UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): February 10, 2020
 
ARK RESTAURANTS CORP.
(Exact name of registrant as specified in its charter)
 
New York
1-09453
13-3156768  
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
85 Fifth Avenue
New York, New York 10003
(Address of principal executive offices, with zip code)
 
Registrant’s telephone number, including area code: (212) 206-8800
 
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)) 

Securities registered pursuant to section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01 per share
ARKR 
The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b of this chapter).
 
       Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02 Results of Operations and Financial Condition.
On February 10, 2020, Ark Restaurants Corp. (the “Company”) issued a press release announcing financial results for the first fiscal quarter of 2020. A copy of the press release titled “Ark Restaurants Announces Financial Results for the First Quarter of 2020” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This press release contains certain non-GAAP disclosures related to earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA adjusted for non-cash stock option expense, non-controlling interests and losses related to the closure of certain properties. 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 this non-GAAP financial measure enhances an overall understanding of the Company’s past financial performance, as well as providing useful information to investors because of its historical use by the Company as both a performance measure and measure of liquidity. In addition, EBITDA is used by virtually all companies in the restaurant sector as a measure of both performance and liquidity.
This information is intended to be furnished under this Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits

(d) Exhibits
99.1 Press Release, dated February 10, 2020

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 RESTAURANTS CORP.
 
 
 
 
By:
/s/ Michael Weinstein
 
 
Name: Michael Weinstein
 
 
Title: Chief Executive Officer
 
 
 
Date: February 10, 2020
 
 


Exhibit


Exhibit 99.1                                                
Ark Restaurants Announces Financial Results for the
First Quarter of 2020
 
CONTACT:
Anthony J. Sirica
(212) 206-8800
ajsirica@arkrestaurants.com

NEW YORK, New York - February 10, 2020 -- Ark Restaurants Corp. (Nasdaq:ARKR) today reported financial results for the first quarter ended December 28, 2019.
Total revenues for the 13-weeks ended December 28, 2019 were $43,514,000 versus $40,548,000 for the 13-weeks ended December 29, 2018. The 13-weeks ended December 28, 2019 includes revenues of $2,422,000 related to JB’s on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. The 13-weeks ended December 29, 2018 includes revenues of $839,000 related to Durgin-Park which was closed on January 12, 2019.
Company-wide same store sales increased 3.5% for the 13-weeks ended December 28, 2019 as compared to the same period of last year.
The Company’s EBITDA from restaurant operations for the 13-weeks ended December 28, 2019, adjusted for non-controlling interests and non-cash stock option expense was $3,485,000 versus EBITDA from restaurant operations adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park (discussed below) of $2,543,000 during the same 13-week period of last year. Net income for the 13-weeks ended December 28, 2019 was $1,513,000 or $0.43 per basic and diluted share, compared to a net loss of ($62,000) or ($0.02) per basic and diluted share, for the same 13-week period in the prior year.
As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Park profitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it was located, and rising labor costs. As a result, included in the Consolidated Statement of Operations for the 13-weeks ended December 29, 2018 are losses on closure in the amount of $1,067,000 consisting of: (i) impairment of trademarks of $721,000, (ii) accelerated depreciation of fixed assets of $333,000, and (iii) write-offs of prepaid and other expenses of $13,000. The restaurant was closed on January 12, 2019.
The Company adopted the new lease accounting standards on September 29, 2019 (the first day of fiscal year 2020) which requires us to recognize assets and liabilities for leases with lease terms of more than twelve months on our balance sheet. We used a modified retrospective approach and therefore did not restate comparative periods for those lease contracts for which we have taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with the accounting standards then in effect. As a result of the adoption of this standard, we recorded right-of-use assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000. The adoption of this standard did not materially impact retained earnings or our Consolidated Condensed Statement of Operations and had no impact on cash flows.
Ark Restaurants owns and operates 20 restaurants and bars, 17 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C, Las Vegas, Nevada 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, three 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 operation at the Foxwoods Resort Casino in Connecticut consists of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers in Jensen Beach and JB’s on the Beach in Deerfield Beach, and the operation of four fast food facilities in Tampa and six fast food facilities in Hollywood, 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 and one in Spanish Fort.
Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. 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.







































ARK RESTAURANTS CORP.
Consolidated Condensed Statements of Operations
For the 13-week periods ended December 28, 2019 and December 29, 2018 (Unaudited)
(In Thousands, Except per share amounts)                                                             
 
 
13 Weeks Ended
December 28,
2019
 
13 Weeks Ended
December 29,
2018
 
 
 
 
 
TOTAL REVENUES
 
$
43,514

 
$
40,548

COSTS AND EXPENSES:
 
 
 
 
  Food and beverage cost of sales
 
10,940

 
10,476

  Payroll expenses
 
15,122

 
14,105

  Occupancy expenses
 
5,439

 
5,005

  Other operating costs and expenses
 
5,328

 
4,975

  General and administrative expenses
 
3,054

 
3,409

  Depreciation and amortization
 
1,195

 
1,206

      Total costs and expenses
 
41,078

 
39,176

RESTAURANT OPERATING INCOME
 
2,436

 
1,372

  Loss on closure of Durgin-Park
 

 
(1,067
)
OPERATING INCOME
 
2,436

 
305

OTHER (INCOME) EXPENSE:
 
 
 
 
  Interest expense, net
 
446

 
297

      Total other expense, net
 
446

 
297

INCOME BEFORE PROVISION FOR INCOME TAXES
 
1,990

 
8

Provision for income taxes
 
319

 
23

CONSOLIDATED NET INCOME (LOSS)
 
1,671

 
(15
)
Net income attributable to non-controlling interests
 
(158
)
 
(47
)
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.
 
$
1,513

 
$
(62
)
 
 
 
 
 
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
 
 
 
 
    Basic
 
$
0.43

 
$
(0.02
)
    Diluted
 
$
0.43

 
$
(0.02
)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
    Basic
 
3,499

 
3,474

    Diluted
 
3,541

 
3,474

 
 
 
 
 
EBITDA Reconciliation:
 
 
 
 
    Restaurant operating income
 
$
2,436

 
$
1,372

    Interest expense, net
 
(446
)
 
(297
)
    Loss on closure of Durgin-Park
 

 
(1,067
)
    Income before provision for income taxes
 
1,990

 
8

    Depreciation and amortization
 
1,195

 
1,206

    Interest expense, net
 
446

 
297

EBITDA (a)
 
$
3,631

 
$
1,511

EBITDA adjusted for non-controlling interests, non-cash stock
    option expense and loss on closure of Durgin-Park:
 
 
 
 
    EBITDA (as defined) (a)
 
$
3,631

 
$
1,511

    Net income attributable to non-controlling interests
 
(158
)
 
(47
)
    Non-cash stock option expense
 
12

 
12

    Loss closure of Durgin-Park
 

 
1,067

EBITDA from restaurant operations, as adjusted
 
$
3,485

 
$
2,543

 
 
 
 
 






(a)
EBITDA is defined as earnings before interest, taxes, depreciation and amortization.  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 this non-GAAP financial measure 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 (loss), operating income (loss), 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, income before provision for income taxes, is included above.