Good Times Restaurants Reports Q4 and Fiscal Year End Results
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products and a licensee of Bad Daddy’s Burger Bar, a full service, upscale concept today announced its preliminary unaudited financial results for the fourth fiscal quarter and fiscal year ended September 30, 2014.
Key highlights of the Company’s financial results include:
Same store sales for company-owned Good Times restaurants increased 11.9% for the quarter on top of last year’s increase of 18.2%, which was the seventeenth consecutive quarter of increasing same store sales
Restaurant Level Operating Profit for Good Times restaurants increased 22%, or $208,000 over last year during the quarter and increased 57.2%, or $1,552,000 over the prior year to $4,266,000 for the fiscal 2014 year (see schedule below)
Restaurant Level Operating Profit for Bad Daddy’s restaurants (see schedule below) was $109,000 during the quarter, with the second restaurant open for only two months and four days of the quarter
The Restaurant Level Operating margin for Good Times restaurants increased by 170 basis points to 16.7% from 15% last year during the quarter and by 450 basis points to 16.5% from 12% last year for the fiscal year (see schedule below)
Preopening costs related to the development of the initial Bad Daddy’s Burger Bar restaurants in Colorado were $214,000 during the quarter
Subsequent to the quarter’s end, the Company announced the opening of a new Good Times restaurant on November 21, 2014
The Affiliate Investment Income from the Company’s 48% ownership of Bad Daddy’s Franchise Development LLC was $11,000 during the quarter and a loss of $146,000 for the year
Net Loss for the quarter decreased to $58,000 from $85,000 last year, even with an increase in general and administrative expenses of $248,000 from last year related to Bad Daddy’s development, management bonuses, stock compensation expense, an increase in investor relations expenses and with preopening expenses $150,000 higher than in the same quarter last year
The Company ended the quarter with $9.9 million in cash with minimal long term debt, which includes the net proceeds from the exercise of approximately 97% of the Series B warrants and approximately 50% of the Series A warrants. Subsequent to the quarter’s end the Company announced that a total of 2,450,100 Series A Warrants, representing 97% of the outstanding Series A Warrants, and 100% of the 154,000 Underwriter Warrants, were exercised by the holders. Total gross proceeds from all warrants exercised in fiscal 2014 were approximately $9,100,000, and no other warrants remain outstanding. Warrant proceeds subsequent to the fiscal year end yielded $3.2 million in proceeds.
