GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Ark Restaurants Corp. Reports Operating Results (10-Q)

February 16, 2010 | About:
10qk

10qk

18 followers
Ark Restaurants Corp. (ARKR) filed Quarterly Report for the period ended 2010-01-02.

Ark Restaurants Corp. has a market cap of $48.51 million; its shares were traded at around $13.9 with a P/E ratio of 15.8 and P/S ratio of 0.42. The dividend yield of Ark Restaurants Corp. stocks is 7.19%. Ark Restaurants Corp. had an annual average earning growth of 4.9% over the past 5 years.ARKR is in the portfolios of Joel Greenblatt of Gotham Capital, Chuck Royce of ROYCE & ASSOCIATES.

Highlight of Business Operations:

The Company had a loss from operations of ($1,072,000) in the first fiscal quarter of 2010 compared to operating income of $385,000 in the first fiscal quarter of 2009. This decrease resulted primarily from the following: (i) pre-opening and early operating losses in the amount of $439,000 related to our new restaurant, Robert, in New York City; (ii) a decrease in revenue from catered events of approximately $500,000; (iii) increased professional fees of $100,000; (iv) additional share-based compensation of $78,000; and (v) an overall decline in revenues related to the current economic conditions.

During the Companys first fiscal quarter of 2010, total revenues of $25,576,000 decreased 4.5% compared to total revenues of $26,792,000 in the first fiscal quarter of 2009.

On a Company-wide basis, same store sales decreased 4.4% during the first fiscal quarter of 2010 compared to the same period last year. Same store sales in Las Vegas decreased by $227,000 or 1.9% in the first fiscal quarter of 2010 compared to the first fiscal quarter of 2009. Same store sales in Las Vegas were negatively affected by the unwillingness of the public to engage in gaming activities and a decrease in tourism and convention business, all related to the current economic conditions. Same store sales in New York decreased $164,000 or 2.5% during the first quarter. Same store sales in New York were negatively affected during the quarter by a decrease in corporate parties and the current economic conditions. Same store sales in Washington D.C. decreased by $614,000 or 16.7% during the first quarter. Same store sales in Washington D.C. were negatively affected during the quarter by a decrease in corporate parties and the current economic conditions. Same store sales in Atlantic City decreased by $41,000, or 6.1%, in the first quarter. Same store sales in Atlantic City were negatively affected by the unwillingness of the public to engage in gaming activities and a decrease in tourism and convention business related to the current economic conditions as well as the introduction of slot machine parlors in nearby Pennsylvania. Same store sales in Boston decreased $60,000 or 5.9% during the first quarter. Same store sales in Boston were negatively affected by current economic conditions.

Other income for the first fiscal quarter of 2010 was $501,000 compared to $573,000 in the first fiscal quarter of 2009; a decrease of 12.6% due primarily to a decrease in management fees from the Companys managed restaurants.

Net cash used in financing activities in fiscal 2010 of $4,367,000 and $2,055,000 in fiscal 2009 was principally used for the payment of dividends and purchases of treasury stock.

A quarterly cash dividend in the amount of $0.44 per share was declared on October 12, 2007 and January 11, April 11, July 11 and October 10, 2008. On September 16, 2009, our Board of Directors declared a special cash dividend in the amount of $1.00 per share. On December 1, 2009, our Board of Directors declared a quarterly cash dividend in the amount of $0.25 per share. We intend to continue to pay such quarterly cash dividend for the foreseeable future, however, the payment of future dividends is at the discretion of our Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide