Ark Restaurants Announces Financial Results for the Third Quarter and Nine Months Ended July 1, 2006.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 -- 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 third quarter and nine month periods ended July July: see month. 1, 2006. For the three months ended July 1, 2006, the Company's income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $2,656,000, or $0.77 per share ($0.75 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 $3,013,000, or $0.88 per share ($0.84 per diluted share), for the same period last year. Income from continuing operations for the three months ended July 1, 2006 was negatively impacted by the Company being required to recognize $187,000 of non-cash compensation expense with regard to the Company's share-based compensation plan and unusually hot weather and rainstorms in the Northeast during significant portions of the third quarter rendering See render. (graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display. For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. outdoor seating at the Company's 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. and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. facilities (historically, a substantial contributor to the Company's operations during the quarter) inefficient. Total revenues from continuing operations for the three month period ended July 1, 2006 were $32.6 million versus $32.2 million in the same period last year. Revenues from the Company's 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. operations represented 47.4% of the Company's total revenues from continuing operations during the three-month period ended July 1, 2006. The increase in revenues as compared to the same period last year was primarily due to the opening of the Company's Gallagher's Steakhouse steak house or steak·house n. A restaurant that specializes in beefsteak dishes. steakhouse Noun a restaurant that specializes in steaks Noun 1. and Luna Lounge Luna Lounge was a bar at 171 Ludlow Street, on the west side of Ludlow Street on Manhattan's Lower East Side. It opened in 1995, and was a popular venue for local bands and stand-up comics (the rock band Interpol played there early on and last returned in 2003 to perform a secret in Atlantic City, New Jersey “Atlantic City” redirects here. For other uses, see Atlantic City (disambiguation). Atlantic City is a city in Atlantic County, New Jersey, USA. Famous for its boardwalk and casino gambling, it is a resort community located on Absecon Island on the coast of the and the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of certain of the Company's facilities to discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Compared to the same three month period last year, same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of in the Company's New York City operations increased by 2.3%, same store sales in the Company's Las Vegas operations decreased by 0.4% and same store sales in the Company's Washington D.C. operations decreased by 10.4%. Compared to the same three month period last year, Company-wide same store sales decreased by 1.4%. Although the Company does not report the sales or the financial results of the Company's managed Florida 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. operations (the Company derives income from a management fee arrangement in part based on sales), same store sales at the Company's Florida operations increased by 17% compared to the same three month period last year. Sales at the Company's Florida operations totaled $2,648,000 during the three month period ended July 1, 2006. For the nine months ended July 1, 2006, the Company's income from continuing operations was $3,860,000, or $1.11 per share ($1.09 per diluted share), compared to $4,565,000, or $1.34 per share ($1.28 per diluted share), for the same period last year. Income from continuing operations for the nine months ended July 1, 2006 was, likewise, negatively impacted by the Company being required to recognize $561,000 of non-cash compensation expense with regard to the Company's share-based compensation plan. Total revenues from continuing operations for the nine month period ended July 1, 2006 were $85.3 million versus $82.7 million in the same period last year. Revenues from the Company's Las Vegas operations represented 54.4% of the Company's total revenues from continuing operations during the nine month period ended July 1, 2006. The increase in revenues as compared to the same period last year was, likewise, primarily due to the opening of the Company's Gallagher's Steakhouse and Luna Lounge in Atlantic City, New Jersey and the reclassification of certain of the Company's facilities to discontinued operations. Compared to the same nine month period last year, same store sales in the Company's New York City operations increased by 8.2%, same store sales in the Company's Las Vegas operations decreased by 3.5% and same store sales in the Company's Washington D.C. operations decreased by 4.2%. Compared to the same nine month period last year, Company-wide same store sales decreased by 0.4%. Same store sales at the Company's managed Florida casino operations increased by 19.7% compared to the same nine month period last year. Sales at the Company's Florida operations totaled $7,823,000 during the nine month period ended July 1, 2006. 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 from continuing operations for the three month period ended July 1, 2006 was $4,836,000 versus $5,262,000 during the same three month period last year. EBITDA from continuing operations for the three month period ended July 1, 2006 was, likewise, negatively impacted by the Company being required to recognize a $187,000 non-cash compensation expense with regard to the Company's share-based compensation plan. EBITDA from continuing operations for the nine month period ended July 1, 2006 was $8,200,000 versus $8,864,000 during the same nine-month period last year. EBITDA from continuing operations for the nine month period ended July 1, 2006 was, likewise, negatively impacted by the Company being required to recognize a $561,000 non-cash compensation expense with regard to the Company's share-based compensation plan. The Company had net income of $2,488,000 in the three month period ended July 1, 2006 compared to net income of $2,822,000 in the same three month period last year. Net income for the three month period ended July 1, 2006 was negatively impacted by unusually hot weather and rainstorms in the Northeast during significant portions of the third quarter rendering outdoor seating at the Company's New York City and Washington, D.C. facilities (historically, a substantial contributor to the Company's operations during the quarter) inefficient and the Company being required to recognize a $187,000 non-cash compensation expense with regard to the Company's share-based compensation plan. Net income for the nine-month period ended July 1, 2006 was $3,252,000 compared to $4,561,000 during the same nine-month period last year. In the nine month period in the previous year, net income was positively impacted by a $644,000 gain realized on the sale of one of the Company's restaurants. Net income for the nine month period ended July 1, 2006 was also negatively impacted by the Company being required to recognize a $561,000 non-cash compensation expense with regard to the Company's share-based compensation plan and $447,000 in pre-opening and the early operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. experienced by the Company's Gallagher's Steakhouse and Luna Lounge in Atlantic City, New Jersey. On July 27, 2006, the Company entered into an agreement to operate a casual sit-down restaurant known as The Grill Grill may refer to: In food:
liquor licence license, permit, licence - a legal document giving official permission to do something for the facility. The Company is currently in the process of applying for such liquor license. The Company presently manages two facilities at the Foxwoods Resort Casino, a marketplace style restaurant known as the Fifth Street Cafe in the newly expanded poker poker, card game, believed to have originated in Asia and first played in the United States in the 19th cent. A traditional cutthroat gambling game at first, it is now also an internationally popular social pastime. room and a fast-casual restaurant in the Bingo Hall. As of July 1, 2006, the Company had no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and a cash balance of $5,889,000. Ark Restaurants owns and operates 23 restaurants and bars, 28 fast food concepts, catering operations and wholesale and retail bakeries. Eight restaurants are located in New York City, four are located in Washington, D.C., nine are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey and one is located at the Foxwoods Resort Casino in Ledyard, Connecticut. The Las Vegas operations include three restaurants within the New York-New York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. Hotel & Casino Resort and operation of the hotel'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 nine food court concepts; four restaurants and bars within the Venetian Casino Resort as well as four food court concepts. In Las Vegas, the Company also owns and operates one restaurant 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 . The Florida operations under management include five fast food facilities in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. and eight fast food facilities in Hollywood, Florida Hollywood is a city in Broward County, Florida, United States. As of 1 July 2006, the population estimated by the U.S. Census Bureau is 145,879.[3] Founded in 1925, the city grew rapidly in the 1950s and 1960s, and is now the ninth largest city in Florida. , each at a Hard Rock Hotel and Casino The Hard Rock Hotel and Casino is a hotel-casino located in Las Vegas, Nevada. The property has a 646 room hotel and 30,000ft² (3,000m²) casino. The hotel will undergo a major expansion to be completed in 2009. operated by the Seminole Indian Tribe INDIAN TRIBE. A separate and distinct community or body of the aboriginal Indian race of men found in the United States. 2. Such a tribe, situated within the boundaries of a state, and exercising the powers of government and, sovereignty, under the national at these locations. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Resorts Hotel and Casino Atlantic City is a hotel, casino, and spa in Atlantic City, New Jersey owned by Colony Capital, LLC and is managed through its gaming subsidiary Colony RIH Holdings, Inc.. Hotel and Casino.
ARK RESTAURANTS CORP.
Unaudited Condensed Consolidated Income Statement
For the 13 and 39 week periods ended July 1, 2006 and July 2, 2005
(In Thousands, Except per share amounts)
----------------------------------------------------------------------
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
-------- -------- -------- --------
TOTAL REVENUES $ 32,606 $ 32,206 $ 85,321 $ 82,717
COST AND EXPENSES:
Food and beverage cost of
sales 8,095 8,065 21,477 21,044
Payroll expenses 9,814 9,325 27,761 26,303
Occupancy expenses 4,365 4,046 12,623 11,764
Other operating costs and
expenses 3,800 3,745 10,394 9,719
General and administrative
expenses 1,874 1,900 5,435 5,455
Depreciation and amortization
expenses 835 749 2,421 2,209
-------- -------- -------- --------
Total costs and expenses 28,783 27,830 80,111 76,494
-------- -------- -------- --------
OPERATING INCOME 3,823 4,376 5,210 6,223
-------- -------- -------- --------
OTHER INCOME:
Interest income 23 5 70 58
Other income 178 137 569 432
-------- -------- -------- --------
Total other income 201 142 639 490
-------- -------- -------- --------
Income from continuing
operations before
income taxes 4,024 4,518 5,849 6,713
Provision for income taxes 1,368 1,505 1,989 2,148
-------- -------- -------- --------
Income from continuing
operations 2,656 3,013 3,860 4,565
-------- -------- -------- --------
DISCONTINUED OPERATIONS:
Loss from operations of
discontinued restaurants (255) (271) (921) (6)
Benefit for income taxes (87) (80) (313) (2)
-------- -------- -------- --------
Loss from discontinued
operations (168) (191) (608) (4)
-------- -------- -------- --------
NET INCOME $ 2,488 $ 2,822 $ 3,252 $ 4,561
======== ======== ======== ========
PER SHARE INFORMATION - BASIC
AND DILUTED:
Continuing operations basic $ .77 $ .88 $ 1.11 $ 1.34
Discontinued operations basic $ (.05) $ (.06) $ (.18) $ (.00)
-------- -------- -------- --------
Net basic $ .72 $ .82 $ .94 $ 1.34
======== ======== ======== ========
Continuing operations diluted $ .75 $ .84 $ 1.09 $ 1.28
Discontinued operations
diluted $ (.05) $ (.05) $ (.17) $ (.00)
-------- -------- -------- --------
Net diluted $ .70 $ .79 $ .92 $ 1.28
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF
SHARES-BASIC 3,462 3,433 3,462 3,414
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF
SHARES-DILUTED 3,546 3,586 3,546 3,560
======== ======== ======== ========
Continuing Operations EBITDA
Reconciliation
Pre tax earnings $ 4,024 $ 4,518 $ 5,849 $ 6,713
Depreciation and amortization 835 749 2,421 2,209
Interest (23) (5) (70) (58)
-------- -------- -------- --------
EBITDA (a) $ 4,836 $ 5,262 $ 8,200 $ 8,864
======== ======== ======== ========
Continuing Operations EBITDA
adjusted for non-cash stock
option expense
EBITDA (as defined) (a) $ 4,836 $ 5,262 $ 8,200 $ 8,864
Non-cash stock option expense 187 - 561 -
-------- -------- -------- --------
EBITDA adjusted for non-cash
stock option expense $ 5,023 $ 5,262 $ 8,761 $ 8,864
======== ======== ======== ========
(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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