Exhibit 99.1
Ark Restaurants Announces Financial Results for the Third Quarter and Nine
Months Ended June 30, 2007
NEW YORK--(BUSINESS WIRE)--Aug. 13, 2007--Ark Restaurants Corp.
(NASDAQ:ARKR) today reported financial results for the third quarter
and nine month periods ended June 30, 2007.
For the three months ended June 30, 2007, the Company's net income
from continuing operations was $3,520,000, or $0.98 per share ($0.97
per diluted share), compared to $2,625,000, or $0.76 per share ($0.74
per diluted share), for the same period last year.
The third fiscal quarter of 2007 was negatively effected by pre
tax legal and due diligence expenses of $250,000 in connection with an
attempted acquisition which was abandoned.
Total revenues from continuing operations for the three month
period ended June 30, 2007 were $36.1 million versus $31.1 million in
the same period last year. Revenues from the Company's Las Vegas
operations represented 40.4% of the Company's total revenues from
continuing operations during the three-month period ended June 30,
2007. Compared to the same period last year, same store sales in the
Company's New York City operations increased by 13.5%, same store
sales in the Company's Washington D.C. operations increased by 11.0%,
same store sales in the Company's Las Vegas operations increased by
8.2% and same store sales in Atlantic City increased 44.6%. The
increase in Atlantic City this year was primarily due to last year's
low level of sales following the start-up of those operations. The
Company does not anticipate similar same store percentage increases in
Atlantic City after this fiscal year.
Although the Company does not report the sales or the financial
results of the Company's Florida operations (the Company derives
income from a management fee arrangement based on sales and cash
flow), same store sales at the Company's Florida operations increased
by 16.2% compared to the same three month period last year. Sales at
the Company's Florida operations totaled $3,080,000 during the three
month period ended June 30, 2007.
For the nine months ended June 30, 2007, the Company's net income
from continuing operations was $5,788,000, or $1.62 per share ($1.61
per diluted share), compared to $4,056,000, or $1.17 per share ($1.14
per diluted share), for the same period last year.
Total revenues from continuing operations for the nine month
period ended June 30, 2007 were $90.1 million versus $81.2 million in
the same period last year. Revenues from the Company's Las Vegas
operations represented 48% of the Company's total revenues from
continuing operations during the nine month period ended June 30,
2007. Compared to the same nine month period last year, same store
sales in the Company's New York City operations increased by 12.3%,
same store sales in the Company's Washington D.C. operations increased
by 6.1% and same store sales in the Company's Las Vegas operations
increased by 7.4%. The Company's Atlantic City facilities were not
open during the first quarter of last year and, as a result, the
Company cannot make nine month comparisons.
Same store sales at the Company's Florida operations increased by
15% compared to the same nine month period last year. Sales at the
Company's Florida operations totaled $9,000,000 during the nine month
period ended June 30, 2007.
EBITDA from continuing operations for the three month period ended
June 30, 2007 was $5,754,000 versus $4,592,000 during the same three
month period last year. EBITDA from continuing operations for the nine
month period ended June 30, 2007 was $10,449,000 versus $7,907,000
during the same nine-month period last year.
The Company had net income of $3,471,000 in the three month period
ended June 30, 2007 compared to net income of $2,488,000 in the same
three month period last year. Net income for the nine-month period
ended June 30, 2007 was $10,439,000 compared to $3,252,000 during the
same nine-month period last year. Net income was positively affected
during the 39-week period ended June 30, 2007 as a result of the sale
during the second quarter of the Company's Lutece and Tsunami
locations to Venetian Casino Resort, LLC and the lack of pre-opening
and early operating losses experienced at the Company's Atlantic City
operations. Excluding the sale of the Company's facilities to the
Venetian Casino Resort, net income for the nine-month period ended
June 30, 2007 would have been $5,313,000 compared to $3,252,000 during
the same nine-month period last year.
As of June 30, 2007, the Company had cash, cash equivalents and
short term investments totaling $11,056,000. As of the same date, the
Company had no long-term debt other than a one million dollar five
year purchase money obligation undertaken in connection with the
Company's acquisition of the Durgin Park Restaurant and the Black
Horse Tavern in Boston, Massachusetts.
In June 2007, we entered into an agreement to design and lease the
sole food court at the to-be-constructed MGM Grand Casino at the
Foxwoods Resort Casino. The Company anticipates this food court will
open during the third quarter of the Company's 2008 fiscal year.
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; one bar 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 and 39 week periods ended June 30, 2007 and July 1, 2006
(In Thousands, Except per share amounts)
- ---------------------------------------------------------------------
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
June 30, July 1, June 30, July 1,
2007 2006 2007 2006
-------- -------- -------- --------
TOTAL REVENUES $36,064 $31,085 $90,133 $ 81,168
COST AND EXPENSES:
Food and beverage cost of sales 9,077 7,726 22,939 20,395
Payroll expenses 10,217 9,268 28,045 26,088
Occupancy expenses 4,413 4,219 11,976 12,208
Other operating costs and expenses 4,518 3,584 11,063 9,704
General and administrative
expenses 2,270 1,874 6,325 5,435
Depreciation and amortization
expenses 702 638 2,015 1,831
-------- -------- -------- --------
Total costs and expenses 31,197 27,309 82,363 75,661
-------- -------- -------- --------
OPERATING INCOME 4,867 3,776 7,770 5,507
-------- -------- -------- --------
OTHER INCOME:
Interest income - Net 66 23 214 70
Other income 185 178 664 569
-------- -------- -------- --------
Total other income 251 201 878 639
-------- -------- -------- --------
Income from continuing operations
before income taxes 5,118 3,977 8,648 6,146
Provision for income taxes 1,496 1,352 2,714 2,090
Limited partner interest in income
of variable interest entity (102) - (146) -
-------- -------- -------- --------
Income from continuing operations 3,520 2,625 5,788 4,056
-------- -------- -------- --------
DISCONTINUED OPERATIONS:
Income (loss) from operations of
discontinued restaurants (85) (208) 7,075 (1,218)
Provision (benefit) for income
taxes (36) (71) 2,434 (414)
-------- -------- -------- --------
Income (loss) from discontinued
operations (49) (137) 4,641 (804)
-------- -------- -------- --------
Income before cumulative effect
of change in accounting principle 3,471 2,488 10,429 3,252
Cumulative effect of change in
accounting principle - - 10 -
-------- -------- -------- --------
NET INCOME $ 3,471 $ 2,488 $10,439 $ 3,252
======== ======== ======== ========
PER SHARE INFORMATION -
BASIC AND DILUTED:
Continuing operations basic $ .98 $ .76 $ 1.62 $ 1.17
Discontinued operations basic $ (.01) $ (.04) $ 1.30 $ (.23)
Cumulative effect of change in
accounting principle $ .00 $ .00 $ .00 $ .00
-------- -------- -------- --------
Net basic $ .97 $ .72 $ 2.92 $ .94
======== ======== ======== ========
Continuing operations diluted $ .97 $ .74 $ 1.61 $ 1.14
Discontinued operations diluted $ (.01) $ (.04) $ 1.29 $ (.22)
Cumulative effect of change in
accounting principle $ .00 $ .00 $ .00 $ .00
-------- -------- -------- --------
Net diluted $ .96 $ .70 $ 2.90 $ .92
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF SHARES-
BASIC 3,590 3,462 3,578 3,462
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF SHARES-
DILUTED 3,624 3,546 3,596 3,546
======== ======== ======== ========
Continuing Operations
EBITDA Reconciliation
Pre tax earnings $ 5,118 $ 3,977 $ 8,648 $ 6,146
Depreciation and amortization 702 638 2,015 1,831
Interest (66) (23) (214) (70)
-------- -------- -------- --------
EBITDA (a) $ 5,754 $ 4,592 $10,449 $ 7,907
======== ======== ======== ========
Continuing Operations EBITDA
adjusted for non-cash stock
option expense
EBITDA (as defined) (a) $ 5,754 $ 4,592 $10,449 $ 7,907
Non-cash stock option expense 78 187 330 561
-------- -------- -------- --------
EBITDA adjusted for non-cash stock
option expense $ 5,832 $ 4,779 $10,779 $ 8,468
======== ======== ======== ========
(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