Good Times Restaurants Inc. (Nasdaq Smallcap: GTIM) today reported its results for the quarter and fiscal year ended September 30, 2002.
Total revenue increased to $17,536,000 from $16,646,000 last year. Net income for the year was $248,000, compared to a net loss of $81,000 last year, and for the quarter net income was $77,000, compared to a net loss of $34,000 last year. Same store sales increased 5.8% for the year but declined 3.5% in the fourth quarter. Income from restaurant operations increased to $3,185,000 for the year compared to $2,490,000 in the prior year. Cash flow from restaurant operations increased to 24.7% from 21.5%.
Commenting on the year end results Boyd Hoback, President and CEO said: "We are pleased with our progress in fiscal 2002 and the success of the frozen custard implementation, which led to improved operating margins and same store sales increases. Those results have positioned us for more aggressive expansion in fiscal 2003 with new franchise development agreements and company owned store growth."
The company recently announced it had signed two franchise development agreements for the development of thirteen new restaurants over the next three years and also reported that it recently opened a franchised non-traditional store in the University of Wyoming.
The company reported that subsequent to year end, October same store sales decreased 15.8% from last year's increase of 13.8%. Hoback added: "Our sales trend has been negatively impacted beginning in late July by the downturn in the Colorado economy, aggressive discounting by the major competitors and as a result of our lapping last year's large sales increases from the initial introduction of frozen custard, particularly in August through November. We are continuing to see improved operating margins but our sales comparisons will be difficult through the end of our first quarter. We anticipate being able to get back to positive sales comps in the second quarter."
Regarding fiscal 2003 plans, Hoback said: "We will be implementing additional quality, product and packaging design enhancements to our core menu items as we build stronger and stronger points of difference from our competitors and complete the repositioning of our brand. We made good progress on building general awareness in fiscal 2002 but even with that, overall trial of Good Times and of the new frozen custard product is still relatively low in the market. We see that as tremendous opportunity, particularly in light of the extremely positive consumer ratings and feedback on the product. It will take higher levels of marketing as we build out the market to effectively complete the repositioning and to fully leverage our opportunity."