ARKR - Earnings call transcript Q1 2021

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Operator

Greetings, and welcome to Ark Restaurants' First Quarter 2021 Results Conference Call. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host Sonal Shah, General Counsel. Thank you.

You may begin.

Sonal Shah

operator. you, Thank thank call and X, joining on us Good the you first conference for January fiscal our morning, for quarter XXXX. ended of is I'm name Shah, Ark Counsel Restaurants. My Sonal General and call today Pascal, Chief Vinny Operating Financial With me Chief on is Weinstein, and our Sirica, our Anthony and Michael Officer; Officer. CEO; Chairman our the

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

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

Michael Weinstein

you Thank for everybody. joining us. Hi,

to that give expect first you please an we overview don't should think Anthony balance for projections, cash do just and so we everybody? him based thing upon when to you why I and of the is flow do turn ask Anthony, to sheet positive our turn

Anthony Sirica

of optimistic forward and going cash approximately ended the $X Moon We service million, feel sheet. of everyone. approximately That how out. of acquisition about we quarter We're the to Michael. million of negative the At $X.X primarily play $X EBITDA, of from down year-end. cash we balance are was Good that our of end was the had portion the the where Thanks, morning, $XX.X result Sure. million things debt with our our going of quarter million. cautiously good Blue

end restrictions expect positive the million in depending capacity which in weather, and we of quarter. a that's the the well $X is early the role And the approximately will efficacy cash the is Obviously, flow current York, efforts Washington in particular. to in $X.X to of with based this We mid-third usually country. plays D.C., on the million in current on projections. turn And results sometime believe Vegas, in the cash quarter we to New increases our Northeast vaccine place across as in obviously taking the as all

be million though seller $X Blue there IRS IRSs other items, we deductible to the and PPP as on $X.X favorable I'm fully Moon I a forgiveness X billion overrode to to for years. going was recognized not does late an expenses, payable the Congress sorry, Fish in loan stated completed passed that so they as - cash be approximately acquisition four over $X.X the of of the position before That million. Some are Company income. the and In was which December note about have deductibility action the December,

carryback the Once filed immediately XXXX that, claims the those two ended years changes the carrying prepared million. expenses of of tax the returns amount year our $X.X there'll higher. when of deductibility the a claims we the to received, and So years to much instead for and and law of additional were in three those as result $X.X relating years, back pursuing of rates carryback five be million losses tax

sheet balance receivable. a our as on recorded is that So

that and I'm form. At Gallagher's were there. on going sure lease our speak in year, Grill current is up, was closed we In addition, a Thunder Atlantic about end DC the its month-to-month the City. to we in Michael not of reopen will

loans PPP were to loans, approximately because second for not and $X.X eligible date. we're were we forgiveness draw were, a [SPA] applied excluded. to Those million any as same they of the year the sent Our for were back. they We've are public company

closed We of forgiveness the difference would and apply additional to I $X $X a forgiven say in or now limited being between of expect result capacities. because very the spend restaurants and money for is operating amount actually mid-May, forgiveness. balance the The the the approximately the of to our required million between the to million at our period, loans inability and were

relationship great a with bank. have our We

we enter highlights. discussions release, to over Back in our except of continue terming you, who's are point our I them it about of to revolver, date the XX%. And Those an in work think period. which you we extended salaries with XX% average the extended the at corporate maturity CEO at will our saw office we Michael. out

Michael Weinstein

Anthony. Thanks

I we'll after I'm think I'm that's questions pretty good. done. have sure some

- the at flow that, different May year. being last JB's profitable. is we of interesting think have, to moment, the with the cash flow positive exception flow for operate. the I our is strong cash when roughly is in beginning we with reopen Florida positive, around is properties, very and which the JB's revenues those venues be which continues in And what now to mean locations Florida what's happened our what we I of us. of of were since So all in

operate things of a bit we legally. hampers that One the us is little

Beach fines. But in operating and their we're faced our taking People we're County Broward what bars the enter some within bars to bars. of away not allowed operating Florida, regulations. are and virtue independent's us are properties our by our from not So County Palm

at not extent, JB's flowing certain we're bar had, next is how of now bars is good have special at JB's to these Rock. are us, Shuckers' and we us business the But well. the doing some who other brands to properties the especially side phenomenally People their well. we would if have Hollywood want occasions. the a are on had is individual good indication of strong door Rustic had valuable neighboring of be doing is with that. A to the right that Tampa, how restaurant So and are people at their we on street. us Rock doing the to offering is with Hard results well. and in very Hard

So very And turned season. Blue out on the profitable that Valentine's recognize and but is Day, be We We restaurants we case. were thought a and Fish just Florida packed The to please our in a in acquired cash Company. immediately could strong. Moon are of now be all almost it's out right waiting Blue on flows list Florida. Moon

XX,XXX with to sort Alabama a again were do It's two of Alabama, during out In they is situation we're of seating those results, are the relation marginally throwing restaurants continue week. we're there. the They was expected. what but on restaurants the to results season, gratified off So very in season. now reduced profitable, well. very about strong

our negative. increased what XX%. from we're So it with They being us the But very reevaluated have very Vegas fully with there. to And is capacity being flow were from until not We satisfied we're that they satisfied XX%. flow is and results XX% and when cash positive to backup slipped cash just back opened. cut

at be positive or is again So cash our there we will breakeven that flow least. guess

upon do and New Our without York want big people only in D.C. the varied had to York dependent seating any obviously during New in indoor outside outdoor whether sit problems winter Washington and the not capacity cold. been

revenues. terms been Park, X% of to used beating to we've Bryant maybe taking in be is So, at of XX% a especially X% businesses where what it

So open. we stay

We a allowed distance have an obligation from ROBERT much waitlist what the actually stay under back Day we restaurants. was to money there. We've and seating, New and restaurants. that open, socially spring. flow Valentine's gratifying of We're couple months away it's with were of our cash February, been had have as We XX% the in it's other to our were but done for and to restaurants us Valentine's Those seating Day. flow City on restaurants lease of for York Bryant losing brutal but their XXth Park how weekend, XX% make business was again impossible to over

and increases. So as it encourages encourages sort brands how us flow of quick will capacity strong are, how these just - on business

strong works very making the Sequoia. I better. income, on statement think grateful we the seats back capacity well any do will strong so especially in We're be people, Vegas getting everybody So whole will amount very we York flow our we not, I fall, the that summer made and and outdoor doing brands, positive it's or get these despite going early capacity happened restaurants, restaurants returns, they're a killed, Washington, able where were, and company, the especially XXX to of office. of what least did to whether this content this the again. to right do once sort Las into to after they're I we corporate dining could and we're in and business were happened doing less we are during because that's are the meager At X/XX, well where to happen because my true X/XX, assets said indoors, seat cash indoor I'm don't spring, a mind for increases to think extremely we We because own be to Northeast, New where of well. it's as and great do of have on Sequoia now. business who outside in I with limitations

reduced which of positive, well. cash Some on restaurants income flow not everybody's as are the levels

very again. in would of cash been positive our landlords quarter, June Some sometime think cooperative. turned we I flow have But the

being right is with if now now, Grill landlord in Union And talk guess different Union is Station, to right close. that, - mentioned about with are restaurant that's like would about problem want explanation, do well or pay that to Station I us reopen reduced a do encampment. lease not very Thunder I Union it capacity. homeless The it. a with Station right They up. our But doesn't right a was I open Anthony spot a So a would and especially satisfactory at there now. to not concept. talk perhaps

soon. a because We leases but some there's probably the require in - don't be and City for convinced lease state. there. the the help think a deficits properties a to of we we in March casino any a at with are better restaurants Meadowlands consider to maintenance sort We up to best. than Atlantic and there's don't term see decision the state to us because as were Atlantic for just Northern think them going site we in that think City a and new that. put advantage start the come establish negotiation to New permit be there. making cash sports So we'll state's with move absolutely Meadowlands, April Racetrack of money leases our the approves We part because think downstate to We Meadowlands move at very some of New casinos, to them. under York there'll into budget legislation if going we're the went fire also think which well, point, of It did light lot will we Jersey closed flow is to to we marginal of now, We've start to down lot can positive and betting. Right or it. casino is happen

revenue. the betting now the terms United of we're think I largest States in in venue sports right

us but So in that betting revenue, reduces, to establish New talking hopefully be reason sports Jersey that that about, York, you for probably keeps to in think the New which comes that will another they're for also the know, casino terms we of up. capacity north. Once

So very we coming think We'd feel I all flow pretty now. be positive cash but to soon. considered, but comfortable. now, impossible I'll questions take that's it's like things

Anthony Sirica

on wanted to Michael, you going what's or with transaction - JB's that?

Michael Weinstein

good a that's Yes, point.

the an we started sale. he asking million. And We properties. right-of-first parcel the happen. originally right-of-first to a our the And million JB's at think little $XX rent a refusal we had refusal, The little two is exclusive basis, refusal, across and exercised users $XXX,XXX under owned for sites, the development was on wasn't has price. those JB's, on reduce great if it's buyer And he the when landlord use to purchased of street our had found because we the we landlord but a going year. with restaurant, economic So lot that who a by a $XX and right-of-first parking a

enough minor $XX have developer a million for So a it the put own to parcels, and appropriate if to Honestly, with those a XXX,XXX was some Ark in been amount to on and million interest done or rent us have $XX so. cover work of in we find would loan. to would principal

been would somebody we positive how worst it Ark own and up option, seems that What been most have and do make and option developer it not a We sit So put develop. a our we there who knowhow. - developers and money. have find was to development to knows with would decided knew it that like deal for that some inappropriate to

develop the and beach, will which So in is the now that of we arranged the development develop? the South a we It's should with And property parking with friendly is put us. of in East in who six to have highway. JB's and County people is Beach under JB's coastal to Broward right stay when West AXA place carried AXA, development a which are we're is of which partner anticipated outside, money the will developers go all on the up interest in and hotels essentially, they with the

we So in cash able density, from derive we from to which revenue that will flow more to JB's addition think be benefiting extra side. will some help development

that's that it explains So and queue, that's please in just so was the filed. questions. I that Again, footnote, hope ask our

Operator

Steve question [Operator comes with proceed from Investor. question. Private the Olson, Our line Please a of Instructions] your first

Steve Olson

my taking for Thanks morning. Good call.

to Regarding of critical restaurant under the of on that? had the a this - over know, loss say some and I this can are unit, basis the on about pretty thinking from JB's, - with of next million volume and the plan potential you of and circumstances maintain, to confirm longer-term purchase was of the end at development Blue years the hate in you help of of flow financed due I be understand expect just parking The operation the is a the kind order price impact this guess normal to five business you would years? debt short-term XXX% volume. year and cash the would the I service comment payment or pay $XX volume parking to if lot you six the thought five unit the off plus you Moon the me the How

Michael Weinstein

it, should addressed I question. Yes, I good a And have apologize.

lot suffer So, parking basis. - parking to Spaces is when we you're a difficult parking that revenue without that by lot spaces. XXX come we - right, very are the - would on area in is

parking land on separate we parking restaurant Parcel the So the the there, whoever being essentially, the restaurant when owns the we being bought the lot, created parking of owner parcels. lot, lot an lot. the owned parcel JB's, the easement on B the there two parking were A

convenient. So what he if was term, the lots sole that spaces, or have XXX buyer And would spaces purchased were XXX XXX And to parking us to spaces. the we have they these provide easement for a were an subsequent arbitrator, where they it, the provide on had the it development, find convenient. XX-year was to gave would if

did time. to obviously, a they now going disappear and for deal this So if period parking those spaces develop friend, of is we with a

a us the under EBITDA is they our of the the so based development any EBITDA And development, to regardless a there EBITDA lost is minimum closed. time lot any is still they upon the have have to year to to EBITDA went equation what they to parking circumstances the minimum. that EBITDA. reimburse down have us There zero, us to will that before an a up maximum. pay during that have give pay the us If for is But

our in build year the the space So that to parking to year do the in replace they name if the million have data X.X on a they it, down and model is the EBITDA for goes $X.X which lot in that instance if starts million.

this take hotel. This room a we're the the to hotel a would will the protected right expand the some then with we believe. months is show part additional and it are long-term us in zoning, to of will think some of, own Because can really So condominiums, eight we the to the game, pieces yes, of other on have deal see it on it is will consist consists zoning, a There space, that we will early opportunities of a get. of that by revenue we is like and that meeting right consist functions and it to development what in of we to figure be of operating some where what can as city as but development. going hotel, we we key we of XXX add shortly out retail a consist plan them maneuver it

away eight yes, But we building. our what we're we're knowing EBITDA. are months So protected from with probably

Steve Olson

on Thank host many event events? And you. Okay. any that normal bookings trends can in at you your in typically years comment locations

Michael Weinstein

Any I am trends sorry.

Steve Olson

Or Booking about of your any you it calls are too is early, in of locations? events? getting more hosting events

Michael Weinstein

Yes, flow I you take of the can this. through

not have if to long where we how don't your know pricing for anybody, year not were look, going it $X One of Bryant or for we events. going place cash we in for concerned terms And back. $X now. going we about, is, flow everybody hardball playing will venues balance going you we will we you their know in deposits, pandemic our And big We was saying were sheet pricing at or last. million deposits the can were be that with take ask Park don't back, to or deposit usually we three the want things have forward. from guarantee concerned And to of million were Sequoia, but those ROBERT, is that are a are events back,

pricing same. want if you stay we'll the to deposit, So maintain guarantee will your

want cancellations. few very of over price your take had hear back. back, We all point went and if starting Anthony, with a million when you I you deposit $X back? am right about to If we're

Anthony Sirica

Park Yes, Sequoia events. we've lot pushing the - Bryant done are a amazing of at of corporate job events and

push of people they refunds lot of and to and were smaller push a events them our issue getting scheduled Michael off a in lot for I related - D.C., the a on those that understand were we And sorry. were off York inquiries New will customers are the - year. to what now So Weddings worked with weddings. from - weddings

Michael Weinstein

I and our can which venue How lot because well than that I how one a in awful had. because booking an more we're she of is doing, day of So it's weddings wedding is we've my trust is that pretty planners? every event daughter big is hear ever both Sequoia, maybe

year, of when terms is will of do people York do to you the at have pushing In and pushed and New We business can to everything in we now have distancing. they just them events events Gotham of have event they where be at robust, social I people regardless. for There occur XXX do people, [barmiest], you we're because social can an the is demand pent-up corporate it's - event York, last we've do the not our married, pushed to and end people them events if we're constantly we're forward. with get we social in then made have of them New arrangements going instance, calls, XXX being venues. last for think Right event it's pushed fall. other to contracts, an now, the signing ROBERT events, where think distancing. I place have year, when getting spring are open allowed But they're to middle

the ridiculous. York of, events New move of working venues Right people, do it's we're So do because we in to a requirements. couple allowed in State, them with to we're capacity for event, XXX but events can other now

given don't requirements it's event allowed a who social people, are and to can't be that COVID do not know hours the before isn't have or you're you orchestra, allowed I that ridiculous. the to you has to I there distancing, monitor So at for wants an maybe then is everybody presented, certificates have think an because has within, dancing, make the XX and to have event event an a anybody can XXX orchestra sure dancing but the test

four people But So or where closer hope a or take your away, states enough three, completely. question. busy, this to months answered we're immunity busy. I we that five we will would vaccinated thing herd up we I opening will again, get be feel guess, comfortable be as

Steve Olson

final hear. on update good - Yes, to the future question, no on And - thoughts the any operation? that thought on of the Clyde's

Michael Weinstein

we So been make minimum were didn't at percentage seating now have rent. have cooperative honestly, we really and there until recently We lease very of weak. any landlord. because Clyde's not and a a have sense. been We're rent pay talking do a closed we have don't paying right at We a people, spectacular Clyde's, outdoor our sales sales to we

And capacity. so now XX% we're at

reconceptualizing We Clyde's interesting I'll about it's now in work. right it's worked, about but a didn't maybe to should say going have It's have an more month, have Clyde's. conversation a that it. it but restaurant operating as

stuff lease you at didn't make is strong shape. be you infrastructure that positive. are do very piggyback individual don't build to I great becomes and really do public the of have understood infrastructure, very tried I lot strong guessing why able brands forms. re-conceptualized. art like something never something but been years. why We've We building One to there The to about And not be we've over that they're cash Clyde's that of had least should and in work. why business it correct and they're the not, just wants something leases it flow the a you lease. working and understand what they're them public in The working. work, We to a mean, restaurants built work. didn't really and/or successful Clyde's we've things and why hard - likes times but are not never understand and the where of needs a being you understanding

Operator

for queue. the hand closing I'd call back remarks. like There questions to are further management in to no the

Michael Weinstein

we'll next and If of on XXX-XXX-XXXX. to is at again. quarter, I'll this did do very call end from available you. it Thanks, Last follow-up your the number I the I'm anybody speak any for calls quarter. my so, the and generally to questions happy hear has much. everybody for Thanks cell being you I'm

Operator

teleconference. does for Ladies this today's conclude participation. you and Thank gentlemen, your

disconnect this may lines You your and day. time at wonderful a have

Anthony Sirica

everyone. Thanks,

Ark Restaurants (ARKR) 16 Feb 212021 Q1 Earnings call transcript