Exhibit 99.1
Ark Restaurants Announces Financial
Results for the Fourth Quarter and Full Year 2007
NEW YORK--(BUSINESS WIRE)--December 18, 2007--Ark Restaurants
Corp. (NASDAQ:ARKR) today reported financial results for the fourth
quarter and full year ended September 29, 2007.
As of December 14, 2007, the Company had cash, cash equivalents
and short term investments totaling $14,245,000. As of the same date,
the Company had no long-term debt other than $842,000 remaining due on
a five year purchase money obligation undertaken in connection with
the Company's January 8, 2007 acquisition of the Durgin Park
Restaurant and the Black Horse Tavern in Boston, Massachusetts.
EBITDA from continuing operations before stock option expense for
the three-month period ended September 29, 2007 was $4,490,000 versus
$3,668,000 during the same three-month period last year. The Company's
income from continuing operations for the three-month period ended
September 29, 2007 was $2,606,000, or $0.73 per share ($0.72 per
diluted share), as compared to $1,914,000, or $0.55 per share ($0.54
per diluted share), for the same three-month period last year.
Total revenues from continuing operations for the three-month
period ended September 29, 2007 were $34,074,000 versus $29,351,000 in
the three months ended September 30, 2006. Compared to the same three
month period last year, same store sales in the Company's New York
City operations increased by 12.7%, same store sales in the Company's
Las Vegas operations increased by 5.5%, same store sales in the
Company's Washington D.C. operations increased by 18.0% and same store
sales in Atlantic City increased 25.3%. 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. Compared to the same three month period last
year, Company-wide same store sales increased by 10.4%. 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 19.9%
compared to the same three month period last year. Sales at the
Company's Florida operations totaled $3,170,000 during the three month
period ended September 29, 2007. Sales from the Company's Las Vegas
operations represented 46.3% of the Company's total sales during the
three-month period ended September 29, 2007.
For the year ended September 29, 2007, EBITDA from continuing
operations before stock option expense was $15,270,000 versus
$12,136,000 in fiscal 2006. The Company's income from continuing
operations for the year ended September 29, 2007 was $8,404,000, or
$2.34 per share ($2.33 per diluted share), as compared to $5,971,000,
or $1.72 per share ($1.68 per diluted share), last year.
Total revenues from continuing operations for fiscal 2007 were
$124,207,000 versus $110,519,000 in fiscal 2006. Compared to last
year, same store sales in the Company's New York City operations
increased by 12.5%, same store sales in the Company's Las Vegas
operations increased by 5.0% and same store sales in the Company's
Washington D.C. operations increased by 9.3%. The Company's Atlantic
City facilities were not open during the first quarter of last year
and, as a result, the Company cannot make year to year comparisons.
Compared to last year, Company-wide same store sales increased by
9.3%. Same store sales at the Company's Florida operations increased
by 16.2% compared to last year. Sales at the Company's Florida
operations totaled $12,170,000 during the year ended September 29,
2007. Sales from the Company's Las Vegas operations represented 50.7%
of the Company's total sales during the year September 29, 2007.
During fiscal 2007, the Company recognized a $7,814,000 pre-tax
gain as a result of the sale of the Company's Lutece and Tsunami
locations to Venetian Casino Resort, LLC.
Ark Restaurants owns and operates 22 restaurants and bars, 24 fast
food concepts, catering operations and wholesale and retail bakeries.
Seven restaurants are located in New York City, four are located in
Washington, D.C., five 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 seven 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 52 week periods ended September 29, 2007 and September
30, 2006
(In Thousands, Except per share amounts)
- ----------------------------------------------------------------------
13 weeks 13 weeks 52 weeks 52 weeks
ended ended ended ended
September September September September
29, 30, 29, 30,
2007 2006 2007 2006
--------- --------- --------- ---------
TOTAL REVENUES $34,074 $29,351 $124,207 $110,519
--------- --------- --------- ---------
COST AND EXPENSES:
Food and beverage cost of sales 9,119 7,547 32,058 27,942
Payroll expenses 9,701 9,126 37,746 35,213
Occupancy expenses 4,312 3,920 16,288 16,129
Other operating costs and
expenses 3,949 3,626 15,012 13,330
General and administrative
expenses 2,722 1,796 9,046 7,231
Depreciation and amortization
expenses 705 703 2,721 2,534
--------- --------- --------- ---------
Total costs and expenses 30,508 26,718 112,871 102,379
--------- --------- --------- ---------
OPERATING INCOME 3,566 2,633 11,336 8,140
--------- --------- --------- ---------
OTHER INCOME:
Interest income - net 138 11 352 82
Other income 141 145 805 714
--------- --------- --------- ---------
Total other income 279 156 1,157 796
--------- --------- --------- ---------
Income from continuing
operations
before income taxes 3,845 2,789 12,493 8,936
Provision for income taxes 1,139 875 3,853 2,965
Limited partner interest in
income of variable interest
entity (100) - (236) -
--------- --------- --------- ---------
Income from continuing
operations 2,606 1,914 8,404 5,971
--------- --------- --------- ---------
DISCONTINUED OPERATIONS:
Income (loss) from operations
of discontinued restaurants 15 94 7,090 (1,124)
Provision (benefit) for income
taxes 47 41 2,481 (373)
--------- --------- --------- ---------
Income (loss) from discontinued
operations (32) 53 4,609 (751)
--------- --------- --------- ---------
NET INCOME $ 2,574 $ 1,967 $ 13,013 $ 5,220
========= ========= ========= =========
PER SHARE INFORMATION - BASIC AND
DILUTED:
Continuing operations basic $ .73 $ .55 $ 2.34 $ 1.72
Discontinued operations basic $ (.01) $ .01 $ 1.29 $ (.22)
--------- --------- --------- ---------
Net basic $ .72 $ .56 $ 3.63 $ 1.50
========= ========= ========= =========
Continuing operations diluted $ .72 $ .54 $ 2.33 $ 1.68
Discontinued operations diluted $ (.01) $ .01 $ 1.28 $ (.21)
--------- --------- --------- ---------
Net diluted $ .71 $ .55 $ 3.61 $ 1.47
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES-BASIC 3,594 3,499 3,582 3,472
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES-DILUTED 3,641 3,552 3,607 3,548
========= ========= ========= =========
Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 3,845 $ 2,789 $ 12,493 $ 8,936
Depreciation and amortization 705 703 2,721 2,534
Interest (138) (11) (352) (82)
--------- --------- --------- ---------
EBITDA (a) $ 4,412 $ 3,481 $ 14,862 $ 11,388
========= ========= ========= =========
Continuing Operations EBITDA
adjusted for
non-cash stock option expense
EBITDA (as defined) (a) $ 4,412 $ 3,481 $ 14,862 $ 11,388
Non-cash stock option expense 78 187 408 748
--------- --------- --------- ---------
EBITDA adjusted for non-cash
stock option expense $ 4,490 $ 3,668 $ 15,270 $ 12,136
========= ========= ========= =========
(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