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Ark Restaurants Announces Financial Results for the First Quarter of 2012

2012-02-13

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Ark Restaurants Company-wide same store sales increased 8.9% for the three-month period ended December 31, 2011 compared to the same three month period last year.

Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 31, 2011.

As of December 31, 2011 the Company had cash, cash equivalents and short term investments totaling $6,144,000 and long-term debt in the amount of $2,036,000 resulting from the purchase of 250,000 treasury shares in December 2011.

Company-wide same store sales increased 8.9% for the three-month period ended December 31, 2011 compared to the same three month period last year.

Total revenues for the three-month period ended December 31, 2011 were $33,218,000 versus $32,541,000 in the three months ended January 1, 2011.

EBITDA adjusted for non-cash stock option expense and non-controlling interests for the three-month period ended December 31, 2011 was $2,383,000 versus $1,047,000 during the same three-month period last year. The Company’s net income for the three-month period ended December 31, 2011 was $1,086,000, or $0.32 per basic share ($0.31 per diluted share), as compared to a net loss of $213,000, or $0.06 per basic and diluted share, for the same three-month period last year. Included in general and administrative expenses for the 13-weeks ended December 31, 2011 is $475,000 related to resignation of the Company’s President and Chief Operating Officer.

Ark Restaurants owns and operates 20 restaurants and bars, 28 fast food concepts and catering operations in New York City, Washington, D.C. and Las Vegas, NV. Six restaurants are located in New York City, three are located in Washington, D.C., seven are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include five restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; one bar within the Venetian Casino Resort, as well as three food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. The operations at the Foxwoods Resort Casino include one fast food concept and six fast food concepts at the MGM Grand Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. 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.

ARK RESTAURANTS CORP.
Consolidated Condensed Statements of Operations
For the 13 week periods ended December 31, 2011 and January 1, 2011

(In Thousands, Except per share amounts)


	13 weeks ended			13 weeks ended
	December 31,			January 1,
	2011			2011

TOTAL REVENUES (includes $5,044 and $4,767 for the 13 weeks ended December 31, 2011 and January 1, 2011, respectively, related to VIEs)
	$	33,218		$	32,541

COST AND EXPENSES:

Food and beverage cost of sales		8,509			8,583
Payroll expenses		10,975			11,246
Occupancy expenses		4,618			4,405
Other operating costs and expenses		4,106			4,652
General and administrative expenses		2,781			2,447
Depreciation and amortization		957			1,150

Total costs and expenses (includes $4,080 and $4,046 for the 13 weeks ended December 31, 2011 and January 1, 2011, respectively, related to VIEs)
		31,946			32,483

OPERATING INCOME		1,272			58

OTHER (INCOME) EXPENSE:

Interest (income) expense, net		-			1
Other (income) expense, net		(183	)		(70	)
Total other (income) expense, net		(183	)		(69	)

Income before provision for income taxes		1,455			127

Provision for income taxes		340			31

CONSOLIDATED NET INCOME		1,115			96

Net income attributable to non-controlling interests		(29	)		(309	)

NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.	$	1,086		$	(213	)


NET (INCOME) LOSS PER ARK RESTAURANTS CORP. COMMON SHARE:

Basic	$	0.32		$	(0.06	)
Diluted	$	0.31		$	(0.06	)

WEIGHTED AVERAGE NUMBER OF SHARES-BASIC		3,432			3,492

WEIGHTED AVERAGE NUMBER OF SHARES-DILUTED		3,449			3,492

EBITDA Reconciliation:
Pre tax income	$	1,455		$	127
Depreciation and amortization		957			1,150
Interest		-			1
EBITDA (a)	$	2,412		$	1,278

EBITDA adjusted for non-cash stock option expense and
non-controlling interests:
EBITDA (as defined) (a)	$	2,412		$	1,278
Net income attributable to non-controlling interests		(29	)		(309	)
Non-cash stock option expense		-			78
EBITDA, as adjusted	$	2,383		$	1,047

(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 this non-GAAP financial measure 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 (loss), operating income (loss), 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, pre-tax income (loss), is included above.

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