Nevada
|
000-18590
|
84-1133368
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
☐
|
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))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Exhibit Number
|
Description
|
99.1
|
GOOD TIMES RESTAURANTS INC.
|
|||
Date: February 1, 2018
|
By:
|
![]() |
|
Boyd E. Hoback
|
|||
President and Chief Executive Officer
|
FOR IMMEDIATE RELEASE
|
|
February 1, 2018
|
Nasdaq Capital Markets - GTIM
|
· |
Same store sales for company-owned Good Times restaurants increased 5.9% for the quarter
|
· |
Same store sales for company-owned Bad Daddy’s restaurants increased 0.7% for the quarter on top of last year’s increase of 2.0%
|
· |
Total revenues increased 37% to $22,760,000 for the quarter
|
· |
The Company opened two new Bad Daddy’s restaurants during the quarter
|
· |
Sales for the Bad Daddy’s restaurants for the quarter were $14,987,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $2,355,000 or 15.7% as a percent of sales *
|
· |
Adjusted EBITDA (a non-GAAP measure) for the quarter increased 86% to $877,000 from $472,000 for the same quarter last year*
|
· |
The Company ended the quarter with $3.3 million in cash and $4.8 million drawn against its senior credit facility
|
· |
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 +3.5% for Good Times for the balance of the year, and approximately 4.1% for FY2018 in total. We expect same store sales of 1.3% for the year for Bad Daddy’s, including a three-week closure of the original Bad Daddy’s for building renovations. We expect comparable sales of 2.1%, 0.3%, and 2.0% for Q2, Q3, and Q4 respectively.
|
· |
General and administrative expenses of approximately $7.7 million to $7.9 million, including approximately $600,000 of non-cash equity compensation expense
|
· |
The opening of 6 additional new Bad Daddy’s restaurants (including 1 joint venture unit)
|
· |
Total Adjusted EBITDA* of approximately $5.0 million to $5.5 million
|
· |
Restaurant pre-opening expenses of approximately $2.6 – $2.7 million
|
· |
Capital expenditures (net of tenant improvement allowances) of approximately $9.5 - 10 million including approximately $1.2 million related to fiscal 2019 development
|
· |
Fiscal year end long term debt of approximately $10.5 to $11.0 million
|
Fiscal First Quarter
|
||||||||
Statement of Operations
|
2018
|
2017
|
||||||
Net revenues:
|
||||||||
Restaurant sales
|
$
|
22,597
|
$
|
16,386
|
||||
Franchise revenues
|
163
|
169
|
||||||
Total net revenues
|
22,760
|
16,555
|
||||||
Restaurant Operating Costs:
|
||||||||
Food and packaging costs
|
7,203
|
5,155
|
||||||
Payroll and other employee benefit costs
|
8,279
|
5,995
|
||||||
Restaurant occupancy costs
|
1,640
|
1,294
|
||||||
Other restaurant operating costs
|
2,116
|
1,528
|
||||||
Preopening costs
|
577
|
351
|
||||||
Depreciation and amortization
|
846
|
630
|
||||||
Total restaurant operating costs
|
20,661
|
14,953
|
||||||
General and administrative costs
|
1,917
|
1,645
|
||||||
Advertising costs
|
507
|
412
|
||||||
Franchise costs
|
10
|
24
|
||||||
Gain on disposal of restaurants and equipment
|
(8
|
)
|
(6
|
)
|
||||
Loss from operations
|
(327
|
)
|
(473
|
)
|
||||
Other income (expense):
|
||||||||
Interest income (expense), net
|
(83
|
)
|
(20
|
)
|
||||
Total other income (expense), net
|
(83
|
)
|
(20
|
)
|
||||
Net loss
|
(410
|
)
|
$
|
(493
|
)
|
|||
Income attributable to non-controlling interests
|
(173
|
)
|
(140
|
)
|
||||
Net loss attributable to common shareholders
|
$
|
(583
|
)
|
$
|
(633
|
)
|
||
Basic and diluted loss per share
|
$
|
(0.05
|
)
|
$
|
(0.05
|
)
|
||
Basic and diluted weighted average common shares outstanding
|
12,445
|
12,288
|
Dec 26, 2017
|
Sept 26, 2017
|
|||||||
Balance Sheet Data
|
||||||||
Cash & cash equivalents
|
$
|
3,299
|
$
|
4,337
|
||||
Current assets
|
5,053
|
6,066
|
||||||
Property and Equipment, net
|
29,070
|
29,690
|
||||||
Other assets
|
19,370
|
19,397
|
||||||
Total assets
|
$
|
53,493
|
$
|
55,153
|
||||
Current liabilities, including capital lease obligations and long-term
debt due within one year |
$
|
5,791
|
$
|
6,916
|
||||
Long-term debt due after one year
|
4,835
|
5,339
|
||||||
Other liabilities
|
6,131
|
5,614
|
||||||
Total liabilities
|
16,757
|
17,869
|
||||||
Stockholders’ equity
|
$
|
36,736
|
$
|
37,284
|
Good Times Burgers &
Frozen Custard |
Bad Daddy’s Burger Bar |
|||||||||||||||
Fiscal First Quarter
|
||||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Restaurant Sales (in thousands)
|
$
|
7,610
|
$
|
6,875
|
$
|
14,987
|
$
|
9,511
|
||||||||
Restaurants open during period
|
-
|
-
|
2
|
1
|
||||||||||||
Restaurants open at period end
|
28
|
27
|
24
|
17
|
||||||||||||
Restaurant operating weeks
|
364
|
351.0
|
309.6
|
210.0
|
||||||||||||
Average weekly sales per restaurant (in thousands)
|
$
|
20.9
|
$
|
19.6
|
$
|
48.4
|
$
|
45.3
|
Good Times Burgers & Frozen Custard
|
Bad Daddy’s Burger Bar
|
Good Times Restaurants Inc.
|
||||||||||||||||||||||||||||||||||||||
---------------------------------------------------------------------Fiscal First Quarter-------------------------------------------------------------------
|
||||||||||||||||||||||||||||||||||||||||
2018
|
2017
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||||||||||||||||||||||||
Restaurant Sales
|
$
|
7,610
|
100.0
|
%
|
$
|
6,875
|
100.0
|
%
|
$
|
14,987
|
100.0
|
%
|
$
|
9,511
|
100.0
|
%
|
$
|
22,597
|
$
|
16,386
|
||||||||||||||||||||
Restaurant Operating Costs (exclusive of
depreciation and amortization shown separately below): |
||||||||||||||||||||||||||||||||||||||||
Food and packaging costs
|
2,571
|
33.8
|
%
|
2,211
|
32.2
|
%
|
4,632
|
30.9
|
%
|
2,944
|
31.0
|
%
|
7,203
|
5,155
|
||||||||||||||||||||||||||
Payroll and other employee benefit costs
|
2,685
|
35.3
|
%
|
2,399
|
34.9
|
%
|
5,594
|
37.3
|
%
|
3,596
|
37.8
|
%
|
8,279
|
5,995
|
||||||||||||||||||||||||||
Restaurant occupancy costs
|
701
|
9.2
|
%
|
666
|
9.7
|
%
|
939
|
6.3
|
%
|
628
|
6.6
|
%
|
1,640
|
1,294
|
||||||||||||||||||||||||||
Other restaurant operating costs
|
649
|
8.5
|
%
|
606
|
8.8
|
%
|
1,467
|
9.8
|
%
|
922
|
9.7
|
%
|
2,116
|
1,528
|
||||||||||||||||||||||||||
Restaurant-level operating profit
|
$
|
1,004
|
13.2
|
%
|
$
|
993
|
14.4
|
%
|
$
|
2,355
|
15.7
|
%
|
$
|
1,421
|
14.9
|
%
|
3,359
|
2,414
|
||||||||||||||||||||||
Franchise royalty income, net
|
163
|
169
|
||||||||||||||||||||||||||||||||||||||
Deduct - Other operating:
|
||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
846
|
630
|
||||||||||||||||||||||||||||||||||||||
General and administrative
|
1,917
|
1,645
|
||||||||||||||||||||||||||||||||||||||
Advertising costs
|
507
|
412
|
||||||||||||||||||||||||||||||||||||||
Franchise costs
|
10
|
24
|
||||||||||||||||||||||||||||||||||||||
Gain on restaurant asset sale
|
(8
|
)
|
(6
|
)
|
||||||||||||||||||||||||||||||||||||
Preopening costs
|
577
|
351
|
||||||||||||||||||||||||||||||||||||||
Total other operating
|
3,849
|
3,056
|
||||||||||||||||||||||||||||||||||||||
Loss from Operations
|
$
|
(327
|
)
|
$
|
(473
|
)
|
Good Times Restaurants Inc.
|
||||||||
Fiscal First Quarter
|
||||||||
2018
|
2017
|
|||||||
Net loss as reported
|
$
|
(583
|
)
|
$
|
(633
|
)
|
||
Adjustments to net loss:
|
||||||||
Depreciation and amortization
|
809
|
602
|
||||||
Interest expense
|
84
|
20
|
||||||
EBITDA
|
$
|
310
|
$
|
(11
|
)
|
|||
Preopening costs
|
485
|
293
|
||||||
Non-cash stock based compensation
|
118
|
199
|
||||||
GAAP rent in excess of cash rent
|
(28
|
)
|
(3
|
)
|
||||
Non-cash disposal of assets
|
(8
|
)
|
(6
|
)
|
||||
Adjusted EBITDA
|
$
|
877
|
$
|
472
|