Nevada
|
000-18590
|
84-1133368
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
Exhibit Number
|
Description
|
99.1
|
GOOD TIMES RESTAURANTS INC.
|
||
Date: December 7, 2017
|
By:
|
![]() |
Boyd E. Hoback
|
||
President and Chief Executive Officer
|
December 7, 2017
|
Nasdaq Capital Markets - GTIM
|
· |
Same store sales for company-owned Good Times restaurants increased 3.9% for the quarter and increased 2.1% for the year on top of last year’s increase of 0.3% for the year
|
· |
Same store sales for company-owned Bad Daddy’s restaurants increased 1.4% for the quarter and 1.6% for the year on top of last year’s increase of 1.9% for the quarter and 3.3% for the year
|
· |
Total revenues increased 31% to $22,584,000 for the quarter and increased 23% to $79,080,000 for the year, which reflects the addition of one new Good Times restaurant and six Bad Daddy’s restaurants during the year
|
· |
Subsequent to the year end two additional Bad Daddy’s opened during the first two weeks of October
|
· |
Income from Operations declined by $1,122,000 to a loss of $1,422,000 for the year, which includes the impact of $2,588,000 of new store preopening costs incurred in fiscal 2017.
|
· |
Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants improved to $1,333,000 for the quarter versus $1,313,000 in the same quarter last year*
|
· |
Restaurant Level Operating Profit (a non-GAAP measure) for Bad Daddy’s restaurants improved 28% to $2,081,000 in the fourth quarter from $1,631,000 in the fourth quarter last year*
|
· |
Total Restaurant Level Operating Profit (a non-GAAP measure) increased 16% to $3,414,000 for the quarter and increased 15% to $12,378,000 for the year*
|
· |
Adjusted EBITDA (a non-GAAP measure) for the quarter increased 24% to $1,305,000 from $1,051,000 and increased 12% to $3,777,000 from $3,368,000 for the fiscal year*
|
· |
The Company ended the quarter with $4.3 million in cash and $5.3 million of long term debt
|
· |
Total revenues of approximately $100 million to $102 million with a year-end revenue run rate of approximately $109 million to $111 million
|
· |
Total revenue estimates assume same store sales of approximately +3% to +3.5% for Good Times consistently throughout the year and +1% to +2% for Bad Daddy’s.
|
· |
General and administrative expenses of approximately $7.8 million to $8.0 million, including approximately $700,000 of non-cash equity compensation expense
|
· |
The opening of 9 new Bad Daddy’s restaurants (including 2 joint venture units)
|
· |
Net loss of approximately $1.4 million, including pre-opening expenses of approximately $2.5 million
|
· |
Total Adjusted EBITDA* of approximately $5.0 million to $5.5 million
|
· |
Capital expenditures (net of tenant improvement allowances) of approximately $9.5 million including approximately $1.2 million related to fiscal 2019 development
|
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
|||||||||||||
Statement of Operations
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Net revenues:
|
||||||||||||||||
Restaurant sales
|
$
|
22,414
|
$
|
17,040
|
$
|
78,395
|
$
|
63,716
|
||||||||
Franchise revenues
|
170
|
177
|
685
|
723
|
||||||||||||
Total net revenues
|
22,584
|
17,217
|
79,080
|
64,439
|
||||||||||||
Restaurant Operating Costs:
|
||||||||||||||||
Food and packaging costs
|
7,309
|
5,383
|
24,900
|
20,236
|
||||||||||||
Payroll and other employee benefit costs
|
8,058
|
5,868
|
28,274
|
22,098
|
||||||||||||
Restaurant occupancy costs
|
1,552
|
1,290
|
5,759
|
4,893
|
||||||||||||
Other restaurant operating costs
|
2,081
|
1,555
|
7,084
|
5,684
|
||||||||||||
New store preopening costs
|
851
|
267
|
2,588
|
1,695
|
||||||||||||
Depreciation and amortization
|
811
|
630
|
2,897
|
2,222
|
||||||||||||
Total restaurant operating costs
|
20,662
|
14,993
|
71,502
|
56,828
|
||||||||||||
General and administrative costs
|
1,780
|
1,587
|
7,002
|
6,288
|
||||||||||||
Advertising costs
|
337
|
403
|
1,694
|
1,540
|
||||||||||||
Franchise costs
|
28
|
26
|
108
|
108
|
||||||||||||
Asset impairment costs
|
219
|
0
|
219
|
0
|
||||||||||||
(Gain) on disposal of restaurants and equipment
|
(6
|
)
|
(6
|
)
|
(23
|
)
|
(25
|
)
|
||||||||
Income (loss) from operations
|
(436
|
)
|
214
|
(1,422
|
)
|
(300
|
)
|
|||||||||
Other income (expense):
|
||||||||||||||||
Interest income (expense), net
|
(77
|
)
|
(17
|
)
|
(182
|
)
|
(107
|
)
|
||||||||
Debt extinguishment costs
|
0
|
(57
|
)
|
0
|
(57
|
)
|
||||||||||
Other expense
|
0
|
0
|
(1
|
)
|
(1
|
)
|
||||||||||
Total other income (expenses), net
|
(77
|
)
|
(74
|
)
|
(183
|
)
|
(165
|
)
|
||||||||
Net income (loss)
|
$
|
(513
|
)
|
$
|
140
|
$
|
(1,605
|
)
|
$
|
(465
|
)
|
|||||
Income attributable to non-controlling interest
|
(151
|
)
|
(211
|
)
|
(650
|
)
|
(856
|
)
|
||||||||
Net loss attributable to Good Times Restaurants Inc.
|
(664
|
)
|
$
|
(71
|
)
|
$
|
(2,255
|
)
|
$
|
(1,321
|
)
|
|||||
Basic and diluted loss per share
|
$
|
(0.05
|
)
|
$
|
(0.01
|
)
|
$
|
(0.18
|
)
|
$
|
(0.11
|
)
|
||||
Basic and diluted weighted average common shares
outstanding |
12,393
|
12,283
|
12,321
|
12,269
|
Sept. 26,
|
Sept. 27,
|
|||||||
Balance Sheet Data
|
2017
|
2016
|
||||||
Cash & cash equivalents
|
$
|
4,337
|
$
|
6,330
|
||||
Current assets
|
6,066
|
7,793
|
||||||
Property and Equipment, net
|
29,691
|
19,692
|
||||||
Other assets
|
19,396
|
19,392
|
||||||
Total assets
|
$
|
55,153
|
$
|
46,877
|
||||
Current liabilities, including capital lease obligations and
long-term debt due within one year |
$
|
6,916
|
$
|
5,122
|
||||
Long-term debt due after one year
|
5,339
|
19
|
||||||
Other liabilities
|
5,614
|
3,938
|
||||||
Total liabilities
|
$
|
17,869
|
$
|
9,079
|
||||
Stockholders’ equity
|
$
|
37,284
|
$
|
37,798
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
|||||||||||||||||||||||||||||||
Fiscal Quarter Ended
|
Fiscal Year Ended
|
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||||||||||||||||
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
|||||||||||||||||||||||||
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||||||||
Restaurant Sales
|
$
|
8,378
|
$
|
7,500
|
$
|
30,689
|
$
|
28,861
|
$
|
14,036
|
$
|
9,540
|
$
|
47,706
|
$
|
34,855
|
||||||||||||||||
Average weekly sales per restaurant
|
23.0
|
21.4
|
21.4
|
20.6
|
50.6
|
48.0
|
49.3
|
49.0
|
||||||||||||||||||||||||
Restaurant operating weeks
|
364
|
351.0
|
1432.3
|
1,404.0
|
277.3
|
198.7
|
968.1
|
710.7
|
||||||||||||||||||||||||
Restaurants open during period
|
0
|
0
|
1
|
0
|
1
|
1
|
6
|
6
|
||||||||||||||||||||||||
Restaurants open at period end
|
28
|
27
|
28
|
27
|
22
|
16
|
22
|
16
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc. | ||||||||||||||||||||||||||||||||||||||
Fiscal Quarter Ended
|
Fiscal Quarter Ended
|
Fiscal Quarter Ended
|
||||||||||||||||||||||||||||||||||||||
Sept. 26,
2017 |
Sept. 27,
2016 |
Sept. 26,
2017 |
Sept. 27,
2016 |
Sept. 26, 2017 |
Sept. 27, 2016 |
|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
8,378
|
100.0
|
%
|
$
|
7,500
|
100.0
|
%
|
$
|
14,036
|
100.0
|
%
|
$
|
9,540
|
100.0
|
%
|
$
|
22,414
|
$
|
17,040
|
||||||||||||||||||||
Restaurant Operating Costs (exclusive
of depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
2,802
|
33.4
|
%
|
2,430
|
32.4
|
%
|
4,507
|
32.1
|
%
|
2,953
|
31.0
|
%
|
7,309
|
5,383
|
||||||||||||||||||||||||||
Payroll and other employee
benefit costs |
2,843
|
33.9
|
%
|
2,424
|
32.3
|
%
|
5,215
|
37.2
|
%
|
3,444
|
36.1
|
%
|
8,058
|
5,868
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
697
|
8.3
|
%
|
686
|
9.1
|
%
|
855
|
6.1
|
%
|
604
|
6.3
|
%
|
1,552
|
1,290
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
703
|
8.4
|
%
|
647
|
8.6
|
%
|
1,378
|
9.8
|
%
|
908
|
9.5
|
%
|
2,081
|
1,555
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
1,333
|
15.9
|
%
|
1,313
|
17.5
|
%
|
2,081
|
14.8
|
%
|
1,631
|
17.1
|
%
|
3,414
|
2,944
|
||||||||||||||||||||||||||
Franchise royalty income and
expense, net |
170
|
177
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
811
|
630
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
1,780
|
1,587
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
337
|
403
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
28
|
26
|
||||||||||||||||||||||||||||||||||||||
(Gain) on disposal of
restaurants and equipment |
(6
|
)
|
(6
|
)
|
||||||||||||||||||||||||||||||||||||
Asset impairment costs
|
219
|
0
|
||||||||||||||||||||||||||||||||||||||
Preopening costs
|
851
|
267
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
4,020
|
2,907
|
||||||||||||||||||||||||||||||||||||||
Income (loss) from Operations
|
$
|
(436
|
)
|
$
|
214
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc.
|
||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended
|
Fiscal Year Ended
|
Fiscal Year Ended
|
||||||||||||||||||||||||||||||||||||||
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
|||||||||||||||||||||||||||||||||||
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
30,689
|
100
|
%
|
$
|
28,861
|
100.0
|
%
|
$
|
47,706
|
100.0
|
%
|
$
|
34,855
|
100.0
|
%
|
$
|
78,395
|
$
|
63,716
|
||||||||||||||||||||
Restaurant Operating Costs
(exclusive of depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
9,994
|
32.6
|
%
|
9,346
|
32.4
|
%
|
14,906
|
31.2
|
%
|
10,890
|
31.2
|
%
|
24,900
|
20,236
|
||||||||||||||||||||||||||
Payroll and other employee
benefit costs |
10,548
|
34.4
|
%
|
9,450
|
32.7
|
%
|
17,726
|
37.2
|
%
|
12,648
|
36.3
|
%
|
28,274
|
22,098
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
2,772
|
9.0
|
%
|
2,711
|
9.4
|
%
|
2,987
|
6.3
|
%
|
2,182
|
6.3
|
%
|
5,759
|
4,893
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
2,536
|
8.3
|
%
|
2,381
|
8.2
|
%
|
4,548
|
9.5
|
%
|
3,303
|
9.5
|
%
|
7,084
|
5,684
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
4,839
|
15.8
|
%
|
4,973
|
17.2
|
%
|
7,539
|
15.8
|
%
|
5,832
|
16.7
|
%
|
12,378
|
10,805
|
||||||||||||||||||||||||||
Franchise royalty income and
expense, net |
685
|
723
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
2,897
|
2,222
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
7,002
|
6,288
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
1694
|
1,540
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
108
|
108
|
||||||||||||||||||||||||||||||||||||||
(Gain) on disposal of
restaurants and equipment |
(23
|
)
|
(25
|
)
|
||||||||||||||||||||||||||||||||||||
Asset impairment costs
|
219
|
0
|
||||||||||||||||||||||||||||||||||||||
Preopening costs
|
2,588
|
1,695
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
14,485
|
11,828
|
||||||||||||||||||||||||||||||||||||||
Loss from Operations
|
$
|
(1,422
|
)
|
$
|
(300
|
)
|
Fiscal Quarter Ended
|
Fiscal Year Ended
|
|||||||||||||||
Sept. 26,
|
Sept. 27,
|
Sept. 26,
|
Sept. 27,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net loss as reported
|
$
|
(664
|
)
|
$
|
(71
|
)
|
$
|
(2,255
|
)
|
$
|
(1,321
|
)
|
||||
Adjustments to net income (loss):
|
||||||||||||||||
Depreciation and amortization
|
774
|
611
|
2,776
|
2,116
|
||||||||||||
Asset impairment cost
|
219
|
0
|
219
|
0
|
||||||||||||
Interest expense, net
|
77
|
16
|
185
|
107
|
||||||||||||
EBITDA
|
406
|
556
|
925
|
902
|
||||||||||||
Preopening expense
|
759
|
253
|
2,154
|
1,680
|
||||||||||||
Non-cash stock based compensation
|
139
|
186
|
748
|
718
|
||||||||||||
Debt extinguishment costs
|
0
|
57
|
0
|
57
|
||||||||||||
GAAP rent in excess of cash rent
|
7
|
6
|
(27
|
)
|
36
|
|||||||||||
Non-cash disposal of assets
|
(6
|
)
|
(7
|
)
|
(23
|
)
|
(25
|
)
|
||||||||
Adjusted EBITDA
|
$
|
1,305
|
$
|
1,051
|
$
|
3,777
|
$
|
3,368
|