Ark Restaurants Q1 2026 Ark Restaurants Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Ark Restaurants Corp Earnings Call
Speaker #1: Greetings
Operator: Greetings and welcome to the ARK Restaurants Q1 2026 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Secretary Christopher Love. Thank you. You may begin.
Operator: Greetings and welcome to the ARK Restaurants Q1 2026 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Secretary Christopher Love. Thank you. You may begin.
Speaker #1: and welcome to the ARK RESTAURANTS first quarter 2026 results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.
Speaker #1: If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce to your hosts, tech secretary Christopher Love.
Speaker #1: Thank you. You may
Speaker #1: begin. Thank you, operator.
Christopher Love: Thank you, Operator. Good morning, and thank you for joining us on our conference call for the first quarter ended December 27, 2025. My name is Christopher Love, and I am the Secretary of Ark Restaurants. 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 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.arkerestaurants.com. Before we begin, however, I'd like to read the Safe Harbor Statement.
Christopher Love: Thank you, Operator. Good morning, and thank you for joining us on our conference call for the first quarter ended December 27, 2025. My name is Christopher Love, and I am the Secretary of Ark Restaurants. 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 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.arkerestaurants.com. Before we begin, however, I'd like to read the Safe Harbor Statement.
Speaker #2: Good morning and thank you for joining us on our conference call for the first quarter ended December 27, 2025. My name is Christopher Love and I am the secretary of ARK RESTAURANTS.
Speaker #2: With me on the call today are 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 newswires yesterday and is available on our website.
Speaker #2: 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 #2: 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; therefore, undue reliance should not be placed on them.
Christopher Love: 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 more detailed discussion of the risks that may have a direct bearing on our operating results, performance, and financial conditions. I'll now turn the call over to Michael.
Christopher Love: 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 more detailed discussion of the risks that may have a direct bearing on our operating results, performance, and financial conditions. I'll now turn the call over to Michael.
Speaker #2: 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 #2: I'll now turn the call over to Michael.
Speaker #3: Hi. Before I get going, let's have Anthony go over the balance sheet and anything that was significant and was really a quiet quarter. So
Michael Weinstein: Hi. Before I get going, let's have Anthony go over the balance sheet and anything that was significant and was.
Michael Weinstein: Hi. Before I get going, let's have Anthony go over the balance sheet and anything that was significant and was.
Anthony Sirica: Yep.
Anthony Sirica: Yep.
Michael Weinstein: Really a quiet quarter. So Anthony, go ahead.
Michael Weinstein: Really a quiet quarter. So Anthony, go ahead.
Speaker #3: Anthony, go ahead. Yep.
Anthony Sirica: Yep. Real quick. As you saw on the release, our Adjusted EBITDA was about $150,000, better this year than it was last year. Our balance sheet, the cash, was $9 million and change, and our debt is $3 million. Other than that, the balance sheet did not have any significant changes. Like Michael said, it was a very quiet quarter compared to the last several quarters with impairments and things like that. So, it's really, you know, pretty consistent, the balance sheet. I'll turn it over to Michael.
Anthony Sirica: Yep. Real quick. As you saw on the release, our Adjusted EBITDA was about $150,000, better this year than it was last year. Our balance sheet, the cash, was $9 million and change, and our debt is $3 million. Other than that, the balance sheet did not have any significant changes. Like Michael said, it was a very quiet quarter compared to the last several quarters with impairments and things like that. So, it's really, you know, pretty consistent, the balance sheet. I'll turn it over to Michael.
Speaker #4: Real quick, as you saw on the release, our adjusted EBITDA was about $150,000 better this year than it was last year. Our balance sheet—the cash was $9 million and change.
Speaker #4: And our debt is $3 million. Other than that, the balance sheet did not have any significant changes, like Michael said. It was a very quiet quarter compared to the last several quarters with impairments and things like that.
Speaker #4: So it's really pretty consistent, the balance sheet. I'll turn it over to Michael.
Speaker #2: Yeah. On the operations side, I'll speak to that in a second. Just with regard to the cash balance, as we have indicated, we signed a new lease with MGM for New York, New York.
Michael Weinstein: Yeah. On the operations side, I'll speak to that in a second. Just with regard to the cash balance, as we have indicated, you know, we signed a new lease with MGM for New York-New York a couple of years ago. Part of the requirement of that new lease was doing some work within our restaurants, and the work is mostly done at this point, but the redo of America, which will reopen, it's open, but the new facility that we're building will be open in April. That's taken a lot of cash in the last couple of months. Also, our litigation bills at Bryant Park has taken a lot of cash. So, we expect once the build-out of America is completed, the cash position will start to improve, and in the March quarter, that's the low point for us in cash on an annual basis.
Michael Weinstein: Yeah. On the operations side, I'll speak to that in a second. Just with regard to the cash balance, as we have indicated, you know, we signed a new lease with MGM for New York-New York a couple of years ago. Part of the requirement of that new lease was doing some work within our restaurants, and the work is mostly done at this point, but the redo of America, which will reopen, it's open, but the new facility that we're building will be open in April. That's taken a lot of cash in the last couple of months. Also, our litigation bills at Bryant Park has taken a lot of cash. So, we expect once the build-out of America is completed, the cash position will start to improve, and in the March quarter, that's the low point for us in cash on an annual basis.
Speaker #2: A couple of years ago, and part of the requirement of that new lease was doing some work within our restaurants and the work is mostly done at this point.
Speaker #2: But the redo of America, which will be open—but the new facility that we're building will be open in April. That's taken a lot of cash in the last couple of months.
Speaker #2: Also, our litigation bills that Brian Park has taken have a lot of cash. So we expect once the build-out of America is completed, the cash position will start to improve.
Speaker #2: And in the March quarter, that's the low point for us in cash on an annual basis. So we'll see cash starting to improve in the next couple of months.
Michael Weinstein: So, we'll see cash starting to improve in the next couple of months. On the income side, venue by venue, Las Vegas remains a high point for us. We're seeing better results there despite the Strip being down 11%. Our operations are doing quite well. We're more efficient. Keith Eyrich, who runs those operations, is doing a spectacular job for us. We're starting to see, hopefully, some expansion opportunities in Vegas for what we do. Alabama is fine. The Florida restaurants have continued to be down 10%, 12%, 13% on the revenue side. So margins are squeezed. Expenses, although we think we're efficient, they're much higher than they were, you know, a couple of years ago. Just inflation. We have raised some prices along the way, but revenues are soft. That's in our full-service restaurants.
Michael Weinstein: So, we'll see cash starting to improve in the next couple of months. On the income side, venue by venue, Las Vegas remains a high point for us. We're seeing better results there despite the Strip being down 11%. Our operations are doing quite well. We're more efficient. Keith Eyrich, who runs those operations, is doing a spectacular job for us. We're starting to see, hopefully, some expansion opportunities in Vegas for what we do. Alabama is fine. The Florida restaurants have continued to be down 10%, 12%, 13% on the revenue side. So margins are squeezed. Expenses, although we think we're efficient, they're much higher than they were, you know, a couple of years ago. Just inflation. We have raised some prices along the way, but revenues are soft. That's in our full-service restaurants.
Speaker #2: On the income side, venue by venue, Las Vegas remains a high point for us. We're seeing better results there despite the strip being down 11%.
Speaker #2: Our operations are doing quite well. We're more efficient. Keith Yeer, who runs those operations, is doing a spectacular job for us. And we're starting to see hopefully some expansion opportunities in Vegas for what we do.
Speaker #2: Alabama is fine. The Florida restaurants have continued to be down 10, 12, 13 percent on the revenue side. So margins are squeezed, expenses although we think we're efficient, they're much higher than they were a couple of years ago.
Speaker #2: Just inflation. We haven't—we raised some prices along the way, but revenues are soft. That's in our full-service restaurants. Our Hollywood fast food in the Hard Rock continues to do extremely well.
Michael Weinstein: Our Hollywood fast food in the Hard Rock continues to do extremely well. Sequoia in Washington, we have new management there. I was down there last week. We're really excited about the opportunity the new management is affording us. Washington's been a difficult environment for everybody. The project we're in is not doing well, as a whole. But we're starting to see a little perk up in Sequoia. In New York, Bryant Park, again, we're still in this litigation mode. It has hurt us with events. It continues to hurt us with events. But the litigation, we think we're in good shape. And the beneficiary of us being operating the restaurants over the last year and a half despite the fact that everybody seems to know that there's a litigation going on, more event business is starting to be signed up.
Michael Weinstein: Our Hollywood fast food in the Hard Rock continues to do extremely well. Sequoia in Washington, we have new management there. I was down there last week. We're really excited about the opportunity the new management is affording us. Washington's been a difficult environment for everybody. The project we're in is not doing well, as a whole. But we're starting to see a little perk up in Sequoia. In New York, Bryant Park, again, we're still in this litigation mode. It has hurt us with events. It continues to hurt us with events. But the litigation, we think we're in good shape. And the beneficiary of us being operating the restaurants over the last year and a half despite the fact that everybody seems to know that there's a litigation going on, more event business is starting to be signed up.
Speaker #2: Sequoia in Washington, we have new management there. I was down there last week. We're really excited about the opportunity to new management. It's affording us.
Speaker #2: Washington's been a difficult environment for everybody. The project we're in is not doing well. As a whole, but we're starting to see a little perk up in Sequoia and New York.
Speaker #2: Brian Park again, we're still in this litigation mode. It has hurt us with events. It continues to hurt us with events. But the litigation, we think we're in good shape.
Speaker #2: And the beneficiary of us operating the restaurants over the last year and a half, despite the fact that everybody seems to know that there's a litigation going on, more event business is starting to be signed up.
Speaker #2: So I think this year will be better on the revenue side in the event and corporate and social event side than it has been so I think we'll pick up a little bit there.
Michael Weinstein: So I think this year will be better on the revenue side in the event, corporate, and social event side than it has been. So I think we'll pick up a little bit there. Robert continues to do very well. The other things I guess we should discuss is the Meadowlands. Right now, we are doing, you know, the owners of the Meadowlands Racetrack, we're doing surveying to find out where the public will stand on a referendum to vote for a casino in the northern part of the state away from Atlantic City. So once that survey is complete, if it's positive, we think that's the ammunition the legislature needs to go forward and put a referendum on the ballot this November. We just started this process about a week ago. It'll take a month, a month and a half to complete.
Michael Weinstein: So I think this year will be better on the revenue side in the event, corporate, and social event side than it has been. So I think we'll pick up a little bit there. Robert continues to do very well. The other things I guess we should discuss is the Meadowlands. Right now, we are doing, you know, the owners of the Meadowlands Racetrack, we're doing surveying to find out where the public will stand on a referendum to vote for a casino in the northern part of the state away from Atlantic City. So once that survey is complete, if it's positive, we think that's the ammunition the legislature needs to go forward and put a referendum on the ballot this November. We just started this process about a week ago. It'll take a month, a month and a half to complete.
Speaker #2: Robert continues to do very well. The other things I guess we should discuss is the Meadowlands. Right now, we are doing we the owners of the Meadowlands racetrack, we're doing surveying to find out where the public will stand on a referendum to vote for a casino in the northern part of the state away from Atlantic City.
Speaker #2: So once that survey is complete, if it's positive, we think that's the ammunition the legislature needs to go forward and put a referendum on the ballot this November.
Speaker #2: We just started this process about a week ago. It'll take a month, a month and a half to complete. So hopefully, we'll see a positive result.
Michael Weinstein: So, hopefully, we'll see a positive result. So with that, any questions?
Michael Weinstein: So, hopefully, we'll see a positive result. So with that, any questions?
Speaker #2: So with that, any
Speaker #2: questions? Thank you.
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 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key. Our first question comes from the line of Roger Lipton with Lipton Financial. Please proceed with your question.
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 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key. Our first question comes from the line of Roger Lipton with Lipton Financial. Please proceed with your question.
Speaker #5: 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.
Speaker #5: You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key.
Speaker #5: Our first question comes from the line of Roger Lipton from Lipton Financial. Please proceed with your question.
Speaker #4: Yeah. Good morning, Michael and Anthony. Looks like, because you're operating line by line, costs decreased—food and beverage, and payroll. Looks like your menu prices were raised noticeably.
Anthony Sirica: Yeah. Good morning, Michael and Anthony.
Roger Lipton: Yeah. Good morning, Michael and Anthony.
Michael Weinstein: Well, what a.
Michael Weinstein: Well, what a.
Anthony Sirica: It looks like because you're operating line by line, costs increased, food and beverage, and payroll. It looks like your menu prices were raised noticeably, kind of across the board. You mentioned down in Florida, but you know, it came down quarter-over-quarter. From your Q4 to the Q1, cost of sales was, as you well know, I'm sure, down 270 basis points. And your payroll is down 34.9. Several hundred. Yeah. Over 300 basis points. So that's pretty material. So is that the case? It sounds like that was the case. And has it affected traffic, I guess, is the question.
Roger Lipton: It looks like because you're operating line by line, costs increased, food and beverage, and payroll. It looks like your menu prices were raised noticeably, kind of across the board. You mentioned down in Florida, but you know, it came down quarter-over-quarter. From your Q4 to the Q1, cost of sales was, as you well know, I'm sure, down 270 basis points. And your payroll is down 34.9. Several hundred. Yeah. Over 300 basis points. So that's pretty material. So is that the case? It sounds like that was the case. And has it affected traffic, I guess, is the question.
Speaker #4: Kind of across the board. You mentioned down in Florida, but it came down quarter to quarter from your fourth quarter of the first quarter.
Speaker #4: Cost of sales was, as you well know, I’m sure, is down 270 basis points. And your payroll is down 34.9—several hundred, yeah, over 300 basis points.
Speaker #4: So that's pretty material. So it sounds like that was the case. And has it affected traffic, I guess, is the
Speaker #4: question. Too hard
Michael Weinstein: too hard to answer the last question, has it affected traffic? There, you know, there's so much that goes on, weather, you know, and other things. We're just trying to be more efficient. We have not raised prices significantly. I would disagree with that. I think we're just being more efficient. And,
Michael Weinstein: too hard to answer the last question, has it affected traffic? There, you know, there's so much that goes on, weather, you know, and other things. We're just trying to be more efficient. We have not raised prices significantly. I would disagree with that. I think we're just being more efficient. And,
Speaker #2: to answer the last question. Has it affected traffic? There's so much that goes on, weather, and other things. We're just trying to be more efficient.
Speaker #2: We have not raised prices significantly. I would disagree with that. I think we're just being more efficient.
Speaker #2: And.
Speaker #4: Yeah. I mean,
Anthony Sirica: Yeah. I mean, we've, you know, re-engineered some menu items. We're trying to be more efficient on payrolls, reduce overtime, things like that.
Michael Weinstein: Yeah. I mean, we've, you know, re-engineered some menu items. We're trying to be more efficient on payrolls, reduce overtime, things like that.
Speaker #4: We've re-engineered some menu items. We're trying to be more efficient on payrolls, reduce overtime, things like that.
Speaker #1: Well, that's good to hear. I mean, it's preferable to improve margins without raising prices, obviously, right?
Speaker #1: Well, that's good to hear. I mean, it's preferable to improve margins without raising prices, obviously, right?
Michael Weinstein: Well, that's good to hear. Yeah.
Roger Lipton: Well, that's good to hear. Yeah.
Anthony Sirica: So that I mean, it's, it's preferable to.
Michael Weinstein: So that I mean, it's, it's preferable to.
Anthony Sirica: Improve margins without raising prices, obviously, right?
Michael Weinstein: Yeah.
Michael Weinstein: Yeah.
Christopher Love: Improve margins without raising prices, obviously, right?
Michael Weinstein: Right. Yes.
Michael Weinstein: Right. Yes.
Speaker #4: Yes.
Anthony Sirica: From the.
Roger Lipton: From the.
Speaker #2: No. But Right.
Michael Weinstein: No. But we have raised them a little bit, you know, and certain menu items, I mean, it's crazy. And, you know, I go back to Rustic Inn Crabhouse, King Crab Legs. You know, pre-COVID, it was a $99 item. Now it's a $235 item. Why? The cost per pound has gone through the roof. So, you know, but other than a couple of items where, you know, just shortages and the cost, the menu increases have been very modest.
Michael Weinstein: No. But we have raised them a little bit, you know, and certain menu items, I mean, it's crazy. And, you know, I go back to Rustic Inn Crabhouse, King Crab Legs. You know, pre-COVID, it was a $99 item. Now it's a $235 item. Why? The cost per pound has gone through the roof. So, you know, but other than a couple of items where, you know, just shortages and the cost, the menu increases have been very modest.
Speaker #2: We have raised them a little bit. And certain menu items—I mean, it's crazy. And I go back to Rust again: king crab legs.
Speaker #2: Pre-COVID, it was a $99 item. Now it's a $235 item. Why? The cost per pound has gone through the roof. Other than a couple of items where there were just shortages and the cost, the menu increases have been very—
Speaker #2: modest. All right.
Operator: Well, all right. That's good to hear. So how has the traffic trend been? We've had very cold weather in the Northeast, but you're obviously most of your revenues are in Las Vegas, and you said Las Vegas has been firm. How's the weather been in Alabama and Florida this Q1?
Roger Lipton: Well, all right. That's good to hear. So how has the traffic trend been? We've had very cold weather in the Northeast, but you're obviously most of your revenues are in Las Vegas, and you said Las Vegas has been firm. How's the weather been in Alabama and Florida this Q1?
Speaker #1: That's good to hear. So how has the traffic trend been? We've had very cold weather in the Northeast, but you're obviously most of your revenues are you said Las Vegas has been firm.
Speaker #1: How's the weather been in Alabama and Florida this first quarter?
Speaker #2: Alabama is fine. Florida has been a disaster. It got down to
Michael Weinstein: Alabama's fine. Florida's been a disaster. It got down to 45 degrees.
Michael Weinstein: Alabama's fine. Florida's been a disaster. It got down to 45 degrees.
Speaker #2: 45 degrees. That's two weeks. The last two weeks, it's been
Anthony Sirica: Last two weeks. Yeah.
Anthony Sirica: Last two weeks. Yeah.
Speaker #4: Yeah.
Michael Weinstein: In the last two weeks, it's been brutal. Yeah. And not to try to be, you know, funny, but iguanas have fallen out of trees if you read those articles. So that impacts us dramatically. I mean, last week, we were down 40% at some of our full-service restaurants in Florida. It has, you know, it's just been a disaster, as well as in New York. I mean, you know, then nobody was going out. So the first two weeks were very, very tough. So the good news is that the comparisons will be easy next year. It will not be any colder next year than it's been this year.
Michael Weinstein: In the last two weeks, it's been brutal. Yeah. And not to try to be, you know, funny, but iguanas have fallen out of trees if you read those articles. So that impacts us dramatically. I mean, last week, we were down 40% at some of our full-service restaurants in Florida. It has, you know, it's just been a disaster, as well as in New York. I mean, you know, then nobody was going out. So the first two weeks were very, very tough. So the good news is that the comparisons will be easy next year. It will not be any colder next year than it's been this year.
Speaker #2: Brutal. Yeah. And not to try to be funny, but iguanas have fallen out of trees, if you read those articles. So that impacts us dramatically.
Speaker #2: I mean, last week, we were down 40% at some of our full-service restaurants. And in Florida, it has just been a disaster. As well as in New York.
Speaker #2: I mean, nobody was going out. So the first two weeks were very, very tough.
Speaker #1: So the good news is that the comparisons will be easy next year. It will not be any colder next year. It's been this—
Speaker #1: year. I hope
Anthony Sirica: Mm-hmm. Hope not.
Anthony Sirica: Mm-hmm. Hope not.
Speaker #1: Okay. Well, thanks very much.
Speaker #1: Okay. Well, thanks very much.
Michael Weinstein: Okay. Well, thanks very much.
Roger Lipton: Okay. Well, thanks very much.
Speaker #4: You're welcome, Roger. Thank
Anthony Sirica: You're welcome, Roger.
Anthony Sirica: You're welcome, Roger.
Speaker #2: you. Thank
Michael Weinstein: Thank you.
Michael Weinstein: Thank you.
Speaker #5: Our next question comes from the line of Jeffrey Kaminski with JJK Consultants. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Jeffrey Kaminski with JJK Consultants. Please proceed with your question.
Operator: Thank you. Our next question comes from the line of Jeffrey Kaminski with JJK Consultants. Please proceed with your question.
Speaker #6: Good morning, Anthony. Good morning, Michael.
Jeffrey Kaminsky: Good morning, Anthony. Good morning, Michael.
Jeffrey Kaminsky: Good morning, Anthony. Good morning, Michael.
Speaker #4: Hey, Jeff.
Michael Weinstein: Hey, Jeff.
Michael Weinstein: Hey, Jeff.
Jeffrey Kaminsky: I have two questions in different directions, but two questions. Michael, you just said on the call that, with respect to the litigation at Bryant Park, you feel that you guys are in pretty good shape. I was wondering, I know it was, you know, it's a legal issue, and it's probably things you can and can't say. But what gives you the belief that you're in good shape? As I pointed out on this call, three months ago, it was my understanding that, when it came to winning the lease back, that ARK actually came in third, not second. So should you be successful in this litigation, that doesn't necessarily mean that ARK gets the lease back because there was someone who came in second, not you. So that's one question. And I'll pivot and address them both.
Jeffrey Kaminsky: I have two questions in different directions, but two questions. Michael, you just said on the call that, with respect to the litigation at Bryant Park, you feel that you guys are in pretty good shape. I was wondering, I know it was, you know, it's a legal issue, and it's probably things you can and can't say. But what gives you the belief that you're in good shape? As I pointed out on this call, three months ago, it was my understanding that, when it came to winning the lease back, that ARK actually came in third, not second. So should you be successful in this litigation, that doesn't necessarily mean that ARK gets the lease back because there was someone who came in second, not you. So that's one question. And I'll pivot and address them both.
Speaker #6: Two questions. Different directions, but two questions. Michael, you just said on the call that, with respect to the litigation, by importance, you feel that you guys are in pretty good shape.
Speaker #6: I was wondering, I know it was a legal issue, and it's probably things you can and can't say. But what gives you the belief that you're in good shape?
Speaker #6: As I pointed out on this call three months ago, it was my understanding that when it came to winning the lease back, that AUC actually came in third, not second.
Speaker #6: So should you be successful in this litigation, that doesn't necessarily mean that AUC gets the lease back because there was someone who came in second, not you.
Speaker #6: So that's one question, and I'll pivot, and we can address them both. In the press release you mentioned as you have spoken in the past with respect to the Meadowlands, that there's likely to be some dilution in terms of AUC's ownership.
Jeffrey Kaminsky: In the press release, you mentioned, as you have spoken in the past, with respect to the Meadowlands, that there's likely to be some dilution in terms of ARK's ownership. I understand that ARK owns about 8%, roughly. You know, you can correct me if that's a wrong number. What do you expect the dilution impact to be on the ownership of the casino in the Meadowlands? Thank you.
Jeffrey Kaminsky: In the press release, you mentioned, as you have spoken in the past, with respect to the Meadowlands, that there's likely to be some dilution in terms of ARK's ownership. I understand that ARK owns about 8%, roughly. You know, you can correct me if that's a wrong number. What do you expect the dilution impact to be on the ownership of the casino in the Meadowlands? Thank you.
Speaker #6: I understand that AUC owns about 8%, roughly. You can correct me if that's a wrong number. What do you expect the dilution impact to be on the ownership of the casino in the Meadowlands?
Speaker #6: Thank
Speaker #6: you. All
Speaker #5: Right. So on the Bryant Park issue, the discovery process has brought to light certain things that we think are beneficial to us. That, as well as the time period over which we will remain in possession, we believe, while the litigation goes forward and any appeals go forward, we think we've got a significant amount of time to resolve the issues.
Michael Weinstein: All right. So on the Bryant Park issue, the discovery process has brought to light certain things that we think are beneficial to us. That, as well as the time period over which we will remain in possession, we believe, has, while the litigation goes forward and any appeals go forward, we think we've got a significant amount of time to resolve the issues. So that's, you know, and I encourage everybody to read, you know, the court process. That's public documentation that's available on the city's New York State Supreme Court website. Yep. With regard to dilution at the Meadowlands, there are too many moving parts. There is no dilution if a casino license is granted to the Meadowlands; our exclusive on all food and beverage.
Michael Weinstein: All right. So on the Bryant Park issue, the discovery process has brought to light certain things that we think are beneficial to us. That, as well as the time period over which we will remain in possession, we believe, has, while the litigation goes forward and any appeals go forward, we think we've got a significant amount of time to resolve the issues. So that's, you know, and I encourage everybody to read, you know, the court process. That's public documentation that's available on the city's New York State Supreme Court website. Yep. With regard to dilution at the Meadowlands, there are too many moving parts. There is no dilution if a casino license is granted to the Meadowlands; our exclusive on all food and beverage.
Speaker #5: So that's it, and I encourage everybody to read the court process. That is public documentation that's available on the city.
Speaker #4: New York State Supreme Court website.
Speaker #5: At the Meadowlands, there are too many—yeah. With regard to dilution, moving parts. Where there is no dilution, if a casino license is granted to the Meadowlands, is our exclusive on all food and beverage?
Speaker #5: So that is a part from our ownership position in the LLC, which is New Meadowlands Racetrack. So from that point of view, there's no dilution in our exclusive but there will be dilution based upon what deal is made with an operator and how much money there has to be raised.
Michael Weinstein: So that is apart from our ownership position in the LLC, which is New Meadowlands Racetrack. So from that point of view, there's no dilution in our exclusive, but there will be dilution based upon what deal, you know, is made with an operator and how much money there has to be raised. And, you know, if it speculative, obviously, I don't know what our ability to raise money will be if a casino license is issued in the north. And I guess that would depend greatly on the price of our stock and whether it makes sense to do a secondary to keep the dilution to a minimum or whether we just decide to be diluted or take in a partner. You know, there are too many issues. So, but I imagine there will be some dilution.
Michael Weinstein: So that is apart from our ownership position in the LLC, which is New Meadowlands Racetrack. So from that point of view, there's no dilution in our exclusive, but there will be dilution based upon what deal, you know, is made with an operator and how much money there has to be raised. And, you know, if it speculative, obviously, I don't know what our ability to raise money will be if a casino license is issued in the north. And I guess that would depend greatly on the price of our stock and whether it makes sense to do a secondary to keep the dilution to a minimum or whether we just decide to be diluted or take in a partner. You know, there are too many issues. So, but I imagine there will be some dilution.
Speaker #5: And if speculative obviously. I don't know what our ability to raise money will be if a casino license is issued in the North. And I guess that would depend greatly on the price of our stock and whether it makes sense to do a secondary to keep the dilution to a minimum.
Speaker #5: Or whether we just decide to be diluted or taken a partner. There are too many issues. So but I imagine there will be some dilution.
Speaker #5: Or whether we just decide to be diluted or take on a partner. There are too many issues. But I imagine there will be some dilution.
Speaker #6: Okay.
Jeffrey Kaminsky: Okay. Thank you.
Jeffrey Kaminsky: Okay. Thank you.
Speaker #6: Thank you. I hope that
Michael Weinstein: I hope that answers your question.
Michael Weinstein: I hope that answers your question.
Speaker #6: Thank answers your question.
Jeffrey Kaminsky: Thank you.
Jeffrey Kaminsky: Thank you.
Speaker #5: You're welcome. you.
Michael Weinstein: You're welcome.
Michael Weinstein: You're welcome.
Speaker #1: Thank
Speaker #1: you. And we have reached the end of the question-and-answer session. And I'd like to turn the floor back over to Michael Weinstein for a closing remarks.
Operator: Thank you. We have reached the end of the question-and-answer session. I'd like to turn the floor back over to Michael Weinstein for closing remarks.
Operator: Thank you. We have reached the end of the question-and-answer session. I'd like to turn the floor back over to Michael Weinstein for closing remarks.
Speaker #2: All right. Thank you for your participation. We'll speak to you in three.
Michael Weinstein: All right. Thank you for your participation. We'll speak to you in three months.
Michael Weinstein: All right. Thank you for your participation. We'll speak to you in three months.
Speaker #2: months. Thank
Speaker #2: months. Thank
Speaker #4: you. Thank you.
Anthony Sirica: Thank you.
Anthony Sirica: Thank you.
Operator: Thank you. This concludes today's conference. You may disconnect your line at this time. Thank you for your participation.
Operator: Thank you. This concludes today's conference. You may disconnect your line at this time. Thank you for your participation.
