Ark Restaurants Announces Financial Results for the First Quarter of 2025
Financial Results
Total revenues for the 13 weeks ended December 28, 2024 were
Excluding revenues related to El Rio Grande and the Tampa Food Court (see below), Company-wide same store sales decreased
Net income attributable to Ark Restaurants Corp. for the 13 weeks ended December 28, 2024, was
As of December 28, 2024, the Company had cash and cash equivalents of
Other Matters
Loss on the Closure of El Rio Grande
In October 2024, the Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently. In connection with this notification, the Company recorded a loss of
Gain on the Closure of the Tampa Food Court
On November 26, 2024, the Company agreed to terminate its lease for the food court at The Hard Rock Hotel and Casino in
Bryant Park Grill & Cafe and The Porch at Bryant Park Leases
The Company's agreements with the Bryant Park Corporation (the “Landlord”), (a private non-profit entity that manages Bryant Park under agreements with the New York City Department of Parks & Recreation) for the Bryant Park Grill & Cafe and The Porch at Bryant Park expire on April 30, 2025. During July 2023 (for the Bryant Park Grill & Cafe) and September 2023 (for The Porch at Bryant Park), the Company received requests for proposals (the "RFPs") from the Landlord to which we responded on October 26, 2023. The agreements offered under the RFPs for both locations are for new 10-year agreements, with one five-year renewal option. On January 27, 2025, at a public local community board meeting, the Landlord stated that it had selected a new operator for both locations, although no agreements have been signed. Any such agreements must be approved by both the New York City Department of Parks & Recreation and the New York Public Library. Management continues to work with its outside advisors who have been assisting with our efforts to obtain the extensions by ensuring the RFP awards process was both fair and transparent. We intend to pursue all available options to protect the Company's interests.
Conference Call and Webcast Information
Ark Restaurants will host a conference call on February 11, 2025 at 11:00 a.m. Eastern Time to review these results and discuss other topics.
The call can be accessed by dialing toll-free 1-877-407-4018 (Toll/International: 1-201-689-8471).
A live webcast of the call will be available by copying and pasting the following URL into your browser: https://callme.viavid.com/viavid/?callme=true&passcode=13716421&h=true&info=company&r=true&B=6. A replay will be available approximately three hours following the call by dialing toll-free 1-844-512-2921 (Toll/International: 1-412-317-6671) using Access ID 13751705. The replay will be available until Tuesday, February 18, 2025, 11:59 p.m. Eastern Time.
About Ark Restaurants Corp.
Ark Restaurants owns and operates 16 restaurants and bars, 12 fast food concepts and catering operations primarily in
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements 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 filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.
Non-GAAP Financial Information
This news release includes non-generally accepted accounting principles ("GAAP") performance measures. Although Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is not a measure of performance or liquidity calculated in accordance with 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 as it may not necessarily be comparable to similarly titled measure employed by other companies.
ARK RESTAURANTS CORP. |
Consolidated Condensed Statements of Income |
For the 13-week periods ended December 28, 2024 and December 30, 2023 |
(In Thousands, Except per share amounts) |
|
|
13 Weeks Ended December 28, 2024 |
|
13 Weeks Ended December 30, 2023 |
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|
|
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TOTAL REVENUES |
|
$ |
44,988 |
|
|
$ |
47,487 |
|
COSTS AND EXPENSES: |
|
|
|
|
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Food and beverage cost of sales |
|
|
12,107 |
|
|
|
12,071 |
|
Payroll expenses |
|
|
16,408 |
|
|
|
16,977 |
|
Occupancy expenses |
|
|
6,148 |
|
|
|
6,332 |
|
Other operating costs and expenses |
|
|
5,800 |
|
|
|
6,092 |
|
General and administrative expenses |
|
|
3,148 |
|
|
|
3,320 |
|
Depreciation and amortization |
|
|
777 |
|
|
|
1,092 |
|
Loss on closure of El Rio Grande |
|
|
146 |
|
|
|
— |
|
Gain on closure of Tampa Food Court |
|
|
(5,235 |
) |
|
|
— |
|
Total costs and expenses |
|
|
39,299 |
|
|
|
45,884 |
|
OPERATING INCOME |
|
|
5,689 |
|
|
|
1,603 |
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
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Interest expense, net |
|
|
111 |
|
|
|
160 |
|
Other income |
|
|
— |
|
|
|
(26 |
) |
Gain on forgiveness of PPP Loans |
|
|
— |
|
|
|
(285 |
) |
Total other (income) expense, net |
|
|
111 |
|
|
|
(151 |
) |
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
5,578 |
|
|
|
1,754 |
|
Provision for income taxes |
|
|
503 |
|
|
|
158 |
|
CONSOLIDATED NET INCOME |
|
|
5,075 |
|
|
|
1,596 |
|
Net income attributable to non-controlling interests |
|
|
(1,911 |
) |
|
|
(226 |
) |
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP. |
|
$ |
3,164 |
|
|
$ |
1,370 |
|
|
|
|
|
|
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NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP. PER COMMON SHARE: |
|
|
|
|
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Basic |
|
$ |
0.88 |
|
|
$ |
0.38 |
|
Diluted |
|
$ |
0.88 |
|
|
$ |
0.38 |
|
|
|
|
|
|
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
|
|
|
|
||||
Basic |
|
|
3,604 |
|
|
|
3,604 |
|
Diluted |
|
|
3,611 |
|
|
|
3,631 |
|
|
|
|
|
|
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EBITDA Reconciliation: |
|
|
|
|
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Income before provision for income taxes |
|
$ |
5,578 |
|
|
$ |
1,754 |
|
Depreciation and amortization |
|
|
777 |
|
|
|
1,092 |
|
Interest expense, net |
|
|
111 |
|
|
|
160 |
|
EBITDA (a) |
|
$ |
6,466 |
|
|
$ |
3,006 |
|
EBITDA, adjusted: |
|
|
|
|
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EBITDA (as defined) (a) |
|
|
6,466 |
|
|
|
3,006 |
|
Non-cash stock option activity |
|
|
42 |
|
|
|
77 |
|
Loss on closure of El Rio Grande |
|
|
146 |
|
|
|
— |
|
Gain on closure of Tampa Food Court, net of non-controlling interests |
|
|
(3,365 |
) |
|
|
— |
|
Gain on forgiveness of PPP Loans |
|
|
— |
|
|
|
(285 |
) |
Net income attributable to non-controlling interests |
|
|
(1,911 |
) |
|
|
(226 |
) |
EBITDA, as adjusted |
|
$ |
1,378 |
|
|
$ |
2,572 |
|
(a) | EBITDA is defined as earnings before interest, taxes, depreciation and amortization. A reconciliations of EBITDA to the most comparable GAAP financial measure, pre-tax income, is included above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250210892805/en/
Anthony J. Sirica
(212) 206-8800
ajsirica@arkrestaurants.com
Source: Ark Restaurants Corp.