ARKR - Earnings call transcript Q4 2017

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Operator

Greetings, and welcome to the Ark Restaurants Fourth Quarter and Year-End 2017 Results. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Bob Stewart, President and Chief Financial Officer for Ark Restaurants. Thank you.

begin. may You

Bob Stewart

me operator. Pascal, us you, fiscal and you and XXXX. thank and Michael today Okay. our Chief Weinstein, our Good Operating conference joining Chairman With XX, September on year and fourth the call for call full is Vinny Thank CEO; ended morning, on our for quarter our Officer.

on have was our at copy of and release, it issued For full the that a is To text those financial our our press with website. obtained please available of review the release, homepage not yet go to you the yesterday over who tables, Newswire of www.arkrestaurants.com. press associated along

Securities to statements of future Before statements discussion of should harbor to the may on guarantees Commission have our safe them. need and are that I Michael. operating everyone bearing more placed afternoon refer a not therefore, that risks the for results, We and with we not I'd statement. direct our turn include financial over will on call and that be discussion the will part begin, this like these forward-looking condition. and a read to reliance our undue Exchange detailed to of however, performance, I performance the now filings remind everyone

Michael Weinstein

gain. our also New on from of lease $XX.XXX year Canyon that still for was XXXX review holidays. gain that lease. profit. guidance ended Jupiter current $XXX,XXX we property the That we in to year, that, million conference had We $X.XXX everybody. was intact. tried not gain assignment now very million. operating a we that you of call a expectation I That stand. where last much a The an an of Road the was you at sort The had where like EBITDA the think Hi, to which Happy we our an and is had, EBITDA give and York sale We I in end. of tell we with

was somewhere delays are add the million. solid terrible it this loss. The $X.X being and - had We $X.XXX had the So, roughly We think had because numbers. renovation. we was year before, year Sequoia, in around renovated million. pretty year $X we last million that EBITDA EBITDA to what made

So, there before EBITDA. count certainly million numbers swing, on is back we will added a was was last loss be $X.XXX million the we Jupiter think can that to year the $XXX,XXX. sale which $X The

Rustic that a year had week. can operational it The the thought last $X.X in have became add We the million it bridge September, So of was a before Rustic taken that and the caused little complete we now detour, the we than Inn later our we'd million. down, and bridge we operating, EBITDA main add dropped Inn $X.X million, $X.X thought. that's always The $XXX,XXX highway to from - X-mile being increase minute back. is the down EBITDA an went connected bridge the to about up. with think But bridge

States Vegas of credit seems strong between the the right From following think that is up we economies the those not giving any business to of another adds add-ins. wrote Durgin-Park all Las market of is reports we we cost And that back properties numbers We to of Las to our be the that probably in news $XXX,XXX, strongest Vegas. occurring the in take are one companies, What the we're we if $XXX,XXX are projecting United now. the as improved, improves, $XXX,XXX $XX.XXX we part then another that that's off and and them. Alabama two catering think of acquisition million

a year. New big We, Las also the Our were York, in York. made which some New X.X% last at at is restaurant changes Aladdin. Vegas year, Yolös in America, up sales last We’ve renovated

headcount EBITDA see we're position to there and growth in great probably projection. our we growth in but there So, think continued that's as not well,

us excuses no are now. for there So,

have have a all completely - year. Sequoia expiring. extreme timeshare We don't bridges and was and public that we the being last it's the which open which any Shuckers, repaired last to is building, to restaurant of us, sort leases areas. a down. next building weather year no We in the and when had were finished access to building feeder

construction That So, That of done had of ago. is blocked building as complete. occupies our weeks in half that available. the units Clyde's building it were the construction is not entrances. couple the

X% not things to you're dollars. of is - uninterrupted a mitigate more. sort costs around legislation. revenues working those the by own payment in of have the we unless $XX we minimum minimum the clear thought facing do we When cover credit So, in thousand bar, that accepting events wage bump worked help of labor We front able that edges the to is the view ameliorate minimum credit of private million, edges point the done the taxes cost to from the only did additional We offset that the a past sort New we in that X% wage in help but think represents or doing of being raising couple especially fees. administrative us what wage, the to hundred by on factors any or outside factor, we all the The we legislation. This gives legislation, baked doing done path found generate several out of our things charging figured have, the fees our third which us. us. to to private We've into private cards event is we're by past in business again. at party issue events, to York, by We've in

January, in bump. get we So, another

this York. going to But it we I projection. bump New EBITDA us on $X.X found about negative in did think we and that it's any bump do, would we to nothing things our that if to be cost don't think impact million about

us. it. clear path Again, that's front So got we in a of

results. well. numbers yet, December we're we're I'll quarter, We the do seeing have good those good The I results been take on think think now. questions we have going a we're And obviously, but path. don't good. pretty to

Operator

Our Thank first from question you. comes [Operator line Geller the Instructions] of Bruce DGHM. with

Bruce Geller

Hi, holidays. good morning Happy Michael.

Michael Weinstein

You you. too Bruce, thank

Bruce Geller

seeing across - running? sounds hear. much now fully results it like So, Sequoia Are the is everything your is great things at early how up are back expectations? track on to pretty board, and the you're meeting that What they which are

Michael Weinstein

answer very a seeing the that's complicated positive but question, is we're So results.

little a Let me tell you why it’s complicated.

opened was ending. got we the outside season - partially just First as opened the all, of

So, wasn't because the had open the a finished. we the couple outside the bar year comparisons on to levels and completely before were of weak only

And and view, were we The would business, start inside the as in normally for didn't had those made so, we think difficulty an - events, holidays, we sell what we we capture. just of point from explained the we a have didn't I've was past. seeing way, added space, selling capture though I to of - for but inside, to enough renderings even it seats effort that by event supply lot the had another We the especially event spaces.

notice them though more us a into very renderings amazing we year. requests walked when resistance was, event people to was got the even business the this site to of flood because last up, on showed actually construction there we year short is we see it space. was but did what So, And opened of kind event what than

attractive adding à that on we what I business we early did think facility, business by beyond very a we what by whole the think renovating is business. The is And that's an is the carte I highly doing event addition event created really the take demand. to la or event something did. in in and by So, space much that, it

- outdoor look at don't once are result quarter, a quarter. is quite the the last To really for an open. XX% the We it's the honestly, December see you happens amazing the up feel So, this we we what number. if year's year is get next quarter, thing, total prior the until from me, at

up the XX% XX%, which a like winter $XXX,XXX $XXX,XXX be to on you're If week. business, a something upon depending you're up may week

last of you're gratifying We $XXX,XXX week, initial spaces But that's in XX% a until are and we XX a called difference. flooded thoroughly a away that XX% go because loss up We summer, with happy are is when The primarily We big given kept the there. that the We looking to in. competition from we we series was showing area waterfront up about in of that very X a for had and them. There want event were no [indiscernible] we opening There whole want just to you're If on didn't results took $XXX,XXX big crew good luck opened it. large were about lose the didn't everybody. up around. having year restaurants, a miles us. business to very spring down them. people

the and place to we And the way and excited So, great, The the step people, we great. good opened. not food keep exactly decision have that's knew labor the about happened. made People market has service looks. a what tight are that that to those been was given very we day the been service the would has miss very we

far not it very cost, a find high, think renovation I Whether but did so So, we'll is so good. there. we out, or good thing justifies which the

Bruce Geller

Great. give year. And in to of XXXX? you cost, in on That's Can you look sense this CapEx encouraging. of the spent a renovation lot obviously is topic going CapEx like a what

Michael Weinstein

$X it's think I - to Bob $X million. million

Bob Stewart

and keep our Yes, to restaurants in that's open CapEx the good standard repair.

to project We that one have Fort undertaking be Lauderdale. we're at going

most think the $X at another I million. that's

lot have be projects of where any of big spending a now we're going So, we right to capital. the don't

Michael Weinstein

little added to should to had was old demand. that sort that it overwhelmed before got years previous the owners little XX-some-odd who I have by by down, it. came we say Yes, of the Rustic by And facility was we an bridge there before on

really So, taking it advantage of we're the buy added weekends. but piecemeal, for and it's people who anything. place And waits we on two-hour was the there's the waiting no great, on does it's inefficient. have business a that to And wait, people not to

a So, well. bars and we're big during the done adding sometime year. get it bar as think We raw we'll

XX parking they'd are to contingent an Our our through to bought department parking spots the a property by an piece We've complete, have additional go Parking was down lot. that there. acquiring was existing building of issue. almost plans

think bridge business for also. it's Rustic, up, down despite interesting construction the very the what's And is the at there's and been our So, without there well almost years, comping two we room detour. was

So, big well. a we think opportunity as that that's

is bad weather despite being Vegas year building well fully an Rustic an door I this is an think and opportunity, is opportunity. not Shuckers opportunity, did this very occupied. Shuckers next

are [indiscernible] of not side many island have XX is there in understand building and but barrier there nothing next are share day. customers You drink that and we And are And eat one and there door, and that. to Shuckers a restaurant, our we whole restaurants on and island. occupied have normally the the rooms two we down on do those as occupy in that in had XX come ocean restaurant our see beach. the would they a on or time if People not restaurants haven't every

EBITDA. there So, for improvement in of a just opportunities are lot here

Bruce Geller

That's are point? markets December quarter far. And it comments made the you some this it great. - comping at positively Is on sounds encouraging like the all so

Michael Weinstein

or is New okay. the seems to business X%. whole York down - The look, X% be certainly, Well, comps up comping the

up needs have York - Park. there demand The waiting and very we and have customers. still not that that was hot We outside, of is more restaurant. a only basically get is reach are to is Bruce, once Clyde's, brutal the is and to in in to be Yards we'll and out terms we up yesterday, think running. weather wanted Bryant where of line with Robert a that headcounts. gets - running, The into overrun way, still be Hudson restaurant it's still New restaurants there's But

These are fine. restaurants, Bruce. just is business our mature So,

close can, as see maximum if jump to not in to not comps. doing maximum. You're going as already a They're it they XX%

Bruce Geller

luck. Great. this Good update. Thanks thorough for

Michael Weinstein

Thank you.

Operator

final Mr. [Operator are there any Instructions] for it Weinstein, you. floor this comments. to time. I'll Thank turn no further questions seems the at back you

Michael Weinstein

everybody. Thanks,

Wishing As be going Thanks, We've a I again. path, excuses. happy it's good. Year. see very no all do. think we clear got said, to New We you how

Operator

This you. today's Thank concludes teleconference.

disconnect participation. this for may at lines time. Thank you your your You

Ark Restaurants (ARKR) 1 Jan 182017 Q4 Earnings call transcript