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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February 10, 2016
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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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141 Union Boulevard, #400, Lakewood, Colorado 80228
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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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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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(d)
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Exhibits. The following exhibits are filed as part of this report.
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Exhibit Number
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Description
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99.1
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Press Release, dated February 9, 2016
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GOOD TIMES RESTAURANTS INC.
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Date: February 10, 2016
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By: | ![]() |
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Boyd E. Hoback
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President and Chief Executive Officer
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FOR IMMEDIATE RELEASE
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February 10, 2016
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Nasdaq Capital Markets - GTIM
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Same store sales for company-owned Good Times restaurants increased 4.8% for the quarter on top of last year’s increase of 8.0%, which makes twenty-two consecutive quarters of same store sales growth
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Same store sales for company-owned Bad Daddy’s restaurants increased 6.5% for the quarter
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Total revenues increased 76% to $13,838,000 for the quarter
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Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants increased $60,000 or 5.8% over last year for the quarter*
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The Company opened two new Bad Daddy’s restaurants during the quarter and has opened one additional restaurant after the quarter ended
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Sales for the Bad Daddy’s restaurants for the quarter were $6,709,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $976,000 or 14.5% as a percent of sales *
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Adjusted EBITDA (a non-GAAP measure) for the quarter increased 109% to $245,000 from $117,000 for the quarter*
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The Company ended the quarter with $9.0 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 (three have already opened, and one restaurant is expected to open on February 15, one in late March, and three during the balance of the fiscal year)
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Total Adjusted EBITDA* of approximately $4.2 million to $4.5 million
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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 $11 million
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Three Months Ended
December 31,
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Statement of Operations
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2015
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2014
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Net revenues:
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Restaurant sales
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$ | 13,656 | $ | 7,766 | ||||
Franchise revenues
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182 | 89 | ||||||
Total net revenues
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13,838 | 7,855 | ||||||
Restaurant Operating Costs:
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Food and packaging costs
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4,505 | 2,749 | ||||||
Payroll and other employee benefit costs
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4,772 | 2,532 | ||||||
Restaurant occupancy costs
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1,062 | 675 | ||||||
Other restaurant operating costs
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1,251 | 625 | ||||||
Royalty expense
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0 | 38 | ||||||
New store preopening costs
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725 | 237 | ||||||
Depreciation and amortization
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459 | 206 | ||||||
Total restaurant operating costs
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12,774 | 7,062 | ||||||
General and administrative costs
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1,587 | 859 | ||||||
Advertising costs
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385 | 277 | ||||||
Franchise costs
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27 | 26 | ||||||
Loss on disposal of restaurants and equipment
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(5 | ) | (6 | ) | ||||
Loss from operations
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(930 | ) | (363 | ) | ||||
Other income (expense):
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Interest income (expense), net
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(30 | ) | 3 | |||||
Other expense
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(1 | ) | (2 | ) | ||||
Affiliate investment income
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0 | 1 | ||||||
Total other income (expense), net
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(31 | ) | 2 | |||||
Net loss
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$ | (961 | ) | $ | (361 | ) | ||
Loss attributable to non-controlling interest
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(163 | ) | (49 | ) | ||||
Net loss attributable to common shareholders
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$ | (1,124 | ) | $ | (410 | ) | ||
Basic and diluted loss per share
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$ | (0.09 | ) | $ | (0.04 | ) | ||
Basic and diluted weighted average common shares outstanding
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12,260 | 9,179 |
December 31,
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September 30,
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Balance Sheet Data
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2015
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2015
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Cash & cash equivalents
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$ | 8,997 | $ | 13,809 | ||||
Current assets
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10,987 | 14,728 | ||||||
Property and Equipment, net
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17,884 | 14,222 | ||||||
Other assets
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19,275 | 19,278 | ||||||
Total assets
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$ | 48,146 | $ | 48,228 | ||||
Current liabilities, including capital lease obligations and long-term debt due
within one year
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7,271 | 7,258 | ||||||
Long-term debt due after one year
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1,050 | 1,093 | ||||||
Capital lease obligations due after one year
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8 | 11 | ||||||
Other liabilities
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2,563 | 1,609 | ||||||
Total liabilities
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$ | 10,892 | $ | 9,971 | ||||
Stockholders’ equity
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$ | 37,254 | $ | 38,257 |
Good Times Burgers &
Frozen Custard
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Bad Daddy’s Burger Bar
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Three Months Ended December 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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Restaurant Sales (in thousands)
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$ | 6,947 | $ | 6,515 | $ | 6,709 | $ | 1,251 | ||||||||
Restaurants open during period
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- | 1 | 2 | - | ||||||||||||
Restaurants open at period end
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27 | 26 | 12 | 2 | ||||||||||||
Restaurant operating weeks
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354.9 | 334.6 | 145.3 | 26.3 | ||||||||||||
Average weekly sales per restaurant (in thousands)
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$ | 19.6 | $ | 19.5 | $ | 46.2 | $ | 47.6 |
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 December 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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2014
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Restaurant Sales
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$ | 6,947 | 100.0 | % | $ | 6,515 | 100.0 | % | $ | 6,709 | 100 | % | $ | 1,251 | 100.0 | % | $ | 13,656 | $ | 7,766 | ||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown
separately below):
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Food and packaging costs
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2,313 | 33.3 | % | 2,340 | 35.9 | % | 2,192 | 32.7 | % | 409 | 32.7 | % | 4,505 | 2,749 | ||||||||||||||||||||||||||
Payroll and other employee benefit costs
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2,300 | 33.1 | % | 2,035 | 31.2 | % | 2,472 | 36.8 | % | 497 | 39.7 | % | 4,772 | 2,532 | ||||||||||||||||||||||||||
Restaurant occupancy costs
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656 | 9.4 | % | 591 | 9.1 | % | 406 | 6.1 | % | 84 | 6.7 | % | 1,062 | 675 | ||||||||||||||||||||||||||
Other restaurant operating costs
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588 | 8.5 | % | 519 | 8.0 | % | 664 | 9.9 | % | 106 | 8.5 | % | 1,252 | 625 | ||||||||||||||||||||||||||
Restaurant-level operating profit
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$ | 1,090 | 15.7 | % | $ | 1,030 | 15.8 | % | $ | 974 | 14.5 | % | $ | 155 | 12.4 | % | 2,064 | 1,185 | ||||||||||||||||||||||
Franchise royalty income, net
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182 | 51 | ||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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459 | 206 | ||||||||||||||||||||||||||||||||||||||
General and administrative
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1,587 | 859 | ||||||||||||||||||||||||||||||||||||||
Advertising costs
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385 | 277 | ||||||||||||||||||||||||||||||||||||||
Acquisition costs
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0 | 0 | ||||||||||||||||||||||||||||||||||||||
Franchise costs
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27 | 26 | ||||||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of restaurants
and equipment
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(5 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||
Preopening costs
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725 | 237 | ||||||||||||||||||||||||||||||||||||||
Total other operating
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3,178 | 1,599 | ||||||||||||||||||||||||||||||||||||||
Income from Operations
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$ | (930 | ) | $ | (363 | ) |
Good Times Restaurants Inc.
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Three Months Ended
December 31,
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2015
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2014
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Net loss as reported
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$ | (1,124 | ) | $ | (410 | ) | ||
Adjustments to net loss:
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Interest expense (income), net
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30 | (3 | ) | |||||
Depreciation and amortization
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427 | 218 | ||||||
Preopening expense
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725 | 237 | ||||||
Non-cash stock based compensation
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177 | 67 | ||||||
Non-recurring acquisition costs
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0 | 0 | ||||||
GAAP rent in excess of cash rent
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15 | 14 | ||||||
Non-cash disposal of assets
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(5 | ) | (6 | ) | ||||
Adjusted EBITDA
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$ | 245 | $ | 117 |