Ark Restaurants Announces Financial Results
for the Fourth Quarter and Full Year 2005
NEW YORK--(BUSINESS WIRE)--Dec. 22, 2005--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the fourth quarter
and full year ended October 1, 2005.
The Company reports fiscal years under a 52/53-week format. The
fiscal year ended October 2, 2004 was a 53 week year. The fiscal year
ended October 1, 2005 was a 52 week year. Having one less week in the
fourth quarter and full year ended October 1, 2005 negatively impacted
the comparison of results during these periods.
EBITDA from continuing operations for the three-month period ended
October 1, 2005 was $3,920,000 versus $4,686,000 during the same
three-month period last year. The Company's income from continuing
operations for the three-month period ended October 1, 2005 was
$2,063,000, or $0.60 per share ($0.58 per diluted share), as compared
to $3,350,000, or $0.99 per share ($0.95 per diluted share), for the
same three-month period last year. The absence of an extra week of
sales and a higher tax rate, which was 28.6% for the fourth quarter of
fiscal 2005 versus 16.2% for the same period in fiscal 2004, had a
significant negative impact on earnings during the fourth quarter
ended October 1, 2005.
Total revenues from continuing operations for the three-month
period ended October 1, 2005 were $31,137,000 versus $33,343,000 in
the three months ended October 2, 2004. Total sales for the 53rd week
of fiscal 2004 were $2,370,000. If the extra week of the fourth
quarter of fiscal 2004 were excluded from same store sales, same store
sales would have increased 0.7% Company-wide, decreased 2.8% in Las
Vegas, increased 5.7% in New York and increased 0.1% in Washington,
D.C. Sales from the Company's Las Vegas operations represented 56.0%
of the Company's total sales during the three-month period ended
October 1, 2005.
For the year ended October 1, 2005, EBITDA from continuing
operations was $12,617,000 versus $13,803,000 in fiscal 2004. The
Company's income from continuing operations for the year ended October
1, 2005 was $6,217,000, or $1.81 per share ($1.75 per diluted share),
as compared to $7,356,000, or $2.23 per share ($2.13 per diluted
share), last year. The absence of an extra week of sales and a higher
tax rate, which was 30.9% for year ended October 1, 2005 versus 27.6%
for the year ended October 2, 2004, had a negative impact on earnings
during the year ended October 1, 2005.
Total revenues from continuing operations for fiscal 2005 were
$115,577,000 versus $115,698,000 in fiscal 2004. If the extra week of
fiscal 2004 were excluded from same store sales, same store sales
would have increased 1.2% Company-wide, decreased 2.0% in Las Vegas,
increased 5.7% in New York and increased 5.3% in Washington, D.C.
Sales from the Company's Las Vegas operations represented 53.0% of the
Company's total sales during the fiscal year ended October 1, 2005.
The Company's Board of Directors recently appointed a new member,
Robert Thomas ("Tom") Zankel. Mr. Zankel is a portfolio manager at
Iridian Asset Management, an institutional money management company
with over $10 billion under management. The Company welcomes Tom to
its Board of Directors.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants
Corp., stated "Earnings for the year were not only effected by
disappointing results at the Venetian Casino Resort and higher tax
rates, but also by factors such as the minimum wage increases in New
York and Washington, D.C., the cost of compliance with the
Sarbanes-Oxley Act and increased energy costs."
Subsequent to the year-end, the Company opened its new margarita
bar on the floor of the Village Streets food court in front of its
Gonzalez y Gonzalez operation in the New York-New York Hotel & Casino
Resort and a new bar, Luna Lounge, at the Resorts Atlantic City Hotel
and Casino in Atlantic City, New Jersey. The Company expects its
Gallagher's Steakhouse operation, also at the Resorts Atlantic City
Hotel and Casino, to open on New Years Eve 2005.
Ark Restaurants owns and operates 23 restaurants and bars, 26 fast
food concepts, catering operations and wholesale and retail bakeries.
Eight restaurants are located in New York City, four are located in
Washington, D.C., nine are located in Las Vegas, Nevada, and two are
located in Atlantic City, New Jersey. 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 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.
The Company will broadcast its conference call to discuss fourth
quarter and full year results over the Internet. The broadcast will be
held on Thursday, December 22, 2005 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 52 week periods ended October 1, 2005 and
the 14 and 53 week periods ended October 2, 2004
(In Thousands, Except per share amounts)
- --------------------------------------------------------
13 weeks 14 weeks 52 weeks 53 weeks
ended ended ended ended
October 1, October 2, October 1, October 2,
2005 2004 2005 2004
---------- ---------- ---------- ----------
TOTAL REVENUES $ 31,137 $ 33,343 $ 115,577 $ 115,698
COST AND EXPENSES:
Food and beverage cost of
sales 7,639 8,497 28,973 29,554
Payroll expenses 9,434 9,950 36,212 36,045
Occupancy expenses 4,431 4,307 16,505 15,900
Other operating costs and
expenses 4,090 3,993 14,623 14,492
General and administrative
expenses 1,863 2,008 7,318 6,499
Depreciation and
amortization expenses 1,046 734 3,694 3,591
---------- ---------- ---------- ----------
Total costs and expenses 28,503 29,489 107,325 106,081
---------- ---------- ---------- ----------
OPERATING INCOME 2,634 3,854 8,252 9,617
---------- ---------- ---------- ----------
OTHER (INCOME) EXPENSE:
Interest expense (income),
net (17) (46) (76) 52
Other income (240) (98) (671) (595)
---------- ---------- ---------- ----------
Total other income (257) (144) (747) (543)
---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 2,891 3,998 8,999 10,160
Provision for income taxes 828 648 2,782 2,804
---------- ---------- ---------- ----------
Income from continuing
operations 2,063 3,350 6,217 7,356
DISCONTINUED OPERATIONS:
Income (loss) from
operations of
discontinued restaurants (73) (191) 525 (965)
Provision (benefit) for
income taxes (29) 4 163 (266)
---------- ---------- ---------- ----------
Income (loss) from
discontinued operations (44) (195) 362 (699)
NET INCOME $ 2,019 $ 3,155 $ 6,579 $ 6,657
========== ========== ========== ==========
PER SHARE INFORMATION -
BASIC AND DILUTED:
Continuing operations
basic $ .60 $ .99 $ 1.81 $ 2.23
Discontinued operations
basic $ (.01)$ (.06)$ .11 $ (.21)
---------- ---------- ---------- ----------
Net basic $ .59 $ .93 $ 1.92 $ 2.01
========== ========== ========== ==========
Continuing operations
diluted $ .58 $ .95 $ 1.75 $ 2.13
Discontinued operations
diluted $ (.01)$ (.06)$ .10 $ (.20)
---------- ---------- ---------- ----------
Net diluted $ .57 $ .89 $ 1.85 $ 1.93
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES-BASIC 3,459 3,394 3,436 3,305
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES-DILUTED 3,553 3,525 3,555 3,444
========== ========== ========== ==========
EBITDA from Continuing
Operations Reconciliation
Pre tax earnings $ 2,891 $ 3,998 $ 8,999 $ 10,160
Depreciation and
amortization 1,046 734 3,694 3,591
Interest, net (17) (46) (76) 52
---------- ---------- ---------- ----------
EBITDA (a) $ 3,920 $ 4,686 $ 12,617 $ 13,803
========== ========== ========== ==========
(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.
CONTACT: Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com