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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December 8, 2016
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![]() |
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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, CO 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.):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ 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 December 8, 2016
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GOOD TIMES RESTAURANTS INC.
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Date: December 8, 2016
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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, 2016
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Nasdaq Capital Markets - GTIM
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· | Same store sales for company-owned Good Times restaurants decreased 1.2% for the quarter and increased 0.3% for the year on top of last year’s increase of 6.8% for the quarter and 6.9% for the year |
· | Same store sales for company-owned Bad Daddy’s restaurants increased 1.9% for the quarter and 3.3% for the year on top of last year’s increase of 6.8% for the quarter |
· | Total revenues increased 40% to $17,217,000 for the quarter and increased 60% to $64,439,000 for the year, which reflects the acquisition of Bad Daddy’s International on May 7, 2015 and the addition of six Bad Daddy’s restaurants during the year |
· | Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants improved as a % of sales to 17.5% versus 17.3% in the fourth quarter last year* |
· | Restaurant Level Operating Profit (a non-GAAP measure) for Bad Daddy’s restaurants improved as a % of sales to 17.1% versus 14.9% in the fourth quarter last year* |
· | Total Restaurant Level Operating Profit (a non-GAAP measure) increased 26% to $2,944,000 for the quarter and increased 44% to $10,805,000 for the year* |
· | Adjusted EBITDA (a non-GAAP measure) for the quarter increased 20% to $1,051,000 from $876,000 and increased 35% to $3,368,000 from $2,503,000 for the fiscal year* |
· | The Company ended the quarter with $6.3 million in cash and no long term debt |
· | Total revenues of approximately $80 million to $82 million with a year-end revenue run rate of approximately $94 million to $98 million |
· | Total revenue estimates assume same store sales of approximately +1% to +2% for Good Times ranging from -1% to +1% in Q1 and Q2 and +3% to +3.5% in Q3 and Q4 and +1% to +2% for Bad Daddy’s |
· | General and administrative expenses of approximately $7.0 million to $7.2 million, including approximately $900,000 of non-cash equity compensation expense |
· | The opening of 9 to 11 new Bad Daddy’s restaurants (including 2 joint venture units) and 1 new Good Times restaurant |
· | Total Adjusted EBITDA* of approximately $4.5 million to $5.0 million |
· | Restaurant pre-opening expenses of approximately $3.5 million |
· | Capital expenditures (net of tenant improvement allowances) of approximately $14.7 million including approximately $2.0 million related to fiscal 2018 development |
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
|||||||||||||
Statement of Operations
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net revenues:
|
||||||||||||||||
Restaurant sales
|
$
|
17,040
|
$
|
14,351
|
$
|
63,716
|
$
|
43,517
|
||||||||
Franchise revenues
|
177
|
198
|
723
|
540
|
||||||||||||
Total net revenues
|
17,217
|
8,243
|
64,439
|
44,057
|
||||||||||||
Restaurant Operating Costs:
|
||||||||||||||||
Food and packaging costs
|
5,383
|
4,807
|
20,236
|
14,567
|
||||||||||||
Payroll and other employee benefit costs
|
5,868
|
4,834
|
22,098
|
14,387
|
||||||||||||
Restaurant occupancy costs
|
1,290
|
1,045
|
4,893
|
3,359
|
||||||||||||
Other restaurant operating costs
|
1,555
|
1,337
|
5,684
|
3,697
|
||||||||||||
Royalty expense
|
0
|
0
|
0
|
122
|
||||||||||||
New store preopening costs
|
267
|
206
|
1,695
|
784
|
||||||||||||
Depreciation and amortization
|
630
|
433
|
2,222
|
1,246
|
||||||||||||
Total restaurant operating costs
|
14,993
|
12,662
|
56,828
|
38,163
|
||||||||||||
General and administrative costs
|
1,587
|
1,241
|
6,288
|
4,167
|
||||||||||||
Advertising costs
|
403
|
350
|
1,540
|
1,198
|
||||||||||||
Acquisition costs
|
0
|
86
|
0
|
648
|
||||||||||||
Franchise costs
|
26
|
26
|
108
|
111
|
||||||||||||
Loss (gain) on disposal of restaurants and equipment
|
(6
|
)
|
28
|
(25
|
)
|
9
|
||||||||||
Income (loss) from operations
|
214
|
156
|
(300
|
)
|
(239
|
)
|
||||||||||
Other income (expense):
|
||||||||||||||||
Interest income (expense), net
|
(17
|
)
|
(27
|
)
|
(107
|
)
|
(49
|
)
|
||||||||
Debt extinguishment costs
|
(57
|
)
|
0
|
(57
|
)
|
0
|
||||||||||
Other expense
|
0
|
(2
|
)
|
(1
|
)
|
(7
|
)
|
|||||||||
Affiliate investment income (loss)
|
0
|
0
|
0
|
(5
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)
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|||||||||||
Total other income (expenses), net
|
(74
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)
|
(29
|
)
|
(165
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)
|
(61
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)
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||||||||
Net income (loss)
|
$
|
140
|
$
|
127
|
$
|
(465
|
)
|
$
|
(300
|
)
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||||||
Income attributable to non-controlling interest
|
(211
|
)
|
(180
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)
|
(856
|
)
|
(491
|
)
|
||||||||
Net loss attributable to Good Times Restaurants Inc.
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$
|
(71
|
)
|
$
|
(53
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)
|
$
|
(1,321
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)
|
$
|
(791
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)
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||||
Basic and diluted loss per share
|
$
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(0.01
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)
|
$
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(0.00
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)
|
$
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(0.11
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)
|
$
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(0.08
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)
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||||
Basic and diluted weighted average common shares
outstanding |
12,283
|
12,249
|
12,269
|
10,510
|
Sept. 27,
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Sept. 30,
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|||||||
Balance Sheet Data
|
2016
|
2015
|
||||||
Cash & cash equivalents
|
$
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6,330
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$
|
13,809
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||||
Current assets
|
7,793
|
14,728
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||||||
Property and Equipment, net
|
19,692
|
14,222
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||||||
Other assets
|
19,392
|
19,278
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||||||
Total assets
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$
|
46,877
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$
|
48,228
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||||
Current liabilities, including capital lease obligations and
long-term debt due within one year |
5,122
|
7,258
|
||||||
Long-term debt due after one year
|
19
|
1,093
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||||||
Capital lease obligations due after one year
|
0
|
11
|
||||||
Other liabilities
|
3,938
|
1,609
|
||||||
Total liabilities
|
$
|
9,079
|
$
|
9,971
|
||||
Stockholders’ equity
|
$
|
37,798
|
$
|
38,257
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
|||||||||||||||||||||||||||||||
Fiscal Quarter Ended
|
Fiscal Year Ended
|
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||||||||||||||||
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
|||||||||||||||||||||||||
2016
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2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||||||||
Restaurant Sales (in thousands)
|
$
|
7,500
|
$
|
7,716
|
$
|
28,861
|
$
|
28,521
|
$
|
9,540
|
$
|
6,635
|
$
|
34,855
|
$
|
14,996
|
||||||||||||||||
Restaurants open during period
|
-
|
-
|
-
|
2
|
1
|
-
|
6
|
1
|
||||||||||||||||||||||||
Restaurants acquired on May 7, 2015
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7
|
||||||||||||||||||||||||
Restaurants open at period end
|
27
|
27
|
27
|
27
|
16
|
10
|
16
|
10
|
||||||||||||||||||||||||
Restaurant operating weeks
|
343.3
|
349.9
|
1,400.1
|
1,358.1
|
194.4
|
131.4
|
709.3
|
289.4
|
||||||||||||||||||||||||
Average weekly sales per restaurant
(in thousands) |
21.8
|
22.1
|
20.6
|
21.0
|
49.1
|
50.5
|
49.1
|
51.8
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc.
|
||||||||||||||||||||||||||||||||||
Fiscal Quarter Ended
|
Fiscal Quarter Ended
|
Fiscal Quarter Ended
|
||||||||||||||||||||||||||||||||||
Sept. 27,
2016 |
Sept. 30,
2015 |
Sept. 27,
2016 |
Sept. 30,
2015 |
Sept. 27,
2016 |
Sept. 30,
2015 |
|||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
7,500
|
100.0
|
%
|
$
|
7,716
|
100.0
|
%
|
$
|
9,540
|
100.0
|
%
|
$
|
6,635
|
100.0
|
%
|
$
|
17,040
|
$
|
14,351
|
||||||||||||||||
Restaurant Operating Costs (exclusive
of depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
2,430
|
32.4
|
%
|
2,632
|
34.1
|
%
|
2,953
|
31.0
|
%
|
2,175
|
32.8
|
%
|
5,383
|
4,807
|
||||||||||||||||||||||
Payroll and other employee
benefit costs |
2,424
|
32.3
|
%
|
2,447
|
31.7
|
%
|
3,444
|
36.1
|
%
|
2,387
|
36.0
|
%
|
5,868
|
4,834
|
||||||||||||||||||||||
Restaurant occupancy costs
|
686
|
9.1
|
%
|
661
|
8.6
|
%
|
604
|
6.3
|
%
|
384
|
5.8
|
%
|
1,290
|
1,045
|
||||||||||||||||||||||
Other restaurant operating costs
|
647
|
8.6
|
%
|
640
|
8.3
|
%
|
908
|
9.5
|
%
|
697
|
10.5
|
%
|
1,555
|
1,337
|
||||||||||||||||||||||
Restaurant-level operating profit
|
1,313
|
17.5
|
%
|
1,336
|
17.3
|
%
|
1,631
|
17.1
|
%
|
992
|
14.9
|
%
|
2,944
|
2,328
|
||||||||||||||||||||||
Franchise royalty income and
expense, net |
177
|
198
|
||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
630
|
433
|
||||||||||||||||||||||||||||||||||
General and administrative
|
1,587
|
1,241
|
||||||||||||||||||||||||||||||||||
Advertising costs
|
403
|
350
|
||||||||||||||||||||||||||||||||||
Acquisition costs
|
0
|
86
|
||||||||||||||||||||||||||||||||||
Franchise costs
|
26
|
26
|
||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of
restaurants and equipment
|
(6
|
)
|
28
|
|||||||||||||||||||||||||||||||||
Preopening costs
|
267
|
206
|
||||||||||||||||||||||||||||||||||
Total other operating
|
2,907
|
2,370
|
||||||||||||||||||||||||||||||||||
Income from Operations
|
$
|
214
|
$
|
156
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc.
|
||||||||||||||||||||||||||||||||||
Fiscal Year Ended
|
Fiscal Year Ended
|
Fiscal Year Ended
|
||||||||||||||||||||||||||||||||||
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
|||||||||||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
28,861
|
100.0
|
%
|
$
|
28,521
|
100.0
|
%
|
$
|
34,855
|
100.0
|
%
|
$
|
14,996
|
100.0
|
%
|
$
|
63,716
|
$
|
43,517
|
||||||||||||||||
Restaurant Operating Costs
(exclusive of depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
9,346
|
32.4
|
%
|
9,734
|
34.1
|
%
|
10,890
|
31.2
|
%
|
4,833
|
32.2
|
%
|
20,236
|
14,567
|
||||||||||||||||||||||
Payroll and other employee
benefit costs |
9,450
|
32.7
|
%
|
8,967
|
31.4
|
%
|
12,648
|
36.3
|
%
|
5,420
|
36.1
|
%
|
22,098
|
14,387
|
||||||||||||||||||||||
Restaurant occupancy costs
|
2,711
|
9.4
|
%
|
2,503
|
8.8
|
%
|
2,182
|
6.3
|
%
|
856
|
5.7
|
%
|
4,893
|
3,359
|
||||||||||||||||||||||
Other restaurant operating costs
|
2,381
|
8.2
|
%
|
2,264
|
7.9
|
%
|
3,303
|
9.5
|
%
|
1,433
|
9.6
|
%
|
5,684
|
3,697
|
||||||||||||||||||||||
Restaurant-level operating profit
|
4,973
|
17.2
|
%
|
5,053
|
17.7
|
%
|
5,832
|
16.7
|
%
|
2,454
|
16.4
|
%
|
10,805
|
7,507
|
||||||||||||||||||||||
Franchise royalty income and
expense, net |
723
|
417
|
||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
2,222
|
1,246
|
||||||||||||||||||||||||||||||||||
General and administrative
|
6,288
|
4,167
|
||||||||||||||||||||||||||||||||||
Advertising costs
|
1,540
|
1,198
|
||||||||||||||||||||||||||||||||||
Acquisition costs
|
0
|
648
|
||||||||||||||||||||||||||||||||||
Franchise costs
|
108
|
111
|
||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of
restaurants and equipment |
(25
|
)
|
9
|
|||||||||||||||||||||||||||||||||
Preopening costs
|
1,695
|
784
|
||||||||||||||||||||||||||||||||||
Total other operating
|
11,828
|
8,163
|
||||||||||||||||||||||||||||||||||
Loss from Operations
|
$
|
(300
|
)
|
$
|
(239
|
)
|
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||
Sept. 27,
|
Sept. 30,
|
Sept. 27,
|
Sept. 30,
|
|||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss as reported
|
$
|
(71
|
)
|
$
|
(52
|
)
|
$
|
(1,321
|
)
|
$
|
(791
|
)
|
||||
Adjustments to net income (loss):
|
||||||||||||||||
Depreciation and amortization
|
611
|
405
|
2,116
|
1,224
|
||||||||||||
Interest expense, net
|
16
|
27
|
107
|
49
|
||||||||||||
EBITDA
|
556
|
380
|
902
|
483
|
||||||||||||
Preopening expense
|
253
|
206
|
1,680
|
784
|
||||||||||||
Non-cash stock based compensation
|
186
|
161
|
718
|
478
|
||||||||||||
Non-recurring acquisition costs
|
0
|
87
|
0
|
648
|
||||||||||||
Debt extinguishment costs
|
57
|
0
|
57
|
0
|
||||||||||||
GAAP rent in excess of cash rent
|
6
|
15
|
36
|
102
|
||||||||||||
Non-cash disposal of assets
|
(6
|
)
|
27
|
(25
|
)
|
9
|
||||||||||
Adjusted EBITDA
|
$
|
1,051
|
$
|
876
|
$
|
3,368
|
$
|
2,503
|