Ark Restaurants Announces Financial Results for the Third Quarter and Nine Months Ended June 26, 2004

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Ark Restaurants Corp. (NASDAQ:ARKR) reported financial results for the third quarter and nine month periods ended June 26, 2004.

For the three months ended June 26, 2004, total revenues were $33.8 million versus $29.2 million in the same period last year. Revenues for both periods were adjusted as a result of the sale of the Company's Lorelei, La Rambla and Jack Rose restaurants, the disposal of the Company's Lutece restaurant, and their reclassification to discontinued operations. Revenues from the Company's Las Vegas operations represented 50.3% of the Company's total revenues during the three months ended June 26, 2004. The Company's income from continuing operations increased to $3,031,000, or $0.90 per share ($0.86 per diluted share), during the third quarter of 2004, up from $1,794,000, or $0.56 per share ($0.56 per diluted share), for the same period last year.

Total revenues for the nine-month period ended June 26, 2004 were $85.3 million versus $76.3 million in the nine months ended June 28, 2003. Revenues for both of these periods were likewise adjusted as a result of the sale or disposition of the restaurants mentioned above and their reclassification to discontinued operations. Revenues from the Company's Las Vegas operations represented 57.8% of the Company's total revenues during the nine months ended June 26, 2004. The Company's income from continuing operations increased to $4,142,000, or $1.26 per share ($1.21 per diluted share), during the first nine months of the Company's 2004 fiscal year, up from $2,199,000, or $0.69 per share ($0.69 per diluted share), for the same period last year.

Company-wide same store sales increased 16.5% during the third quarter ended June 26, 2004 compared with last year's third quarter. Same store sales in the third quarter increased by 12.8% in Las Vegas, 21.8% in New York and 17.9% in Washington D.C. compared to the third quarter of 2003.

For the three months ended June 26, 2004, EBITDA from continuing operations was $5,571,000 versus $3,662,000 in the third quarter last year. EBITDA from continuing operations for the nine-month period ended June 26, 2004 was $9,372,000 versus $6,543,000 during the same nine-month period last year.

The Company also named three new members to the Board of Directors: Arthur Stainman, Edward Lowenthal and Vincent Pascal. Mr. Stainman is the senior managing director of First Manhattan Co. of New York City, a money management firm, and has over twenty years experience managing money for high net worth individuals. Mr. Lowenthal has been the President of Ackeman Management, LLC, a real estate investment firm, since April of 2002 and, prior to that, was the President of Wellsford Real Properties, also a real estate investment firm, and predecessor companies, from October 1986 through March 2002. Mr. Pascal, Senior Vice President - Operations and Secretary of the Company for more than twenty years, rejoins the Board after a one-year absence.

The Company's long-time chairman, Ernest Bogen, resigned from the Board and will be replaced as chairman by Michael Weinstein. Mr. Bogen was given the title of "Chairman Emeritus" by the Board in recognition of his many years of outstanding service.

Michael Weinstein, Chairman, President and CEO of Ark Restaurants Corp., stated "We are extremely pleased with the Company's performance during the quarter. Each of the Las Vegas, New York and Washington, D.C. markets benefited from increased tourism and an improved business climate. During this quarter and most of this year, our Las Vegas operations have improved due to the addition of 90 seats at Gallagher's Steakhouse in the New York - New York Hotel and Casino and the opening of a new tower of hotel rooms at the Venetian Casino Resort. We are also excited by the strong performance we have seen from our new operations in each of the Hard Rock Hotel and Casinos in Tampa, Florida and Hollywood, Florida."

Ark Restaurants owns and operates 22 restaurants and bars, 26 fast food concepts, catering operations and wholesale and retail bakeries. Nine restaurants are located in New York City; nine in Las Vegas, Nevada; and four in Washington, DC. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the Resort's room service, banquet facilities, employee dining room and nine food court concepts; four restaurants and bars within the Venetian Casino Resort as well as four food court concepts. In Las Vegas, the Company also owns and operates one restaurant within the Forum Shops at Caesar's Shopping Center and one restaurant at the Neonopolis Center at Fremont Street. The Florida operations 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.

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Date Listed: 2004-08-10

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Industry: Restaurants
Category: Financial
Ark Restaurants
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