Exhibit 99.1
Ark Restaurants Announces First Quarter Financial Results
NEW YORK--(BUSINESS WIRE)--Feb. 12, 2007--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the first quarter
ended December 30, 2006.
Total revenues from continuing operations for the three-month
period ended December 30, 2006 were $28,202,000 versus $25,963,000 in
the three months ended December 31, 2005.
EBITDA from continuing operations for the three-month period ended
December 30, 2006 was $3,302,000 versus $2,522,000 during the same
three-month period last year. The Company's income from continuing
operations for the three-month period ended December 30, 2006 was
$1,822,000, or $0.51 per share ($0.51 per diluted share), as compared
to $1,307,000, or $0.37 per share ($0.37 per diluted share), for the
same three-month period last year.
Compared to last year's first quarter, Company-wide same store
sales increased 7.0%. Compared to the same period last year, same
store sales in the Company's New York City operations increased by
17.2%, same store sales in the Company's Las Vegas operations
increased by 3.8% and same store sales in the Company's Washington
D.C. operations decreased by 1.0%. Sales from the Company's Las Vegas
operations represented 55.4% of the Company's total sales during the
three-month period ended December 30, 2006.
Net income for the three-month period ended December 30, 2006 was
$6,590,000 versus $916,000 in the three months ended December 31,
2005. Net income for the three-month period ended December 30, 2006
includes a $5,196,000 net gain after taxes from the sale of the
Company's Lutece and Tsunami facilities at the Venetian Casino Resort.
As of December 30, 2006, the Company had no debt and cash and
short term investments totaling $19,183,000. Subsequently, on February
1, 2007, the Company paid approximately $12 million in dividend
payments related to its special dividend of $3.00 per share and its
regular quarterly dividend of $0.35 per share which were declared on
December 20, 2006.
Also, on January 8, 2007, the Company began operating 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, three are located at the
Foxwoods Resort Casino in Ledyard, Connecticut and one is located in
Boston, Massachusetts. 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; two 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. In Boston,
Massachusetts, the Company operates a restaurant in the Faneuil Hall
Marketplace.
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 week periods ended December 30, 2006 and December 31, 2005
(In Thousands, Except per share amounts)
- ----------------------------------------------------------------------
13 weeks ended 13 weeks ended
December 30, December 31,
2006 2005
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TOTAL REVENUES $ 28,202 $ 25,963
COST AND EXPENSES:
Food and beverage cost of sales 7,032 6,349
Payroll expenses 8,898 8,338
Occupancy expenses 3,992 4,081
Other operating costs and expenses 3,238 3,161
General and administrative expenses 1,983 1,722
Depreciation and amortization expenses 638 566
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Total costs and expenses 25,781 24,217
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OPERATING INCOME 2,421 1,746
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OTHER INCOME:
Interest income 110 25
Other income 243 210
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Total other income 353 235
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Income from continuing operations before
income taxes 2,774 1,981
Provision for income taxes 929 674
Limited partner interest in income of
variable interest entity (23) -
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Income from continuing operations 1,822 1,307
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DISCONTINUED OPERATIONS:
Income (loss) from operations of
discontinued restaurants 7,156 (593)
Provision (benefit) for income taxes 2,398 (202)
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Income (loss) from discontinued
operations 4,758 (391)
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Income before cumulative effect of change
in accounting principle 6,580 916
Cumulative effect of change in accounting
principle 10 -
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NET INCOME $ 6,590 $ 916
============== ==============
PER SHARE INFORMATION - BASIC AND
DILUTED:
Continuing operations basic $ .51 $ .37
Discontinued operations basic $ 1.33 $ (.11)
Cumulative effect of change in accounting
principle $ .00 $ .00
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Net basic $ 1.84 $ .26
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Continuing operations diluted $ .51 $ .37
Discontinued operations diluted $ 1.33 $ (.11)
Cumulative effect of change in accounting
principle $ .00 $ .00
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Net diluted $ 1.84 $ .26
============== ==============
WEIGHTED AVERAGE NUMBER OF SHARES-BASIC 3,571 3,462
============== ==============
WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED 3,576 3,546
============== ==============
Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 2,774 $ 1,981
Depreciation and amortization 638 566
Interest (110) (25)
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EBITDA (a) $ 3,302 $ 2,522
============== ==============
Continuing Operations EBITDA adjusted for
non-cash stock option expense
EBITDA (as defined) (a) $ 3,302 $ 2,522
Non-cash stock option expense 174 187
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EBITDA adjusted for non-cash stock option
expense $ 3,476 $ 2,709
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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