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Ark Restaurants Corp. (ARKR)
F4Q 2013 Earnings Call
December 23, 2013 10:00 AM ET
Bob Stewart - Chief Financial Offer, Treasurer
Michael Weinstein - Chairman and Chief Executive Officer
Previous Statements by ARKR
» Ark Restaurants Management Discusses Q2 2013 Results - Earnings Call Transcript
» Ark Restaurants Management Discusses Q1 2013 Results - Earnings Call Transcript
» Ark Restaurants F3Q08 (Qtr End 6/28/08) Earnings Call Transcript
I would now like to turn the conference over to Bob Stewart, Chief Financial Officer. Please go ahead, sir.
Thank you, operator. Good morning and thank you for joining us on our conference call for the fourth quarter and full year ended September 28, 2013. With me on the call today is Michael Weinstein, our Chairman and CEO.
For those of you who have not yet obtained a copy of our press release, it was issued over the Newswire on Friday 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, however, I'd like to read the Safe Harbor statement. I need to remind everyone that part of our discussion this afternoon 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 variance on all our operating results, performance and financial condition.
I will now turn the call over to Michael.
Hi, everybody. Thank you for joining us. This was a difficult year for us. There were some outside influences not under our control. There were some influences that were in our control, but I would like to go over this with you.
Our biggest problem was same-store sales. On East Coast, those were impacted by Sandy, especially in Washington and Atlantic City. Atlantic City has storm problems as [gaming] [ph] continues to spread through states surrounding New Jersey, Maryland, Delaware and Pennsylvania are definitely taking business away from Atlantic City.
We still are profitable and looking reasonably well at [inaudible], where we have two operations Burger Bar and Gallagher's Steakhouse and we recently opened in Tropicana a Burger Bar, which we thought given the location [inaudible] would be well and it is profitable and doing pretty well as a return on investment. We hope that continues to gain further traction.
In Washington, D.C., our same store sales were down for the year, some of that was Sandy, not very much. More importantly, we have significant competition that wasn't present last year at the Washington harbor location where Sequoia is and we also lost our Restaurant America a while back, and Union Station, our [leases were up, and we are redoing Station] [ph] that space was no longer available to us. We continue to run the Center Café and [Inaudible] grow there and they are actually doing very, very well.
Las Vegas, we are being hurt by same store sales. Las Vegas is still not seeing the demand that we need to have positive same store sales. It's not down much. It's down about 3.6% on year. Part of that is New York-New York is undergoing a major construction project right now and that without a question is helping to determine our sales there. We think once that construction is finished, we will benefit from it. Right now, there are two major entrances into New York- New York. When the new construction is done, there will be nine entrances into New York-New York. There will be a park. There will be a huge arena. We think that that will be a game changer to the extent that we think we’ll start comp well once that's done, and we think that will start sometime in late spring.
Florida. Florida, where we have always done well, it's still a huge return on original investment. The [Hard Rock to both, Tampa and] [ph] Hollywood where we [already] [ph] have changed their comping procedures there, they are no longer issuing comp certificate, this is a food court or [or have been] [ph] some while they are about to start again. Without a question that's hurt our sales.
New York and Boston, Boston is down just slightly. I think that is all attributable to Sandy. New York City is doing very, very well despite Sandy. We were closed for a significant period of time with Sandy and closed two restaurants, which we did not reopen at the South Street Seaport, but New York remains the bubble. The restaurant business in New York is spectacular for everyone, not just for us. We happen to have some very good locations.
On top of all of this, we did not have the same spring in early summer weather that we had last year. Last year, that weather was spectacular. We had almost 100% utilization of our many outdoor cafes in New York and Washington, D.C. This year, I think it was really late June, early July before we had any utilization of [those proceeds] [ph] weather was cold, it was damp. It’s just - especially at night, we [need to be] [ph] 70 degrees or better to get utilization [proceeds] [ph] and we just didn't achieve it.