Financial Data and Key Metrics Changes - The company ended the year with $10.3 million in cash and $5.2 million in debt, with one more principal payment due on February 1 and a remaining debt balance of $4.4 million maturing on June 1 [6][7] - The company reported a loss of $876,000 related to the closure of El Rio Grande, which included write-offs of a security deposit, six months of rent, and severance [9] - An additional goodwill impairment of $4 million was recorded, following a previous $10 million impairment last year [10][11] Business Line Data and Key Metrics Changes - The company experienced reduced sales and a challenging revenue environment, particularly in Florida and Washington DC, while Alabama performed consistently well [14][15] - Labor costs have stabilized, but expenses related to insurance premiums and payroll increases continue to impact margins [14][15] Market Data and Key Metrics Changes - The revenue environment remains challenging in several markets, with Las Vegas showing okay revenues but impacted by increased expenses [15] - New York's business is described as decent, but there are no significant new business developments [15][16] Company Strategy and Development Direction - The company is exploring new business opportunities, including the Lucky Pig concept, which is operational and expected to expand [80][84] - The company is also focused on improving existing businesses, enhancing efficiency, and increasing marketing efforts to drive customer traffic [87] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the revenue environment and the impact of rising costs on margins [14][15] - The company is optimistic about the potential for a casino license in the Meadowlands, which could significantly enhance revenue opportunities [30][39] Other Important Information - The company is in discussions to extend its credit agreement and term out the remaining debt over several years [7] - The landlord of the food court in Tampa has agreed to pay $5.5 million for the company to vacate the space, which will add to the cash on the balance sheet [12][50] Q&A Session Summary Question: Developments regarding the casino licenses in New York City - Management discussed the competition for downtown licenses and the potential impact on New Jersey's gaming revenue if a casino opens in Manhattan [22][30] Question: Non-cash write-downs and their implications - Management confirmed that the total non-cash write-downs over the last two years amount to approximately $16.5 million, primarily due to stock price performance [39][43] Question: Future growth drivers for the stock - Management highlighted ongoing efforts to explore new concepts and improve existing operations as key drivers for future stock performance [80][87]
Ark Restaurants(ARKR) - 2024 Q4 - Earnings Call Transcript