Good Times Restaurants Inc. Files Q2 2024 10-Q

TL;DR

GTIM 10-Q filed for Q2 2024. Financials and operations update.

AI Summary

Good Times Restaurants Inc. filed its 10-Q for the quarterly period ended June 25, 2024. The filing details the company's financial performance and operational updates. The company is incorporated in Nevada and its principal executive offices are located in Golden, Colorado.

Why It Matters

This filing provides investors with an update on the financial health and operational status of Good Times Restaurants Inc. during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Good Times Restaurants Inc. (company) — Registrant
• June 25, 2024 (date) — Quarterly period end date
• August 1, 2024 (date) — Filing date
• Nevada (location) — State of incorporation
• Golden, Colorado (location) — Principal executive offices location

FAQ

Key Financial Figures

• $0.001 — he Registrant's common stock, par value $0.001 per share, outstanding. Form 10-Q Q

Filing Documents

• gtim-20240625.htm (10-Q) — 700KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32_1.htm (EX-32.1) — 5KB
• kaugust_sig.jpg (GRAPHIC) — 4KB
• rzink_sig.jpg (GRAPHIC) — 3KB
• goodtimes_logo.jpg (GRAPHIC) — 10KB
• 0001214659-24-013547.txt ( ) — 4150KB
• gtim-20240625.xsd (EX-101.SCH) — 54KB
• gtim-20240625_cal.xml (EX-101.CAL) — 49KB
• gtim-20240625_def.xml (EX-101.DEF) — 188KB
• gtim-20240625_lab.xml (EX-101.LAB) — 364KB
• gtim-20240625_pre.xml (EX-101.PRE) — 190KB
• gtim-20240625_htm.xml (XML) — 382KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements 3

Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets (unaudited) – June 25, 2024 and September 26, 2023 3 Condensed Consolidated Statements of Operations (unaudited) for the fiscal quarters and year-to-date periods ended June 25, 2024 and June 27, 2023 4 Consolidated Statements of Shareholders' Equity (unaudited) for the fiscal year-to-date periods ended June 25, 2024 and June 27, 2023 5 - 6 Condensed Consolidated Statements of Cash Flows (unaudited) for the fiscal year-to-date periods ended June 25, 2024 and June 27, 2023 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures About Market Risk 24

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures 24

Item 4. Controls and Procedures 24

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings 25

Item 1. Legal Proceedings 25

Risk Factors 25

Item 1A. Risk Factors 25

Unregistered Sales of Equity Securities and Use of Proceeds 25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Defaults Upon Senior Securities 26

Item 3. Defaults Upon Senior Securities 26

Mine Safety Disclosures 26

Item 4. Mine Safety Disclosures 26

Other Information 26

Item 5. Other Information 26

Exhibits 26

Item 6. Exhibits 26 SIGNATURES 27 CERTIFICATIONS 2 Table of Contents

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Good Times Restaurants Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) ( In thousands, except share and per share data ) June 25, 2024 September 26, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 4,819 $ 4,182 Receivables 782 769 Prepaid expenses and other 662 163 Inventories 1,446 1,407 Total current assets 7,709 6,521 PROPERTY AND EQUIPMENT: Land and building 6,103 5,722 Leasehold improvements 39,241 38,191 Fixtures and equipment 34,328 33,040 Total property and equipment 79,672 76,953 Less accumulated depreciation and amortization ( 56,721 ) ( 53,917 ) Total net property and equipment 22,951 23,036 OTHER ASSETS: Operating lease right-of-use assets, net 37,728 40,007 Deferred tax assets 11,781 11,583 Deposits and other assets 259 277 Trademarks 3,900 3,900 Other intangibles, net 36 51 Goodwill 5,713 5,713 Total other assets 59,417 61,531 TOTAL ASSETS: $ 90,077 $ 91,088 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 30 $ - Accounts payable 2,884 2,585 Deferred revenue 187 67 Operating lease liabilities, current 6,176 5,787 Other accrued liabilities 7,266 6,451 Total current liabilities 16,543 14,890 LONG-TERM LIABILITIES: Maturities of long-term debt 1,100 750 Operating lease liabilities, net of current portion 39,307 42,332 Deferred revenues and other liabilities 109 122 Total long-term liabilities 40,516 43,204 SHAREHOLDERS' EQUITY: Good Times Restaurants Inc. shareholders' equity: Preferred stock, $ .01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of June 25, 2024 and September 26, 2023 - - Common stock, $ .001 par value; 50,000,000 shares authorized; 12,977,433 issued; and 10,769,803 and 11,446,587 outstanding as of June 25, 2024 and September 26, 2023, respectively 13 13 C

financial statements (unaudited)

financial statements (unaudited) 3 Table of Contents Good Times Restaurants Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands except share and per share data) Quarter Ended Year-to-Date June 25, 2024 (13 Weeks) June 27, 2023 (13 Weeks) June 25, 2024 (39 Weeks) June 27, 2023 (39 Weeks) NET REVENUES: Restaurant sales $ 37,742 $ 35,376 $ 105,953 $ 103,123 Franchise revenues 200 256 568 706 Total net revenues 37,942 35,632 106,521 103,829 RESTAURANT OPERATING COSTS: Food and packaging costs 11,698 10,923 32,624 32,185 Payroll and other employee benefit costs 12,635 11,940 36,525 35,477 Restaurant occupancy costs 2,580 2,432 7,698 7,318 Other restaurant operating costs 5,195 4,811 15,028 14,129 Preopening costs - 80 - 110 Depreciation and amortization 960 919 2,813 2,740 Total restaurant operating costs 33,068 31,105 94,688 91,959 General and administrative costs 2,680 2,377 7,791 7,070 Advertising costs 749 751 2,665 2,423 Impairment of long-lived assets 199 965 199 1,041 Loss (gain) on restaurant and equipment asset sales 18 ( 10 ) 12 ( 32 ) Litigation contingencies - - ( 332 ) - INCOME FROM OPERATIONS: 1,228 444 1,498 1,368 Interest and other expense, net ( 27 ) ( 18 ) ( 101 ) ( 56 ) NET INCOME BEFORE INCOME TAXES: 1,201 426 1,397 1,312 Provision for income taxes 197 551 198 10,503 NET INCOME: 1,398 977 1,595 11,815 Income attributable to non-controlling interests ( 77 ) ( 135 ) ( 212 ) ( 479 ) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,321 $ 842 $ 1,383 $ 11,336 NET INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS: Basic $ 0.12 $ 0.07 $ 0.12 $ 0.96 Diluted $ 0.12 $ 0.07 $ 0.12 $ 0.95 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 10,933,758 11,700,044 11,149,181 11,853,441 Diluted 11,034,487 11,769,286 11,246,353 11,910,491 See

financial statements (unaudited)

financial statements (unaudited) 4 Table of Contents Good Times Restaurants Inc. and Subsidiaries Consolidated Statements of Shareholders' Equity (Unaudited) Year-to-Date June 25, 2024 ( In thousands, except share and per share data ) Treasury Stock, at cost Common Stock Shares Amount Outstanding Shares Par Value Capital Contributed in Excess of Par Value Non- Controlling Interest In Partnerships Accumulated Deficit Total BALANCES, September 26, 2023 1,530,846 $ ( 4,908 ) 11,446,587 $ 13 $ 56,701 $ 423 $ ( 19,235 ) $ 32,994 Stock-based compensation cost - - - - 38 - - 38 Repurchases of common stock 160,772 ( 438 ) ( 160,772 ) - - - - ( 438 ) Non-controlling interests: Income - - - - - 73 - 73 Distributions - - - - - ( 29 ) - ( 29 ) Net loss attributable to Good Times Restaurants Inc and comprehensive income - - - - - - ( 556 ) ( 556 ) BALANCES, December 26, 2023 1,691,618 $ ( 5,346 ) 11,285,815 $ 13 $ 56,739 $ 467 $ ( 19,791 ) $ 32,082 Stock-based compensation cost - - - - 40 - - 40 Repurchases of common stock 252,496 ( 646 ) ( 252,496 ) - - - - ( 646 ) Non-controlling interests: Income - - - - - 62 - 62 Distributions - - - - - ( 21 ) - ( 21 ) Net income attributable to Good Times Restaurants Inc and comprehensive income - - - - - - 618 618 BALANCES, March 26, 2024 1,944,114 $ ( 5,992 ) 11,033,319 $ 13 $ 56,779 $ 508 $ ( 19,173 ) $ 32,135 Stock-based compensation cost - - - - 28 - - 28 Repurchases of common stock 263,516 ( 705 ) ( 263,516 ) - - - - ( 705 ) Non-controlling interests: Contributions - - - - - 200 - 200 Income - - - - - 77 - 77 Distributions - - - - - ( 38 ) - ( 38 ) Net income attributable to Good Times Restaurants Inc and comprehensive income - - - - - - 1,321 1,321 BALANCES, June 25, 2024 2,207,630 $ ( 6,697 ) 10,769,803 $ 13 $ 56,

financial statements (unaudited)

financial statements (unaudited) 6 Table of Contents Good Times Restaurants Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Fiscal Year-to-Date (39 Weeks) June 25, 2024 June 27, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,595 $ 11,815 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,883 2,809 Net change in operating lease right-of-use assets and liabilities ( 544 ) ( 451 ) Recognition of deferred gain on sale of restaurant building ( 29 ) ( 76 ) Impairment of long-lived assets 199 1,041 Loss on disposal of assets 30 44 Stock-based compensation expense 106 103 Provision for income taxes ( 198 ) ( 10,510 ) Changes in operating assets and liabilities: (Increase) decrease in: Receivables and other ( 15 ) ( 35 ) Prepaid expense ( 499 ) ( 513 ) Inventories ( 27 ) 34 Deposits and other 18 ( 119 ) Accounts payable 276 444 Deferred income 138 24 Accrued and other liabilities 803 97 Net cash provided by operating activities 4,736 4,707 CASH FLOWS FROM INVESTING ACTIVITIES: Payments for the purchase of property and equipment ( 2,282 ) ( 3,178 ) Acquisition of restaurant from franchisee, net of cash acquired ( 534 ) - Proceeds from sale of fixed assets 14 - Net cash used in investing activities ( 2,802 ) ( 3,178 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from long-term debt 1,380 - Payments on long-term debt ( 1,000 ) - Repurchases of common stock ( 1,789 ) ( 1,720 ) Payments for restricted stock vesting settled in cash - ( 92 ) Proceeds from stock option exercise - 5 Purchase of non-controlling interests - ( 4,394 ) Contributions from non-controlling interests 200 13 Distributions to non-controlling interests ( 88 ) ( 563 ) Net cash used in financing activities ( 1,297 ) ( 6,751 ) NET CHANGE IN CASH AND CAS

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