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): August 13, 2018

 

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

 

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 ☐

 

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. ☐

 

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)) 

 

 

 

Item 2.02 Results of Operations and Financial Condition .

 

On August 13, 2018, ARK Restaurants Corp. (the “Company”) issued a press release announcing financial results for the third fiscal quarter ended June 30, 2018. A copy of the press release titled “Ark Restaurants Announces Financial Results for the Third Quarter of 2018” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The press release contains certain non-GAAP Disclosure - Continued Operations, EBITDA-Earnings before interest, taxes, depreciation and amortization adjusted for non-controlling interests and Rustic Inn Jupiter gain. 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.

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 August 13, 2018

 

 

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.
     
     
          /s/ Michael Weinstein
  By: Name: Michael Weinstein
    Title: Chief Executive Officer
     
Date: August 13, 2018    

 

 

 

 

Exhibit 99.1

 

 

ARK RESTAURANTS CORP.
Consolidated Statements of Income
For the 13 and 39-week periods ended June 30, 2018 and July 1, 2017
 
(In Thousands, Except per share amounts)                                               

 

    13 weeks ended   13 weeks ended   39 weeks ended   39 weeks ended
                 
      June 30,       July 1,       June 30,       July 1,  
      2018       2017       2018       2017  
                                 
TOTAL REVENUES   $ 44,800     $ 41,350     $ 119,428     $ 114,410  
                                 
COST AND EXPENSES:                                
                                 
Food and beverage cost of sales     11,874       11,227       31,832       30,814  
Payroll expenses     14,685       13,776       41,386       39,402  
Occupancy expenses     4,683       4,541       13,833       13,037  
Other operating costs and expenses     5,658       5,398       15,972       15,390  
General and administrative expenses     2,859       2,955       8,461       8,699  
Depreciation and amortization     1,255       1,006       3,837       3,541  
                                 
  Total costs and expenses     41,014       38,903       115,321       110,883  
                                 
RESTAURANT OPERATING INCOME     3,786       2,447       4,107       3,527  
                                 
Gain on sale of Rustic Inn, Jupiter property     —         —         —         1,637  
                                 
OPERATING INCOME     3,786       2,447       4,107       5,164  
                                 
OTHER (INCOME) EXPENSE:                                
                                 
Interest expense, net     299       178       791       344  
  Total other expense, net     299       178       791       344  
                                 
INCOME BEFORE PROVISION FOR INCOME TAXES     3,487       2,269       3,316       4,820  
                                 
Provision for income taxes     562       585       (661 )     1,338  
                                 
CONSOLIDATED NET INCOME     2,925       1,684       3,977       3,482  
                                 
Net (income) loss attributable to non-controlling interests     (268 )     (298 )     (329 )     (755 )
                                 
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.   $ 2,657     $ 1,386     $ 3,648     $ 2,727  
                                 
NET INCOME PER ARK RESTAURANTS CORP. COMMON SHARE:                                
      Basic   $ 0.77     $ 0.40     $ 1.06     $ 0.80  
      Diluted   $ 0.75     $ 0.39     $ 1.03     $ 0.77  
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                                
      Basic     3,440       3,424       3,436       3,424  
      Diluted     3,558       3,549       3,554       3,532  
                                 
EBITDA Reconciliation:                                
    Restaurant operating income   $ 3,786     $ 2,447     $ 4,107     $ 3,527  
    Interest expense, net     (299 )     (178 )     (791 )     (344 )
    Restaurant income before provision for income taxes     3,487       2,269       3,316       3,183  
    Gain on sale of Rustic Inn, Jupiter property     —         —         —         1,637  
    Pre tax income   $ 3,487     $ 2,269     $ 3,316     $ 4,820  
    Depreciation and amortization     1,255       1,006       3,837       3,541  
    Interest expense, net     299       178       791       344  
EBITDA (a)   $ 5,041     $ 3,453     $ 7,944     $ 8,705  
                                 
EBITDA, adjusted for non-controlling interests and Rustic Inn, Jupiter gain:                                
     EBITDA (as defined) (a)   $ 5,041     $ 3,453     $ 7,944     $ 8,705  
     Net (income) loss attributable to non-controlling interests     (268 )     (298 )     (329 )     (755 )
     Gain on sale of Rustic Inn, Jupiter property     —         —         —         (1,637 )
EBITDA from restaurant operations, as adjusted   $ 4,773     $ 3,155     $ 7,615     $ 6,313  

 

(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, pre-tax income, is included above.