Ark Restaurants Corp. (NASDAQ:ARKR) Q1 2019 Earnings Conference Call Transcript

Feb 12, 2019 • 11:00 am ET

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Ark Restaurants Corp. (NASDAQ:ARKR) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Ark Restaurants' First Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Sonal Shah, General Counsel.

Executive
Sonal Shah

Thank you, operator. Good morning and thank you for joining us on our conference call for the first quarter ended December 29, 2018.

With me on the call today is Michael Weinstein, our Chairman and CEO; Vinny Pascal, our Chief Operating Officer; and Anthony Sirica , our Chief Financial Officer. For those of you who have not yet obtained a copy of our press release, it was issued over the newswires yesterday and is available on our website. To review the full text of that press release along with the associated financial tables, please go to our homepage at www.arkrestaurants.com.

Before we begin, I'd like to read the safe harbor statement. I need to remind everyone that part of our discussion this morning will include forward-looking statements and that these statements are not guarantees of future performance, and therefore, undue reliance should not be placed on them. We refer everyone to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks that may have a direct bearing on our operating results, performance and financial condition.

I'll now turn the call over to Anthony for a few remarks.

Executive
Anthony J. Sirica

Good morning, everyone. Before Mike will provides his commentary, I just wanted to ensure that everyone is clear on the impact that the write-offs associated with Durgin-Park had on our income statement, GAAP requires us to record (ph) these things within operating expenses, which then affects our operating income. There were two significant items that were part of this write-down, one was for the trademark that we had on the Durgin Park name and the other write-off was the acceleration of the depreciation and amortization of the fixed assets.

So when you look at our net income, we just wanted it to be clear that in the current year, there was $1 million write-down that affected our net income. So if you added that back net of tax, our net income would be about $900,000. When you compare that to the prior year, we had $1.6 million of net income, but that also included a discrete tax adjustment, a tax benefit of $1.2 million. So when you exclude that, net income in the prior year was approximately $400,000 compared to again $900,000 in the current year, which just about equals our increase in EBITDA for the period that Michael will discuss.

Now , I'll turn it over to Michael Weinstein.

Executive
Michael Weinstein

Thanks, Anthony. I hope everybody understands that the business in the December quarter, we should go through it region by region. Las Vegas was -- continues to be strong. Florida is very strong for us. Both Rustic and Shuckers are doing