Ark Restaurants Announces Financial Results for the Fourth Quarter and Fiscal Year Ended 2018
NEW YORK--(BUSINESS WIRE)--Dec 19, 2018--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the fourth quarter and fiscal year ended September 29, 2018.
Total revenues for the three-month period ended September 29, 2018 were $40,562,000 versus $39,467,000 for the three months ended September 30, 2017.
Total revenues for the year ended September 29, 2018 were $159,990,000 versus $153,877,000 for the year ended September 30, 2017. The year ended September 29, 2018 includes revenues of $10,141,000 related to Sequoia DC versus $4,409,000 for the year ended September 30, 2017. Sequoia DC was closed for renovation for the entire second quarter and third quarters of 2017. The year ended September 30, 2017 includes revenues of $3,867,000 related to three properties that were closed prior to fiscal 2018.
Company-wide same store sales increased 1.7% for the three-month period ended September 29, 2018 compared to the same three month period last year.
The Company’s EBITDA from restaurant operations, adjusted for non-controlling interests and non-cash stock option expense, for the three-month period ended September 29, 2018 was $2,120,000 versus $2,880,000 during the same three-month period last year.
The Company’s EBITDA from restaurant operations, adjusted for non-controlling interests and non-cash stock option expense, for the year ended September 29, 2018 was $9,735,000 versus $9,194,000 last year. EBITDA from restaurant operations for the year ended September 30, 2017 excludes a gain of $1,637,000 recognized in connection with the sale of real estate.
Net income for the three-month period ended September 29, 2018 was $1,007,000 or $0.29 per basic share, $0.28 per diluted share, compared to $1,311,000 or $0.38 per basic, $0.37 per diluted share, for the same three-month period last year.
Net income for the year ended September 29, 2018 was $4,655,000 or $1.35 per basic, $1.31 per diluted share, compared to $4,039,000, or $1.18 per basic share, $1.14 per diluted share, last year.
On December 22, 2017 the U.S. government enacted comprehensive tax reform commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). Under Accounting Standards Codification (“ASC”) 740, the effects of changes in tax rates and laws are recognized in the period which the new legislation is enacted. The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018; (2) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (3) accelerated expensing on certain qualified property; (4) creating a new limitation on deductible interest expense to 30% of tax adjusted EBITDA through 2021 and then 30% of tax adjusted EBIT thereafter; (5) eliminating the corporate alternative minimum tax; and (6) further limitations on the deductibility of executive compensation under IRC §162(m) for tax years beginning after December 31, 2017. As the reduction in the U.S. federal corporate tax rate is administratively effective on January 1, 2018, our blended U.S. federal tax rate for the year ended September 29, 2018 was approximately 24%.
In connection with the TCJA, the Company recorded an income tax benefit of $1,382,000 related to the re-measurement of our deferred tax assets and liabilities for the reduced U.S. federal corporate tax rate of 21%. The Company’s accounting for the TCJA is complete as of September 29, 2018 with no significant differences from our provisional estimates recorded during interim periods.
Ark Restaurants owns and operates 20 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C., Las Vegas, NV and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, one is located in Boston, Massachusetts, two are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel’s room service, banquet facilities, employee dining room and six 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 and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino consist of one fast food concept. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations include the Rustic Inn in Dania Beach, Florida and Shuckers, located in Jensen Beach and the operation of 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. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.
Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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.
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CONTACT: Anthony J. Sirica
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: RESTAURANT/BAR RETAIL FOOD/BEVERAGE
SOURCE: Ark Restaurants Corp.
Copyright Business Wire 2018.
PUB: 12/19/2018 04:05 PM/DISC: 12/19/2018 04:05 PM