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)

Ark Restaurants Corp (NASDAQ:ARKR) Q4 2020 Earnings Conference Call December 22, 2020 11:00 AM ET Company Participants Sonal Shah - In-House Counsel Michael Weinstein - Chairman & CEO Anthony Sirica - CFO Conference Call Participants Milan Mehta - Value Investment Principals Roger Lipton - Lipton Financial Services Bruce Geller - Geller Ventures Operator Greetings. Welcome to the Ark Restaurants' Fourth Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. A questi ...

Ark Restaurants Corp (NASDAQ:ARKR) Q3 2020 Earnings Conference Call August 11, 2020 11:00 AM ET Company Participants Sonal Shah - In-House Counsel Michael Weinstein - Founder, Chairman & CEO Anthony Sirica - CFO & Director Conference Call Participants Roger Lipton - Lipton Financial Services Operator Greetings, and welcome to Ark Restaurants' Third Quarter 2020 Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to your host, Sonal Shah. Thank you. You may begin. S ...

Forward-Looking Statements [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance, which are subject to various risks and uncertainties - Statements concerning future performance are identified by words like "anticipates," "believes," and "expects," and are not guarantees of future results[5](index=5&type=chunk) - Key risk factors that could cause results to differ from expectations include the impacts of the **COVID-19 pandemic**, economic conditions, civil unrest, ability to open new restaurants, changes in food costs, and security breaches[6](index=6&type=chunk) - The company undertakes no obligation to update forward-looking statements and advises readers not to place undue reliance on them[8](index=8&type=chunk)[9](index=9&type=chunk) Part I. Financial Information [Item 1. Consolidated Condensed Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Condensed%20Financial%20Statements) Unaudited financial statements reflect a significant negative impact from the COVID-19 pandemic, resulting in a net loss [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets increased to $157.3 million, driven by cash from PPP loans and new lease accounting standards Consolidated Condensed Balance Sheet Highlights (In Thousands) | Balance Sheet Item | June 27, 2020 | September 28, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$157,260** | **$94,652** | | Cash and cash equivalents | $20,725 | $7,177 | | Operating Lease Right-of-Use Assets - Net | $55,984 | $— | | **Total Liabilities** | **$119,131** | **$51,945** | | Operating Lease Liabilities | $57,809 | $— | | Notes Payable, Less Current Portion | $43,701 | $23,786 | | **Total Equity** | **$38,129** | **$42,707** | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) COVID-19 severely impacted performance, with revenues plummeting and resulting in a net loss of $2.5 million for the quarter Statement of Operations Summary (In Thousands, Except Per Share Amounts) | Metric | 13 Weeks Ended June 27, 2020 | 13 Weeks Ended June 29, 2019 | 39 Weeks Ended June 27, 2020 | 39 Weeks Ended June 29, 2019 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $7,199 | $44,807 | $84,716 | $120,667 | | Operating Income (Loss) | $(5,623) | $4,731 | $(5,123) | $5,114 | | Net Income (Loss) Attributable to ARKR | $(2,526) | $3,962 | $(2,791) | $3,231 | | Diluted EPS | $(0.72) | $1.12 | $(0.80) | $0.92 | [Consolidated Condensed Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Equity) Total equity decreased to $38.1 million, primarily driven by a net loss and dividends paid during the period Changes in Equity for 39 Weeks Ended June 27, 2020 (In Thousands) | Item | Amount | | :--- | :--- | | Balance - September 28, 2019 | $42,707 | | Net loss | $(2,852) | | Dividends paid and accrued | $(1,751) | | Stock-based compensation & option exercises | $163 | | Distributions to non-controlling interests | $(138) | | **Balance - June 27, 2020** | **$38,129** | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Financing activities provided $18.0 million in cash, mainly from PPP loans, offsetting cash used in operations Cash Flow Summary for 39 Weeks Ended (In Thousands) | Cash Flow Activity | June 27, 2020 | June 29, 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(2,510) | $6,752 | | Net cash used in investing activities | $(1,986) | $(2,575) | | Net cash provided by (used in) financing activities | $18,044 | $(3,613) | | **Net increase in cash and cash equivalents** | **$13,548** | **$564** | - The company received **$14.995 million** in proceeds from Paycheck Protection Program loans during the period[19](index=19&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Notes detail the significant impact of COVID-19, response measures like PPP loans, and the adoption of new lease accounting standards - The COVID-19 pandemic led to mandatory closures of all locations in March 2020, significantly disrupting operations[23](index=23&type=chunk)[24](index=24&type=chunk) - In response to the pandemic, the company furloughed employees, reduced salaries, deferred debt payments, suspended dividends, and obtained approximately **$15.0 million in PPP loans**[27](index=27&type=chunk)[29](index=29&type=chunk)[32](index=32&type=chunk) - The company adopted the new lease accounting standard (ASC 842) on September 29, 2019, resulting in the recognition of **$62.3 million in Right-of-Use assets** and **$63.9 million in lease liabilities**[54](index=54&type=chunk) - The CARES Act is expected to provide a tax benefit by allowing the company to carry back estimated 2020 net operating losses to years with higher federal tax rates[117](index=117&type=chunk)[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant operating loss to COVID-19 restaurant closures and details liquidity measures taken in response [COVID-19 Pandemic Impact and Response](index=25&type=section&id=COVID-19%20Pandemic%20Impact%20and%20Response) The pandemic forced closures, leading to cost-saving measures including furloughs, payment deferrals, and securing PPP loans - All locations were mandatorily closed in March 2020 due to the pandemic, with some reopening at limited capacity in May and June 2020[130](index=130&type=chunk)[131](index=131&type=chunk) - Key actions taken to manage liquidity include furloughing employees, reducing executive and corporate salaries, deferring principal payments on debt, canceling dividends, and suspending most lease payments[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - The company secured approximately **$15.0 million in PPP loans** and utilized other provisions of the CARES Act to enhance its financial position[138](index=138&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) An operating loss of $5.6 million for the quarter was driven by an 83.9% decrease in revenues and a sharp fall in same-store sales Operating Results Comparison (In Thousands) | Metric | 13 Weeks Ended June 27, 2020 | 13 Weeks Ended June 29, 2019 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $7,199 | $44,807 | $(37,608) | -83.9% | | Total Costs and Expenses | $12,822 | $40,076 | $(27,254) | -68.0% | | **Operating Income (Loss)** | **$(5,623)** | **$4,731** | **$(10,354)** | **-218.9%** | - The company estimates it incurred approximately **$2.3 million in costs directly related to COVID-19** during the 13-week period, including payments to employees, inventory waste, and rent for closed restaurants[145](index=145&type=chunk) - Payroll, occupancy, and general & administrative expenses all **increased dramatically as a percentage of revenue** due to the significant sales decline while retaining key personnel and incurring fixed costs[152](index=152&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was bolstered by financing activities, including $15.0 million in PPP loans, ending the quarter with $20.7 million in cash - To enhance liquidity during the pandemic, the company fully drew down its Revolving Facility, obtained PPP loans, deferred debt payments, and canceled dividends[165](index=165&type=chunk)[166](index=166&type=chunk) - Working capital increased to **$5.6 million** at June 27, 2020, from a deficit of $4.4 million at September 28, 2019, mainly due to the **$15.0 million in PPP loan proceeds**[170](index=170&type=chunk) - Net cash from financing activities was **$18.0 million** for the 39-week period, driven by PPP loans and credit facility borrowings, which offset the **$2.5 million cash used in operations**[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is marked 'Not Applicable', indicating no new or materially changed disclosures about market risk for this period - The company has indicated that there are no applicable disclosures for this item in the current reporting period[187](index=187&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with pandemic-related changes not materially affecting internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[187](index=187&type=chunk) - Due to COVID-19 related work-from-home arrangements, some manual controls were shifted to electronic formats, but the overall design and objectives of the internal control framework remain unchanged and are **not considered to be materially affected**[188](index=188&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a class action lawsuit from former employees alleging labor law violations, for which an accrual was recorded - A putative class action lawsuit was filed by former employees alleging violations of New York State Labor Laws, seeking unspecified money damages[192](index=192&type=chunk) - The company's motion to dismiss was denied, and while it believes the claims are without merit, it has **recorded an accrual** for the matter as of June 27, 2020[192](index=192&type=chunk) [Other Part II Items](index=34&type=section&id=Other%20Part%20II%20Items) The report indicates 'Not Applicable' or 'None' for several items, including Risk Factors and Unregistered Sales of Equity - No information was reported for Item 1A (Risk Factors), Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[193](index=193&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications under the Sarbanes-Oxley Act and XBRL Interactive Data Files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32) and XBRL data files (101 series)[193](index=193&type=chunk)[194](index=194&type=chunk)

Ark Restaurants Corp. (NASDAQ:ARKR) Q2 2020 Earnings Conference Call June 23, 2020 2:00 PM ET Company Participants Anthony Chiarenza - Key Equity Investors, Inc. Sonal Shah - General Counsel Michael Weinstein - Chairman and CEO Anthony Sirica - CFO Vinny Pascal - COO Conference Call Participants Operator Greetings, and welcome to the Ark Restaurants' Second Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the form ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ 85 Fifth Avenue, New York, NY 10003 (Address of Principal Executive Offices) (Zip Code) Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $.01 per share ARKR The NASDAQ Stock Market LLC FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 28, 2020 or o TRANSIT ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 1-09453 ARK RESTAURANTS CORP. (Exact name of registrant as specified in its ...

Ark Restaurants Corp (NASDAQ:ARKR) Q1 2020 Earnings Conference Call February 11, 2020 11:00 AM ET Company Participants Sonal Shah - General Counsel Anthony Sirica - CFO Michael Weinstein - Chairman & CEO Conference Call Participants Bruce Geller - DGHM Jeffrey Kaminsky - JJK Consultants Operator Greetings and welcome to the Ark Restaurants First Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 85 Fifth Avenue New York, NY 10003 (Address of Principal Executive Offices) (Zip Code) Securities registered pursuant to section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $.01 per share ARKR The NASDAQ Stock Market LLC Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 28, 20 ...