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 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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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)
o Soliciting 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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Item 2.02
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Results of Operations and Financial Condition.
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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 10, 2016
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GOOD TIMES RESTAURANTS INC.
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Date: May 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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May 10, 2016
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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 0.5% for the quarter and 2.6% for the year on top of last year’s increase of 8.3% for the quarter and 8.1% for the year, which makes twenty-three consecutive quarters of same store sales growth
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Same store sales for company-owned Bad Daddy’s restaurants increased 1.9% for the quarter and 4.0% for the year
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Total revenues increased 76% to $15,318,000 for the quarter and increased 76% to $29,156,000 for the year
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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 for a total of five new restaurants opened since the beginning of the fiscal year
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The five new Bad Daddy’s restaurants opened in fiscal 2015 are averaging in excess of $2.5 million in annualized sales
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Sales for the company-owned Good Times restaurants for the quarter were $6,700,000 and Restaurant Level Operating Profit (a non-GAAP measure) was $1,063,000 or 15.9% as a percent of sales *
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Sales for the Bad Daddy’s restaurants for the quarter were $8,441,000 and Restaurant Level Operating Profit (a non-GAAP measure) was $1,336,000 or 15.8% as a percent of sales *
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Adjusted EBITDA (a non-GAAP measure) for the quarter increased 92% to $639,000 from $332,000 and increased 96% to $884,000 from $452,000 for the year*
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The Company ended the quarter with $9.0 million in cash
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Total revenues of approximately $66 million to $67 million for fiscal 2016 and a preliminary outlook in excess of $88 million for the fiscal 2017 year for the fiscal 2017 year with a year end revenue run rate exceeding $100 million
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Total revenue estimates assume same store sales growth of approximately 3-4% for the balance of the year and low single digits growth for fiscal 2017 for the Good Times concept and low single digits growth for the Bad Daddy’s concept for both the balance of the year and fiscal 2017
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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 for fiscal 2016
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The opening of 1 new Good Times restaurant
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The opening of 10-12 additional new Bad Daddy’s restaurants through the end of fiscal 2017
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Total Adjusted EBITDA* of approximately $4.0 million to 4.2 million in fiscal 2016
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Restaurant pre-opening expenses of approximately $2.0 million in fiscal 2016
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Capital expenditures (net of tenant improvement allowances) of approximately $7 million to $8 million in fiscal 2016 and $12 million to $14 million in fiscal 2017
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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Statement of Operations
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2016
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2015
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2016
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2015
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Net revenues:
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Restaurant sales
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$ | 15,141 | $ | 8,626 | $ | 28,797 | $ | 16,392 | ||||||||
Franchise revenues
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177 | 88 | 359 | 177 | ||||||||||||
Total net revenues
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15,318 | 8,714 | 29,156 | 16,569 | ||||||||||||
Restaurant Operating Costs:
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Food and packaging costs
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4,785 | 2,874 | 9,290 | 5,623 | ||||||||||||
Payroll and other employee benefit costs
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5,394 | 2,913 | 10,166 | 5,446 | ||||||||||||
Restaurant occupancy costs
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1,231 | 731 | 2,294 | 1,406 | ||||||||||||
Other restaurant operating costs
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1,332 | 665 | 2,583 | 1,290 | ||||||||||||
Royalty expense
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0 | 60 | 0 | 98 | ||||||||||||
New store preopening costs
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576 | 185 | 1,301 | 422 | ||||||||||||
Depreciation and amortization
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549 | 256 | 1,008 | 462 | ||||||||||||
Total restaurant operating costs
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13,867 | 7,684 | 26,642 | 14,747 | ||||||||||||
General and administrative costs
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1,510 | 919 | 3,116 | 1,794 | ||||||||||||
Advertising costs
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352 | 261 | 718 | 521 | ||||||||||||
Acquisition costs
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0 | 197 | 0 | 197 | ||||||||||||
Franchise costs
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27 | 27 | 54 | 53 | ||||||||||||
Gain on restaurant asset sale
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(7 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Loss from operations
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(431 | ) | (368 | ) | (1,362 | ) | (731 | ) | ||||||||
Other income (expense):
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Interest income (expense), net
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(36 | ) | (4 | ) | (66 | ) | (1 | ) | ||||||||
Other expense
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0 | (1 | ) | 0 | (3 | ) | ||||||||||
Affiliate investment income
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0 | 12 | 0 | 13 | ||||||||||||
Total other income (expense), net
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(36 | ) | 7 | (66 | ) | 9 | ||||||||||
Net loss
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$ | (467 | ) | $ | (361 | ) | $ | (1,428 | ) | $ | (722 | ) | ||||
Net loss attributable to non-controlling interest
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(206 | ) | (74 | ) | (369 | ) | (123 | ) | ||||||||
Net loss attributable to Good Times Restaurants Inc.
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$ | (673 | ) | $ | (435 | ) | $ | (1,797 | ) | $ | (845 | ) | ||||
Basic and diluted loss per share
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$ | (0.05 | ) | $ | (0.05 | ) | $ | (0.15 | ) | $ | (0.09 | ) | ||||
Basic and diluted weighted average common shares outstanding
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12,263 | 9,452 | 12,262 | 9,134 |
March 31,
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September 30,
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Balance Sheet Data
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2016
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2015
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Cash & cash equivalents
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$ | 9,040 | $ | 13,809 | ||||
Current assets
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10,833 | 14,728 | ||||||
Property and equipment, net
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18,802 | 14,222 | ||||||
Other assets
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19,267 | 19,278 | ||||||
Total assets
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48,902 | 48,228 | ||||||
Current liabilities, including capital lease obligations and long-term debt due within one year
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7,434 | 7,258 | ||||||
Long-term debt due after one year
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1,006 | 1,093 | ||||||
Capital lease obligations due after one year
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5 | 11 | ||||||
Other liabilities
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3,692 | 1,609 | ||||||
Total liabilities
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12,137 | 9,971 | ||||||
Stockholders’ equity
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36,765 | 38,257 |
Good Times Burgers & Frozen Custard
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Bad Daddy’s Burger Bar
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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2016
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2015
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2016
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2015
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2016
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2015
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2016
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2015
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Restaurant Sales (in thousands)
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$ | 6,700 | $ | 6,617 | $ | 13,647 | $ | 13,132 | $ | 8,441 | $ | 2,009 | $ | 15,150 | $ | 3,260 | ||||||||||||||||
Restaurants open during period
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0 | 0 | 0 | 1 | 2 | 0 | 4 | 1 | ||||||||||||||||||||||||
Restaurants open at period end
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27 | 26 | 27 | 26 | 11 | 2 | 11 | 2 | ||||||||||||||||||||||||
Restaurant operating weeks
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351.0 | 334.3 | 705.9 | 668.9 | 175.0 | 37.7 | 320.3 | 64.0 | ||||||||||||||||||||||||
Average weekly sales per restaurant (in thousands)
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$ | 19.1 | $ | 19.8 | $ | 19.3 | $ | 19.6 | $ | 48.2 | $ | 53.3 | $ | 47.3 | $ | 50.9 |
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 March 31,
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Three Months
Ended March 31,
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Three Months
Ended March 31,
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2016
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2015
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2016
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2015
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2016
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2015
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Restaurant Sales
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$ | 6,700 | 100.0 | % | $ | 6,617 | 100.0 | % | $ | 8,441 | 100.0 | % | $ | 2,009 | 100.0 | % | $ | 15,141 | $ | 8,626 | ||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown
separately below):
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Food and packaging costs
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2,124 | 31.7 | % | 2,240 | 33.9 | % | 2,661 | 31.5 | % | 634 | 31.6 | % | 4.785 | 2,874 | ||||||||||||||||||||||||||
Payroll and other employee benefit costs
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2,283 | 34.1 | % | 2,138 | 32.3 | % | 3,111 | 36.9 | % | 775 | 38.6 | % | 5,394 | 2,913 | ||||||||||||||||||||||||||
Restaurant occupancy costs
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692 | 10.3 | % | 612 | 9.2 | % | 539 | 6.4 | % | 119 | 5.9 | % | 1,231 | 731 | ||||||||||||||||||||||||||
Other restaurant operating costs
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538 | 8.0 | % | 507 | 7.7 | % | 794 | 9.4 | % | 158 | 7.9 | % | 1,332 | 665 | ||||||||||||||||||||||||||
Restaurant-level operating profit
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1,063 | 15.9 | % | 1,120 | 16.9 | % | 1,336 | 15.8 | % | 323 | 16.1 | % | 2,399 | 1,443 | ||||||||||||||||||||||||||
Franchise royalty income and expense, net
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177 | 28 | ||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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549 | 256 | ||||||||||||||||||||||||||||||||||||||
General and administrative
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1,510 | 919 | ||||||||||||||||||||||||||||||||||||||
Advertising costs
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352 | 261 | ||||||||||||||||||||||||||||||||||||||
Acquisition costs
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0 | 197 | ||||||||||||||||||||||||||||||||||||||
Franchise costs
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27 | 27 | ||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
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(7 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||
Preopening costs
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576 | 185 | ||||||||||||||||||||||||||||||||||||||
Total other operating
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3,007 | 1,839 | ||||||||||||||||||||||||||||||||||||||
Loss from Operations
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$ | (431 | ) | $ | (368 | ) |
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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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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2016
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2015
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2016
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2015
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2016
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2015
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Restaurant Sales
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$ | 13,647 | 100.0 | % | $ | 13,132 | 100.0 | % | $ | 15,150 | 100.0 | % | $ | 3,260 | 100.0 | % | $ | 28,797 | $ | 16,392 | ||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown
separately below):
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Food and packaging costs
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4,437 | 32.5 | % | 4,580 | 34.9 | % | 4,853 | 32.0 | % | 1,043 | 32.0 | % | 9,290 | 5,623 | ||||||||||||||||||||||||||
Payroll and other employee benefit costs
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4,582 | 33.6 | % | 4,173 | 31.8 | % | 5,584 | 36.9 | % | 1,273 | 39.0 | % | 10,166 | 5,446 | ||||||||||||||||||||||||||
Restaurant occupancy costs
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1,349 | 9.9 | % | 1,203 | 9.2 | % | 945 | 6.2 | % | 203 | 6.2 | % | 2,294 | 1,406 | ||||||||||||||||||||||||||
Other restaurant operating costs
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1,126 | 8.3 | % | 1,026 | 7.8 | % | 1,457 | 9.6 | % | 264 | 8.1 | % | 2,583 | 1,290 | ||||||||||||||||||||||||||
Restaurant-level operating profit
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2,153 | 15.8 | % | 2,150 | 16.4 | % | 2,311 | 15.3 | % | 477 | 14.6 | % | 4,464 | 2,627 | ||||||||||||||||||||||||||
Franchise royalty income and expense, net
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359 | 79 | ||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
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Depreciation and amortization
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1,008 | 462 | ||||||||||||||||||||||||||||||||||||||
General and administrative
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3,116 | 1,794 | ||||||||||||||||||||||||||||||||||||||
Advertising costs
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718 | 521 | ||||||||||||||||||||||||||||||||||||||
Acquisition costs
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0 | 197 | ||||||||||||||||||||||||||||||||||||||
Franchise costs
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54 | 53 | ||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
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(12 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||
Preopening costs
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1,301 | 422 | ||||||||||||||||||||||||||||||||||||||
Total other operating
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6,185 | 3,437 | ||||||||||||||||||||||||||||||||||||||
Loss from Operations
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$ | (1,362 | ) | $ | (731 | ) |
Three Months Ended
March 31,
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Six Months Ended
March 31,
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2016
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2015
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2016
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2015
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Net loss as reported
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$ | (673 | ) | $ | (435 | ) | $ | (1,797 | ) | $ | (845 | ) | ||||
Adjustments to net loss:
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Interest expense (income), net
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36 | 4 | 66 | 1 | ||||||||||||
Depreciation and amortization
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520 | 272 | 947 | 494 | ||||||||||||
Preopening expense
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576 | 185 | 1,301 | 422 | ||||||||||||
Non-cash stock based compensation
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177 | 85 | 355 | 152 | ||||||||||||
Non-recurring acquisition costs
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0 | 197 | 0 | 197 | ||||||||||||
GAAP rent in excess of cash rent
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10 | 30 | 24 | 43 | ||||||||||||
Non-cash disposal of assets
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(7 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Adjusted EBITDA
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$ | 639 | $ | 332 | $ | 884 | $ | 452 |
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