Good Times(US:GTIM)2024-05-02 20:05Financial Performance - Total Revenues for the quarter increased 1.9% to $35.4 million compared to the second quarter of fiscal 2023[4] - Net Income Attributable to Common Shareholders was $0.6 million for the quarter[4] - The company reported a net income of $618,000 for Q1 2024, a significant decrease from $10,621,000 in Q1 2023[20] - Adjusted EBITDA for Q1 2024 was $1,295,000, a decrease from $1,531,000 in Q1 2023; year-to-date adjusted EBITDA was $1,642,000 compared to $2,206,000 in the previous year[20] - Total other operating costs for Q1 2024 were $4,211,000, compared to $4,070,000 in Q1 2023, indicating an increase in operational expenses[20] - The company incurred $1,853,000 in depreciation and amortization for the year-to-date period in 2024, compared to $1,767,000 in 2023[20] Sales Performance - Same Store Sales for company-owned Bad Daddy's restaurants decreased 3.2% for the quarter compared to the second quarter of fiscal 2023[4] - Same Store Sales for company-owned Good Times restaurants increased 0.9% for the quarter compared to the second quarter of fiscal 2023[4] - The Bad Daddy's brand showed sequential quarterly improvement in same store sales, trending similarly to the Black Box casual dining benchmark[4] - The Company featured a fish sandwich that exceeded prior year sales by 14% during the quarter[4] - Restaurant sales for Bad Daddy's Burger Bar reached $26,448,000 in Q1 2024, a slight increase from $26,342,000 in Q1 2023, while Good Times Burgers & Frozen Custard reported $8,817,000, up from $8,226,000[16] - Year-to-date restaurant sales for Bad Daddy's Burger Bar were $50,568,000 in 2024, down from $51,507,000 in 2023; Good Times Burgers & Frozen Custard saw an increase to $17,643,000 from $16,240,000[17] Operating Profit - The restaurant-level operating profit for Bad Daddy's Burger Bar was $3,607,000 (13.6% margin) in Q1 2024, compared to $3,643,000 (13.8% margin) in Q1 2023; Good Times Burgers & Frozen Custard reported $1,075,000 (12.2% margin) versus $1,027,000 (12.5% margin)[16] - Year-to-date restaurant-level operating profit for Bad Daddy's Burger Bar was $6,178,000 (12.2% margin) in 2024, compared to $6,826,000 (13.3% margin) in 2023; Good Times Burgers & Frozen Custard reported $2,266,000 (12.8% margin) versus $1,918,000 (11.8% margin)[17] Franchise Performance - Franchise revenues decreased to $173,000 in Q1 2024 from $217,000 in Q1 2023, reflecting a decline in franchise performance[16] Cash and Debt Management - The Company ended the quarter with $4.0 million in cash and $1.3 million of long-term debt[4] - The Company repurchased 252,496 shares of its common stock during the quarter[4] Strategic Initiatives - The Company is in negotiations to purchase a franchised Good Times location in Parker, Colorado, expected to close before the end of the third fiscal quarter[6] - The pilot phase of a next-generation point-of-sale system began in April at two locations, with plans for rapid rollout upon successful testing[4] Adjusted EBITDA Insights - The company emphasizes that restaurant-level operating profit is a key metric for evaluating operational efficiency, excluding non-cash charges like depreciation and impairment costs[19] - Adjusted EBITDA is used as a performance measure to assess operating performance without the impact of non-cash charges, facilitating comparisons within the industry[22] - The company believes Adjusted EBITDA provides a useful benchmark for cash incentive plans and evaluating operating performance against competitors[22] - Significant variations in capital structures and cost of capital among companies in the industry affect interest expenses and income tax rates, which Adjusted EBITDA helps to isolate[22] - The management asserts that Adjusted EBITDA allows for better company-to-company comparisons by eliminating variations in depreciation expenses and asset lives[22] - The presentation of Adjusted EBITDA may not be comparable to similar measures from other companies, and future results may still be affected by excluded or unusual items[22]