Ark Restaurants Corp (ARKR) 2025 Q1 法說會逐字稿

(technical difficulty) (Operator Instructions) As a reminder, this conference is being recorded.

（技術難題）（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Christopher Love, Secretary for Ark Restaurants. Thank you, sir. You may begin.

現在我很高興介紹您的主持人、Ark Restaurants 秘書克里斯托弗·洛夫 (Christopher Love)。謝謝您，先生。你可以開始了。

Thank you, operator. Good morning, and thank you for joining us on our conference call for the first quarter ended December 28, 2024. 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; Anthony Sirica, our CFO; and Jennifer Jordan, our Co-COO. 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.

謝謝您，接線生。早安，感謝您參加我們截至 2024 年 12 月 28 日的第一季電話會議。今天與我一起參加電話會議的是我們的董事長兼執行長 Michael Weinstein；我們的財務長 Anthony Sirica；以及我們的聯合營運長 Jennifer Jordan。對於尚未獲得我們新聞稿的人來說，它昨天已透過新聞通訊社發布，也可以在我們的網站上查閱。

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 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.

要查看該新聞稿的全文以及相關財務表，請造訪我們的主頁 www.arkrestaurants.com。不過，在我們開始之前，我想先讀安全港聲明。我需要提醒大家，我們今天早上的討論內容將包括前瞻性陳述，這些陳述並不能保證未來的表現，因此，不應過度依賴它們。請大家參閱我們提交給美國證券交易委員會的文件，以便更詳細地討論可能對我們的經營業績、業績和財務狀況產生直接影響的風險。

I'll now turn the call over to Anthony, our CFO.

現在我將把電話轉給我們的財務長安東尼。

Good morning, everyone. So a couple of items related to the income statement. I just wanted to make sure I clarified for everyone. As we had discussed on last quarter's call, the Tampa Food Court, we were bought out of by the landlord. We closed the operation on December 15. We received the buyout payment on December 19 of $5.5 million. So that's included in our cash balances at quarter end. Of that amount, approximately $1.9 million will be distributed to the minority partners of that business that will happen within the next couple of weeks. Included in our P&L is a gain of $5.2 million related to that transaction.

大家早安。有幾項內容與損益表有關。我只是想確保我向每個人都解釋清楚了。正如我們在上個季度的電話會議上討論的那樣，坦帕美食廣場已被房東收購。我們於 12 月 15 日結束了這項業務。所以這包含在我們季度末的現金餘額中。其中約 190 萬美元將在未來幾週內分配給該業務的少數股東合夥人。我們的損益表中包括與該交易相關的 520 萬美元收益。

In addition, we had some residual losses related to the closure of Rio Grande of $146,000, which again, we had discussed last quarter's call. That was closed on January 3, permanently, and we're in the process of vacating the space. With respect to the balance sheet, our cash balance is $13.1 million at the end of the quarter. As I said, a $1.9 million to that is spoken for, is owed to, the minority shareholders of the Tampa operation. Our debt is $4.7 million. We didn't have any further issues with our goodwill or right-of-use assets or long-lived assets this quarter.

此外，我們還因 Rio Grande 關閉而產生了 146,000 美元的剩餘損失，我們在上個季度的電話會議上已經討論過這個問題。該場所於 1 月 3 日起永久關閉，我們正在騰出該空間。就資產負債表而言，本季末我們的現金餘額為 1,310 萬美元。正如我所說的，其中 190 萬美元是欠坦帕業務少數股東的。我們的債務是470萬美元。本季我們的商譽、使用權資產或長期資產沒有出現任何其他問題。

We're currently working on a new banking agreement. Our current facility expires on May 31. Obviously, the Bryant Park situation is gumming up that process a little bit. Michael will talk about that. And there are some minor decreases in the assets the right-of-use assets and the related lease liabilities for the removal of Tampa and Hollywood -- I'm sorry, Tampa in Rio upon closure. Other than that, the balance sheet remained very stable.

我們目前正在製定一項新的銀行協議。我們目前的設施將於 5 月 31 日到期。麥可將會談論這個問題。由於坦帕和好萊塢的關閉，使用權資產和相關租賃負債（對不起，是裡約的坦帕）的資產減少。除此之外，資產負債表保持非常穩定。

That's all that I have. I'll turn it over to Michael.

這就是我所有的一切。我將把它交給邁克爾。

Hi, everybody. So not much different going on here in terms of operations of -- with sales and the inflated expenses that we're experiencing, especially in payroll and insurance premiums, been just down the line, everything is more expensive. We remain steadfast in not raising prices. We think that will serve us well in the end. We believe demand will come back at some point.

大家好。因此，從營運角度來看，情況並沒有太大不同——隨著銷售額和我們所經歷的膨脹的費用，尤其是工資和保險費，一切都變得更加昂貴。我們堅定不漲價的決心。我們認為這最終會為我們帶來好處。我們相信需求最終會回升。

We do not want the reputation of not offering quality value equation. So what we're seeing is sales, again, in Alabama are -- continue to be very good. Sales in Vegas are decent. The New York properties, Bryant Park and Robert, do well. With events, a la carte business is probably a little bit soft, but not much soft.

我們不想背負不提供質量價值方程式的惡名。因此，我們看到阿拉巴馬州的銷售情況繼續保持良好。拉斯維加斯的銷售情況不錯。紐約的布萊恩特公園 (Bryant Park) 和羅伯特 (Robert) 表現良好。透過舉辦活動，點菜業務可能會稍微軟一些，但不會太軟。

Washington, DC, we have demand problems. And Florida, depending upon weather, if the weather is good right now, we seem to be exceeding last year, significantly by the way. But that may be a pent-up demand from a lot of bad weather in Florida in general. So the outlook for EBITDA in the restaurants -- and let's not -- lets hold off on Bryant Park.

華盛頓特區，我們面臨需求問題。而佛羅裡達州的情況則取決於天氣，如果現在天氣好的話，我們的情況似乎會遠遠超過去年。但這可能是由於佛羅裡達州普遍惡劣天氣而產生的被壓抑的需求。因此，餐廳的 EBITDA 前景——我們不要——讓我們推遲布萊恩特公園的計劃。

But away from Bryant Park, we've gone on a mission to try to figure out how to combine functions, and over the years, we've had people who are now not as important to the operations as they once were, as we've matured. So we've begun to, for the first time in the company's history, revamp schedules and payrolls and personnel, to try to make us more efficient given the current levels of demand. That's an ongoing process. It will start to show up in operating profits, I think, this quarter and going into next quarter.

但離開布萊恩特公園後，我們已經開始著手研究如何結合各項功能，多年來，隨著我們日益成熟，我們的一些員工對營運的重要性不再像以前那麼重要了。因此，我們在公司歷史上首次開始調整時間表、薪資和人事安排，以便在當前的需求水準下提高效率。這是一個持續的過程。我認為，它將在本季和下個季度開始體現在營業利潤中。

We have excellent new managers in -- general managers in both Las Vegas and Sequoia. We signed a new lease in Las Vegas about two years ago, which made the rents requiring -- to make the rents make sense, we require a kick in revenues in Vegas. We're starting to see that. We're running ahead of last year. We need to do about 10% to 12% more business to justify the new rents. I think we'll get there. Were more efficient also in Vegas on a payroll basis than we were last year.

我們在拉斯維加斯和紅杉資本都有出色的新經理和總經理。大約兩年前，我們在拉斯維加斯簽署了一份新的租約，這使得租金要求——為了使租金合理，我們需要在拉斯維加斯增加收入。我們開始看到這一點。我們已經超越了去年。我們需要增加10%到12%的業務才能證明新租金的合理性。我想我們會到達那裡。與去年相比，我們在拉斯維加斯的薪資發放效率更高。

Sequoia, Washington, DC, has remained a huge problem for demand for us, but we're told that's true everywhere. The product is really good. The manager who we hired has 26 years of experience in Washington, DC, I think she'll be a tremendous tremendously helpful and increasing demand. So we'll wait and see on that. All in all, we just -- margins have been squeezed.

華盛頓特區的紅杉對我們來說仍然是一個巨大的需求問題，但我們聽說，這種情況在任何地方都是如此。產品確實好。我們聘請的經理在華盛頓特區有 26 年的工作經驗，我認為她會非常有幫助，而且需求量也會不斷增加。因此我們將拭目以待。總而言之，我們只是——利潤空間受到了擠壓。

We're trying to take the margins up by being more efficient in payroll, hopefully driving some more revenue. The easy one to talk about of the two elephants in the room, Meadowlands and Bryant Park. Meadowlands, again, we think we're the most likely site for gaining a casino license in the North of New Jersey, but New Jersey will not move until New York state starts to issue licenses for downstate casinos meaning Manhattan, or Queens or The Bronx. Two of those licenses, if we suspect will be issued, to Aqueduct and to Yonkers. We believe that once they're issued, it will take a matter of months for those to become fully operational casinos because the facilities are already built.

我們正嘗試透過提高工資效率來提高利潤率，希望能帶來更多的收入。房間裡有兩頭大象，最容易談論的是梅多蘭茲 (Meadowlands) 和布萊恩特公園 (Bryant Park)。再一次，我們認為梅多蘭茲是最有可能在新澤西州北部獲得賭場執照的地點，但新澤西州不會採取行動，直到紐約州開始為下州賭場（即曼哈頓、皇后區或布朗克斯區）頒發執照。如果我們猜測其中兩個許可證將會頒發給 Aqueduct 和 Yonkers。我們相信，一旦這些許可發放，只需要幾個月的時間就可以成為全面運作的賭場，因為相關設施已經建成。

For the third license and there are several developers vying for those, that will take some time. But we think the implementation of casino licenses at Yonkers and Aqueduct will force Jersey to make a decision that they have to do something in the North Atlantic City, has been dying for years, and I think this would really be a death knell, and Jersey a wake up, and issue a license in the North. We suspect that New York State will issue licenses sometime later this year. So we also expect that, that will generate a referendum to allow -- that -- as a referendum voted on by the public to allow for casino gaming in the North. So that's in Meadowlands.

對於第三個許可證，有幾個開發商在爭奪它，這將需要一些時間。但我們認為，在揚克斯和阿夸特克特實施賭場牌照發放將迫使澤西島做出決定，他們必須在這個多年來一直奄奄一息的北大西洋城做點什麼，我認為這真的會敲響喪鐘，讓澤西島幡然醒悟，並在北方發放牌照。我們預計紐約州將在今年稍後發放許可證。因此，我們也預計，這將引發一場全民公投，允許——即——由公眾投票通過的全民公投，允許在北方進行賭場博彩。那是在梅多蘭茲 (Meadowlands) 。

Bryant Park, if we follow the headlines, the Bryant Park Corporation has said they want to go forward with somebody other than us. That deal has not been signed yet. It requires a positive okay from the Parks Department in the New York Public Library. We've hired a whole team of experts, and we feel that we have a decent chance of retaining the operation of that facility. It will take months to know.

布萊恩特公園，如果我們關注頭條新聞的話，布萊恩特公園公司已經表示，他們想與我們以外的其他人合作。該協議尚未簽署。它需要得到紐約公共圖書館公園管理部門的積極批准。我們已經僱用了一整個專家團隊，我們覺得我們有很大機會保留該設施的運作。要花幾個月的時間才能知道。

But we really believe we're still in the game. We think the whole request for proposal process was flawed. And the thing that we don't understand is that the new license to operate will be issued to a company that has limited hospitality experience. We've been hugely successful and the minimum rent proposal is $1 million less than us. So it just doesn't sound like it's a logical business arrangement and we're looking into it.

但我們確實相信我們仍在努力。我們認為整個提案請求過程有缺陷。我們不明白的是，新的經營許可證將頒發給一家酒店業經驗有限的公司。我們取得了巨大的成功，最低租金提案比我們低了 100 萬美元。所以這聽起來不像是個合理的商業安排，我們正在調查。

And hopefully we will see something that starts to move us back into our direction. So with that, any questions, I'm happy to answer it.

希望我們能看到一些事情讓我們回到原來的方向。因此，如果有任何問題，我很樂意回答。

(Operator Instructions) Jeffrey Kaminsky, JJK Consulting.

（操作員指示）Jeffrey Kaminsky，JJK 顧問公司。

Mike, Anthony, with respect to Bryant Park and the process. I guess you folks found out about the lease and the other party through -- if I'm reading the tea leaves properly, through some sort of public hearing or a public meeting. So my question is, are there more of these scheduled? And can the public actually attend? I mean, as a shareholder, I have a vested interest in what happens to Bryant Park, as do other shareholders of Ark. What's preventing us as a member of the public and a New York resident from attending such hearing?

麥克、安東尼，對布萊恩特公園及其進程表示敬意。我想你們是透過某種公開聽證會或公開會議了解到租約和另一方的——如果我沒看錯的話。所以我的問題是，還有其他安排嗎？公眾真的可以參加嗎？我的意思是，身為股東，我對布萊恩特公園的命運有著既得利益，阿肯色大學的其他股東也是如此。

There's nothing preventing you to go to public sessions. The community Board session is a public session. The announcement of his -- the Bryant Park Corporation selection was made at a subcommittee of the Community Board meeting, this Parks and Recreation subcommittee of the community Board. And it was a public forum. The there was a lot of robust conversation about it, regarding the process and regarding the affordability of the selection the new restaurant tour. We're reasonably priced.

沒有什麼可以阻止你參加公開會議。社區董事會會議是一次公開會議。他被布萊恩特公園公司選中的消息是在社區委員會會議的一個小組委員會上宣布的，該委員會是社區委員會的公園和娛樂小組委員會。這是一個公開論壇。關於此事宜，人們進行了​​大量的熱烈討論，涉及流程以及新餐廳之旅選擇的可負擔性。我們的價格合理。

We don't think this -- the selection of Seaport Entertainment Group and their licensing agreement -- proposed licensing agreement with John George speaks well of affordability for the public. So there was a large discussion about that. But the community board advisory position in this, the sign-offs they need to get a deal done with any operator has to come from the City Parks Department, and from the Public Library. And they have not proposed a change in operators to either one of those two organizations.

我們不認為這一點——選擇海港娛樂集團及其許可協議——與約翰喬治提出的許可協議很好地說明了公眾的承受能力。因此對此進行了廣泛的討論。但是，社區委員會在這方面的顧問職位，與任何運營商達成協議所需的簽字必須來自市立公園部門和公共圖書館。他們也沒有向這兩個組織中的任何一個提出更換運營商的建議。

So -- go ahead.

那麼--繼續吧。

Are comments from the public welcome at the (inaudible) to shareholders and your employees?

公眾對股東和員工的評論是否受歡迎（聽不清楚）？

We had 25 employees at the Community Board meeting. We have 250 employees at Bryant Park Corporation who are in danger of losing their jobs. And literally 40% of those employees have been with us for 25 years or more. So that constituency is also important in this process.

我們有 25 位員工參加了社區委員會會議。布萊恩特公園公司有 250 名員工面臨失業的危險。其中 40% 的員工已與我們合作了 25 年或更長時間。因此該選區在此過程中也發揮重要作用。

Right. And were any of them able to speak at the meeting? And if I attended the next meeting as a shareholder, would I have an opportunity to make a statement or?

正確的。他們中有誰能在會上發言嗎？如果我以股東身分參加下次會議，我是否有機會發表聲明？

You would have a minute to two minutes to speak.

您有一到兩分鐘的發言時間。

Okay. Thank you.

好的。謝謝。

You're welcome.

不客氣。

(Operator Instructions) Ravi Desai, a private investor.

(操作員指示) 私人投資者拉維‧德賽 (Ravi Desai)。

Hey, Michael. How are you?

嘿，麥可。你好嗎？

Good, Ravi. Thank you.

很好，拉維。謝謝。

I had a question. Moving forward, as you guys think down the road 6 months, 12 months. Just wanted to get a sense of how you guys are thinking about the capital allocation on dividends or buybacks, or if you guys have any other ideas outside of the strategic acquisitions that you're looking for down south?

我有一個問題。展望未來，正如你們所想，未來 6 個月、12 個月。只是想了解你們對於股息或回購的資本配置有何看法，或者除了你們在南方尋求的戰略收購之外，你們還有其他想法嗎？

So that's a complicated question because it really depends upon the outcome of Bryant Park, certainly with regard to dividends. Right now, without the cash flow that would be attendant to an operation at Bryant Park, we would not be a payer of dividends.

這是一個複雜的問題，因為它實際上取決於布萊恩特公園的結果，當然也與股息有關。目前，如果沒有布萊恩特公園營運所需的現金流，我們就不會支付股息。

That also is a question regarding buybacks. I think that same thought process is applicable. I don't think we're going to be aggressively buying stock unless we know what's going on with Bryant Park, number one, as a company. There may be people were aligned with, who may want to take an interest in the stock. But without Bryant Park, it's very hard to make these decisions.

這也是有關回購的問題。我認為同樣的思考過程也適用。我認為，除非我們了解布萊恩特公園這家公司的狀況，否則我們不會大舉買股票。可能有人與我們志同道合，想要對該股票感興趣。但是，沒有布萊恩特公園，做出這些決定就非常困難。

In terms of expanding the business, we have some nice opportunities, we think, that don't require a tremendous amount of capital, or where we would have partnerships with other organizations that see us as an important part of the process to establish some new operations. So we're looking at that.

在擴大業務方面，我們認為我們有一些很好的機會，這些機會不需要大量資本，或者我們可以與其他組織建立合作夥伴關係，這些組織將我們視為建立一些新業務的重要組成部分。所以我們正在研究這個問題。

It's sort of paralyzing in one respect for our balance sheet and income statement to have this issue with Bryant Park. But on the other hand, we're actively engaged in trying to find areas where we can expand sensibly. Hope that answers your question.

布萊恩特公園出現這個問題，在某種程度上對我們的資產負債表和損益表來說是一種癱瘓。但另一方面，我們正在積極尋找可以合理擴展的領域。希望這能回答你的問題。

Yes, that does. That's helpful there. So we'll see how the Bryant Park shakes out and good luck with that. I think it -- I hope it falls in you guys' favor.

是的，確實如此。這很有幫助。所以我們將看看布萊恩特公園的表現如何，祝你好運。我認為——我希望這對你們有利。

Thank you.

謝謝。

(Operator Instructions) Mr. Weinstein, it appears we have no further questions at this time. I'd like to turn the floor back over to you for closing comments.

（操作員指示）溫斯坦先生，目前看來我們沒有其他問題了。我想把發言權交還給您，請您發表最後評論。

All right. Thank you all for your interest, and we'll see you next quarter.

好的。感謝大家的關注，我們下個季度再見。

Thank you. Bye-bye.

謝謝。再見。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與，祝您有美好的一天。