UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported)
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May 12, 2015
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Good Times Restaurants Inc.
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(Exact name of registrant as specified in its charter)
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Nevada
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000-18590
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84-1133368
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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601 Corporate Circle, Golden, Colorado 80401
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(Address of principal executive offices) (Zip Code)
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Registrant’s telephone number, including area code: (303) 384-1400
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Not applicable
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(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit Number
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Description
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99.1
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Press Release, dated May 12, 2015
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GOOD TIMES RESTAURANTS INC.
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Date: May 12, 2015 |
By:
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/s/ Boyd E. Hoback | |
Boyd E. Hoback
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President and Chief Executive Officer
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FOR IMMEDIATE RELEASE
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May 12, 2015 | Nasdaq Capital Markets - GTIM |
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Same store sales for company-owned Good Times restaurants increased 8.3% for the quarter on top of last year’s increase of 17.8%, the twentieth consecutive quarter of increasing same store sales
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Restaurant Level Operating Profit for Good Times restaurants increased $224,000 or 27.5% over last year during the quarter (see schedule below)
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Restaurant Level Operating Profit for the three Colorado Bad Daddy’s restaurants was $288,000 or 14.3% of sales during the quarter (see schedule below) The Company’s second restaurant continues to generate the highest average weekly sales in the Bad Daddy’s system and had a Restaurant Level Operating Profit margin of 24.5% for the quarter
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The Restaurant Level Operating Profit margin for Good Times restaurants increased by 160 basis points to 15.7% from 14.1% last year (see schedule below)
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Preopening costs related to the development of new Bad Daddy’s Burger Bar restaurants in Colorado and a new Good Times restaurant were $185,000 during the quarter
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Net Loss for the quarter decreased to $361,000 from $425,000 last year, with an increase in general and administrative expenses of $224,000 from last year related to Bad Daddy’s development, stock compensation expense and an increase in investor relations expenses and an expense of $197,000 in acquisition costs related to the acquisition of Bad Daddy’s International that was announced subsequent to the quarter’s end
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The Company ended the quarter with $11.4 million in cash plus assets held for sale of $1.1 million. Subsequent to the quarter’s end, the Company announced the closing of a sale-leaseback for those assets that generated net proceeds of $1.52 million
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The Company opened a new Good Times restaurant on May 7, 2015 in Aurora, Colorado, a suburb of Denver
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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Statement of Operations
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2015
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2014
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2015
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2014
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Net Revenues:
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Restaurant sales
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$ | 8,626 | $ | 6,006 | $ | 16,392 | $ | 11,835 | ||||||||
Franchise revenues
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88 | 84 | 177 | 166 | ||||||||||||
Total net revenues
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8,714 | 6,090 | 16,569 | 12,001 | ||||||||||||
Restaurant Operating Costs:
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Food and packaging costs
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2,874 | 2,036 | 5,623 | 3,975 | ||||||||||||
Payroll and other employee benefit costs
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3,030 | 2,153 | 5,687 | 4,135 | ||||||||||||
Restaurant occupancy costs
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1,071 | 876 | 2,072 | 1,705 | ||||||||||||
Other restaurant operating costs
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384 | 213 | 721 | 411 | ||||||||||||
New store preopening costs
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185 | 221 | 422 | 369 | ||||||||||||
Depreciation and amortization
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272 | 160 | 493 | 303 | ||||||||||||
Total restaurant operating costs
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7,816 | 5,659 | 15,018 | 10,898 | ||||||||||||
General and administrative costs
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770 | 546 | 1,489 | 1,054 | ||||||||||||
Advertising costs
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278 | 253 | 555 | 487 | ||||||||||||
Acquisition costs
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197 | 0 | 197 | 0 | ||||||||||||
Franchise costs
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27 | 20 | 53 | 42 | ||||||||||||
Gain on disposal of restaurants and equipment
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(6 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Loss from Operations
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(368 | ) | (382 | ) | (731 | ) | (468 | ) | ||||||||
Other Income (Expenses):
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Interest expense, net
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(4 | ) | 1 | (1 | ) | 3 | ||||||||||
Other expense
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(1 | ) | (3 | ) | (3 | ) | (6 | ) | ||||||||
Affiliate investment income (loss)
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12 | (41 | ) | 13 | (113 | ) | ||||||||||
Total other income (expenses), net
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7 | (43 | ) | 9 | (116 | ) | ||||||||||
Net Loss
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$ | (361 | ) | $ | (425 | ) | $ | (722 | ) | $ | (584 | ) | ||||
Income attributable to non-controlling interest
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(74 | ) | (55 | ) | (123 | ) | (119 | ) | ||||||||
Net Loss attributable to Good Times Restaurants Inc
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$ | (435 | ) | $ | (480 | ) | $ | (845 | ) | $ | (703 | ) | ||||
Preferred stock dividends
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0 | 29 | 0 | 59 | ||||||||||||
Net Loss attributable to common shareholders
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$ | (435 | ) | $ | (509 | ) | $ | (845 | ) | $ | (762 | ) | ||||
Basic and diluted loss per share:
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Net loss attributable to common shareholders
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$ | (0.05 | ) | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.15 | ) | ||||
Weighted Average Common Shares Outstanding:
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Basic & Diluted
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9,452 | 5,153 | 9,134 | 5,039 |
March 31,
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September 30,
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Balance Sheet Data
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2015
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2014
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(In thousands)
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Cash & cash equivalents
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$ | 11,420 | $ | 9,894 | ||||
Current assets
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13,191 | 10,391 | ||||||
Property and Equipment, net
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7,192 | 5,754 | ||||||
Other assets
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767 | 736 | ||||||
Total assets
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$ | 21,150 | $ | 16,881 | ||||
Current liabilities, including capital lease obligations and long-term debt due within one year
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3,114 | 2,550 | ||||||
Long-term debt due after one year
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1,178 | 177 | ||||||
Capital lease obligations due after one year
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27 | 42 | ||||||
Other liabilities
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989 | 791 | ||||||
Total liabilities
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$ | 5,308 | $ | 3,560 | ||||
Stockholders’ equity
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$ | 15,842 | $ | 13,321 |
Good Times Drive Thru Inc.
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Bad Daddy’s of Colorado, LLC
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Good Times
Restaurants Inc.
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Three Months Ended March 31,
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Three Months Ended March 31,
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Three Months Ended
March 31,
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2015
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2014
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2015
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2014
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2015
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Restaurant Sales
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$ | 6,617 | 98.7 | % | $ | 5,798 | 98.6 | % | $ | 2,009 | 100 | % | $ | 208 | 100.0 | % | 0 | |||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below):
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Food and packaging costs
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2,240 | 33.9 | % | 1,955 | 33.7 | % | 634 | 31.6 | % | 81 | 38.9 | % | 0 | |||||||||||||||||||||||
Payroll and other employee benefit costs
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2,220 | 33.5 | % | 2,002 | 34.5 | % | 810 | 40.3 | % | 151 | 72.6 | % | 0 | |||||||||||||||||||||||
Restaurant occupancy costs
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902 | 13.6 | % | 838 | 14.5 | % | 169 | 8.4 | % | 38 | 18.3 | % | 0 | |||||||||||||||||||||||
Other restaurant operating costs
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216 | 3.3 | % | 188 | 3.2 | % | 108 | 5.4 | % | 19 | 9.1 | % | 0 | |||||||||||||||||||||||
Restaurant-level operating profit
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$ | 1,039 | 15.7 | % | $ | 815 | 14.1 | % | $ | 288 | 14.3 | % | $ | (81 | ) | (38.9 | %) | 0 | ||||||||||||||||||
Franchise royalty income and (expense)
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88 | 1.3 | % | 84 | 1.4 | % | (60 | ) | (3.0 | %) | (6 | ) | (2.9 | %) | 0 | |||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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185 | 2.8 | % | 147 | 2.5 | % | 87 | 4.3 | % | 13 | 6.3 | % | 0 | |||||||||||||||||||||||
General and administrative
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650 | 9.7 | % | 506 | 8.6 | % | 120 | 6.0 | % | 40 | 19.2 | % | 0 | |||||||||||||||||||||||
Advertising costs
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266 | 4.0 | % | 233 | 4.0 | % | 12 | .6 | % | 20 | 9.6 | % | 0 | |||||||||||||||||||||||
Acquisition costs
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0 | 0 | % | 0 | 0 | % | 0 | 0.0 | % | 0 | 0.0 | % | $ | 197 | ||||||||||||||||||||||
Franchise costs
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27 | 0.4 | % | 20 | 0.3 | % | 0 | 0.0 | % | 0 | 0.0 | % | 0 | |||||||||||||||||||||||
Gain on disposal of restaurants and equipment
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(6 | ) | (0.1 | %) | (6 | ) | (0.1 | %) | 0 | 0.0 | % | 0 | 0.0 | % | 0 | |||||||||||||||||||||
Preopening costs
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34 | 0.5 | % | 0 | 0.0 | % | 151 | 7.5 | % | 221 | 106.3 | % | 0 | |||||||||||||||||||||||
Total other operating
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$ | 1,156 | 17.2 | % | $ | 900 | 15.3 | % | $ | 370 | 18.4 | % | $ | 294 | 141.3 | % | $ | 197 | ||||||||||||||||||
Income (loss) from Operations
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$ | (29 | ) | (.4 | %) | $ | (1 | ) | 0.0 | % | $ | (142 | ) | (7.1 | %) | $ | (381 | ) | (183.2 | %) | $ | (197 | ) |
Good Times Drive Thru Inc.
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Bad Daddy’s of Colorado, LLC
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Good Times
Restaurants Inc.
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Six Months Ended March 31,
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Six Months Ended March 31,
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Six Months Ended
March 31,
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2015
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2014
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2015
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2014
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2015
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Restaurant Sales
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$ | 13,132 | 98.7 | % | $ | 11,627 | 98.6 | % | $ | 3,260 | 100 | % | $ | 208 | 100.0 | % | 0 | |||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below):
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Food and packaging costs
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4,580 | 34.9 | % | 3,894 | 33.5 | % | 1,043 | 32.0 | % | 81 | 38.9 | % | 0 | |||||||||||||||||||||||
Payroll and other employee benefit costs
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4,335 | 33.0 | % | 3,984 | 34.3 | % | 1,352 | 41.5 | % | 151 | 72.6 | % | 0 | |||||||||||||||||||||||
Restaurant occupancy costs
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1,790 | 13.6 | % | 1,665 | 14.3 | % | 282 | 8.7 | % | 40 | 19.2 | % | 0 | |||||||||||||||||||||||
Other restaurant operating costs
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437 | 3.3 | % | 386 | 3.3 | % | 186 | 5.7 | % | 19 | 9.1 | % | 0 | |||||||||||||||||||||||
Restaurant-level operating profit
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$ | 1,990 | 15.2 | % | $ | 1,698 | 14.6 | % | $ | 397 | 12.2 | % | $ | (83 | ) | (39.9 | %) | 0 | ||||||||||||||||||
Franchise royalty income and (expense)
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177 | 1.3 | % | 166 | 1.4 | % | (98 | ) | (3.0 | %) | (6 | ) | (2.9 | %) | 0 | |||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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343 | 2.6 | % | 289 | 2.5 | % | 150 | 4.6 | % | 14 | 6.7 | % | 0 | |||||||||||||||||||||||
General and administrative
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1,281 | 9.6 | % | 969 | 8.2 | % | 208 | 6.4 | % | 85 | 40.9 | % | 0 | |||||||||||||||||||||||
Advertising costs
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529 | 4.0 | % | 467 | 4.0 | % | 26 | .8 | % | 20 | 9.6 | % | 0 | |||||||||||||||||||||||
Acquisition costs
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0 | 0 | % | 0 | 0 | % | 0 | 0.0 | % | 0 | 0.0 | % | $ | 197 | ||||||||||||||||||||||
Franchise costs
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53 | 0.4 | % | 42 | 0.4 | % | 0 | 0.0 | % | 0 | 0.0 | % | 0 | |||||||||||||||||||||||
Gain on disposal of restaurants and equipment
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(12 | ) | (0.1 | %) | (12 | ) | (0.1 | %) | 0 | 0.0 | % | 0 | 0.0 | % | 0 | |||||||||||||||||||||
Preopening costs
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98 | 0.7 | % | 0 | 0.0 | % | 324 | 9.9 | % | 369 | 177.4 | % | 0 | |||||||||||||||||||||||
Total other operating
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$ | 2,292 | 17.2 | % | $ | 1,755 | 14.9 | % | $ | 708 | 21.7 | % | $ | 488 | 234.6 | % | $ | 197 | ||||||||||||||||||
Income (loss) from Operations
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$ | (125 | ) | (.9 | %) | $ | 109 | 0.9 | % | $ | (409 | ) | (12.5 | %) | $ | (577 | ) | (277.4 | %) | $ | (197 | ) |
Three Months Ended
March 31,
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Six Months Ended
March 31,
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2015
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2014
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2015
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2014
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Net loss as reported
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$ | (361 | ) | $ | (425 | ) | $ | (722 | ) | $ | (584 | ) | ||||
Adjustments to net loss:
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Interest expense (income), net
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4 | (1 | ) | 1 | (3 | ) | ||||||||||
Depreciation and amortization
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272 | 160 | 493 | 303 | ||||||||||||
Affiliate investment loss (income)
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(12 | ) | 41 | (13 | ) | 113 | ||||||||||
Preopening expense
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185 | 221 | 422 | 369 | ||||||||||||
Non-cash stock based compensation
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85 | 32 | 153 | 64 | ||||||||||||
Non-recurring acquisition costs
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197 | 0 | 197 | 0 | ||||||||||||
Non-cash disposal of assets
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(6 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Adjusted EBITDA
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$ | 364 | $ | 22 | $ | 519 | $ | 250 |