Industry News | December 30, 2010

Ark Restaurants See 1.4% Sales Drop from '09

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Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the fourth quarter and full year ended October 2, 2010.

As of October 2, 2010, the Company had no long-term debt and cash, cash equivalents and short term investments totaling $9,449,000.

The Company reports fiscal years under a 52/53-week format. The fiscal year ended October 2, 2010 was a 52 week year. The prior fiscal year ended October 3, 2009 was a 53 week year. The three month period ended October 2, 2010 contained 13 weeks and the prior year’s three month period ended October 3, 2009 contained 14 weeks. Having one more week in each of the 2009 full fiscal year and fourth quarter distorts the comparisons with the 2010 full fiscal year and fourth quarter.

Total revenues for the three-month period ended October 2, 2010 were $31,916,000 versus $33,335,000 in the three months ended October 3, 2009. Total revenues for fiscal 2010 were $117,768,000 versus $115,007,000 in fiscal 2009.

EBITDA adjusted for non-cash stock option expense for the three-month period ended October 2, 2010 was $2,652,000 versus $2,950,000 during the same three-month period last year. For the year ended October 2, 2010, EBITDA before non-cash stock option expense was $8,081,000 versus $8,099,000 last year. EBITDA comparisons are distorted due to the extra week in each of the fiscal 2009 fourth quarter and the full year.

The Company’s income for the three-month period ended October 2, 2010 was $1,083,000, or $0.31 per share ($0.31 per diluted share), as compared to $1,325,000, or $0.38 per share ($0.38 per diluted share), for the same three-month period last year. The Company’s income for the year ended October 2, 2010 was $2,605,000, or $0.75 per share ($0.74 per diluted share), as compared to $3,059,000, or $0.88 per share ($0.87 per diluted share), last year. Income comparisons are distorted due to the extra week in each of the fiscal 2009 fourth quarter and the full year.

Compared to the same three month period last year, Company-wide same store sales decreased by 7.3%. For the year ended October 2, 2010, Company-wide same store sales decreased by 1.4% from fiscal 2009. Company-wide same store comparisons are distorted due to the extra week in each of the fiscal 2009 fourth quarter and the full year. If the Company were to adjust each of the fiscal 2009 fourth quarter and the full year to eliminate the extra week, Company-wide same store sales would have been relatively the same for the three-month and full fiscal year periods ended October 2, 2010.

Ark Restaurants owns and operates 22 restaurants and bars, 29 fast food concepts and catering operations. Nine restaurants are located in New York City, four are located in Washington, D.C., five are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, one is 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 seven food court concepts; one bar within the Venetian Casino Resort as well as three food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. The operations at the Foxwoods Resort Casino include one fast food concept and six fast food concepts at the MGM Grand Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations under management include five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations.

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.

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