Ark Restaurants (ARKR) 17 Dec 242024 Q4 Earnings call transcript

Greetings, and welcome to the Ark Restaurants Fourth Quarter and Year-end 2024 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christopher Love, Secretary. Thank you, sir.

You may begin.

operator. you, Thank thank call and September joining on us XXXX. Good the you fourth conference for ended quarter our morning, for and XX, year My the I Love, name Ark of Restaurants. am is Christopher Secretary and on CEO; Anthony and me our CFO. and the Michael Sirica, is With Weinstein, today Chairman our call

of For the on issued our press a newswires over please that of those yesterday have full our press the our and tables, obtained you yet who available website. homepage the review To release, text of is with financial along not copy it www.arkrestaurants.com. release, at was associated to go

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

Good morning, everyone.

over to saw on of debt. highlights the on want all Michael. We and You $X.X of million the few the a release. I'll cash ended $XX.X couple of million P&L, it go things touch turn a over to I year the and then on balance with sheet and

which million. is X more [ $X.X Our ] tours June have debt, X, on we about

capacity to right-of-use debt be in our and minute. assets, out we're existing sheet, of which normal rest of additional line. our number years, over an as in respect the changes of X, that, lease, the impairment balance current rest talk With credit of it than bank our extend stable. remains credit our other agreement that well the not -- our sheet term are to a there about amortization renew Other whether We the than to the a operating as of really of and balance of X goodwill, a discussions with lot I'll will the

have million Currently, $XX items few there of million approximately same P&L, are cash, We a amount of have we that the the cash to as On items. date. the unusual $XX.X of current had onetime we our in

[Audio gap]

Rio press El the of Grande, in closure discussed is the which

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stalled. lease, for couple years negotiations those the are operating but a the last of better results [indiscernible] to for

months was the long-lived loss a includes So write-off of We would of the at projections. of things based and that the numbers loss at on deposit, $XXX,XXX. looked Sequoia we was year-end, like. That security That owe, impairment the had That severance again X the rent We use some that assets. quarter. on right was improved. third numbers the and from of the

did So fourth any the write-downs in Sequoia on we take additional not quarter.

are quarter-by-quarter monitoring on basis. it We a

additional of We million. goodwill also an had impairment $X

a we recall, $XX million year. last had you impairment If

read in you've analysis. press was the end at series we impairment felt cash we And based a day, them, Park million As flow $X the another given on as probability-weighted the projections necessary. of a we continues situation had Bryant doing release, unfold, the to [indiscernible] of of

is. the back. food stakes our slot want negotiations wanting that's had ago, very months court room and to we feel a on actually a where take it couple put a come One we with deal. been We've them, high made food the landlord the us in reflected They going good to not that that's item other in Tampa, court financials to is of

costs involved, There's and years X.X left space. they're really million going fees, broom of to it. it severance, legal to they're and pay approximately us some vacate $X.X small some clean the demolish on have We going lease, a but the to couple

end by be probably of of the there year. out would we So the

closed it think recently I [indiscernible], possibly.

now we're taking So in the locations. to we the process that any of equipment want

think it I all over I that, than other Michael. turn I'll have. to that's So

everybody. Hi,

certain of sales, -- what So spoke reduced -- the markets. which challenging But increasing to theme people at revenue that labor we are increases, stabilized. here put seems unless environment. pretty We're the have they the is finding insurance points in And Vegas each through time point, much it's in like expect cases, couple at enacted. price minimum unless, increasing would costs legislation, not in that before, significantly labor of compatible increases wage for with to some premiums, years, we first a which this Las good it are

payroll for have eaten -- got most payroll environments -- still is quarter, the venue. expenses into see in good. D.C. in revenue our the from the Las the and increases Florida challenging active okay. But we probably year, consistently again, are performing Vegas, our and We Washington, Alabama in margins. good revenues That's

business our to Not the had is we're books. We've new negotiations. fruitful Nothing some on to looking that way put say few York, New We've in things. very has trying our decent. been business much of at a

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we'll remains the New pulls Jersey. see I any casino downtown same the licenses. story don't on until figure York activity New their think from

as to a So the question timing. that remains

a get license think or I ability casino our probability to

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is and happens solution location. I'm again, going best not But until easiest the legislation the move seeing as to that something possible

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story. my questions this I'll that's So take point. at

questions from sorry, no question No, we ]. have get ] appears MH did we this with It a time. Consulting Martin I'm Gilvar [ Gilvar [ at further

and of to over other developments understand -- Wall [ little ride Michael, in was And but Street well. side just Journal they nice what you ]. New your in Florida the ] what are to happen how check the And they York a almost Aventura you in X in them, driver to to success that going doing that SL means. when this of buildings. casino each sure, make They're for -- Meadowlands? that City was worth to it. article like are it going that Green in of happen restaurants of situation enjoyed recently of open was that the speak I turning I are wanted over things their X it around you? it with and Went will the the to terms we're for is trying with on about Is were accurate? of [ office

those So to there are are licenses. There bidders X downtown several licenses available. get

state. down that To sorry. I'm

state Queens, Manhattan. [Audio licenses, Downtown meaning gap]

to of Aqueduct, slot has the Raceway, machines. go now right form machines. form of gaming in Yonkers gaming will in X also has And the slot which which

you have for trying Green [ you have for one. Yards SL So ] Hudson one, trying

out You at Stadium -- one. for Chase the trying Valleys one. property out in Steve at Trump Cohen the for have old trying is in Bronx

about on each basis state of to head $X.X to is tax a considerable. is, billion The going question everybody that revenue, cost these to the acquire would and consistent going of shakes revenue well, license the their be amount

So tried waiting where and The be they they've to lost, find the attractive along. the catalyst is tax to make they it what bring should County gaming of pull and there, to bidders their and But reasons see how revenue. think that decide, now revenue the Bergen don't minute money proposals they are their for for? they more will to you I out much the New have at come move. Why is the the going trigger? ] point gaming to New Northern X as they're York Jersey New Jersey Counties leaving [ Jersey went

disappears all Atlantic City or hopefully, casino location, the a approved once is What's stopping now lobby City. from in lobby the in Manhattan strong a for Queens. north, has That approving disappear. in Atlantic in been Bronx declination decades. or right is the will in that casino state But a

easier get is location, to to act about the Manhattan, in Yonkers. to it's with thing door if to get it Meadowlands The you're interesting ] [ our Meadowlands than

-- location yes, will does the but a New patrons also think So New think not Manhattan place, I does from in only anticipate, traffic reality. which a but it we be brings Jersey keeps Meadowlands in Jersey not

for who on that. [Audio us gap] And advocates

partner who? the with is point there

own fully happens, the diluted it an a we with for of the basis, food Hard a we and LLC. Cafe. equity. equity We're Rock if the of the partners the on leased own in Meadowlands -- have the do we carve-out On with all X X% But casino, exclusive a beverage Racetrack of

in Rock, which this Hard owns Rock XX% seminal tribe. original is and partner who an Our of Cafe. Hard is entity owns Indian that

was So an City. that attempt that in what there that get in for City the in casino license in north initial was the happened is a an favorable that us North casino have to very in to X operates Atlantic Hard also ago,was when partner, legislation the a have City. And agreement whoever Rock rights somebody licensed had the a would to Atlantic years Atlantic

Rock good Cohen that's us a they licensed, how with now is was Steve aligned fit partner. became Rock So Hard Shea were they Hard because Stadium. and for at

know in But we Cohen York. Atlantic Rock that relationship Hard Jersey, conversations it's [ to points, -- compensation don't casino ] what we get Hard forth the going if an to whether there's we new -- Rock's in Rock It's the legislation the when that air. require our some sort the is get if If in goes wind of other At partner. do don't legislation know to up various Meadowlands been New know interest would it. comes to because there they really of with don't it, be. up that So Hard to would City in Cohen, the be even New going

of So there's stuff lot a that's unanswered.

New is There's No, Meadowlands the who leader XX to for kind are I from it I Fair just would who fact, the where of to that's be ready understand guys in site all whoever the Jersey, moves. who New Northern wanted to the York in the advocating going. and was of with is go are get when, group, legislature that enough.

conversations is the our Yes. in We're we're have touch why with mean, I to are believe President the in site. try Jersey. to the best with we touch the educate and of in lobbyists taking Well, place site everybody there Senate me, governor.

it. Got

What market another just the... This sum we've associated right? noncash right Am noncash than the a write-downs of is end. I that company, say financial And $XX write-downs, on the piece capital is the less X Okay. these in with are it's years? the What taken the actually the cap -- of X-part. And million? last is to

write-downs. noncash all been They've price. Stock

The goodwill was... Yes.

in right the of million? And $XX ballpark

was XX.X. XX, The assets were Sequoia and goodwill so X.X, the

the is continues because just results? operate, written value And Sequoia asset poor but got down you've to whatever it's

impairment third on had an what better. we the quarter. were results of results little we fourth assets The take a in the expected, Yes, maybe the to fixed because the quarter

not did analysis. revisited we -- that have not We So to did we additional write-downs. take

as every to quarter. every the and continue it are auditors well, quarter monitor will it at as looking We

we're that think Sequoia money And to bleeding positive. flow want is I don't there. cash you

Okay.

Okay.

was we So -- annual what lose? that we're the was, -- number there Roughly? getting So X take say lose an on $X.X do do that so the last and basis Tampa location? then we question -- minus from you $XXX,XXX. we getting an I What X.X, that were for the basis on EBITDA million

of $X.X We're that million, investors. getting to but some belongs

So million be $XXX,XXX us. our property will flowing million roughly dollars. plus to a cash for $X $X.X was few net The

Four years left.

lease left this the Maybe on X years, X months point. at

more -- it. thought it getting. we who $X.X what net to the of did they we'll But hand, million and -- were we be on should we they between million buy had aggressive out well. to some had So other out partners $X out a But -- about

cash on So the that sheet. will added be balance our to

you Right, and I happy. more good superb but It's volume don't service is -- question and the sure been business-wise. quality. in And impressive never the drive X how before. right. busy all solution happened just to other that certainly to is. Yes. people Florida, seemed a what Reasonably again, mean, and customers I -- over I it's I know to be thought making an for outstanding maybe know more our had reasons, good of it it's I restaurants there experience. of an

comment. just to on follow that So up

value. and quality our we aggressive management tell at about being being I you without level are would We in level I and corporate restaurants about restaurants and our making are in delivering service the And and product sure are on and at exception, expectation. of our that service really think

the is And when raise of have we reluctance to margins soft. demand to remains raise with we and want One our is don't soft. prices problems demand prices,

payroll right now, individual sort finding cases, some to to places stuck reengineer -- we're of we're although in So in restaurants

[Audio gap]

some payroll pretty efficient. savings. But in general, we're

[Audio gap]

for And raise or Rustic known a prices we down. I go conversation this order. our X-pound food king charging had $XX Inn -- for costs were morning. this crabs. and Pre-pandemic, for We're

$XXX, charging every we're X the keep pound a month. for Now up crabs but going prices order, of king single

point about going like can do spending it's at And customers charge think even leery go I though and what can't So money. higher. higher how we get our are you much race, costs a

So...

you Well, an customer investor. other, tell more a I'd and just never the X way nothing or than

I details, but kind And unhappy. will -- anybody So be Planters of being they It's peanuts. the amazed the don't of the I that to I in guess seem know like that's business. I'm say didn't challenge crab always being

of general it I probably increases. line, up mean price You're commodity to a -- is mean, dominant ability Naples, I fillet at a about the a piece our commodity consumers' in the really tied pre-COVID. from there where product, to that the living amazed consumer XX%, other But the X from accept a talking stuff I'm everything here factor. grouper. -- restaurants, is was I'm to especially at

You're from talking up COVID. leased of XX%

Yes. I agree.

appreciate. [Audio for thank further Well, you insights gap] and

with resource. Good luck the

the route to go. you that's think got I

[Operator with final Jeffrey Consultants. question from reminder. next of comes A Our line Instructions] the JJK Kaminsky

Can be the Ark? respect -- press Tampa was LLC, Tampa there terms which payout to had what proceeds. distribute didn't termination Investment us walk investors Anthony who in reference you will to And the to XX% that outside of of With Tampa, lease also Ark properties? approximately the bit I in kind in Hollywood will that realize a Hollywood tell through release, is a individual in to you XX%? us the of

-- ago, it's years happened not improved. stock this Jeffrey, XX years when XX So that did some price what our is we deal ago,

that was going were right? all $X stock And turned of was be we in and both Rock deal it EBITDA And an and had us -- we to doing trades that Hollywood million. Rock, deal our Hard $X to in we're investment at out to the a right, EBITDA, the with and Hard because us. if -- looking million. we we a wanted would great and Our do multiple be for make projection to the Tampa, And helped

going XX% stock we're But stock do trading to We're get anything. return. saying we're We're again, putting and cash, Xx move. trading in. won't the the will EBITDA. It's million $X And won't therefore, a

take the time deal a the do give and to take prep, to way split at the the So with management investors, -- them. flow a investors was fee bring in then a cash

in put $X million. So -- and they whole the

have on the we So overcome terms in multiple had bad we equation of EBITDA. our

XX% did no the return expense. They've well. did well very we So enjoying And essentially. a investors because been we capital had

started couple up XX%. entities we out And just in if in those ownership consolidating then of ports years that's Ark's to not was and the deal. management ] entity And had it's that, it at point, was variable the probably rules XX Ark XX%. changed. got bought to initially further financial rule with that, controlling determined now that a when and recall shareholders, XX-XX, a the -- X and the some Ark I was first interest know, did years Florida. after consolidated. interest few this you It And don't [ rules, how ago, deal, were these And a of new It --

see entity in release, So that that holding is the the you press company. that

underneath that, Hollywood, runs So Court Hollywood the which Tampa Ark runs Tampa and LLC, Food there's the Ark Court. Food that

get will get partners $X expenses, into Tampa, investment investment And million will company. of then distributed the XX% after So limited the upstream to come the to LLC.

is Ark this -- -- the taken there relationships Or investors outside other just within individual And properties? understand. an I Okay. on any organization there has are similar where is...

Grande. Rio El and Hollywood yes, -- Hollywood

El Rio was years ago. Grande XX

did in El Grande Rio we Yes, 'XX.

Right.

-- price enough. the back mentioned these going on but Mike, call, see respect And Fair to cost deal. negotiated then to you stabilized, twice impairment are, had you Tampa the with write-offs, what stock charges, They this again, to Okay. second the they when right. they in All tied And respect with these into price. I have them. stock were don't may question,

some of volatile, will going and regardless. again, considerably. down be the headwinds really crab, in disagree volatile. cost prices of exist Food on may Insurance You future these

benchmark on A risk hard and dramatically underperformed question has Restaurants you By are restaurant stocks, a these the is stock there recurring I any years. benchmark, our but there price if against will. on it's to have asked share leisure here ETF, in shareholder, Ark -- a as indexes, calls, other

seem trying ago. now, other talked on to be you're introduced X months doesn't happening. -- months So concept you Asian about that acquire to that Right the ago, new working There properties. a was us probably to concept, X

I scaling been report. us if then successful, and of expect it's you've how a what gave terms progress up. You do asked revenues you in

to going as for looking for? were to mean, tidbits think stock going drive -- down we a wake for waiting [indiscernible]? are and are give and all you of we what's higher? up as Or as I sudden, a can waiting and are Just we're a Or going to another to waiting color concept expect shareholder, some for shareholders. X you that the day us be costs what here you labor you guidance little the as [indiscernible]? Asian Just What to acquisition?

So X things.

all, right. the and you're -- of First

are that doing not we We great, at the And looking of product on some but decent new top not Lucky idea. them. was always X various And is good we're concepts of have, business, the think what given business we Pig a are one-offs. which

it expandable. I'm it's think an other We're the dumpling We couple in at the now, of the and I our excuse But of category. we're couple So things. bit a adding a concept done good going And we're to be but expandable are what a returns see then there little We're I looking word. -- a weeks. capital, -- next on have concept. just it think we me, that will with be concept playing a is will missing fully

now, Is Mike? it operational

X, for been weeks now. I out X it. there about operational was curious the opening. for People are Yes, it's about

when was York, in what something now you opened. to thing street venues. in do see a to good you signage for on to Our It's very Chicago. complete It's this doing take look results other a is casino that -- not New how New we're will a It's complete. other the does product. in well to It's try hard okay, it say, translate we which now can't and York, locations

in here. see to someplace next We move place the to in the response what We find in and got got York. to locations would That's it and it perhaps. how it does put some put We've got New be. Philadelphia,

the thing other that It's Bryant don't we that that's that. sort coloring situation other that's buying us We're paralyze at things would the the to then it and be with that be of enough is all we doing won't things, cash -- We're with could it other and So next expandable to And concepts. EBITDA is want we're figure Park. looking of decent EBITDA if one-offs for. step can that amount up a not fighting strong us company. giving doesn't flows from are but hopefully, the the meaningful stop and us what on lose

we're what that's doing now. So

Lucky that cost fast in are our million, million we look the replicable gap] casual being more line are as [Audio $X $X more people marketing service million, that to doors other to the our in a of desks $X the the our existing X, on restaurants million, couple social last that of business efficient, a come get that build. have concepts Pig, looking as working full improve opposed that or have more we things across and at to $X at to the month payrolls, through media

Thank gentlemen. you, Okay.

Jeff. you, Thank

we comments. like to Mr. questions time. over floor I'd you closing further the have this to turn you. for Thank Weinstein, no at back

you. Have a Thank holiday, everybody. happy

you. Thank

this today's and does gentlemen, teleconference. Ladies conclude

for at day. disconnect your time. your wonderful you a participation, this and You may Thank lines have