Ark Restaurants F1Q08 (Qtr End 12/29/07) Earnings Call Transcript

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2008-02-11 12:55:08.0

Tags: Ark Restaurants Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Dean Haskell with Morgan Joseph. Please go ahead.

Dean Haskell - Morgan Joseph

Good afternoon, gentlemen. Congratulations on a good quarter in a tough environment. The Florida comps in the first quarter, how did those run?

Michael Weinstein

Tampa is doing -- the two properties together, about even. Tamp is up 12%. That continues to be the stronger of the two properties right now. The Hollywood property had some competition from Gulf Stream and some of the other traps that installed machines, so that’s been down a little over 12% from last year. The big news there again is the new slot machines that -- 700 of the new type slot machines and we are starting to see some positive results from that. And we would expect -- you know, Hollywood’s had a great run. We’ve been up 20% or more compounded annually since we walked in there, so this drop with the new competition was not unexpected but now that they have these machines and nobody -- and they have exclusive on these machines, we would expect that business to come back.

So all in all, pretty good.

Dean Haskell - Morgan Joseph

So in the fiscal first quarter, Florida was flat and it’s flat now through the second quarter to date?

Michael Weinstein

Correct.

Dean Haskell - Morgan Joseph

Okay. CapEx for the first quarter to finish of Yolos?

Michael Weinstein

Yolos cost us around 3.1, 3.2. We have a couple-hundred-thousand dollars in disputes with the contractor but maybe it will go to 3.25 or something like that. And it opened up pretty well on an ongoing basis right now, if payroll is where we know we can get it. You know, obviously we have excessive payroll the first few weeks. We’re into our fifth week, I believe right now. At the buying levels we have, with the rent deal we have, we’re profitable.

Dean Haskell - Morgan Joseph

Okay. And you have no other units under construction, so you are building cash position, and no debt?

Michael Weinstein

Correct.

Dean Haskell - Morgan Joseph

Okay. The pre-opening expense on Yolos that was booked into the first quarter, was that roughly $300,000?

Michael Weinstein

No, it was a couple-hundred-thousand dollars.

Robert J. Stewart

$150,000.

Michael Weinstein

$150,000, and then we had another $100,000 at New York-New York, give or take.

 

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