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, 2017
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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, 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.):
☐ 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 May 10, 2017
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GOOD TIMES RESTAURANTS INC.
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Date: May 10, 2017
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By:
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![]() |
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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, 2017
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Nasdaq Capital Markets - GTIM
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· |
Same store sales for company-owned Good Times restaurants increased 0.1% for the quarter on top of last year’s increase of 0.5%. Excluding the days that the Good Times’ restaurants were closed for kitchen remodels to add new production line equipment, same store sales increased 0.5% for the quarter. Year to date, same store sales decreased 0.2% versus last year’s increase of 2.6%.
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· |
Same store sales for company-owned Bad Daddy’s restaurants increased 3.2% for the quarter on top of last year’s increase of 1.9%. Year to date, same store sales increased 2.6% versus last year’s increase of 4.0%.
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· |
Total revenues increased 19% to $18,239,000 for the quarter.
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· |
The Company opened one new Bad Daddy’s restaurant during the quarter and has opened one additional restaurant after the quarter ended for a total of three new Bad Daddy’s restaurants opened so far in fiscal 2017 and expects five more to open by fiscal year end.
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· |
The Company opened one new Good Times restaurant during the quarter.
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· |
Sales for the Bad Daddy’s restaurants for the quarter increased 33% versus last year to $11,187,000 and Restaurant Level Operating Profit (a non-GAAP measure) increased 35% to $1,803,000 or 16.1% as a percent of sales*.
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· |
Adjusted EBITDA (a non-GAAP measure) for the quarter was $619,000 versus $639,000 last year*.
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· |
The Company ended the quarter with $4.8 million in cash and $1.4 million of long-term debt.
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· |
Total revenues of approximately $78 million to $80 million with a year-end revenue run rate of approximately $92 million to $94 million
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· |
Total revenue estimates assume same store sales of approximately +3% to +3.5% for Good Times and +1% to +2% for Bad Daddy’s in Q3 and Q4
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· |
General and administrative expenses of approximately $7.0 million, including approximately $800,000 of non-cash equity compensation expense
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· |
The opening of a total of 8 new Bad Daddy’s restaurants (including 2 joint venture units) and 1 new Good Times restaurant
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· |
Total Adjusted EBITDA* of approximately $4.0 million to $4.5 million
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· |
Restaurant pre-opening expenses of approximately $3 million
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· |
Capital expenditures (net of tenant improvement allowances) of approximately $12 million including approximately $2 million related to fiscal 2018 development
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· |
Fiscal year end long term debt of approximately $6 million
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Second Quarter
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Year To Date
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|||||||||||||||
Statement of Operations
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2017
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2016
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2017
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2016
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||||||||||||
Net revenues:
|
||||||||||||||||
$
|
18,077
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$
|
15,141
|
$
|
34,463
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$
|
28,797
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|||||||||
162
|
177
|
331
|
359
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|||||||||||||
18,239
|
15,310
|
34,797
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29,156
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|||||||||||||
Restaurant Operating Costs:
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||||||||||||||||
Food and packaging costs
|
5,614
|
4,785
|
10,769
|
9,290
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||||||||||||
Payroll and other employee benefit costs
|
6,675
|
5,394
|
12,670
|
10,166
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||||||||||||
Restaurant occupancy costs
|
1,429
|
1,231
|
2,723
|
2,294
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||||||||||||
Other restaurant operating costs
|
1,579
|
1,332
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3,107
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2,583
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||||||||||||
Royalty expense
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0
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0
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0
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0
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||||||||||||
New store preopening costs
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567
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576
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918
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1,301
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||||||||||||
Depreciation and amortization
|
703
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549
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1,333
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1,008
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||||||||||||
Total restaurant operating costs
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16,567
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13,867
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31,520
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26,642
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||||||||||||
General and administrative costs
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1,746
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1,510
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3,391
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3,116
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||||||||||||
Advertising costs
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431
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352
|
843
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718
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||||||||||||
Franchise costs
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28
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27
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52
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54
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||||||||||||
Gain on restaurant asset sale
|
(5
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)
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(7
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)
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(11
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)
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(12
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)
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||||||||
Loss from operations
|
(528
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)
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(431
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)
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(1,001
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)
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(731
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)
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||||||||
Other income (expense):
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||||||||||||||||
Interest income (expense), net
|
(36
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)
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(36
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)
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(56
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)
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(66
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)
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||||||||
Total other income (expense), net
|
(36
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)
|
(36
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)
|
(56
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)
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(66
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)
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Net loss
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$
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(564
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)
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$
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(467
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)
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$
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(1,057
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)
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$
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(1,428
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)
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Income attributable to non-controlling interest
|
(147
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)
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(206
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)
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(287
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)
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(369
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)
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Net loss attributable to Good Times Restaurants Inc.
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$
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(711
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)
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$
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(673
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)
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$
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(1,344
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)
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$
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(1,797
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)
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Basic and diluted loss per share
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$
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(0.06
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)
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$
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(0.05
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)
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$
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(0.11
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)
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$
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(0.15
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)
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Basic and diluted weighted average common shares
outstanding |
12,298
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12,263
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12,293
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12,262
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Mar. 28, 2017
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Sep. 27, 2016
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Balance Sheet Data
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Cash & cash equivalents
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$
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4,828
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$
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6,330
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Current assets
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6,843
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7,793
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Property and Equipment, net
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24,122
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19,692
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Other assets
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19,347
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19,392
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Total assets
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$
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50,312
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$
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46,877
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Current liabilities, including capital lease obligations and long-term debt
due within one year |
7,115
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5,122
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Long-term debt due after one year
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1,448
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19
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||||||
Other liabilities
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4,709
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3,938
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Total liabilities
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$
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13,272
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$
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9,079
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Stockholders’ equity
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$
|
37,040
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$
|
37,798
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Good Times Burgers & Frozen Custard
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Bad Daddy’s Burger Bar
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|||||||||||||||||||||||||||||||
Second Quarter
|
Year To Date
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Second Quarter
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Year To Date
|
|||||||||||||||||||||||||||||
2017
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2016
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2017
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2016
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2017
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2016
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2017
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2016
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|||||||||||||||||||||||||
Restaurant Sales (in thousands)
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$
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6,890
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$
|
6,700
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$
|
13,765
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$
|
13,647
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$
|
11,187
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$
|
8,441
|
$
|
20,698
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$
|
15,150
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||||||||||||||||
Restaurants open during period
|
1
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0
|
1
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0
|
1
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2
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2
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4
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||||||||||||||||||||||||
Restaurants open at period end
|
28
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27
|
28
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27
|
18
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14
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18
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14
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||||||||||||||||||||||||
Restaurant operating weeks
|
353.3
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351.0
|
704.3
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705.9
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231.3
|
175.0
|
441.3
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320.3
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||||||||||||||||||||||||
Average weekly sales per restaurant (in thousands)
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$
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19.5
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$
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19.1
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$
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19.5
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$
|
19.3
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$
|
48.4
|
$
|
48.2
|
$
|
46.9
|
$
|
47.3
|
Good Times Burgers &
Frozen Custard |
Bad Daddy’s
Burger Bar |
Good Times
Restaurants Inc. |
||||||||||||||||||||||||||||||||||||||
------------------------------------------------------------------Fiscal Second Quarter---------------------------------------------------------------
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2017
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2016
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2017
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2016
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2017
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2016
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|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
6,890
|
100.0
|
%
|
$
|
6,700
|
100.0
|
%
|
$
|
11,187
|
100.0
|
%
|
$
|
8,441
|
100.0
|
%
|
$
|
18,077
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$
|
15,141
|
||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
2,187
|
31.7
|
%
|
2,124
|
31.7
|
%
|
3,427
|
30.6
|
%
|
2,661
|
31.5
|
%
|
5,614
|
4,785
|
||||||||||||||||||||||||||
Payroll and other employee benefit costs
|
2,462
|
35.7
|
%
|
2,283
|
34.1
|
%
|
4,213
|
37.7
|
%
|
3,111
|
36.9
|
%
|
6,675
|
5,394
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
716
|
10.4
|
%
|
692
|
10.3
|
%
|
713
|
6.4
|
%
|
539
|
6.4
|
%
|
1,429
|
1,231
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
548
|
8.0
|
%
|
538
|
8.0
|
%
|
1,031
|
9.2
|
%
|
794
|
9.4
|
%
|
1,579
|
1,332
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
$
|
977
|
14.2
|
%
|
$
|
1,063
|
15.9
|
%
|
$
|
1,803
|
16.1
|
%
|
$
|
1,336
|
15.8
|
%
|
2,780
|
2,399
|
||||||||||||||||||||||
Franchise royalty income, net
|
162
|
177
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
703
|
549
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
1,746
|
1,510
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
431
|
352
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
28
|
27
|
||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
|
(5
|
)
|
(7
|
)
|
||||||||||||||||||||||||||||||||||||
Preopening costs
|
567
|
576
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
3,470
|
3,007
|
||||||||||||||||||||||||||||||||||||||
Loss from Operations
|
$
|
(528
|
)
|
$
|
(431
|
)
|
Good Times Burgers &
Frozen Custard |
Bad Daddy’s
Burger Bar |
Good Times
Restaurants Inc. |
||||||||||||||||||||||||||||||||||||||
------------------------------------------------------------------------Year To Date------- ---------------------------------------------------------
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2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
13,765
|
100.0
|
%
|
$
|
13,647
|
100.0
|
%
|
$
|
20,698
|
100.0
|
%
|
$
|
15,150
|
100.0
|
%
|
$
|
34,463
|
$
|
28,797
|
||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
4,399
|
32.0
|
%
|
4,437
|
32.5
|
%
|
6,370
|
30.8
|
%
|
4,853
|
32.0
|
%
|
10,769
|
9,290
|
||||||||||||||||||||||||||
Payroll and other employee benefit costs
|
4,860
|
35.3
|
%
|
4,582
|
33.6
|
%
|
7,810
|
37.7
|
%
|
5,584
|
36.9
|
%
|
12,670
|
10,166
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
1,382
|
10.0
|
%
|
1,349
|
9.9
|
%
|
1,341
|
6.5
|
%
|
945
|
6.2
|
%
|
2,723
|
2,294
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
1,153
|
8.4
|
%
|
1,126
|
8.3
|
%
|
1,954
|
9.4
|
%
|
1,457
|
9.6
|
%
|
3,107
|
2,583
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
$
|
1,971
|
14.3
|
%
|
$
|
2,153
|
15.8
|
%
|
$
|
3,223
|
15.6
|
%
|
$
|
2,331
|
15.3
|
%
|
5,194
|
4,464
|
||||||||||||||||||||||
Franchise royalty income, net
|
331
|
359
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
1,333
|
1,008
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
3,391
|
3,116
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
843
|
718
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
52
|
54
|
||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
|
(11
|
)
|
(12
|
)
|
||||||||||||||||||||||||||||||||||||
Preopening costs
|
918
|
1,301
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
6,526
|
6,185
|
||||||||||||||||||||||||||||||||||||||
Loss from Operations
|
$
|
(1,001
|
)
|
$
|
(1,362
|
)
|
Second Quarter
|
Year To Date
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net loss as reported
|
$
|
(711
|
)
|
$
|
(673
|
)
|
$
|
(1,344
|
)
|
$
|
(1,797
|
)
|
||||
Adjustments to net loss:
|
||||||||||||||||
Depreciation and amortization
|
672
|
520
|
1,274
|
947
|
||||||||||||
Interest expense, net
|
37
|
36
|
57
|
66
|
||||||||||||
EBITDA
|
$
|
(2
|
)
|
$
|
(117
|
)
|
$
|
(13
|
)
|
$
|
(784
|
)
|
||||
Preopening costs
|
431
|
576
|
713
|
1,301
|
||||||||||||
Non-cash stock based compensation
|
205
|
177
|
404
|
355
|
||||||||||||
GAAP rent in excess of cash rent
|
(11
|
)
|
10
|
(16
|
)
|
24
|
||||||||||
Non-cash disposal of assets
|
(4
|
)
|
(7
|
)
|
(11
|
)
|
(12
|
)
|
||||||||
Adjusted EBITDA
|
$
|
619
|
$
|
639
|
$
|
1,077
|
$
|
884
|