Ark Restaurants Corp. (NASDAQ:ARKR) Q1 2022 Earnings Conference Call February 15, 2022 11:00 AM ET Company Participants Michael Weinstein - Chairman & Chief Executive Officer Anthony Sirica - Chief Financial Officer Conference Call Participants Roger Lipton - Lipton Financial Services Operator Greetings, and welcome to the Ark Restaurants First Quarter 2022 Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Ins ...

Ark Restaurants Corp. (NASDAQ:ARKR) Q4 2021 Results Conference Call December 21, 2021 11:00 AM ET Company Participants Michael Weinstein - Chairman, CEO Anthony Sirica - CFO Conference Call Participants Roger Lipton - Lipton Financial Services Jeffrey Kaminski - JJK Consulting Operator Greetings, and welcome to Ark Restaurants Fourth Quarter and Year-end Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Lowe ...

Ark Restaurants Corp. (NASDAQ:ARKR) Q3 2021 Earnings Conference Call August 17, 2021 11:00 AM ET Company Participants Sonal Shah - General Counsel Michael Weinstein - Chairman & Chief Executive Officer Anthony Sirica - Chief Financial Officer Conference Call Participants Roger Lipton - Lipton Financial Services Jeffrey Kaminski - JJK Consulting Operator Greetings, and welcome to the Ark Restaurants Third Quarter 2021 Results Conference Call. At this time, all participants are in a listen-only mode. A questi ...

Ark Restaurants Corp. (NASDAQ:ARKR) Q1 2021 Earnings Conference Call February 16, 2021 11:00 AM ET Company Participants Sonal Shah - General Counsel Michael Weinstein - Chairman and CEO Anthony Sirica - CFO Vinny Pascal - COO Conference Call Participants Steve Olson - Private Investor Operator Greetings, and welcome to Ark Restaurants' First Quarter 2021 Results Conference Call. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host Sonal Shah, ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Ark Restaurants Corp. operates 37 food and beverage concepts, significantly impacted by COVID-19, resulting in a **$3,234,000** working capital deficiency and strategic adjustments - The COVID-19 pandemic led to mandatory closures, significantly impacting revenues, resulting in a working capital deficiency of **$3,234,000**, and creating operational uncertainty[17](index=17&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - To preserve liquidity during the pandemic, the company furloughed employees, reduced salaries, canceled dividends, delayed capital expenditures, and negotiated rent concessions[21](index=21&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - The company secured approximately **$15.0 million** in Paycheck Protection Program (PPP) loans and utilized CARES Act provisions for tax savings and deferred social security tax payments[27](index=27&type=chunk)[28](index=28&type=chunk) - As of fiscal year-end 2020, the company operated **20 restaurants and bars** and **17 fast food concepts** across major US cities and states[30](index=30&type=chunk)[31](index=31&type=chunk) - The company holds a **$5.1 million** investment in New Meadowlands Racetrack LLC, granting a **7.4%** ownership and exclusive food and beverage concession rights upon casino gaming approval[56](index=56&type=chunk)[57](index=57&type=chunk) - On October 2, 2020, the company agreed to acquire Blue Moon Fish Company in Florida for **$2.75 million**, with the transaction closing on December 1, 2020[50](index=50&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) This section is marked as 'Not applicable' in the report - This section is marked as 'Not applicable' in the report[77](index=77&type=chunk) [Properties](index=15&type=section&id=Item%202.%20Properties) The company primarily leases its restaurant facilities and executive offices, with four owned properties, and lease terms extending through 2045 - All restaurant facilities and executive offices are occupied under leases, except for **four owned properties** (The Rustic Inn, Shuckers, and two Original Oyster Houses)[78](index=78&type=chunk) Lease Expiration Schedule | Fiscal Year Lease Terms Expire | Number of Facilities | | :--- | :--- | | 2021-2025 | 10 | | 2026-2030 | 5 | | 2031-2035 | 4 | | 2041-2045 | 1 | [Legal Proceedings](index=15&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various lawsuits, including a class action by former tipped workers that was settled on December 14, 2020 - On December 14, 2020, the company settled a class action lawsuit by former tipped service workers regarding New York State Labor Laws for an amount previously accrued[83](index=83&type=chunk) Part II [Market For The Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=16&type=section&id=Item%205.%20Market%20For%20The%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, with dividends suspended due to COVID-19, and its stock performance has significantly underperformed peers over five years - Due to COVID-19's financial impact, the dividend declared on March 2, 2020, was canceled, and future dividends are not expected[88](index=88&type=chunk)[89](index=89&type=chunk) Stock Performance Comparison (Cumulative Total Return) | Period Ending | Ark Restaurants Corp. | NASDAQ Composite | SIC Code 5812 Peer Group | | :--- | :--- | :--- | :--- | | 10/03/15 | $100.00 | $100.00 | $100.00 | | 09/30/16 | $102.14 | $116.42 | $104.00 | | 09/30/17 | $115.57 | $144.00 | $121.32 | | 09/30/18 | $114.89 | $180.24 | $137.34 | | 09/28/19 | $105.36 | $181.19 | $181.14 | | 10/03/20 | $61.37 | $255.40 | $188.69 | Equity Compensation Plan Information (as of Oct 3, 2020) | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities remaining for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by shareholders | 626,500 | $20.41 | 174,500 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's fiscal 2020 financial performance was severely impacted by COVID-19, resulting in a **$(7,796) thousand** operating loss and **34.4%** revenue decline, leading to liquidity management and ASC 842 adoption Fiscal Year 2020 vs. 2019 Results of Operations (in thousands) | Metric | FY 2020 | FY 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $106,490 | $162,354 | $(55,864) | -34.4% | | Total Costs and Expenses | $114,286 | $159,108 | $(44,822) | -28.2% | | **Operating Income (Loss)** | **$(7,796)** | **$3,246** | **$(11,042)** | **-340.2%** | Same-Store Sales by Region (in thousands) | Region | FY 2020 | FY 2019 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Las Vegas | $30,445 | $48,787 | $(18,342) | -37.6% | | New York | $18,049 | $39,324 | $(21,275) | -54.1% | | Washington, D.C. | $6,774 | $13,028 | $(6,254) | -48.0% | | Atlantic City, NJ | $3,392 | $6,954 | $(3,562) | -51.2% | | **Total Same-Store Sales** | **$95,778** | **$152,340** | **$(56,562)** | **-37.1%** | - The company reported a working capital deficiency of **$(3,234,000)** at October 3, 2020, an improvement from **$(4,373,000)** in the prior year, primarily due to **$15.0 million** in PPP loan proceeds[144](index=144&type=chunk) - The CARES Act enabled the company to record an income tax receivable of **$2,673,000** by carrying back fiscal 2020 taxable losses to recover prior taxes paid at higher rates[136](index=136&type=chunk) - The company adopted ASC 842 on September 29, 2019, recognizing Right-of-Use (ROU) assets of **$62.3 million** and lease liabilities of **$63.9 million**[185](index=185&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of October 3, 2020, despite operational changes due to COVID-19 - Management concluded that disclosure controls and procedures were **effective** as of October 3, 2020, ensuring proper information recording and reporting[194](index=194&type=chunk) - Based on the COSO framework, management determined the company's internal control over financial reporting was **effective** as of October 3, 2020[198](index=198&type=chunk) - Changes to internal controls, including electronic sign-offs due to COVID-19 remote work, were implemented but are not believed to have materially affected internal control over financial reporting[200](index=200&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=35&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, and corporate governance, is incorporated by reference from the company's forthcoming 2020 proxy statement - Detailed information on directors, executive officers, compensation, security ownership, and accountant fees is incorporated by reference from the company's forthcoming Proxy Statement[205](index=205&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) - The company has adopted a code of ethics for its principal financial and executive officers, available on its website[206](index=206&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=36&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section includes the company's consolidated financial statements for fiscal years 2020 and 2019, the independent auditor's report, and a comprehensive list of filed exhibits - This part includes the consolidated financial statements and the list of exhibits required by Item 601 of Regulation S-K[212](index=212&type=chunk) [Financial Statements and Notes](index=37&type=section&id=Financial%20Statements%20and%20Notes) Audited financial statements for fiscal 2020 and 2019 show a **$(4,688) thousand** net loss due to COVID-19, with balance sheet changes from ASC 842 and PPP loans, and subsequent event details - The independent auditor, CohnReznick LLP, issued an **unqualified opinion** on the company's consolidated financial statements[214](index=214&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Oct 3, 2020 | Sep 28, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,886 | $7,177 | | Total current assets | $26,901 | $13,709 | | Operating Lease ROU Assets | $54,191 | $0 | | Total Assets | $153,316 | $94,652 | | Total current liabilities | $30,135 | $18,082 | | Operating Lease Liabilities | $56,077 | $0 | | Notes Payable (Long-term) | $36,068 | $23,786 | | Total Liabilities | $116,163 | $51,945 | | Total Equity | $37,153 | $42,707 | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2020 | FY 2019 | | :--- | :--- | :--- | | Total Revenues | $106,490 | $162,354 | | Operating Income (Loss) | $(7,796) | $3,246 | | Net Income (Loss) Attributable to ARKR | $(4,688) | $2,676 | | Diluted EPS | $(1.34) | $0.76 | - Subsequent to fiscal year-end, the company faced mandatory closures of two Atlantic City restaurants and indoor dining in New York City, expected to have a **material adverse impact**[363](index=363&type=chunk)[367](index=367&type=chunk) - The company received **$14,995,000** in PPP loans during fiscal 2020, with forgiveness uncertain and classified as long-term debt[330](index=330&type=chunk)[331](index=331&type=chunk)