Good Times Restaurants Inc. | ||||||||||||
Unaudited Supplemental Information |
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(In thousands, except per share amounts) |
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Three Months Ended | Nine Months Ended | |||||||||||
Statement of Operations | 30-Jun-13 | 30-Jun-12 | 30-Jun-13 | 30-Jun-12 | ||||||||
Net Revenues: | ||||||||||||
Restaurant sales | $6,394 | $5,123 | $16,092 | $14,339 | ||||||||
Area development and franchise fees | 0 | 0 | 0 | 0 | ||||||||
Franchise revenues | 93 | 125 | 266 | 325 | ||||||||
Total net revenues | 6,487 | 5,248 | 16,358 | 14,664 | ||||||||
Restaurant Operating Costs: | ||||||||||||
Food and packaging costs | 2,149 | 1,748 | 5,503 | 4,961 | ||||||||
Payroll and other employee benefit costs | 2,104 | 1,685 | 5,683 | 4,992 | ||||||||
Restaurant occupancy costs | 865 | 747 | 2,423 | 2,282 | ||||||||
Other restaurant operating costs | 261 | 237 | 733 | 700 | ||||||||
New store preopening costs | 29 | 0 | 29 | 0 | ||||||||
Depreciation and amortization | 169 | 201 | 537 | 607 | ||||||||
Total restaurant operating costs | 5,577 | 4,618 | 14,908 | 13,542 | ||||||||
General and administrative | 390 | 333 | 1,171 | 1,027 | ||||||||
Advertising costs | 275 | 205 | 704 | 638 | ||||||||
Franchise costs | 17 | 14 | 48 | 42 | ||||||||
Loss (Gain) on disposal of restaurants and equipment |
(6 | ) | (6 | ) | (86 | ) | (27 | ) | ||||
Income (loss) from Operations | 234 | 84 | (387 | ) | (558 | ) | ||||||
Other Income (Expenses): | ||||||||||||
Interest expense, net | (2 | ) | (50 | ) | (45 | ) | (154 | ) | ||||
Other income (expense) | (1 | ) | (1 | ) | (4 | ) | (14 | ) | ||||
Affiliate investment loss | (23 | ) | 0 | (23 | ) | 0 | ||||||
Unrealized gain (loss) on interest rate swap | 0 | 4 | 0 | 16 | ||||||||
Total other expenses, net | (26 | ) | (47 | ) | (72 | ) | (152 | ) | ||||
Net Income (loss) | 208 | 37 | (459 | ) | (710 | ) | ||||||
Income attributable to non-controlling interest | (67 | ) | (50 | ) | (65 | ) | (66 | ) | ||||
Net Income (Loss) attributable to Good Times Rest Inc | 141 | (13 | ) | (524 | ) | (776 | ) | |||||
Preferred stock dividends | (30 | ) | 0 | (90 | ) |
0 |
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Net Income (Loss) attributable to common shareholders | $111 | ($13 | ) | ($614 | ) | ($776 | ) | |||||
Basic and diluted income (loss) per share: | ||||||||||||
Net Income (Loss) attributable to common shareholders | $0.04 | $0.00 | ($0.23 | ) | ($0.28 | ) | ||||||
Weighted Average Common Shares Outstanding: | ||||||||||||
Basic | 2,726 | 2,726 | 2,726 | 2,726 | ||||||||
Diluted | 2,801 | N/A | N/A | N/A | ||||||||
June 30, | Sept 30, | |||
Balance Sheet Data | 2013 | 2012 | ||
(In thousands) | ||||
Cash & cash equivalents | $1,324 | $616 | ||
Current assets | 1,966 | 3,858 | ||
Property and Equipment, net |
2,889 | 3,082 | ||
Total assets | 5,335 | 7,061 | ||
Current liabilities, including capital lease obligations and long-term debt due within one year | 1,848 | 3,010 | ||
Long-term debt due after one year | 25 | 37 | ||
Capital lease obligations due after one year | 80 | 102 | ||
Total liabilities | 2,606 | 3,801 | ||
Stockholders’ equity | $2,729 | $3,260 | ||
Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income
from Operations and Net Income
(In thousands, except percentage data)
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, similar to 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 table below sets forth certain unaudited information for the three months ended June 30, 2013 and June 30, 2012, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.
Three Months Ended | |||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||
Restaurant revenues | $6,394 | 98.6 | % | $5,123 | 97.6 | % | |||||||
Restaurant Operating Costs (exclusive of depreciation and amortization shown separately below): |
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Food and packaging costs | 2,149 | 33.6 | % | 1,748 | 34.1 | % | |||||||
Payroll and other employee benefit costs | 2,104 | 32.9 | % | 1,685 | 32.9 | % | |||||||
Restaurant occupancy costs | 865 | 13.5 | % | 747 | 14.6 | % | |||||||
Other restaurant operating costs | 261 | 4.1 | % | 237 | 4.6 | % | |||||||
Restaurant-level operating profit | 1,015 | 15.9 | % | 706 | 13.8 | % | |||||||
Add - Franchise royalties and fees | 93 | 0.0 | % | 125 | 0.0 | % | |||||||
Deduct - Other operating: | |||||||||||||
Depreciation and amortization | 169 | 2.6 | % | 201 | 3.8 | % | |||||||
General and administrative | 390 | 6.0 | % | 333 | 6.3 | % | |||||||
Advertising costs | 275 | 4.2 | % | 205 | 3.9 | % | |||||||
Franchise costs | 17 | 0.3 | % | 14 | 0.3 | % | |||||||
Loss (Gain) on disposal of restaurants and equipment |
(6 | ) | (0.1 | %) | (6 | ) | (0.1 | %) | |||||
Preopening costs | 29 | 0.4 | % | 0 | 0.0 | % | |||||||
874 | 13.5 | % | 747 | 14.2 | % | ||||||||
Income (loss) from Operations | 234 | 3.6 | % | 84 | 1.6 | % | |||||||
Interest expense, net | (2 | ) | 0.0 | % | (50 | ) | (1.0 | %) | |||||
Other income (expense) | (1 | ) | 0.0 | % | (1 | ) | 0.0 | % | |||||
Affiliate investment loss | (23 | ) | (0.4 | %) | 0 | 0.0 | % | ||||||
Unrealized gain (loss) on interest rate swap | 0 | 0.0 | % | 4 | 0.1 | % | |||||||
Total other | (26 | ) |
(0.4 |
%) |
(47 | ) | (0.9 | %) | |||||
Net Income | $208 | 3.2 | % | $37 | 0.7 | % | |||||||
____________________________________ |
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.