UNITED STATES
|
||
SECURITIES AND EXCHANGE COMMISSION
|
||
Washington, D.C. 20549
|
||
FORM 8-K
|
||
CURRENT REPORT
|
||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
||
Date of Report (Date of earliest event reported)
|
||
February 9, 2017
|
||
Good Times Restaurants Inc.
|
||
(Exact name of registrant as specified in its charter)
|
||
Nevada
|
000-18590
|
84-1133368
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
141 Union Boulevard, #400, Lakewood, Colorado 80228
|
||
(Address of principal executive offices) (Zip Code)
|
||
Registrant’s telephone number, including area code: (303) 384-1400
|
||
Not applicable
|
||
(Former name or former address, if changed since last report.)
|
||
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))
|
Exhibit Number
|
Description
|
99.1
|
Press Release, dated February 9, 2017
|
GOOD TIMES RESTAURANTS INC. | |||
Date: February 9, 2017
|
By: | ||
Boyd E. Hoback
|
|||
President and Chief Executive Officer
|
February 9, 2017
|
Nasdaq Capital Markets - GTIM
|
· |
Same store sales for company-owned Good Times restaurants decreased 0.5% for the quarter on top of last year’s increase of 4.8%
|
· |
Same store sales for company-owned Bad Daddy’s restaurants increased 2.0% for the quarter on top of last year’s increase of 6.5%
|
· |
Total revenues increased 20% to $16,555,000 for the quarter
|
· |
The Company opened one new Bad Daddy’s restaurants during the quarter and has opened one additional restaurant after the quarter ended
|
· |
Sales for the Bad Daddy’s restaurants for the quarter were $9,511,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $1,419,000 or 14.9% as a percent of sales *
|
· |
Adjusted EBITDA (a non-GAAP measure) for the quarter increased 93% to $472,000 from $245,000 for the quarter*
|
· |
The Company ended the quarter with $3.5 million in cash and virtually no long-term debt
|
· |
Total revenues of approximately $78 million to $80 million with a year-end revenue run rate of approximately $92 million to $94 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 $800,000 of non-cash equity compensation expense
|
· |
The opening of 8 to 9 new Bad Daddy’s restaurants (including 2 joint venture units) and 1 new Good Times restaurant
|
· |
Total Adjusted EBITDA* of approximately $4.0 million to $4.5 million
|
· |
Restaurant pre-opening expenses of approximately $3 million
|
· |
Capital expenditures (net of tenant improvement allowances) of approximately $12 million including approximately $2.0 million related to fiscal 2018 development
|
· |
Fiscal year end long term debt of approximately $6 million
|
Fiscal first quarter
|
||||||||
Statement of Operations
|
2017
|
2016
|
||||||
Net revenues:
|
||||||||
Restaurant sales
|
$
|
16,386
|
$
|
13,656
|
||||
Franchise revenues
|
169
|
182
|
||||||
Total net revenues
|
16,555
|
13,838
|
||||||
Restaurant Operating Costs:
|
||||||||
Food and packaging costs
|
5,155
|
4,505
|
||||||
Payroll and other employee benefit costs
|
5,995
|
4,772
|
||||||
Restaurant occupancy costs
|
1,294
|
1,062
|
||||||
Other restaurant operating costs
|
1,528
|
1,251
|
||||||
Preopening costs
|
351
|
725
|
||||||
Depreciation and amortization
|
630
|
459
|
||||||
Total restaurant operating costs
|
14,953
|
12,774
|
||||||
General and administrative costs
|
1,645
|
1,606
|
||||||
Advertising costs
|
412
|
366
|
||||||
Franchise costs
|
24
|
27
|
||||||
Loss on disposal of restaurants and equipment
|
(6
|
)
|
(5
|
)
|
||||
Loss from operations
|
(473
|
)
|
(930
|
)
|
||||
Other income (expense):
|
||||||||
Interest income (expense), net
|
(20
|
)
|
(30
|
)
|
||||
Other expense
|
0
|
(1
|
)
|
|||||
Total other income (expense), net
|
(20
|
)
|
(31
|
)
|
||||
Net loss
|
$
|
(493
|
)
|
$
|
(961
|
)
|
||
Loss attributable to non-controlling interests
|
(140
|
)
|
(163
|
)
|
||||
Net loss attributable to common shareholders
|
$
|
(633
|
)
|
$
|
(1,124
|
)
|
||
Basic and diluted loss per share
|
$
|
(0.05
|
)
|
$
|
(0.09
|
)
|
||
Basic and diluted weighted average common shares outstanding
|
12,288
|
12,260
|
December 27,
|
September 27,
|
|||||||
Balance Sheet Data
|
2016
|
2016
|
||||||
Cash & cash equivalents
|
$
|
3,517
|
$
|
6,330
|
||||
Current assets
|
5,183
|
7,793
|
||||||
Property and Equipment, net
|
23,310
|
19,692
|
||||||
Other assets
|
19,367
|
19,392
|
||||||
Total assets
|
$
|
47,860
|
$
|
46,877
|
||||
Current liabilities, including capital lease obligations and long-term debt due
within one year |
6,085
|
5,122
|
||||||
Long-term debt due after one year
|
52
|
19
|
||||||
Other liabilities
|
4,251
|
3,938
|
||||||
Total liabilities
|
$
|
10,388
|
$
|
9,079
|
||||
Stockholders’ equity
|
$
|
37,472
|
$
|
37,798
|
Good Times Burgers &
Frozen Custard |
Bad Daddy’s
Burger Bar |
|||||||||||||||
Fiscal first quarter
|
||||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Restaurant Sales (in thousands)
|
$
|
6,875
|
$
|
6,947
|
$
|
9,511
|
$
|
6,709
|
||||||||
Restaurants open during period
|
-
|
-
|
1
|
2
|
||||||||||||
Restaurants open at period end
|
27
|
27
|
17
|
12
|
||||||||||||
Restaurant operating weeks
|
351.0
|
354.9
|
210.0
|
145.3
|
||||||||||||
Average weekly sales per restaurant (in thousands)
|
$
|
19.6
|
$
|
19.6
|
$
|
45.3
|
$
|
46.2
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc.
|
||||||||||||||||||||||||||||||||||||||
------------------------------------------------------------------Fiscal first quarter----------------------------------------------------------------
|
||||||||||||||||||||||||||||||||||||||||
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
6,875
|
100.0
|
%
|
$
|
6,947
|
100.0
|
%
|
$
|
9,511
|
100.0
|
%
|
$
|
6,709
|
100.0
|
%
|
$
|
16,386
|
$
|
13,656
|
||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
2,211
|
32.2
|
%
|
2,313
|
33.3
|
%
|
2,944
|
31.0
|
%
|
2,192
|
32.7
|
%
|
5,155
|
4,505
|
||||||||||||||||||||||||||
Payroll and other employee benefit costs
|
2,398
|
34.9
|
%
|
2,300
|
33.1
|
%
|
3,597
|
37.8
|
%
|
2,472
|
36.8
|
%
|
5,995
|
4,772
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
666
|
9.7
|
%
|
656
|
9.4
|
%
|
628
|
6.6
|
%
|
406
|
6.1
|
%
|
1,294
|
1,062
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
605
|
8.8
|
%
|
588
|
8.5
|
%
|
923
|
9.7
|
%
|
663
|
9.9
|
%
|
1,528
|
1,251
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
$
|
995
|
14.5
|
%
|
$
|
1,090
|
15.7
|
%
|
$
|
1,419
|
14.9
|
%
|
$
|
976
|
14.5
|
%
|
2,414
|
2,066
|
||||||||||||||||||||||
Franchise royalty income, net
|
169
|
182
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
630
|
459
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
1,645
|
1,606
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
412
|
366
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
24
|
27
|
||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
|
(6
|
)
|
(5
|
)
|
||||||||||||||||||||||||||||||||||||
Preopening costs
|
351
|
725
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
3,056
|
3.178
|
||||||||||||||||||||||||||||||||||||||
Income from Operations
|
$ | (473 | ) | $ | (930 | ) |
Good Times Restaurants Inc.
|
||||||||
Fiscal first quarter
|
||||||||
2017
|
2016
|
|||||||
Net loss as reported
|
$
|
(633
|
)
|
$
|
(1,124
|
)
|
||
Adjustments to net loss:
|
||||||||
Depreciation and amortization
|
602
|
427
|
||||||
Interest expense, net
|
20
|
30
|
||||||
EBITDA
|
$
|
(11
|
)
|
$
|
(667
|
)
|
||
Preopening costs
|
293
|
725
|
||||||
Non-cash stock based compensation
|
199
|
177
|
||||||
GAAP rent in excess of cash rent
|
(3
|
)
|
15
|
|||||
Non-cash disposal of assets
|
(6
|
)
|
(5
|
)
|
||||
Adjusted EBITDA
|
$
|
472
|
$
|
245
|