Good Times Restaurants Reports Results for
the Second Quarter Ending March 30, 2021
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad
Daddy’s Burger Bar and Good Times Burgers & Frozen Custard,
today reported financial results for the fiscal second quarter
ended March 30, 2021.
Key highlights of the Company’s financial results
include:
- Total Revenues increased 11.5% to $29.2 million for the
quarter
- Total Restaurant Sales for Bad Daddy’s restaurants increased
$1.7 million to $21.0 million for the quarter
- Same Store Sales1 for company-owned Bad Daddy’s restaurants
increased 9.1% for the quarter
- Total Restaurant Sales for Good Times restaurants increased
$1.3 million to $8.0 million for the quarter
- Same Store Sales for company-owned Good Times restaurants
increased 22.9% for the quarter
- Net Income Attributable to Common Shareholders was $1.1 million
for the quarter
- Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $2.3
million
- The Company ended the quarter with $11.2 million in cash, $3.5
million outstanding under its senior credit facility and $11.6
million in outstanding Paycheck Protection Program loans
Ryan M. Zink, the Company’s Chief Executive Officer, said, “This
quarter marks a turning point for us in that all of our
restaurants, with the re-opening of Bad Daddy’s dining rooms in
early January, were open for the majority of the quarter. We
rewarded our restaurant management during the quarter through a
special discretionary bonus to mark the anniversary of the original
shutdown and celebrate the results of their determination and
enduring efforts during such an unpredictable time. The hiring
environment for hourly team members continues to be challenging and
we are implementing incentive programs to ensure we continue to
attract and retain talented team members at both of our
concepts.”
Mr. Zink concluded, “A year ago we entered a global pandemic on
the heels of a period of poor financial performance for the
company. We continue to build a strong balance sheet and maintain
the comparatively stronger unit-level economics that we have
achieved, but intently focused on the long-term, operating our
concepts with a focus on hiring great people, providing fulfilling
and rewarding roles at all levels of the organization, and
accordingly, running great restaurants.”
Fiscal 2021 Outlook:
As previously announced, due to continuing unprecedented
economic conditions associated with the ongoing COVID-19 pandemic
and unpredictable nature of COVID-19 and government responses to
the evolving situation, the Company had not yet provided a
financial outlook for the remainder of the 2021 fiscal year.
However, based on improved cash flow and stabilizing operations,
the Company is providing the following expectations for 2021:
- Two new Bad Daddy’s restaurants opening during the final two
quarters of the year
- Total capital expenditures of approximately $3.3 million to
$3.5 million, including approximately $1.0 million to $1.2 million
of maintenance expenditures
Although all Bad Daddy’s dining rooms are currently open and
capacity restrictions have been lifted in certain locations, the
possibility remains that temporary closures and/or capacity
restrictions might be put in place with limited notice. Should such
restrictions be enforced, the Company could pull back on
development and reduce capital spend accordingly.
Conference Call: Management will host a conference call
to discuss its second quarter 2021 financial results on Thursday,
May 6, 2021 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will be
Ryan M. Zink, its Chief Executive Officer.
The conference call can be accessed live over the phone by
dialing (888) 339-0806 and requesting the Good Times Restaurants
(GTIM) call. The conference call will also be webcast live from the
Company's corporate website www.goodtimesburgers.com. An archive of
the webcast will be available at the same location on the corporate
website shortly after the call has concluded.
About Good Times Restaurants Inc.: Good Times Restaurants
Inc. (GTIM) owns, operates, franchises and licenses 39 Bad Daddy’s
Burger Bar restaurants through its wholly owned subsidiaries. Bad
Daddy’s Burger Bar is a full-service “small box” restaurant concept
featuring a chef-driven menu of gourmet signature burgers, chopped
salads, appetizers and sandwiches with a full bar and a focus on a
selection of craft beers in a high-energy atmosphere that appeals
to a broad consumer base. Additionally, through its wholly-owned
subsidiaries, Good Times Restaurants Inc. owns, operates and
franchises a regional quick-service restaurant chain consisting of
32 Good Times Burgers & Frozen Custard restaurants located
primarily in Colorado.
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within
the meaning of federal securities laws. The words “intend,” “may,”
“believe,” “will,” “should,” “anticipate,” “expect,” “seek” and
similar expressions are intended to identify forward-looking
statements. These statements involve known and unknown risks, which
may cause the Company’s actual results to differ materially from
results expressed or implied by the forward-looking statements.
These risks include such factors as the disruption to our business
from the novel coronavirus (COVID-19) pandemic and the impact of
the pandemic on our results of operations, financial condition and
prospects which may vary depending on the duration and extent of
the pandemic and the impact of federal, state and local
governmental actions and customer behavior in response to the
pandemic, the lack of assurance that the full amount of the PPP
loans will be forgiven, the uncertain nature of current restaurant
development plans and the ability to implement those plans and
integrate new restaurants, delays in developing and opening new
restaurants because of weather, local permitting or other reasons,
increased competition, cost increases or shortages in raw food
products, and other matters discussed under the Risk Factors
section of Good Times’ Annual Report on Form 10-K for the fiscal
year ended September 29, 2020 filed with the SEC, and other filings
with the SEC . Good Times disclaims any obligation or duty to
update or modify these forward-looking statements.
____________________
1 Sales store sales are a metric used in evaluating the
performance of established restaurants and is a commonly used
metric in the restaurant industry. Same store sales for our brands
are calculated using all units open for at least 18 full fiscal
months, and use the comparable operating weeks from the prior year
to the current year quarter’s operating weeks. 2 For a
reconciliation of Adjusted EBITDA to the most directly comparable
financial measures presented in accordance with GAAP and a
discussion of why the Company considers them useful, see the
financial information schedules accompanying this release.
Category: Financial
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands, except per share
amounts)
Quarter Ended
Year-to-Date
March 30, 2021 (13
Weeks)
March 31, 2020 (13
Weeks)
March 30, 2021 (26
Weeks)
March 31, 2020 (27
Weeks)
Statement of Operations
Net revenues:
Restaurant sales
$
28,995
$
25,998
$
56,076
$
56,591
Franchise revenues
197
184
412
405
Total net revenues
29,192
26,182
56,488
56,996
Restaurant Operating Costs:
Food and packaging costs
8,207
7,897
16,048
17,203
Payroll and other employee benefit
costs
9,645
9,921
18,526
21,900
Restaurant occupancy costs
2,155
2,212
4,350
4,650
Other restaurant operating costs
3,642
2,957
7,111
5,959
Pre-opening costs
80
159
119
961
Depreciation and amortization
930
1,113
1,859
2,192
Total restaurant operating costs
24,659
24,259
48,013
52,865
General and administrative costs
2,418
1,588
4,592
3,641
Advertising costs
510
510
1,019
1,056
Franchise costs
12
8
17
8
Impairment of goodwill
-
10,000
-
10,000
Impairment of long-lived assets
-
4,359
-
4,359
Gain on restaurant asset sale
(10
)
(9
)
(19
)
(28
)
Income (Loss) from operations
1,603
(14,533
)
2,866
(14,905
)
Other expense:
Interest expense, net
(80
)
(209
)
(178
)
(436
)
Total other expense, net
(80
)
(209
)
(178
)
(436
)
Net income (loss)
$
1,523
$
(14,742
)
$
2,688
$
(15,341
)
Income attributable to non-controlling
interests
(426
)
(174
)
(789
)
(386
)
Net income (loss) attributable to common
shareholders
$
1,097
$
(14,916
)
$
1,899
$
(15,727
)
Basic income (loss) per share
$
0.09
$
(1.19
)
$
0.15
$
(1.25
)
Diluted income per share
$
0.09
N/A
$
0.15
N/A
Basic weighted average common shares
outstanding
12,659,296
12,583,643
12,640,686
12,590,549
Diluted weighted average common shares
outstanding
12,849,211
N/A
12,756,880
N/A
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands)
March 30, 2021
September 29, 2020
Balance Sheet Data
Cash and cash equivalents
$
11,204
$
11,454
Total assets
$
97,689
$
99,693
Current maturities of long-term debt
$
8,148
$
6,242
Long-term debt due after one year
$
6,997
$
10,903
Stockholders’ equity
$
17,188
$
14,983
Supplemental Information for Company-Owned Restaurants
(dollars in thousands):
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Second Fiscal Quarter
Year-to-Date
Second Fiscal Quarter
Year-to-Date
2021 (13 weeks)
2020 (13 weeks)
2021 (26 weeks)
2020 (27 weeks)
2021 (13 weeks)
2020 (13 weeks)
2021 (26 weeks)
2020 (27 weeks)
Restaurant sales
$
20,983
$
19,300
$
39,673
$
42,113
$
8,012
$
6,698
$
16,403
$
14,478
Restaurants opened during period
-
-
-
2
-
-
-
-
Restaurants closed during period
-
-
-
-
-
-
1
1
Restaurants open at period end
37
37
37
37
24
25
24
25
Restaurant operating weeks
481.0
481.0
962.0
989.6
312.0
325.0
630.0
688.0
Average weekly sales per restaurant
$
43.6
$
40.1
$
41.2
$
42.6
$
25.7
$
20.6
$
26.0
$
21.0
Reconciliation of Non-GAAP Measurements
to U.S. GAAP Results
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income from Operations
(In thousands, except percentage
data)
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Good Times Restaurants
Inc.
-------------------------------------------------------------Fiscal
Quarter Ended (13
Weeks)-------------------------------------------------------------
March 30, 2021
March 31, 2020
March 30, 2021
March 31, 2020
March 30, 2021
March 31, 2020
Restaurant sales
$
20,983
100.0
%
$
19,300
100.0
%
$
8,012
100.0
%
$
6,698
100.0
%
$
28,995
$
25,998
Restaurant operating costs (exclusive of
depreciation and amortization shown separately below):
Food and packaging costs
5,881
28.0
%
5,835
30.2
%
2,326
29.0
%
2,062
30.8
%
8,207
7,897
Payroll and benefits costs
6,996
33.3
%
7,400
38.3
%
2,649
33.0
%
2,521
37.7
%
9,645
9,921
Restaurant occupancy costs
1,413
6.7
%
1,471
7.6
%
742
9.3
%
741
11.0
%
2,155
2,212
Other restaurant operating costs
2,860
13.6
%
2,289
11.9
%
782
9.8
%
668
10.0
%
3,642
2,957
Restaurant-level operating profit
$
3,833
18.3
%
$
2,305
11.9
%
$
1,513
18.9
%
$
706
10.5
%
$
5,346
$
3,011
Franchise revenues
197
184
Deduct - Other operating:
Depreciation and amortization
930
1,113
General and administrative
2,418
1,588
Advertising costs
510
510
Franchise costs
12
8
Impairment of goodwill
-
10,000
Impairment of long-lived assets
-
4,359
Gain on restaurant asset sale
(10
)
(9
)
Pre-opening costs
80
159
Total other operating
3,940
17,728
Income (loss) from operations
$
1,603
$
(14,533
)
Certain percentage amounts in the table above
do not total due to rounding as well as the fact that restaurant
operating costs are expressed as a percentage of restaurant
revenues (as opposed to total revenues).
Reconciliation of Non-GAAP Measurements
to U.S. GAAP Results
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income from Operations
(In thousands, except percentage
data)
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Good Times Restaurants
Inc.
------------------------------------------------------------------------Year-to-Date
Period
Ended------------------------------------------------------------------------
March 30, 2021 (26
Weeks)
March 31, 2020 (27
Weeks)
March 30, 2021 (26
Weeks)
March 31, 2020 (27
Weeks)
March 30,
2021 (26 Wks)
March 31,
2020 (27 Wks)
Restaurant sales
$
39,673
100.0
%
$
42,113
100.0
%
$
16,403
100.0
%
$
14,478
100.0
%
$
56,076
$
56,591
Restaurant operating costs (exclusive of
depreciation and amortization shown separately below):
Food and packaging costs
11,237
28.3
%
12,727
30.2
%
4,811
29.3
%
4,476
30.9
%
16,048
17,203
Payroll and benefits costs
13,263
33.4
%
16,402
38.9
%
5,263
32.1
%
5,498
38.0
%
18,526
21,900
Restaurant occupancy costs
2,867
7.2
%
3,115
7.4
%
1,483
9.0
%
1,535
10.6
%
4,350
4,650
Other restaurant operating costs
5,509
13.9
%
4,580
10.9
%
1,602
9.8
%
1,379
9.5
%
7,111
5,959
Restaurant-level operating profit
$
6,797
17.1
%
$
5,289
12.6
%
$
3,244
19.8
%
$
1,590
11.0
%
$
10,041
$
6,879
Franchise revenues
412
405
Deduct - Other operating:
Depreciation and amortization
1,859
2,192
General and administrative
4,592
3,641
Advertising costs
1,019
1,056
Franchise costs
17
8
Impairment of goodwill
-
10,000
Impairment of long-lived assets
-
4,359
Gain on restaurant asset sale
(19
)
(28
)
Pre-opening costs
119
961
Total other operating
7,587
22,189
Income (loss) from operations
$
2,866
$
(14,905
)
Certain percentage amounts in the table above
do not total due to rounding as well as the fact that restaurant
operating costs are expressed as a percentage of restaurant
revenues (as opposed to total revenues).
The Company believes that restaurant-level operating profit is
an important measure for management and investors because it is
widely regarded in the restaurant industry as a useful metric by
which to evaluate restaurant-level operating efficiency and
performance. The Company defines restaurant-level operating profit
to be restaurant revenues minus restaurant-level operating costs,
excluding restaurant closures and impairment costs. The measure
includes restaurant-level occupancy costs, which include fixed
rents, percentage rents, common area maintenance charges, real
estate and personal property taxes, general liability insurance and
other property costs, but excludes depreciation. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general and administrative costs, and therefore excludes
occupancy costs associated with selling, general and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because like depreciation and amortization, they
represent a non-cash charge for the Company’s investment in its
restaurants and not a component of the efficiency of restaurant
operations. Restaurant-level operating profit is not a measurement
determined in accordance with generally accepted accounting
principles (“GAAP”) and should not be considered in isolation, or
as an alternative, to income from operations or net income as
indicators of financial performance. Restaurant-level operating
profit as presented may not be comparable to other similarly titled
measures of other companies. The tables above set forth certain
unaudited information for the current and prior year fiscal
quarters and year-to-date periods for fiscal 2021 and fiscal 2020,
expressed as a percentage of total revenues, except for the
components of restaurant operating costs, which are expressed as a
percentage of restaurant revenues.
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted
EBITDA (Thousands of US Dollars)
Fiscal Quarter Ended
Year-to-Date
March 30, 2021 (13
Weeks)
March 31, 2020 (13
Weeks)
March 30, 2021 (26
Weeks)
March 31, 2020 (27
Weeks)
Adjusted EBITDA:
Net income (loss), as reported
$
1,097
$
(14,916
)
$
1,899
$
(15,727
)
Depreciation and amortization3
911
1,103
1,820
2,172
Interest expense, net
80
209
178
436
EBITDA
2,088
(13,604
)
3,897
(13,119
)
Pre-opening expense
80
160
119
961
Non-recurring severance costs
-
-
-
41
Non-cash stock-based compensation
214
74
276
149
GAAP rent-cash rent difference
(84
)
(144
)
(172
)
(23
)
Gain on disposal of assets
(10
)
(19
)
(19
)
(28
)
Impairment of goodwill
-
10,000
-
10,000
Impairment of long-lived assets
-
4,359
-
4,359
Adjusted EBITDA
$
2,288
$
826
$
4,101
$
2,340
3 Depreciation and amortization, and preopening expense have
been reduced by any amounts attributable to non-controlling
interests.
Adjusted EBITDA is a supplemental measure of operating
performance that does not represent and should not be considered as
an alternative to net income or cash flow from operations, as
determined by GAAP, and our calculation thereof may not be
comparable to that reported by other companies. This measure is
presented because we believe that investors' understanding of our
performance is enhanced by including this non-GAAP financial
measure as a reasonable basis for evaluating our ongoing results of
operations.
Adjusted EBITDA is calculated as net income before interest
expense, provision for income taxes and depreciation and
amortization and further adjustments to reflect the additions and
eliminations presented in the table above.
Adjusted EBITDA is presented because: (i) we believe it is a
useful measure for investors to assess the operating performance of
our business without the effect of non-cash charges such as
depreciation and amortization expenses and asset disposals, closure
costs and restaurant impairments, and (ii) we use adjusted EBITDA
internally as a benchmark for certain of our cash incentive plans
and to evaluate our operating performance or compare our
performance to that of our competitors. The use of adjusted EBITDA
as a performance measure permits a comparative assessment of our
operating performance relative to our performance based on our GAAP
results, while isolating the effects of some items that vary from
period to period without any correlation to core operating
performance or that vary widely among similar companies. Companies
within our industry exhibit significant variations with respect to
capital structures and cost of capital (which affect interest
expense and income tax rates) and differences in book depreciation
of property, plant and equipment (which affect relative
depreciation expense), including significant differences in the
depreciable lives of similar assets among various companies. Our
management believes that adjusted EBITDA facilitates
company-to-company comparisons within our industry by eliminating
some of these foregoing variations. Adjusted EBITDA, as presented,
may not be comparable to other similarly titled measures of other
companies, and our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by excluded or unusual items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506005329/en/
Ryan M. Zink, Chief Executive Officer (303) 384-1432
Christi Pennington (303) 384-1440
Good Times Restaurants (NASDAQ:GTIM)
Historical Stock Chart
From Feb 2024 to Mar 2024
Good Times Restaurants (NASDAQ:GTIM)
Historical Stock Chart
From Mar 2023 to Mar 2024