Good Times Restaurants Inc. (Nasdaq: GTIM) today announced it has paid off all of its term debt after the closing of its most recent sale leaseback transaction. Boyd Hoback, President and CEO said, “Our recent sale leaseback transactions over the past three months combined with the continued improvement in our cash flow from operations has enabled us to repay 100% of our bank and term debt so that the Company is now debt free, with the exception of a few smaller capitalized equipment leases and maintenance truck loans. The combination of the sustained improvement in our sales trends and cash flow from operations, a debt free balance sheet and cash on our balance sheet from our recent preferred stock transaction allows us more opportunity for growth through the development of new stores and the potential acquisition for another growth concept that we’ve diligently been pursuing.” The Company said that the most recent sale leaseback transaction was on a restaurant recently purchased from a franchisee. Hoback added, “Due to the profitability of the restaurant we purchased and the value we were able to recognize in the 1031 exchange sale leaseback market, we expect that our return on investment on the remaining operating asset investment will be close to 100% per year with a conservative lease value relative to the sales of the restaurant. We have successfully repositioned our existing base of restaurants through the sale of a few underperforming stores for cash and the repurchase and sale leaseback of select stores and as a result we expect continued improvement in our operating margins through this fiscal year.” Good Times is a regional chain of quick service restaurants located primarily in Colorado providing a menu of high quality all natural hamburgers, 100% breast of chicken sandwiches, fresh frozen custard, fresh cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises 39 restaurants.
This press release contains forward-looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause Good Times’ actual results to differ materially from results expressed or implied by the forward-looking statements. These risks include such factors as the uncertain nature of current restaurant development plans and the ability to implement those plans , delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the “Risk Factors” section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 30, 2012 filed with the SEC. Although Good Times may from time to time voluntarily update its forward-looking statements, it disclaims any commitment to do so except as required by securities laws.