Ark Restaurants Reports Slight Revenue Increase

NEW YORK –Ark Restaurants Corp., which operates the Bryant Park Grill in Manhattan, reported financial results for the fourth quarter and full year ended September 30, 2017.

Total revenues for the three-month period ended September 30, 2017 were $39,467,000 versus $38,529,000 for the three months ended October 1, 2016. The three-month period ended September 30, 2017 includes revenues of $4,166,000 related to the Oyster House properties in Gulf Shores and Spanish Fort, AL which were acquired on November 30, 2016 and $1,899,000 of revenues related to Sequoia DC which was partially open during the quarter after an extensive renovation. The three-month period ended October 1, 2016 includes revenues of $3,119,000 related to Sequoia DC and also includes revenues of $1,483,000 related to three properties closed during or subsequent to that prior year quarter.

Total revenues for the year ended September 30, 2017 were $153,877,000 versus $150,582,000 for the year ended October 1, 2016. The year ended September 30, 2017 includes revenues of $11,804,000 related to the Oyster House properties and $4,409,000 of revenues related to Sequoia DC. The year ended October 1, 2016 includes revenues of $10,078,000 related to Sequoia DC and also includes an additional $3,612,000 related to five properties that were closed during the period or subsequent to the prior year.

Excluding Sequoia DC same store sales increased 0.9% for the year ended September 30, 2017.

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, one is located in Boston, two are located on the east coast of Florida and two are located on the Gulf Coast of Alabama.

Net income for the three-month period ended September 30, 2017 was $1,311,000, or $0.38 per basic ($0.37 per diluted share) compared to $986,000, or $0.29 per basic share ($0.28 per diluted share), for the same three-month period last year. The Company’s EBITDA, adjusted for non-cash stock option expense and non-controlling interests, for the three-month period ended September 30, 2017 was $2,880,000 versus $2,811,000 during the same three-month period last year.

Net income for the year ended September 30, 2017 was $4,039,000, or $1.18 per basic share ($1.14 per diluted share) compared to $4,030,000, or $1.18 per basic share ($1.15 per diluted share) last year. The Company’s EBITDA, adjusted for non-cash stock option expense and non-controlling interests, for the year ended September 30, 2017 was $10,831,000 versus $11,203,000 last year. The decrease in EBITDA, adjusted for non-cash stock option expense and non-controlling interests, was offset by $1,637,000 resulting from the recognition of a gain (discussed below) in connection with the sale of our Rustic Inn, Jupiter, FL property. Without the gain related to the sale of real estate, EBITDA as adjusted for non-cash stock option expense and non-controlling interests would have been $9,194,000 for the year ended September 30, 2017. The year ended October 1, 2016, EBITDA includes positive adjustments for the impact of the reversal of commercial rent tax liabilities in the amount of $945,000 and an adjustment related to an overstatement of rent liability in the amount of $261,000.

On November 18, 2016, Ark Jupiter RI, LLC a wholly-owned subsidiary of the Company, entered into a Purchase Agreement for $5,200,000 to purchase the land and building in which the Company operated its Rustic Inn location in Jupiter, Florida. Concurrent with the execution of the purchase, Ark Jupiter RI, LLC entered into a Sale Agreement to sell this same property for $8,250,000.

On November 30, 2016, the Company, through newly formed, wholly-owned subsidiaries, acquired the assets of the Original Oyster House, Inc., a restaurant and bar located in the City of Gulf Shores, Baldwin County, Alabama and the related real estate and an adjacent retail shopping plaza and the Original Oyster House II, Inc., a restaurant and bar located in the City of Spanish Fort, Baldwin County, Alabama and the related real estate. The total purchase price was for $10,750,000 plus inventory. The acquisition is accounted for as a business combination and was financed with a bank loan from the Company’s existing lender in the amount of $8,000,000 and cash from operations.