Ark Restaurants Announces Financial Results for the Fourth Quarter and Fiscal Year Ended 2024
The Company’s fiscal year ends on the Saturday nearest September 30. The fiscal years ended September 28, 2024 and September 30, 2023 both included 52 weeks and the quarters ended September 28, 2024 and September 30, 2023 both included 13 weeks.
Financial Results
Total revenues for the 13 weeks ended September 28, 2024 were
Total revenues for the year ended September 28, 2024 were
Company-wide same store sales decreased
Net loss attributable to Ark Restaurants Corp. for the 13 weeks ended September 28, 2024, was
Net loss attributable to Ark Restaurants Corp. for the year ended September 28, 2024, was
As of September 28, 2024, the Company had cash and cash equivalents of
Other Matters
Loss on the Closure of El Rio Grande
The Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently on or around January 1, 2025. In connection with this notification, the Company recorded a loss of
Impairment Losses on Right-of-Use and Long-lived Assets
During the year ended September 28, 2024, impairment indicators were identified at our Sequoia property located in
Goodwill Impairment
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. Any operator awarded the agreements must be approved by both the New York City Department of Parks & Recreation and the New York Public Library. To date, the landlord has not announced the selection of a successful bidder; however, the landlord has made public statements of its intention to select an operator other than the Company. In response to these public statements and other information obtained by the Company, management has engaged outside advisors who have been assisting with our efforts to obtain the extensions by ensuring the RFP awards process is both fair and transparent. We intend to pursue all available options to protect our interests.
As a result of the above and other factors, the Company determined that there were indicators of potential impairment of its goodwill and accordingly, the Company performed qualitative and quantitative assessments for its goodwill as of September 28, 2024 and September 30, 2023. Based on the impairment analysis, the carrying amount of our equity exceeded its estimated fair value, which indicated an impairment of the carrying value of our goodwill at September 28, 2024 and September 30, 2023. Accordingly, during the fourth quarters of fiscal 2024 and 2023, the Company recorded goodwill impairment charges of
Food Court at the Hard Rock Hotel and Casino in
On November 26, 2024, the Company agreed to terminate its lease for the food court at The Hard Rock Hotel and Casino in
Conference Call and Webcast Information
Ark Restaurants will host a conference call on December 17, 2024 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 listen-only 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 13750617. The replay will be available until Tuesday, December 24, 2024, 11:45 p.m. Eastern Time.
About Ark Restaurants Corp.
Ark Restaurants owns and operates 17 restaurants and bars, 16 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 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 Statements of Operations |
(In Thousands, Except per share amounts) |
|
|
13 Weeks Ended September 28, 2024 |
|
13 Weeks Ended September 30, 2023 |
|
52 Weeks Ended September 28, 2024 |
|
52 Weeks Ended September 30, 2023 |
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|
|
|
|
|
|
|
|
|
||||||||
TOTAL REVENUES |
|
$ |
43,406 |
|
|
$ |
44,400 |
|
|
$ |
183,545 |
|
|
$ |
184,793 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
||||||||
Food and beverage cost of sales |
|
|
12,007 |
|
|
|
12,152 |
|
|
|
49,519 |
|
|
|
49,624 |
|
Payroll expenses |
|
|
15,875 |
|
|
|
17,295 |
|
|
|
65,844 |
|
|
|
66,322 |
|
Occupancy expenses |
|
|
6,254 |
|
|
|
5,884 |
|
|
|
24,622 |
|
|
|
23,472 |
|
Other operating costs and expenses |
|
|
5,892 |
|
|
|
5,940 |
|
|
|
24,125 |
|
|
|
23,498 |
|
General and administrative expenses |
|
|
3,112 |
|
|
|
2,752 |
|
|
|
12,263 |
|
|
|
12,407 |
|
Depreciation and amortization |
|
|
909 |
|
|
|
1,080 |
|
|
|
4,090 |
|
|
|
4,310 |
|
Loss on closure of El Rio Grande |
|
|
876 |
|
|
|
— |
|
|
|
876 |
|
|
|
— |
|
Impairment losses on right-of-use and long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
2,500 |
|
|
|
— |
|
Goodwill impairment |
|
|
4,000 |
|
|
|
10,000 |
|
|
|
4,000 |
|
|
|
10,000 |
|
Total costs and expenses |
|
|
48,925 |
|
|
|
55,103 |
|
|
|
187,839 |
|
|
|
189,633 |
|
OPERATING LOSS |
|
|
(5,519 |
) |
|
|
(10,703 |
) |
|
|
(4,294 |
) |
|
|
(4,840 |
) |
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
129 |
|
|
|
161 |
|
|
|
577 |
|
|
|
906 |
|
Other income |
|
|
— |
|
|
|
(26 |
) |
|
|
(26 |
) |
|
|
(52 |
) |
Gain on forgiveness of PPP Loans |
|
|
— |
|
|
|
— |
|
|
|
(285 |
) |
|
|
(272 |
) |
Total other (income) expense, net |
|
|
129 |
|
|
|
135 |
|
|
|
266 |
|
|
|
582 |
|
LOSS BEFORE BENEFIT FOR INCOME TAXES |
|
|
(5,648 |
) |
|
|
(10,838 |
) |
|
|
(4,560 |
) |
|
|
(5,422 |
) |
Benefit for income taxes |
|
|
(613 |
) |
|
|
(370 |
) |
|
|
(815 |
) |
|
|
(64 |
) |
CONSOLIDATED NET LOSS |
|
|
(5,035 |
) |
|
|
(10,468 |
) |
|
|
(3,745 |
) |
|
|
(5,358 |
) |
Net (income) loss attributable to non-controlling interests |
|
|
578 |
|
|
|
104 |
|
|
|
(151 |
) |
|
|
(570 |
) |
NET LOSS ATTRIBUTABLE TO ARK RESTAURANTS CORP. |
|
$ |
(4,457 |
) |
|
$ |
(10,364 |
) |
|
$ |
(3,896 |
) |
|
$ |
(5,928 |
) |
|
|
|
|
|
|
|
|
|
||||||||
NET LOSS PER ARK RESTAURANTS CORP. COMMON SHARE: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(1.24 |
) |
|
$ |
(2.88 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.65 |
) |
Diluted |
|
$ |
(1.24 |
) |
|
$ |
(2.88 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.65 |
) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
3,604 |
|
|
|
3,602 |
|
|
|
3,604 |
|
|
|
3,601 |
|
Diluted |
|
|
3,604 |
|
|
|
3,602 |
|
|
|
3,604 |
|
|
|
3,601 |
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA Reconciliation: |
|
|
|
|
|
|
|
|
||||||||
Loss before benefit for income taxes |
|
$ |
(5,648 |
) |
|
$ |
(10,838 |
) |
|
$ |
(4,560 |
) |
|
$ |
(5,422 |
) |
Depreciation and amortization |
|
|
909 |
|
|
|
1,080 |
|
|
|
4,090 |
|
|
|
4,310 |
|
Interest expense, net |
|
|
129 |
|
|
|
161 |
|
|
|
577 |
|
|
|
906 |
|
EBITDA (a) |
|
$ |
(4,610 |
) |
|
$ |
(9,597 |
) |
|
$ |
107 |
|
|
$ |
(206 |
) |
EBITDA, adjusted: |
|
|
|
|
|
|
|
|
||||||||
EBITDA (as defined) (a) |
|
$ |
(4,610 |
) |
|
$ |
(9,597 |
) |
|
$ |
107 |
|
|
$ |
(206 |
) |
Non-cash stock option activity |
|
|
(341 |
) |
|
|
78 |
|
|
|
(919 |
) |
|
|
314 |
|
Loss on closure of El Rio Grande |
|
|
876 |
|
|
|
— |
|
|
|
876 |
|
|
|
— |
|
Impairment losses on right-of-use and long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
2,500 |
|
|
|
— |
|
Goodwill impairment |
|
|
4,000 |
|
|
|
10,000 |
|
|
|
4,000 |
|
|
|
10,000 |
|
Gain on forgiveness of PPP Loans |
|
|
— |
|
|
|
— |
|
|
|
(285 |
) |
|
|
(272 |
) |
Net (income) loss attributable to non-controlling interests |
|
|
578 |
|
|
|
104 |
|
|
|
(151 |
) |
|
|
(570 |
) |
EBITDA, as adjusted |
|
$ |
503 |
|
|
$ |
585 |
|
|
$ |
6,128 |
|
|
$ |
9,266 |
|
(a) |
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. A reconciliation 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/20241216308516/en/
Anthony J. Sirica
(212) 206-8800
ajsirica@arkrestaurants.com
Source: Ark Restaurants Corp.