Good Times Restaurants (GTIM) saw its loss widen to $0.07 million, or $0.01 a share for the quarter ended Sep. 27, 2016. In the previous year period, the company reported a loss of $0.05 million, or $0.08 a share.
Revenue during the quarter surged 108.87 percent to $17.22 million from $8.24 million in the previous year period. Gross margin for the quarter period stood at positive 12.77 percent as compared to a negative 53.92 percent for the previous year period. Total expenses were 98.76 percent of quarterly revenues, up from 98.11 percent for the same period last year. That has resulted in a contraction of 65 basis points in operating margin to 1.24 percent.
Operating income for the quarter was $0.21 million, compared with $0.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.05 million compared with $0.88 million in the prior year period. At the same time, adjusted EBITDA margin contracted 452 basis points in the quarter to 6.10 percent from 10.63 percent in the last year period.
Boyd Hoback, president & chief executive officer said "We are pleased with our results in the fourth quarter, particularly given the intense discounting and value pricing environment in both segments. For the first two periods of our first quarter of fiscal 2017 we are flat on Good Times and +3.5% on Bad Daddy’s same store sales, so we’ve seen some improvement in our trends, some of which is due to warm weather in Colorado. We are on track with replacing our center kitchen lines in Good Times for the introduction of key product initiatives by the end of March that we believe will lead to regaining our positive sales momentum. We plan to open our first two Bad Daddy’s of fiscal 2017 on December 14 in Colorado and on January 16 in North Carolina with two more in Colorado, three more in North Carolina and two to four in two new markets over the balance of fiscal 2017. We also plan to open one new Good Times restaurant in March, 2017."
Good Times Restaurants forecasts revenue to be in the range of $80 million to $82 million for fiscal year 2017.
Working capital drops significantlyGood Times Restaurants has witnessed a decline in the working capital over the last year. It stood at $2.67 million as at Sep. 27, 2016, down 64.24 percent or $4.80 million from $7.47 million on Sep. 30, 2015. Current ratio was at 1.52 as on Sep. 27, 2016, down from 2.03 on Sep. 30, 2015.
Debt comes down significantlyGood Times Restaurants has recorded a decline in total debt over the last one year. It stood at $0.02 million as on Sep. 27, 2016, down 98.28 percent or $1.09 million from $1.10 million on Sep. 30, 2015. Total debt was 0.04 percent of total assets as on Sep. 27, 2016, compared with 2.29 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
