Exhibit 99.1
Ark Restaurants Announces First Quarter Financial Results
NEW YORK--(BUSINESS WIRE)--Feb. 13, 2006--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the first quarter
ended December 31, 2005.
Total revenues from continuing operations for the three-month
period ended December 31, 2005 were $27,362,000 versus $26,683,000 in
the three months ended January 1, 2005.
Beginning with this quarter, the Company became subject to SFAS
No. 123(R), "Share-Based Payment", issued by the Financial Accounting
Standards Board. SFAS No. 123(R) requires that the Company expense
costs related to share-based payment transactions with employees. With
limited exceptions, SFAS No. 123(R) requires that the fair value of
share-based payments to employees be expensed over their vesting
period. By becoming subject to SFAS No. 123(R), the Company was
required to recognize $187,000 of additional compensation expense
during the quarter which resulted in a non-cash reduction in EBITDA of
$187,000 and a non-cash reduction in earnings per share of 3 1/2 cents
during the three-month period ended December 31, 2005 as compared to
the same three-month period last year.
EBITDA from continuing operations for the three-month period ended
December 31, 2005 was $2,561,000 versus $2,662,000 during the same
three-month period last year. The Company's income from continuing
operations for the three-month period ended December 31, 2005 was
$1,192,000, or $0.34 per share ($0.34 per diluted share), as compared
to $1,325,000, or $0.39 per share ($0.38 per diluted share), for the
same three-month period last year. The tax rate for this quarter was
34% compared to 29% in last year's comparable period.
Compared to last year's first quarter, Company-wide same store
sales increased 2.3%. Compared to the same period last year, same
store sales in the Company's Washington D.C. operations increased by
3.3%, same store sales in the Company's New York City operations
increased by 13.3% and same store sales in the Company's Las Vegas
operations decreased by 3.0%. Sales from the Company's Las Vegas
operations represented 56% of the Company's total sales during the
three-month period ended December 31, 2005.
As of December 31, 2005, the Company had no debt and a cash
balance of $3,381,000.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants
Corp., stated "The performance of our operations in New York City and
Washington, D.C., as well as Florida, remained strong. In Las Vegas,
the results of our operations at the New York-New York Hotel & Casino
were basically flat while the results of our operations at the
Venetian Casino Resort during the quarter were quite disappointing."
The Company will broadcast its conference call to discuss first
quarter results over the Internet. The broadcast will be held on
Tuesday, February 14, 2006 at 10:00 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 - 1-866-425-6191
Toll/International - 1-973-935-2981
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. In Atlantic City, New Jersey, the Company
operates a restaurant and a bar in the Resorts Atlantic City Hotel and
Casino.
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 week periods ended December 31, 2005 and January 1, 2005
(In Thousands, Except per share amounts)
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13 weeks ended 13 weeks ended
December 31, January 1,
2005 2005
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TOTAL REVENUES $ 27,362 $ 26,683
COST AND EXPENSES:
Food and beverage cost of sales 6,697 6,662
Payroll expenses 8,940 8,581
Occupancy expenses 4,232 4,041
Other operating costs and expenses 3,420 2,986
General and administrative expenses 1,722 1,820
Depreciation and amortization expenses 780 821
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Total costs and expenses 25,791 24,911
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OPERATING INCOME 1,571 1,772
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OTHER INCOME:
Interest income (25) (25)
Other income (210) (69)
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Total other income (235) (94)
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Income from continuing operations
before income taxes 1,806 1,866
Provision for income taxes 614 541
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Income from continuing operations 1,192 1,325
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DISCONTINUED OPERATIONS:
Loss from operations of discontinued
restaurants (418) (199)
Benefit for income taxes (142) (58)
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Loss from discontinued operations (276) (141)
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NET INCOME $ 916 $ 1,184
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PER SHARE INFORMATION - BASIC AND DILUTED:
Continuing operations basic $ .34 $ .39
Discontinued operations basic $ (.08) $ (.04)
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Net basic $ .26 $ .35
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Continuing operations diluted $ .34 $ .38
Discontinued operations diluted $ (.08) $ (.04)
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Net diluted $ .26 $ .34
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WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,462 3,395
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WEIGHTED AVERAGE NUMBER OF SHARES-
DILUTED 3,546 3,533
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Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 1,806 $ 1,866
Depreciation and amortization 780 821
Interest (25) (25)
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EBITDA (a) $ 2,561 $ 2,662
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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.
CONTACT: Ark Restaurants Corp.
Robert Towers, 212-206-8800
bob@arkrestaurants.com