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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Exhibit Number
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Description
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99.1
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Press Release, dated December 8, 2015
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GOOD TIMES RESTAURANTS INC.
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Date: December 8, 2015
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By: |
/s/ Boyd E. Hoback
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Boyd E. Hoback
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President and Chief Executive Officer
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December 8, 2015
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Nasdaq Capital Markets - GTIM
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·
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Same store sales for company-owned Good Times restaurants increased 6.8% for the quarter and 6.9% for the year on top of last year’s increase of 11.9% for the quarter and 14.6% for the year, which makes over five years of consecutive quarterly same store sales growth
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·
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Same store sales for company-owned Bad Daddy’s restaurants increased 6.8% for the quarter
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Total revenues increased 77% to $14,551,000 for the quarter and increased 59% to $44,057,000 for the year, which reflects the acquisition of Bad Daddy’s International on May 7, 2015
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·
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Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants increased $80,000 or 6.4% over last year during the quarter and increased $470,000 or 10.3% for the year*
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·
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Sales for the Bad Daddy’s restaurants for the quarter were $6,636,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $994,000 or 15.0% as a percent of sales *
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Total Restaurant Level Operating Profit (a non-GAAP measure) increased 63% to $2,331,000 for the quarter *
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Net Loss for the quarter was $52,000 versus $150,000 last year, including an increase in general and administrative expenses of $316,000 from last year and a total of $87,000 in one-time acquisition costs related to the acquisition of Bad Daddy’s International
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·
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Adjusted EBITDA (a non-GAAP measure) for the quarter increased 150% to $876,000 from $350,000 and increased 200% to $2,503,000 from $836,000 for the fiscal year*
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·
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The Company ended the quarter with $13.8 million in cash
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Total revenues of approximately $67 million to $69 million
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Total revenue estimates assume same store sales growth of approximately 4% for the Good Times concept and low single digits for the Bad Daddy’s concept
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General and administrative expenses of approximately $6.1 million to $6.2 million, including approximately $800,000 of non-cash equity compensation expense
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The opening of 1 new Good Times restaurant
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The opening of 8 new Bad Daddy’s restaurants (two signed leases on new developments originally planned for fiscal 2016 won’t be delivered by the landlords until later in fiscal 2016)
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·
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Total Adjusted EBITDA* of approximately $4.2 million to $4.5 million (versus a previous range of $4.8 million to $5.5 million with the adjustment weighted toward the first 6 months of the fiscal year due to the timing of new Bad Daddy’s restaurant development)
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·
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Restaurant pre-opening expenses of approximately $2.6 million to $2.7 million
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Capital expenditures (net of tenant improvement allowances) of approximately $10 million to $11 million
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Boyd E. Hoback, President and CEO, (303) 384-1411
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Jim Zielke, Chief Financial Officer (303) 384-1432
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Christi Pennington (303) 384-1440
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Mike Porter, Porter, LeVay & Rose (212) 564-4700
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Three Months Ended
September 30,
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Twelve Months Ended
September 30,
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Statement of Operations
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2015
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2014
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2015
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2014
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Net revenues:
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Restaurant sales
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$ | 14,353 | $ | 8,142 | $ | 43,517 | $ | 27,368 | ||||||||
Area development and franchise fees
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0 | 0 | 0 | 6 | ||||||||||||
Franchise revenues
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198 | 101 | 540 | 369 | ||||||||||||
Total net revenues
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14,551 | 8,243 | 44,057 | 27,743 | ||||||||||||
Restaurant Operating Costs:
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Food and packaging costs
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4,807 | 2,800 | 14,567 | 9,273 | ||||||||||||
Payroll and other employee benefit costs
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4,834 | 2,632 | 14,387 | 8,915 | ||||||||||||
Restaurant occupancy costs
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1,045 | 635 | 3,359 | 2,379 | ||||||||||||
Other restaurant operating costs
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1,336 | 646 | 3,696 | 2,165 | ||||||||||||
Royalty expense
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0 | 36 | 123 | 54 | ||||||||||||
New store preopening costs
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206 | 220 | 784 | 669 | ||||||||||||
Depreciation and amortization
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433 | 188 | 1,246 | 636 | ||||||||||||
Total restaurant operating costs
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12,661 | 7,157 | 38,162 | 24,091 | ||||||||||||
General and administrative costs
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1,226 | 910 | 4,102 | 2,803 | ||||||||||||
Advertising costs
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367 | 209 | 1,264 | 988 | ||||||||||||
Acquisition costs
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87 | 0 | 648 | 0 | ||||||||||||
Franchise costs
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26 | 32 | 111 | 96 | ||||||||||||
Loss (gain) on disposal of restaurants and equipment
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27 | 3 | 9 | (16 | ) | |||||||||||
Income (loss) from operations
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157 | (68 | ) | (239 | ) | (219 | ) | |||||||||
Other income (expense):
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Interest income (expense), net
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(27 | ) | 0 | (49 | ) | 5 | ||||||||||
Other expense
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(2 | ) | (2 | ) | (7 | ) | (10 | ) | ||||||||
Affiliate investment income (loss)
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0 | 11 | (5 | ) | (146 | ) | ||||||||||
Total other income (expenses), net
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(29 | ) | 9 | (61 | ) | (151 | ) | |||||||||
Net income (loss)
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$ | 128 | $ | (59 | ) | $ | (300 | ) | $ | (370 | ) | |||||
Income attributable to non-controlling interest
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(180 | ) | (91 | ) | (491 | ) | (320 | ) | ||||||||
Net loss attributable to Good Times Restaurants Inc.
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$ | (52 | ) | $ | (150 | ) | $ | (791 | ) | $ | (690 | ) | ||||
Preferred stock dividends
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0 | 0 | 0 | 59 | ||||||||||||
Net loss attributable to common shareholders
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$ | (52 | ) | $ | (150 | ) | $ | (791 | ) | $ | (749 | ) | ||||
Basic and diluted loss per share
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$ | (0.00 | ) | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.12 | ) | ||||
Basic and diluted weighted average common shares
outstanding
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12,249 | 7,643 | 10,510 | 6,152 |
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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$ | 13,809 | $ | 9,894 | ||||
Current assets
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14,728 | 10,391 | ||||||
Property and Equipment, net
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14,222 | 5,754 | ||||||
Other assets
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19,278 | 736 | ||||||
Total assets
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$ | 48,228 | $ | 16,881 | ||||
Current liabilities, including capital lease obligations and
long-term debt due within one year
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7,258 | 2,550 | ||||||
Long-term debt due after one year
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1,093 | 177 | ||||||
Capital lease obligations due after one year
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11 | 42 | ||||||
Other liabilities
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1,609 | 791 | ||||||
Total liabilities
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$ | 9,971 | $ | 3,560 | ||||
Stockholders’ equity
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$ | 38,257 | $ | 13,321 |
Good Times Burgers & Frozen Custard
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Bad Daddy’s Burger Bar
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Three Months Ended
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Twelve Months Ended
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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September 30,
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September 30,
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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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2014
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2015
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2014
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Restaurant Sales (in thousands)
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$ | 7,717 | $ | 6,936 | $ | 28,521 | $ | 25,566 | $ | 6,636 | $ | 1,206 | $ | 14,996 | $ | 1,802 | ||||||||||||||||
Restaurants open during period
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- | - | 2 | - | - | - | 1 | 1 | ||||||||||||||||||||||||
Restaurants acquired on May 7, 2015
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- | - | - | - | - | - | 7 | - | ||||||||||||||||||||||||
Restaurants open at period end
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27 | 25 | 27 | 25 | 10 | 2 | 10 | 2 | ||||||||||||||||||||||||
Restaurant operating weeks
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349.9 | 328.6 | 1,358.1 | 1,303.6 | 131.4 | 22.4 | 289.4 | 43.6 | ||||||||||||||||||||||||
Average weekly sales per restaurant
(in thousands)
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22.1 | 21.1 | 21.0 | 19.6 | 50.5 | 53.8 | 51.8 | 41.4 |
Good Times Burgers & Frozen Custard
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Bad Daddy’s Burger Bar
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Good Times Restaurants Inc
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Three Months Ended
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Three Months Ended
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Three Months Ended
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September 30,
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September 30,
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September 30,
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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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2014
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Restaurant Sales
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$ | 7,717 | 100.0 | % | $ | 6,936 | 100.0 | % | $ | 6,636 | 100.0 | % | $ | 1,206 | 100.0 | % | $ | 14,353 | $ | 8,142 | ||||||||||||||||
Restaurant Operating Costs (exclusive
of depreciation and amortization
shown separately below):
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Food and packaging costs
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2,632 | 34.1 | % | 2,403 | 34.6 | % | 2,175 | 32.8 | % | 397 | 32.9 | % | 4,807 | 2,800 | ||||||||||||||||||||||
Payroll and other employee
benefit costs
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2,447 | 31.7 | % | 2,155 | 31.1 | % | 2,387 | 36.0 | % | 477 | 39.6 | % | 4,834 | 2,632 | ||||||||||||||||||||||
Restaurant occupancy costs
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661 | 8.6 | % | 564 | 8.1 | % | 384 | 5.8 | % | 71 | 5.9 | % | 1,045 | 635 | ||||||||||||||||||||||
Other restaurant operating costs
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640 | 8.3 | % | 557 | 8.0 | % | 696 | 10.5 | % | 89 | 7.4 | % | 1,336 | 646 | ||||||||||||||||||||||
Restaurant-level operating profit
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1,337 | 17.3 | % | 1,257 | 18.1 | % | 994 | 15.0 | % | 172 | 14.3 | % | 2,331 | 1,429 | ||||||||||||||||||||||
Franchise royalty income and
expense, net
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198 | 65 | ||||||||||||||||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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433 | 188 | ||||||||||||||||||||||||||||||||||
General and administrative
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1,226 | 910 | ||||||||||||||||||||||||||||||||||
Advertising costs
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367 | 209 | ||||||||||||||||||||||||||||||||||
Acquisition costs
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87 | 0 | ||||||||||||||||||||||||||||||||||
Franchise costs
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26 | 32 | ||||||||||||||||||||||||||||||||||
Loss on disposal of restaurants
and equipment
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27 | 3 | ||||||||||||||||||||||||||||||||||
Preopening costs
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206 | 220 | ||||||||||||||||||||||||||||||||||
Total other operating
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2,372 | 1,562 | ||||||||||||||||||||||||||||||||||
Income (loss) from Operations
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157 | (68 | ) |
Good Times Burgers & Frozen Custard
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Bad Daddy’s Burger Bar
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Good Times Restaurants Inc
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Twelve Months Ended
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Twelve Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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September 30,
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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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2014
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Restaurant Sales
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$ | 28,521 | 100.0 | % | $ | 25,566 | 100.0 | % | $ | 14,996 | 100.0 | % | $ | 1,802 | 100.0 | % | $ | 43,517 | $ | 27,368 | ||||||||||||||||
Restaurant Operating Costs
(exclusive of depreciation and
amortization shown separately
below):
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Food and packaging costs
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9,734 | 34.1 | % | 8,655 | 33.9 | % | 4,833 | 32.2 | % | 618 | 34.3 | % | 14,567 | 9,273 | ||||||||||||||||||||||
Payroll and other employee
benefit costs
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8,967 | 31.4 | % | 8,092 | 31.7 | % | 5,420 | 36.1 | % | 823 | 45.7 | % | 14,387 | 8,915 | ||||||||||||||||||||||
Restaurant occupancy costs
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2,503 | 8.8 | % | 2,236 | 8.7 | % | 856 | 5.7 | % | 143 | 7.9 | % | 3,359 | 2,379 | ||||||||||||||||||||||
Other restaurant operating
costs
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2,264 | 7.9 | % | 2,000 | 7.8 | % | 1,432 | 9.5 | % | 165 | 9.2 | % | 3,696 | 2,165 | ||||||||||||||||||||||
Restaurant-level operating profit
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5,053 | 17.7 | % | 4,583 | 17.9 | % | 2,455 | 16.4 | % | 53 | 2.9 | % | 7,508 | 4,636 | ||||||||||||||||||||||
Franchise royalty income and
expense, net
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417 | 321 | ||||||||||||||||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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1,246 | 636 | ||||||||||||||||||||||||||||||||||
General and administrative
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4,102 | 2,803 | ||||||||||||||||||||||||||||||||||
Advertising costs
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1,264 | 988 | ||||||||||||||||||||||||||||||||||
Acquisition costs
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648 | 0 | ||||||||||||||||||||||||||||||||||
Franchise costs
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111 | 96 | ||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of
restaurants and equipment
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9 | (16 | ) | |||||||||||||||||||||||||||||||||
Preopening costs
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784 | 669 | ||||||||||||||||||||||||||||||||||
Total other operating
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8,164 | 5,176 | ||||||||||||||||||||||||||||||||||
Income (Loss) from Operations
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$ | (239 | ) | $ | (219 | ) |
Three Months Ended
September 30,
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Twelve Months Ended
September 30,
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2015
|
2014
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2015
|
2014
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Net loss as reported
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$ | (52 | ) | $ | (150 | ) | $ | (791 | ) | $ | (690 | ) | ||||
Adjustments to net loss:
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Interest expense (income), net
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27 | 0 | 49 | (5 | ) | |||||||||||
Depreciation and amortization
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405 | 201 | 1,224 | 683 | ||||||||||||
Preopening expense
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206 | 220 | 784 | 669 | ||||||||||||
Non-cash stock based compensation
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161 | 65 | 478 | 162 | ||||||||||||
Non-recurring acquisition costs
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87 | 0 | 648 | 0 | ||||||||||||
GAAP rent in excess of cash rent
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15 | 11 | 102 | 33 | ||||||||||||
Non-cash disposal of assets
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27 | 3 | 9 | (16 | ) | |||||||||||
Adjusted EBITDA
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$ | 876 | $ | 350 | $ | 2,503 | $ | 836 |