Ark Restaurants Announces Financial Results for the First Quarter of 2015
Total revenues for the three-month period ended December 27, 2014 were $33,359,000 versus $32,138,000 for the three months ended December 28, 2013. The three-month period ended December 27, 2014 includes revenues of $3,192,000 related to The Rustic Inn in Dania Beach, Florida, which was acquired on February 24, 2014.
Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 27, 2014.
Total revenues for the three-month period ended December 27, 2014 were $33,359,000 versus $32,138,000 for the three months ended December 28, 2013. The three-month period ended December 27, 2014 includes revenues of $3,192,000 related to The Rustic Inn in Dania Beach, Florida, which was acquired on February 24, 2014. The three-month period ended December 28, 2013 includes revenues of $1,564,000 related to four properties closed subsequent to the three-month period ended December 28, 2013 due to lease expirations.
Company-wide same store sales decreased 1.8% for the three-month period ended December 27, 2014 compared to the same three month period last year. This decrease resulted primarily from a decrease in the usage of complimentaries by the ownership of the casinos at our Florida properties.
The Company’s EBITDA, adjusted for non-cash stock option expense and non-controlling interests, for the three-month period December 27, 2014 was $2,331,000 versus $2,201,000 during the same three-month period last year. Net income for the three-month period ended December 27, 2014 was $722,000, or $0.21, per basic and diluted share as compared to $563,000, or $0.17 per basic and diluted share, for the same three-month period last year. Included in net income for the three-month period ended December 27, 2014 are pre-opening losses of $200,000 related to the new Rustic Inn in Jupiter, Florida, which opened on January 26, 2015.
As of December 27, 2014 the Company had cash and cash equivalents totaling $8,285,000. The Company has a bank note for the purchase of membership interests in Ark Hollywood/Tampa Investment, LLC and the purchase of The Rustic Inn in Dania Beach, Florida with an outstanding balance of $6,872,000 at December 27, 2014.
Ark Restaurants owns and operates 21 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C. and Las Vegas, NV. Five restaurants are located in New York City, three are located in Washington, D.C., six are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut, one is located in Boston, Massachusetts and one is located in Dania Beach, Florida. The Las Vegas operations include four 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 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 and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino include one fast food concept and one restaurant. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations include two Rustic Inn’s, one in Dania Beach, Florida and one in Jupiter, Florida and the operation of 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 Statements of Income | ||||||||
| For the 13 week periods ended December 27, 2014 and December 28, 2013 | ||||||||
| ||||||||
(In Thousands, Except per share amounts) | ||||||||
| 13 weeks ended | 13 weeks ended | |||||||
| December 27, | December 28, | |||||||
2014 | 2013 | |||||||
| TOTAL REVENUES | $ | 33,359 | $ | 32,138 | ||||
| COST AND EXPENSES: | ||||||||
| Food and beverage cost of sales | 8,747 | 7,854 | ||||||
| Payroll expenses | 10,855 | 10,478 | ||||||
| Occupancy expenses | 4,193 | 4,401 | ||||||
| Other operating costs and expenses | 4,240 | 4,207 | ||||||
| General and administrative expenses | 3,000 | 2,850 | ||||||
| Depreciation and amortization | 1,105 | 1,147 | ||||||
| Total costs and expenses | 32,140 | 30,937 | ||||||
| OPERATING INCOME | 1,219 | 1,201 | ||||||
| OTHER (INCOME) EXPENSE: | ||||||||
| Interest (income) expense, net | 57 | 12 | ||||||
| Other (income) expense, net | (57 | ) | (66 | ) | ||||
| Total other income, net | - | (54 | ) | |||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 1,219 | 1,255 | ||||||
| Provision for income taxes | 342 | 399 | ||||||
| CONSOLIDATED NET INCOME | 877 | 856 | ||||||
| Net income attributable to non-controlling interests | (155 | ) | (293 | ) | ||||
| NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ | 722 | $ | 563 | ||||
| NET INCOME PER ARK RESTAURANTS CORP. COMMON SHARE: | ||||||||
| Basic | $ | 0.21 | $ | 0.17 | ||||
| Diluted | $ | 0.21 | $ | 0.17 | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
| Basic | 3,378 | 3,256 | ||||||
| Diluted | 3,481 | 3,400 | ||||||
| EBITDA Reconciliation: | ||||||||
| Pre tax income | $ | 1,219 | $ | 1,255 | ||||
| Depreciation and amortization | 1,105 | 1,147 | ||||||
| Interest expense, net | 57 | 12 | ||||||
| EBITDA (a) | $ | 2,381 | $ | 2,414 | ||||
| EBITDA adjusted for non-cash stock option expense, | ||||||||
| and non-controlling interests: | ||||||||
| EBITDA (as defined) (a) | $ | 2,381 | $ | 2,414 | ||||
| Net income attributable to non-controlling interests | (155 | ) | (293 | ) | ||||
| Non-cash stock option expense | 105 | 80 | ||||||
| EBITDA, as adjusted | $ | 2,331 | $ | 2,201 | ||||
(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, is included above. |
