Ark Restaurants Announces Financial Results for the Fourth Quarter and Full Year of 2012

NEW YORK--(BUSINESS WIRE)--

Ark Restaurants Corp. ARKR today reported financial results for the fourth quarter and full year ended September 29, 2012.

Company-wide same store sales increased 0.3% for the three-month period ended September 29, 2012 compared to the same three month period last year. For fiscal 2012 company-wide same store sales increased 4.8% compared to the same period last year.

Total revenues for the three-month period ended September 29, 2012 were $36,082,000 versus $36,981,000 for the three months ended October 1, 2011. The prior year's revenues include $1,625,000 related to two properties closed in 2012.

Total revenues for the year ended September 29, 2012 were $138,028,000 versus $136,896,000 for the year ended October 1, 2011. The prior year's revenues include $7,884,000 related to two properties closed in 2012 and one property closed in 2011.

The Company's income from continuing operations for the three-month period ended September 29, 2012 was $1,770,000, or $0.55 per share ($0.54 per diluted share), as compared to $1,363,000, or $0.39 per basic and diluted share, for the same three-month period last year. Continuing Operations EBITDA adjusted for non-cash stock option expense, the impairment charge discussed below and non-controlling interests for the three-month period ended September 29, 2012 was $4,473,000 versus $4,433,000 during the same three-month period last year. Included in the Company's income from continuing operations for the three-month period ended September 29, 2012 are operating losses of $865,000 related to our new restaurant in New York, Clyde Frazier's Wine and Dine, which opened in March 2012.

The Company's income from continuing operations for the year ended September 29, 2012 was $5,748,000, or $1.75 per share ($1.73 per diluted share), as compared to $2,695,000, or $0.77 per share ($0.76 per diluted share), for the same period last year. Continuing Operations EBITDA adjusted for non-cash stock option expense, the impairment charge discussed below and non-controlling interests for the year ended September 29, 2012 was $13,381,000 versus $9,515,000 during the same period last year. Included in the Company's income from continuing operations for the year ended September 29, 2012 are pre-opening and operating losses of $1,800,000 related to our new restaurant in New York, Clyde Frazier's Wine and Dine, which opened in March 2012.

During the three month period ended September 29, 2012, the Company recorded a charge of $379,000 to impair the leasehold improvements and equipment of an underperforming restaurant. Based on the current facts and circumstances, the property does not meet the criteria for held for sale classification.

As of September 29, 2012, the Company had cash, cash equivalents and short term investments totaling $8,780,000 and long-term debt in the form of a note payable in the amount of $2,125,000 resulting from the purchase of 250,000 shares of treasury stock in December 2011.

Ark Restaurants owns and operates 21 restaurants and bars, 22 fast food concepts and catering operations in New York City, Washington, D.C. and Las Vegas, NV. Seven restaurants are located in New York City, three are located in Washington, D.C., seven 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 five 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; 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 one restaurant. 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, 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.

ARK RESTAURANTS CORP.
Consolidated Statements of Income
For the 13 week and 52 week periods ended September 29, 2012 and October 1, 2011
(In Thousands, Except per share amounts)
	13 weeks ended				13 weeks ended				52 weeks ended				52 weeks ended
	September 29,				October 1,				September 29,				October 1,
		2012				2011				2012				2011
TOTAL REVENUES	$	36,082			$	36,981			$	138,028			$	136,896
COST AND EXPENSES:
Food and beverage cost of sales		9,137				9,736				35,157				36,742
Payroll expenses		10,648				11,597				43,406				44,596
Occupancy expenses		4,217				4,737				17,702				18,562
Other operating costs and expenses		4,665				4,595				17,915				17,792
General and administrative expenses		2,097				2,359				9,368				9,476
Impairment loss from write-down of long-lived assets		379				-				379				-
Depreciation and amortization		1,133				1,030				4,110				3,969
Total costs and expenses		32,276				34,054				128,037				131,137
OPERATING INCOME		3,806				2,927				9,991				5,759
OTHER (INCOME) EXPENSE:
Interest (income) expense, net		(29	)			16				(10	)			(3	)
Other (income) expense, net		(1	)			(86	)			(454	)			(486	)
Total other income, net		(30	)			(70	)			(464	)			(489	)
INCOME BEFORE PROVISION FOR INCOME TAXES		3,836				2,997				10,455				6,248
Provision for income taxes		1,172				1,080				3,013				1,473
INCOME FROM CONTINUING OPERATIONS		2,664				1,917				7,442				4,775
Income (loss) from discontinued operations, net of tax		103				(1,433	)			(292	)			(2,471	)
CONSOLDIATED NET INCOME		2,767				484				7,150				2,304
Net (income) loss attributable to non-controlling interests		(925	)			390				(1,661	)			(889	)
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.	$	1,842			$	874			$	5,489			$	1,415
AMOUNTS ATTRIBUTABLE TO ARK RESTAURANTS CORP.:
Income from continuing operations	$	1,770			$	1,363			$	5,748			$	2,695
Income (loss) from discontinued operations, net of tax		72				(489	)			(259	)			(1,280	)
Net income	$	1,842			$	874			$	5,489			$	1,415
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
From continuing operations:
Basic	$	0.55			$	0.39			$	1.75			$	0.77
Diluted	$	0.54			$	0.39			$	1.73			$	0.76
From discontinued operations:
Basic	$	0.02			$	(0.14	)		$	(0.08	)		$	(0.36	)
Diluted	$	0.02			$	(0.14	)		$	(0.08	)		$	(0.36	)
From net income:
Basic	$	0.57			$	0.25			$	1.67			$	0.41
Diluted	$	0.56			$	0.25			$	1.65			$	0.40
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		3,245				3,495				3,292				3,494
Diluted		3,300				3,522				3,327				3,525
Continuing Operations EBITDA Reconciliation:
Pre tax income	$	3,836			$	2,997			$	10,455			$	6,248
Depreciation and amortization		1,133				1,030				4,110				3,969
Interest		(29	)			16				(10	)			(3	)
EBITDA (a)	$	4,940			$	4,043			$	14,555			$	10,214
Continuing Operations EBITDA adjusted for non-cash stock option expense,
impairment charge and non-controlling interests:
EBITDA (as defined) (a)	$	4,940			$	4,043			$	14,555			$	10,214
Impairment loss from write-down of long-lived assets		379				-				379				-
Net (income) loss attributable to non-controlling interests		(925	)			390				(1,661	)			(889	)
Non-cash stock option expense		79				-				108				190
Continuing Operations EBITDA, as adjusted	$	4,473			$	4,433			$	13,381			$	9,515
(a) EBITDA is defined as earnings before interest, taxes, depreciation and amortization and cumulative
effect of changes in accounting principle. 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, pre-tax income, is included above.