Exhibit 99.1
Ark Restaurants Announces Financial Results for the Fourth Quarter
and Full Year 2006 and Declares Special and Regular Dividend
NEW YORK--(BUSINESS WIRE)--Dec. 20, 2006--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the fourth quarter and full
year ended September 30, 2006 and declared a $3.00 special and its regular
dividend.
On December 1, 2006, the Company sold its Lutece and Tsunami facilities at
the Venetian Casino Resort for an aggregate of $14 Million. As of December 19,
2006, the Company had approximately $24 Million in cash and no long-term debt.
The Company's Board of Directors, therefore, declared a special dividend of
$3.00 per share in addition to its regular quarterly dividend of 35 cents per
share on the Company's common stock to be paid on February 1, 2007 to
shareholders of record at the close of business on January 24, 2007.
Michael Weinstein, Chairman, President and CEO of Ark Restaurants Corp.,
stated "Due to the financial benefit received by the Company from the sale of
our Lutece and Tsunami facilities at the Venetian Casino Resort, the Company
decided to return a portion of the proceeds from the sale to its shareholders."
EBITDA from continuing operations before stock option expense for the
three-month period ended September 30, 2006 was $3,737,000 versus $4,022,000
during the same three-month period last year. The Company's income from
continuing operations for the three-month period ended September 30, 2006 was
$1,826,000, or $0.52 per share ($0.51 per diluted share), as compared to
$2,244,000, or $0.65 per share ($0.63 per diluted share), for the same
three-month period last year. Income from continuing operations for the three
months ended September 30, 2006 was negatively impacted by a $128,000 after-tax
option expense, or $0.04 per share, with regard to the Company's share-based
compensation plan. Without this expense, income from continuing operations for
the three-month period ended September 30, 2006 would have been $1,954,000, or
$0.56 per share ($0.55 per diluted share).
Total revenues from continuing operations for the three-month period ended
September 30, 2006 were $30,648,000 versus $30,520,000 in the three months ended
October 1, 2005. The increase in revenues as compared to the same period last
year was primarily due to the opening of the Company's Gallagher's Steakhouse
and Luna Lounge in Atlantic City, New Jersey. Compared to the same three month
period last year, same store sales in the Company's New York City operations
increased by 0.3%, same store sales in the Company's Las Vegas operations
decreased by 1.4% and same store sales in the Company's Washington D.C.
operations decreased by 15.5%. Compared to the same three month period last
year, Company-wide same store sales decreased by 2.8%. Although the Company does
not consolidate the sales or the financial results of the Company's managed
Florida casino operations (the Company derives income from a management fee
arrangement in part based on sales), same store sales at the Company's Florida
operations increased by 14.5% compared to the same three month period last year.
Sales at the Company's Florida operations totaled $2,644,000 during the three
month period ended September 30, 2006. Sales from the Company's Las Vegas
operations represented 46.9% of the Company's total sales during the three-month
period ended September 30, 2006.
For the year ended September 30, 2006, EBITDA from continuing operations
before stock option expense was $12,498,000 versus $12,886,000 in fiscal 2005.
The Company's income from continuing operations for the year ended September 30,
2006 was $5,687,000, or $1.64 per share ($1.60 per diluted share), as compared
to $6,810,000, or $1.98 per share ($1.92 per diluted share), last year. Income
from continuing operations for the year ended September 30, 2006 was negatively
impacted by a $500,000 after-tax option expense, or $0.14 per share, with regard
to the Company's share-based compensation plan. Without this expense, income
from continuing operations for the year ended September 30, 2006 would have been
$6,187,000, or $1.78 per share ($1.74 per diluted share).
Total revenues from continuing operations for fiscal 2006 were $115,969,000
versus $113,237,000 in fiscal 2005. The increase in revenues as compared to last
year was due to the opening of the Company's Gallagher's Steakhouse and Luna
Lounge in Atlantic City, New Jersey. Compared to last year, same store sales in
the Company's New York City operations increased by 5.8%, same store sales in
the Company's Las Vegas operations decreased by 0.1% and same store sales in the
Company's Washington D.C. operations decreased by 7.6%. Compared to last year,
Company-wide same store sales increased by 0.2%. Same store sales at the
Company's Florida operations increased by 18.4% compared to last year. Sales at
the Company's Florida operations totaled $10,469,000 during the year ended
September 30, 2006. Sales from the Company's Las Vegas operations represented
50.9% of the Company's total sales during the year September 30, 2006.
In September 2006, the Company entered into an agreement to lease
restaurant space at the new Planet Hollywood Resort and Casino in Las Vegas,
Nevada, and entered into an agreement to purchase the restaurant known as the
Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts.
Ark Restaurants owns and operates 24 restaurants and bars, 25 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.,
eight are located in Las Vegas, Nevada, two are located in Atlantic City, New
Jersey and three are located at the Foxwoods Resort Casino in Ledyard,
Connecticut. 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; three
restaurants and bars within the Venetian Casino Resort as well as three food
court concepts. In Las Vegas, the Company also owns and operates one restaurant
within the Forum Shops at Caesar's Shopping Center. 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.
The Company will hold a conference call for investors and analysts to
discuss financial results for the fourth quarter and year ended September 30,
2006 on Friday, December 22, 2006 at 11:00 a.m. Eastern Time.
The dial-in numbers to participate in the conference call are:
Toll-Free - 1-888-344-1107
Toll/International - 1-973-582-2859
The Company will also broadcast its conference call over the Internet. To
access the broadcast, please visit http://www.viavid.net. A replay of the
broadcast will be available within one hour of the call, and will be available
for 72 hours. The dial-in telephone numbers for the replay are:
Toll-Free - 1-877-519-4471
Toll/International - 1-973-341-3080
Replay Pin Number - 8254118
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. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
ARK RESTAURANTS CORP.
Condensed Consolidated Income Statement
For the 13 and 52 week periods ended September 30, 2006
and October 1, 2005
(In Thousands, Except per share amounts)
- ----------------------------------------------------------------------
13 weeks 13 weeks 52 weeks 52 weeks
ended ended ended ended
Sept. 30, Oct. 1, Sept. 30, Oct. 1,
2006 2005 2006 2005
--------- -------- --------- ---------
TOTAL REVENUES $30,648 $30,520 $115,969 $113,237
COST AND EXPENSES:
Food and beverage cost of sales 7,899 7,548 29,376 28,591
Payroll expenses 9,657 9,247 37,418 35,550
Occupancy expenses 4,060 4,331 16,683 16,095
Other operating costs and
expenses 3,831 3,749 14,224 13,469
General and administrative
expenses 1,796 1,863 7,231 7,318
Depreciation and amortization
expenses 900 895 3,321 3,104
--------- -------- --------- ---------
Total costs and expenses 28,143 27,633 108,253 104,127
--------- -------- --------- ---------
OPERATING INCOME 2,505 2,887 7,716 9,110
--------- -------- --------- ---------
OTHER INCOME:
Interest income 11 17 82 76
Other income 145 240 713 672
--------- -------- --------- ---------
Total other income 156 257 795 748
--------- -------- --------- ---------
Income from continuing
operations before income taxes 2,661 3,144 8,511 9,858
Provision for income taxes 835 900 2,824 3,048
--------- -------- --------- ---------
Income from continuing
operations 1,826 2,244 5,687 6,810
--------- -------- --------- ---------
DISCONTINUED OPERATIONS:
Loss from operations of
discontinued restaurants 222 (326) (699) (333)
Benefit for income taxes 81 (101) (232) (103)
--------- -------- --------- ---------
Loss from discontinued
operations 141 (225) (467) (230)
--------- -------- --------- ---------
NET INCOME $ 1,967 $ 2,019 $ 5,220 $ 6,580
========= ======== ========= =========
PER SHARE INFORMATION - BASIC
AND DILUTED:
Continuing operations basic $ .52 $ .65 $ 1.64 $ 1.98
Discontinued operations basic $ .04 $ (.07) $ (.14) $ (.06)
--------- -------- --------- ---------
Net basic $ .56 $ .58 $ 1.50 $ 1.92
========= ======== ========= =========
Continuing operations diluted $ .51 $ .63 $ 1.60 $ 1.92
Discontinued operations diluted $ .04 $ (.06) $ (.13) $ (.07)
--------- -------- --------- ---------
Net diluted $ .55 $ .57 $ 1.47 $ 1.85
========= ======== ========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES-BASIC 3,499 3,459 3,472 3,436
========= ======== ========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES-DILUTED 3,552 3,553 3,548 3,555
========= ======== ========= =========
Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 2,661 $ 3,144 $ 8,511 $ 9,858
Depreciation and amortization 900 895 3,321 3,104
Interest (11) (17) (82) (76)
--------- -------- --------- ---------
EBITDA (a) $ 3,550 $ 4,022 $ 11,750 $ 12,886
========= ======== ========= =========
Continuing Operations EBITDA
adjusted for
non-cash stock option expense
EBITDA (as defined) (a) $ 3,550 $ 4,022 $ 11,750 $ 12,886
Non-cash stock option expense 187 - 748 -
--------- -------- --------- ---------
EBITDA adjusted for non-cash
stock option expense $ 3,737 $ 4,022 $ 12,498 $ 12,886
========= ======== ========= =========
(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