Ark Restaurants Announces Financial Results for the Second Quarter of 2018
NEW YORK--(BUSINESS WIRE)--May 14, 2018--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the second quarter ended March 31, 2018.
Total revenues for the three-month period ended March 31, 2018 were $35,276,000 versus $34,640,000 for the three months ended April 1, 2017. The three-month period ended March 31, 2018 includes revenues of $1,272,000 related to Sequoia DC which was closed for renovation for the entire three-month period ended April 1, 2017. The three-month period ended April 1, 2017 includes revenues of $1,762,000 related to three properties that were closed prior to fiscal 2018.
Total revenues for the six-month period ended March 31, 2018 were $74,628,000 versus $73,059,000 for the six months ended April 1, 2017. As noted above, the six-month period ended March 31, 2018 includes revenues of $1,273,000 generated during the second quarter of 2018 related to Sequoia DC which was closed for renovation for the entirety of the second quarter of 2017. The six-month period ended April 1, 2017 includes revenues of $3,258,000 related to three properties that were closed prior to fiscal 2018.
Company-wide same store sales increased 2.4% for the three-month period ended March 31, 2018 compared to the same three month period last year.
The Company’s EBITDA, adjusted for non-controlling interests, for the three-month period ended March 31, 2018 was $769,000 versus $694,000 during the same three-month period last year.
The Company’s EBITDA, adjusted for non-controlling interests, for the six-month period ended March 31, 2018 was $2,841,000 versus $4,794,000 during the same six-month period last year. EBITDA for the six-months ended April 1, 2017 includes a gain of $1,637,000 recognized in connection with the sale of the real estate underlying our Rustic Inn, Jupiter, FL property.
Net loss for the three-month period ended March 31, 2018, after a tax benefit, was ($637,000), or ($0.19) per basic and diluted share compared to ($393,000) after a tax benefit, or ($0.11) per basic and diluted share for the same three-month period last year.
Net income for the six-month period ended March 31, 2018 was $990,000 or $0.29 per basic, $0.28 per diluted share, compared to $1,341,000, or $0.39 per basic share, $0.38 per diluted share, for the same six-month period last year.
On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions that affected us, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We were required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities, and reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the Securities and Exchange Commission (the “SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As a result, income tax expense reported for the six-months ended March 31, 2018 was adjusted to reflect the effects of the change in the tax law and resulted in a discrete income tax benefit of approximately $1.2 million. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, it may be affected by other analyses related to the Tax Act. Accordingly, the Company’s accounting for impact of the Tax Act remains incomplete as of March 31, 2018.
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: Ark Restaurants Corp.
Robert Stewart, 212-206-8800
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: RESTAURANT/BAR PROFESSIONAL SERVICES BANKING FINANCE RETAIL
SOURCE: Ark Restaurants Corp.
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PUB: 05/14/2018 04:12 PM/DISC: 05/14/2018 04:12 PM