Financial Data and Key Metrics Changes - The company ended the year with 5.2 million in debt, with one more principal payment due on February 1 and a remaining debt balance of 876,000 related to the closure of El Rio Grande, which included write-offs of a security deposit, six months of rent, and severance [9] - An additional goodwill impairment of 10 million impairment last year [10][11] Business Line Data and Key Metrics Changes - The company experienced reduced sales and a challenging revenue environment, particularly in Florida and Washington DC, while Alabama performed consistently well [14][15] - Labor costs have stabilized, but expenses related to insurance premiums and payroll increases continue to impact margins [14][15] Market Data and Key Metrics Changes - The revenue environment remains challenging in several markets, with Las Vegas showing okay revenues but impacted by increased expenses [15] - New York's business is described as decent, but there are no significant new business developments [15][16] Company Strategy and Development Direction - The company is exploring new business opportunities, including the Lucky Pig concept, which is operational and expected to expand [80][84] - The company is also focused on improving existing businesses, enhancing efficiency, and increasing marketing efforts to drive customer traffic [87] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the revenue environment and the impact of rising costs on margins [14][15] - The company is optimistic about the potential for a casino license in the Meadowlands, which could significantly enhance revenue opportunities [30][39] Other Important Information - The company is in discussions to extend its credit agreement and term out the remaining debt over several years [7] - The landlord of the food court in Tampa has agreed to pay 5.5 million for the company to vacate the space, which will add to the cash on the balance sheet [12][50] Q&A Session Summary Question: Developments regarding the casino licenses in New York City - Management discussed the competition for downtown licenses and the potential impact on New Jersey's gaming revenue if a casino opens in Manhattan [22][30] Question: Non-cash write-downs and their implications - Management confirmed that the total non-cash write-downs over the last two years amount to approximately 16.5 million, primarily due to stock price performance [39][43] Question: Future growth drivers for the stock - Management highlighted ongoing efforts to explore new concepts and improve existing operations as key drivers for future stock performance [80][87]
Ark Restaurants(ARKR) - 2024 Q4 - Earnings Call Transcript