Ark Restaurants Announces Financial Results For The Second Quarter and Six Months Ended March 29, 2003.Business Editors NEW YORK--(BUSINESS WIRE)--May 8, 2003 Ark Restaurants Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARKR) today reported financial results for the second quarter and six month periods ended March 29, 2003. For the three months ended March 29, 2003 total revenues were $26.3 roughly flat to the prior period's result. Net income was $30,000 for the second quarter compared to a net loss of $189,000 a year ago. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.01 for the three months ended March 29, 2003 versus a loss of $0.06 per share during the previous year's second quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the period was $1.2 million versus $1.3 million last year. Total revenues for the six-month period ended March 29, 2003 were $52.8 million versus $52.2 million in the six months ended March 30, 2002. The net loss for the six-months was $85,000, or $0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to net income of $785,000, or $0.25 per diluted share, for the six-months ended March 30, 2002. EBITDA for the six-month period was $2.4 million versus $4.6 million during the prior six-month period. The continued weak economy and severe winter weather adversely affected the Company's operations in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Washington, D.C.. The Company's operations in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , however, continue to exhibit strong results. Michael Weinstein Michael L. "Mikey" Weinstein is an attorney, businessman and former Air Force officer. He is founder and president of the Military Religious Freedom Foundation and author of With God on Our Side: One Man's War Against an Evangelical Coup in America's Military , Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ark Restaurant Corp. stated, "The severity and length of this year's winter weather and the continued economic weakness in New York and Washington, D.C. constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. revenue growth this quarter. Nonetheless, we were able to adjust our cost structure in these two markets to somewhat reduce the impact of these factors. On a positive note, Las Vegas continued to show resilience resilience (r  ·zilˑ·yens),n , producing solid results in a quarter that is traditionally slow for the Company. We are hopeful that trends in Las Vegas will continue and that economic conditions and consumer sentiment in New York and Washington, D.C. will improve." Due to the impact of September 11th and the continued weakness of the New York economy, the Company has determined that the fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → associated with the Lutece restaurant in New York have been impaired. The Company has recorded a charge of $667,000 in the current quarter to reflect this asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . The Company continues to operate this restaurant and has no immediate intention to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its operations. The Company had previously established a reserve of $585,000 to account for the likelihood of collection of a note received in connection with the sale of a restaurant in October 1997. A review of the performance of this note and the security underlying it has indicated that the risks associated with the note do not warrant a reserve. Consequently, the Company eliminated this reserve and included the sum in other income for this quarter. Ark Restaurants owns and operates 25 restaurants, 12 fast food concepts, catering operations and wholesale and retail bakeries. Twelve restaurants are located in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. ; 8 in Las Vegas, Nevada; 4 in Washington, DC; and one in Islamorada, Florida Islamorada, "Village of Islands" is an incorporated village in Monroe County, Florida, on the islands of Lower Matecumbe Key, Upper Matecumbe Key, Windley Key and Plantation Key in the Florida Keys. The village was incorporated on November 4, 1997. . The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. Resort and operation of the Resort's room service, banquet A banquet is a large public meal or feast, complete with main courses and desserts. It usually serves a purpose, such as a charitable gathering, a ceremony, or a celebration. Sometimes a banquet consists of only desserts, but it is advisable to include main courses as well. facilities, employee dining room and eight food court concepts. Four restaurants and bars are within the Venetian Casino Resort as well as four food court concepts. One restaurant is within the Forum Shops at Caesar's Shopping Center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into and one restaurant is in the Neonopolis Center at Freemont Street in downtown Las Vegas Downtown Las Vegas can have several meanings depending on how it is used. It can mean:
Except for historical information, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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.
Ark Restaurants Corp
Consolidated Income Statement
For the 13 weeks ended March 29, 2003 and March 30, 2002
and the 26 weeks ended March 29, 2003 and March 30, 2002
(unaudited: in thousands except for per share amounts)
26 weeks 26 weeks 13 weeks to 13 weeks
to to to
3/29/2003 3/30/2002 3/29/2003 3/30/2002
---------- ---------- ---------- ----------
REVENUES:
Food & beverage sales $51,947 $51,929 $25,779 $26,148
Other income 874 284 776 139
---------- ---------- ---------- ----------
Total Revenues 52,821 52,213 26,555 26,287
COSTS & EXPENSES:
Food & beverage cost of
sales 13,077 13,085 6,479 6,775
Payroll expenses 18,338 17,629 9,198 9,147
Occupancy expenses 8,700 8,178 4,279 4,254
Other operating costs and
expenses 6,979 5,932 3,368 3,311
General & Administrative
expenses 2,934 2,931 1,343 1,535
Depreciation and
amortization expenses 2,205 2,691 1,058 1,352
Asset impairment 667 - 667 -
---------- ---------- ---------- ----------
Total costs and
expenses 52,900 50,446 26,392 26,374
Operating Income (loss) (79) 1,767 163 (87)
OTHER (INCOME) EXPENSE:
Interest expense 428 681 206 326
Interest income (91) (66) (84) (33)
Other income (278) (159) (8) (68)
---------- ---------- ---------- ----------
Total other (income)
expense 59 456 114 225
---------- ---------- ---------- ----------
Income (loss) before income
taxes (138) 1,311 49 (312)
Provision (benefit) for
income taxes (53) 526 19 (123)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $(85) $785 $30 $(189)
========== ========== ========== ==========
EBITDA Reconciliation
Pre Tax Earnings $(138) $1,311 $49 $(312)
Depreciation 2,205 2,691 1,058 1,352
Interest 337 615 122 293
---------- ---------- ---------- ----------
EBITDA (a) $2,404 $4,617 $1,229 $1,333
========== ========== ========== ==========
INCOME (LOSS) per share:
Income (loss) basic ($0.03) $0.25 $0.01 ($0.06)
Income (loss) diluted ($0.03) $0.25 $0.01 ($0.06)
Basic Shares 3,181,299 3,181,486 3,181,299 3,181,299
Diluted Shares 3,181,299 3,199,089 3,187,594 3,181,299
(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.
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