Good Times Restaurants Reports Q2 Results
- Total Revenues increased 15% to $27.2 million in Q2
- Conference Call Thursday, May 9, 2019, at 3:00 p.m. MT/5:00 p.m. ET
DENVER - (BUSINESS WIRE) - May 9, 2019 - Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service, upscale burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high quality, all natural products, today announced its preliminary unaudited financial results for the second fiscal quarter ended March 26, 2019.
Key highlights of the Company’s financial results include:
- Total revenues increased 15% to $27,172,000 for the quarter
- Total Restaurant Sales for Bad Daddy’s restaurants increased 27.8% to $20,384,000 and Bad Daddy’s Restaurant Level Operating Profit* (a non-GAAP measure) was $3,322,000 or 16.3% as a percent of sales
- Same store sales for company-owned Bad Daddy’s restaurants increased 1.3% for the quarter on top of last year’s increase of 0.2%
- The Company opened one new Bad Daddy’s restaurant during the quarter
- Total Restaurant Sales for Good Times restaurants were $6,570,000 and Good Times Restaurant Level Operating Profit* (a non-GAAP measure) was $509,000 or 7.7% as a percent of sales
- Net Loss Attributable to Common Shareholders was $450,000 for the quarter
- Adjusted EBITDA* (a non-GAAP measure) for the quarter was $1,148,000
- The Company ended the quarter with $3.4 million in cash and $12.3 million drawn against its senior credit facility
Boyd Hoback, President and CEO, said, “Similar to our first quarter’s results, we continued to post favorable same-store sales results for Bad Daddy’s but our Good Times same-store sales were significantly impacted by more inclement weather compared to the prior year and were down 5.9% during the second quarter, adjusted for the impact of store closures on March 13th. However, subsequent to the end of the quarter we have returned to more seasonable weather and our same-store sales at Good Times have rebounded, up more than 4% so far in the third quarter, validating our assertion that the first and second quarter sales comps were largely the result of weather compared to the prior year. We opened one new Bad Daddy’s during the quarter which continues to post sales significantly ahead of our system average, even as it moves out of its honeymoon period. We have three additional Bad Daddy’s under development that we expect to open this fiscal year and one that we expect to open shortly after the end of the fiscal year.”
Commenting on the Company’s earnings guidance, Ryan Zink, Chief Financial Officer, stated, “We are reaffirming our guidance from the prior quarter, which calls for Adjusted EBITDA of approximately $6.0 to $6.5 million and the opening of five new Bad Daddy’s restaurants for the 2019 fiscal year. We have updated our same-store sales assumptions at Good Times to reflect a return to positive same-store-sales.”
Fiscal 2019 Outlook:
The Company reiterated its guidance for fiscal 2019:
- Total revenues of approximately $112 million to $114 million with a year-end revenue run rate of approximately $120 million
- Total revenue estimates assume same-store sales of approximately +1% to +2% for the balance of the year for Good Times and Bad Daddy’s
- General and administrative expenses of approximately $8.4 million to $8.6 million, including approximately $500,000 of non-cash equity compensation expense
- The opening of five new Bad Daddy’s restaurants
- Net loss of approximately $1.0 million including pre-opening expenses of approximately $1.7 million
- Total Adjusted EBITDA* of approximately $6.0 million to $6.5 million
- Capital expenditures (net of tenant improvement allowances) of approximately $7.0 to $7.5 million including approximately $0.6 million related to fiscal 2020 development. This does not include the use of approximately $3.0 million of cash in the previously disclosed acquisition of the non-controlling interest in three Bad Daddy’s restaurants.
- Fiscal year-end long-term debt of approximately $13.5 to $14.0 million
*For a reconciliation of restaurant level operating profit and 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.
Conference Call: Management will host a conference call to discuss its second quarter 2019 financial results on Thursday, May 9, 2019 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will be Boyd Hoback, President and Chief Executive Officer, and Ryan Zink, Chief Financial 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 under the Investor section. 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 35 Bad Daddy’s Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy’s Burger Bar is a full service, upscale, “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 microbrew beers in a high energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly-owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick service restaurant chain consisting of 35 Good Times Burgers & Frozen Custard restaurants, located primarily in Colorado.
Good Times Forward-Looking Statements: 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 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 25, 2018 filed with the SEC. Although Good Times may from time to time voluntarily update its forward-looking statements, it disclaims any commitment to do so except as required by securities laws.
For Full wide spreadsheet report, please go to: http://investors.goodtimesburgers.com/file/Index?KeyFile=397876765
View source version on businesswire.com: https://www.businesswire.com/news/home/20190509005876/en/
Good Times Restaurants Inc. Contacts:
Boyd E. Hoback
President and Chief Executive Officer
Chief Financial Officer
Source: Good Times Restaurants Inc.
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