US-based Ark Restaurants has reported a loss of $484,000 for the fiscal second quarter as against a profit of $1.05m a year ago.
For the quarter ended 1 April 2023, total revenues were $41.89m compared to $39.58m in the comparable year-ago period.
The New York-based restaurant and bar operator’s total costs during the quarter increased to $41.87m from $39.36m a year earlier.
Adjusted earnings before interest, taxes, depreciation, and amortization was $1m versus $1.48m in the second quarter of last fiscal year.
The company noted that it had a cash balance of $17.89m and total outstanding debt of $14.29m as of 1 April 2023.
The company also announced a plan to pay a quarterly cash dividend of $0.1875 per share.
It noted that the Covid-19 pandemic and inflation caused ‘significant and variable’ disruptions to its business.
“In addition to the associated impacts of Covid-19, our operating results have been impacted by geopolitical and other macroeconomic factors, leading to increased commodity and wage inflation and other increased costs,” the company said in its press statement.
“If these factors significantly impact our cash flow in the future, we may again implement mitigation actions such as suspending dividends, increasing borrowings, or modifying our operating strategies. Some of these measures may have an adverse impact on our business, including possible impairments of assets, the statement added.
The company owns and operates 17 restaurants and bars, 16 fast food concepts, and catering operations, primarily in New York City, Florida, Washington, DC, Las Vegas, Nevada, and the gulf coast of Alabama.