 26,778 26,095
Occupancy expenses 4,151 3,789 12,074 11,592
Other operating costs and expenses 4,044 4,379 10,533 10,513
General and administrative
expenses 1,900 1,531 5,455 4,491
Depreciation and amortization
expenses 900 835 2,648 2,857
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Total costs and expenses 28,645 28,291 78,822 76,605
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OPERATING INCOME 4,122 4,540 5,618 5,750
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OTHER (INCOME) EXPENSE:
Interest expense (income), net (5) 55 (58) 98
Other income (137) (172) (432) (496)
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Total other income (142) (117) (490) (398)
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Income from continuing operations
before income taxes 4,264 4,657 6,108 6,148
Provision for income taxes 1,414 1,661 1,954 2,152
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Income from continuing operations 2,850 2,996 4,154 3,996
DISCONTINUED OPERATIONS:
Income (loss) from operations of
discontinued restaurants (17) (36) 598 (759)
Provision (benefit) for income
taxes 11 (12) 191 (266)
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Income (loss) from discontinued
operations (28) (24) 407 (493)
NET INCOME $ 2,822 $ 2,972 $ 4,561 $ 3,503
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PER SHARE INFORMATION - BASIC AND
DILUTED:
Continuing operations basic $ .82 $ .89 $ 1.21 $ 1.22
Discontinued operations basic $ .00 $ (.01) $ .12 $ (.15)
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Net basic $ .82 $ .88 $ 1.33 $ 1.07
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Continuing operations diluted $ .80 $ .85 $ 1.17 $ 1.17
Discontinued operations diluted $ .00 $ (.01) $ .11 $ (.14)
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Net diluted $ .80 $ .84 $ 1.28 $ 1.03
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WEIGHTED AVERAGE NUMBER OF SHARES-
BASIC 3,457 3,377 3,429 3,275
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WEIGHTED AVERAGE NUMBER OF SHARES-
DILUTED 3,546 3,509 3,555 3,417
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EBITDA from Continuing Operations
Reconciliation
Pre tax earnings $ 4,264 $ 4,657 $ 6,108 $ 6,148
Depreciation and amortization 900 835 2,648 2,857
Interest, net (5) 55 (58) 98
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EBITDA (a) $ 5,159 $ 5,547 $ 8,698 $ 9,103
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(a) EBITDA from continuing operations 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 from continuing
operations to the most comparable GAAP financial measure, net income, is
included above.
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Contact:
Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com
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