-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VNOCcr7lYaB/ua3+nUkcURgXkJJNJNNbevsmt6RiUJL+Wrkzn44yJS7eA0qyQUim tuQDtdUQ15Tm153ziliFQw== 0001157523-07-008290.txt : 20070813 0001157523-07-008290.hdr.sgml : 20070813 20070813143549 ACCESSION NUMBER: 0001157523-07-008290 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070813 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20070813 DATE AS OF CHANGE: 20070813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARK RESTAURANTS CORP CENTRAL INDEX KEY: 0000779544 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 133156768 STATE OF INCORPORATION: NY FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09453 FILM NUMBER: 071048438 BUSINESS ADDRESS: STREET 1: 85 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10003-3019 BUSINESS PHONE: 2122068800 MAIL ADDRESS: STREET 1: 85 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10003-3019 8-K 1 a5470559.txt ARK RESTAURANTS CORP. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 13, 2007 ARK RESTAURANTS CORP. --------------------- (Exact name of registrant as specified in its charter) Commission file number 0-14030 New York 13-3156768 - ------------------------------------ ----------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 85 Fifth Avenue New York, NY 10003 (Address of principal executive offices, with zip code) (212) 206-8800 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition The information in this Current Report is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. On August 13, 2007, Ark Restaurants Corp. issued a press release announcing its financial results for its third quarter ended June 30, 2007, the text of which is furnished herewith as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARK RESTAURANT CORP. By: /s/ Michael Weinstein --------------------- Chief Executive Officer Date: August 13, 2007 INDEX TO EXHIBITS Exhibit Description - ------- ----------- 99.1 Press Release dated August 13, 2007 entitled "Ark Restaurants Announces Financial Results for the Third Quarter and Nine Months ended June 30, 2007." EX-99.1 2 a5470559ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Ark Restaurants Announces Financial Results for the Third Quarter and Nine Months Ended June 30, 2007 NEW YORK--(BUSINESS WIRE)--Aug. 13, 2007--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the third quarter and nine month periods ended June 30, 2007. For the three months ended June 30, 2007, the Company's net income from continuing operations was $3,520,000, or $0.98 per share ($0.97 per diluted share), compared to $2,625,000, or $0.76 per share ($0.74 per diluted share), for the same period last year. The third fiscal quarter of 2007 was negatively effected by pre tax legal and due diligence expenses of $250,000 in connection with an attempted acquisition which was abandoned. Total revenues from continuing operations for the three month period ended June 30, 2007 were $36.1 million versus $31.1 million in the same period last year. Revenues from the Company's Las Vegas operations represented 40.4% of the Company's total revenues from continuing operations during the three-month period ended June 30, 2007. Compared to the same period last year, same store sales in the Company's New York City operations increased by 13.5%, same store sales in the Company's Washington D.C. operations increased by 11.0%, same store sales in the Company's Las Vegas operations increased by 8.2% and same store sales in Atlantic City increased 44.6%. The increase in Atlantic City this year was primarily due to last year's low level of sales following the start-up of those operations. The Company does not anticipate similar same store percentage increases in Atlantic City after this fiscal year. Although the Company does not report the sales or the financial results of the Company's Florida operations (the Company derives income from a management fee arrangement based on sales and cash flow), same store sales at the Company's Florida operations increased by 16.2% compared to the same three month period last year. Sales at the Company's Florida operations totaled $3,080,000 during the three month period ended June 30, 2007. For the nine months ended June 30, 2007, the Company's net income from continuing operations was $5,788,000, or $1.62 per share ($1.61 per diluted share), compared to $4,056,000, or $1.17 per share ($1.14 per diluted share), for the same period last year. Total revenues from continuing operations for the nine month period ended June 30, 2007 were $90.1 million versus $81.2 million in the same period last year. Revenues from the Company's Las Vegas operations represented 48% of the Company's total revenues from continuing operations during the nine month period ended June 30, 2007. Compared to the same nine month period last year, same store sales in the Company's New York City operations increased by 12.3%, same store sales in the Company's Washington D.C. operations increased by 6.1% and same store sales in the Company's Las Vegas operations increased by 7.4%. The Company's Atlantic City facilities were not open during the first quarter of last year and, as a result, the Company cannot make nine month comparisons. Same store sales at the Company's Florida operations increased by 15% compared to the same nine month period last year. Sales at the Company's Florida operations totaled $9,000,000 during the nine month period ended June 30, 2007. EBITDA from continuing operations for the three month period ended June 30, 2007 was $5,754,000 versus $4,592,000 during the same three month period last year. EBITDA from continuing operations for the nine month period ended June 30, 2007 was $10,449,000 versus $7,907,000 during the same nine-month period last year. The Company had net income of $3,471,000 in the three month period ended June 30, 2007 compared to net income of $2,488,000 in the same three month period last year. Net income for the nine-month period ended June 30, 2007 was $10,439,000 compared to $3,252,000 during the same nine-month period last year. Net income was positively affected during the 39-week period ended June 30, 2007 as a result of the sale during the second quarter of the Company's Lutece and Tsunami locations to Venetian Casino Resort, LLC and the lack of pre-opening and early operating losses experienced at the Company's Atlantic City operations. Excluding the sale of the Company's facilities to the Venetian Casino Resort, net income for the nine-month period ended June 30, 2007 would have been $5,313,000 compared to $3,252,000 during the same nine-month period last year. As of June 30, 2007, the Company had cash, cash equivalents and short term investments totaling $11,056,000. As of the same date, the Company had no long-term debt other than a one million dollar five year purchase money obligation undertaken in connection with the Company's acquisition of the Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts. In June 2007, we entered into an agreement to design and lease the sole food court at the to-be-constructed MGM Grand Casino at the Foxwoods Resort Casino. The Company anticipates this food court will open during the third quarter of the Company's 2008 fiscal year. Ark Restaurants owns and operates 24 restaurants and bars, 25 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., eight are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, three are located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and nine food court concepts; one bar within the Venetian Casino Resort as well as three food court concepts. In Las Vegas, the Company also owns and operates one restaurant within the Forum Shops at Caesar's Shopping Center. The Florida operations under management include five fast food facilities in Tampa, Florida and eight fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. Except for historical information, this news release contains forward-looking statements, 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. 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. ARK RESTAURANTS CORP. Condensed Consolidated Income Statement For the 13 and 39 week periods ended June 30, 2007 and July 1, 2006 (In Thousands, Except per share amounts) - --------------------------------------------------------------------- 13 weeks 13 weeks 39 weeks 39 weeks ended ended ended ended June 30, July 1, June 30, July 1, 2007 2006 2007 2006 -------- -------- -------- -------- TOTAL REVENUES $36,064 $31,085 $90,133 $ 81,168 COST AND EXPENSES: Food and beverage cost of sales 9,077 7,726 22,939 20,395 Payroll expenses 10,217 9,268 28,045 26,088 Occupancy expenses 4,413 4,219 11,976 12,208 Other operating costs and expenses 4,518 3,584 11,063 9,704 General and administrative expenses 2,270 1,874 6,325 5,435 Depreciation and amortization expenses 702 638 2,015 1,831 -------- -------- -------- -------- Total costs and expenses 31,197 27,309 82,363 75,661 -------- -------- -------- -------- OPERATING INCOME 4,867 3,776 7,770 5,507 -------- -------- -------- -------- OTHER INCOME: Interest income - Net 66 23 214 70 Other income 185 178 664 569 -------- -------- -------- -------- Total other income 251 201 878 639 -------- -------- -------- -------- Income from continuing operations before income taxes 5,118 3,977 8,648 6,146 Provision for income taxes 1,496 1,352 2,714 2,090 Limited partner interest in income of variable interest entity (102) - (146) - -------- -------- -------- -------- Income from continuing operations 3,520 2,625 5,788 4,056 -------- -------- -------- -------- DISCONTINUED OPERATIONS: Income (loss) from operations of discontinued restaurants (85) (208) 7,075 (1,218) Provision (benefit) for income taxes (36) (71) 2,434 (414) -------- -------- -------- -------- Income (loss) from discontinued operations (49) (137) 4,641 (804) -------- -------- -------- -------- Income before cumulative effect of change in accounting principle 3,471 2,488 10,429 3,252 Cumulative effect of change in accounting principle - - 10 - -------- -------- -------- -------- NET INCOME $ 3,471 $ 2,488 $10,439 $ 3,252 ======== ======== ======== ======== PER SHARE INFORMATION - BASIC AND DILUTED: Continuing operations basic $ .98 $ .76 $ 1.62 $ 1.17 Discontinued operations basic $ (.01) $ (.04) $ 1.30 $ (.23) Cumulative effect of change in accounting principle $ .00 $ .00 $ .00 $ .00 -------- -------- -------- -------- Net basic $ .97 $ .72 $ 2.92 $ .94 ======== ======== ======== ======== Continuing operations diluted $ .97 $ .74 $ 1.61 $ 1.14 Discontinued operations diluted $ (.01) $ (.04) $ 1.29 $ (.22) Cumulative effect of change in accounting principle $ .00 $ .00 $ .00 $ .00 -------- -------- -------- -------- Net diluted $ .96 $ .70 $ 2.90 $ .92 ======== ======== ======== ======== WEIGHTED AVERAGE NUMBER OF SHARES- BASIC 3,590 3,462 3,578 3,462 ======== ======== ======== ======== WEIGHTED AVERAGE NUMBER OF SHARES- DILUTED 3,624 3,546 3,596 3,546 ======== ======== ======== ======== Continuing Operations EBITDA Reconciliation Pre tax earnings $ 5,118 $ 3,977 $ 8,648 $ 6,146 Depreciation and amortization 702 638 2,015 1,831 Interest (66) (23) (214) (70) -------- -------- -------- -------- EBITDA (a) $ 5,754 $ 4,592 $10,449 $ 7,907 ======== ======== ======== ======== Continuing Operations EBITDA adjusted for non-cash stock option expense EBITDA (as defined) (a) $ 5,754 $ 4,592 $10,449 $ 7,907 Non-cash stock option expense 78 187 330 561 -------- -------- -------- -------- EBITDA adjusted for non-cash stock option expense $ 5,832 $ 4,779 $10,779 $ 8,468 ======== ======== ======== ======== (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. CONTACT: Ark Restaurants Corp. Robert Towers, 212-206-8800 bob@arkrestaurants.com -----END PRIVACY-ENHANCED MESSAGE-----