Q3 2025 Ark Restaurants Corp Earnings Call

Speaker #1: Greetings and welcome to the Ark Restaurants 3rd Quarter 2025 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Operator: Greetings and welcome to the Ark Restaurants Corp. Third Quarter 2025 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christopher Love, Secretary. Thank you. You may begin.

Speaker #1: Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christopher Love, Secretary.

Speaker #1: Thank you. You may begin.

Speaker #3: Thank you, Operator. Good morning and thank you for joining us on our conference call for the 3rd quarter ended June 28th, 2025. My name is Christopher Love and I am the Secretary of Ark Restaurants.

Christopher Love: Thank you, Operator. Good morning, and thank you for joining us on our conference call for the third quarter ended June 28, 2025. My name is Christopher Love, and I am the Secretary of Ark Restaurants Corp. With me on the call today is Michael Weinstein, our Chairman and CEO, and Anthony Sirica, our President and CFO. For those of you who have not yet obtained a copy of our press release, it was issued over the news wires 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, however, I would like to read the safe harbor statement. I need to remind everyone that part of our discussion is forward-looking statements and that these statements are not guarantees of future performance.

Speaker #3: With me on the call today is Michael Weinstein, our Chairman and CEO, and Anthony Sirica, our President and CFO. For those of you who have not yet obtained a copy of our press release, it was issued over the news wires yesterday and is available on our website.

Speaker #3: 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.

Speaker #3: I need to remind everyone that part of our discussion this morning will move forward-looking statements and that these statements are not guaranteed as a future performance, and therefore, undue reliance should not be placed on them.

Christopher Love: Therefore, undue reliance should not be placed on them. We refer everyone to our filings with the Securities and Exchange Commission for more detailed discussion of the risks that may have a direct bearing on our operating results, performance, and financial condition. I will now turn the call over to Anthony. Thank you.

Speaker #3: 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.

Speaker #3: I'll now turn the call over to Anthony. Thank you.

Speaker #4: Good morning, everyone. Before Michael gets into the results of operations, I wanted to highlight a few things on the balance sheet. Our cash is $12 million at quarter-end.

Anthony Sirica: Good morning, everyone. Before Michael gets into the results of operations, I wanted to highlight a few things on the balance sheet. Our cash is $12 million at quarter end. Our debt was $3.9 million. We did extend our credit agreement during the quarter through June 1, 2028, with $20 million of capacity. With that, the balloon notes on the three notes that we had outstanding were extended on the same payment terms that we were paying. Two of those will run off in about four to five more quarterly payments, and the third one, there will be another balloon payment in June 2028.

Speaker #4: Our debt was $3.9 million. We extended our credit agreement during the quarter through June 1, 2028, with $20 million of capacity. With that, the balloon notes on the three notes that we had outstanding were extended on the same payment terms that we were paying.

Speaker #4: So, two of those will run off in about four or five more quarterly payments, and the third one, there'll be another balloon payment in, June 2028.

Speaker #4: The other big item of note on the balance sheet, which you saw on the release, was that we had an additional impairment of Sequoia's leasehold improvements in right-of-use assets in the amount of $4.7 million.

Anthony Sirica: The other big item of note on the balance sheet, which you saw on the release, was we had an additional impairment of Sequoia's leasehold improvements in right-of-use assets in the amount of $4.7 million, as stated in the release, as a result of the cash flow analysis. Other than that, the balance sheet remains strong. I will hand it over to Michael.

Speaker #4: As stated in the release, you know, as a result of the cash flow analysis. Other than that, the balance sheet, you know, remains strong.

Speaker #4: So, I'll hand it over to Michael.

Speaker #5: Hi, everybody. I tried to address where we are in the opening paragraph of our earnings release, the the individual restaurants, are for the most part doing very, very well.

Michael Weinstein: Hi everybody. I tried to address where we are in the opening paragraph of our earnings release. The individual restaurants are, for the most part, doing very, very well. Las Vegas has been strong in terms of its cash flow, despite a remarkable slowdown in the visitors to New York-New York Hotel and Casino Resort. Robert in New York continues to do above our expectations, as does The Rustic Inn in Fort Lauderdale. The rest of the restaurants are performing as we expect it to perform. This despite what we consider, in various areas of the country where we operate, a diminution of demand in line with what a lot of restaurants are seeing. Florida, we are told by purveyors and other restaurateurs, they are all off 15% to 20%.

Speaker #5: Las Vegas, has been strong in terms of its cash flow despite a remarkable slowdown in the number of visitors to, New York. New York, Las Vegas trip.

Speaker #5: Robert in New York continues to perform above our expectations, as does Rustic in Fort Lauderdale. The rest of the restaurants are performing as we expected.

Speaker #5: This, despite what we considered, you know, in various areas of the country where we operate, Dominion, Dominion Nation of demand, is in line with what a lot of restaurants are seeing.

Speaker #5: it, it's, you know, Florida, we're told by purveyors and, other restaurateurs, they're all 15 to 20 percent. you know, that's maybe a number which is exaggerated, but without a question, headcounts and visitorships to these restaurants are down.

Michael Weinstein: That is maybe a number which is exaggerated, but without a question, headcounts and visitor ships to these restaurants are down. So I think under the environment that we are in, I think we are doing quite well with the restaurants. Obviously, we are not doing well with Sequoia or Bryant Park, for two different reasons. Sequoia in Washington, DC, we are in Washington Harbor, the complex known as Washington Harbor. All the restaurants in Washington Harbor, and I think most of the restaurants in Washington, DC, are suffering from an environment that is just, people do not want to be out. Also, the event business in Sequoia, which is a large facility that has 1,100 seats, that business has dried up considerably, I think, given the environment in Washington, DC.

Speaker #5: So I think under the environment that we're in, I think we're doing quite well with the restaurants. Obviously, we're not doing well with Sequoia.

Speaker #5: or Brian Park, two different reasons. Sequoia in Washington, DC, we're in Washington Harbor. the complex known as Washington Harbor. all the restaurants in Washington Harbor, and I think most of the restaurants in Washington, DC, are suffering from an environment that's just people don't want to be out.

Speaker #5: also the event business in, in Sequoia, which is a larger facility, has 1,100 seats. that business is, dried up considerably, I think given the environment in Washington, DC.

Speaker #5: in terms of, Brian Park, we're in a litigation. we're at the very beginning of it. We're just starting, discovery, and, and this is probably a two or three-year process to, to see the litigation through.

Michael Weinstein: In terms of Bryant Park, we are in a litigation. We are at the very beginning of it. We are just starting discovery, and this is probably a two or three-year process to see the litigation through. We are very committed to the belief that we should be the operator there, and we are going to stay the course because we think our claims are justified. With that, the only other thing going on, which is the casino license possibilities for Meadowlands Racetrack LLC, we think we are getting closer for a referendum by New Jersey legislature to permit gaming in the northern part of the state. We think the trigger for that will be when New York State announces the three licenses that they are going to be obligated to give to downstate casinos in New York.

Speaker #5: we're very committed to the belief that, we should be the operator there. And, we're going to stay the course because we think our claims are, are justified.

Speaker #5: with that, the only other thing going on, which is, the casino license possibilities for Meadowlands. we think we're getting closer for a referendum by New Jersey legislature.

Speaker #5: To permit gaming in the northern part of the state, we think the trigger for that will be when New York State announces the three licenses that they're going to be obligated to give to downstate casinos in New York. Yonkers and Aqueduct will probably be two, and there'll be a third selected.

Michael Weinstein: Yonkers Aqueduct will probably be two, and there will be a third selected. We believe that that will be the linchpin for New Jersey to move aggressively toward countering that with a casino in the north, and we think we are in the best position to get a casino license. With that, questions?

Speaker #5: And we believe that that will be the linchpin for New Jersey to move aggressively toward countering that within a casino in the north. We think we're in the best position to get a casino license.

Speaker #5: with that, questions?

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker #5: No No questions.

Anthony Sirica: No questions.

Speaker #1: Yeah, there are no questions. At this time, I'd like to turn the floor back over to Michael Weinstein for closing comments.

Operator: There are no questions at this time. I would like to turn the floor back over to Michael Weinstein for closing comments.

Speaker #5: Thank you all for joining in, and we'll see you next quarter.

Michael Weinstein: Thank you all for phoning in. We will see you next quarter.

Speaker #4: Thank you.

Anthony Sirica: Thank you.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.