Good Times Restaurants Inc. · NASDAQ:GTIM
Good Times Restaurants — Investor Presentation (November 2018)
22 slides from Good Times Restaurants's investor presentation, Nov 6, 2018
Slide 1: Investor Presentation November 2018
Nasdaq Capital Market: GTIM Investor Presentation November 2018
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward - Looking Statements and Non - GAAP Financial Information 2 Forward - Looking Statements This presentation contains forward - looking statements . All statements other than statements of historical facts contained in this presentation may be forward - looking statements . The words “may,” “w
Slide 3: Company and Concept Overview
3 Company and Concept Overview • Two Differentiated and Complementary Concepts • Excellent Cash - on - Cash Return Model for Bad Daddy’s Expansion • Momentum Driven by Successful Execution Across Multiple Geographies • Stable Cash Flow from Good Times That Can Be Reinvested in Bad Daddy’s Growth • E
Slide 4: How We Win Business
How We Win 4 Business Differentiated Service • “Radical Hospitality” • A commitment to high - touch service • Efficient but personalized • “Cooked to Order at the Speed of QSR” • Dedicated to offering incredible food and unparalleled service in QSR environment High - quality, Segment - Leading Food
Slide 5: Superior Positioning and Quality
Superior Positioning and Quality 5 “Bringing cool to the suburbs” “Fast casual quality, QSR speed of service” QSR Fast Casual Casual Dining Polished Casual High Average Check Low Average Check
Slide 6: Slide 6
Slide 7: Bad Daddy's Burger Bar – Future Growth Platform
Bad Daddy’s Burger Bar – Future Growth Platform 7 • Bad Daddy’s Burger Bar (“BDBB”) is a 33 - unit full service concept with a high - energy, chef - driven, burger - and bar - focused positioning founded in Charlotte, NC in 2008 • Fully - committed to full service model; strong volume in a comparati
Slide 8: Chef-driven menu with big portions and in-your-face flavors
Chef - driven menu with big portions and in - your - face flavors 8 • Simple, high - quality ingredients executed at a high level − House - made sauces and dressings − “Create Your Own” burgers and salads − Monthly chef specials − Featured proteins include beef, chicken, turkey, buffalo and tuna • B
Slide 9: Marketing Approach and Strategy
Marketing Approach and Strategy 9 • Brand Voice & Personality: − “We brought cool to the suburbs” − Irreverent but not offensive, non - chain, Classic Rock − Bad Ass, fun, informal, high - energy − Culture of “yes” − It’s all about the food: culinary - driven concept • Key Messages: − Scratch - made
Slide 10: Core Growth Philosophy
• Bad Daddy’s Burger Bar “brings cool to the suburbs” • High - traffic suburban areas with lunch and dinner traffic • Metropolitan areas of Tier II cities • Take an ever - larger share of wallet through displacement of competing concepts • Take share from full service concepts • High ROI, small box
Slide 11: We are in the early innings of our growth
• Projected to be at 45 stores by mid - 2020 • No need for equity capital to maintain strong EBITDA growth • Projected Debt/Adjusted EBITDA at FYE 2019 of 1.7:1 • No cash taxes expected for several years due to ~$12 million NOL carryforward and significant credit carryforwards • Huge white space for
Slide 12: Economics Proven in States with Runway for Future Growth
Economics Proven in 6 States with Runway for Future Growth 12 Existing Markets Future likely markets Markets under consideration 9 (3 joint - venture) FY2018 New Units Source: U.S. Department of the Census FY2017 New Units 6 (2 joint - venture) Target Unit Economics • Targeted cash - on - cash retur
Slide 13: All Natural Burgers, Frozen Custard
ALL NATURAL BURGERS FROZEN CUSTARD.
Slide 14: Good Times Burgers and Frozen Custard
Good Times Burgers and Frozen Custard 14 • Good Times Burgers and Frozen Custard (“GTBFC”) is the only QSR concept with steroid - free, hormone - free, vegetarian - fed, humanely - raised chicken and beef • “Fresh, Handcrafted, All - Natural” position • 26 Company - owned stores, 10 franchise stores
Slide 15: Marketing Approach and Strategy
Marketing Approach and Strategy 15 • Brand Voice & Personality: − The Jester: never look or feel like the big guys − A principled brand: we do the right thing because “that’s the kind of company we are” − Go to lengths the other guys don’t & won’t • Key Messages: − 100% all - natural beef & chicken:
Slide 16: Financial Review
Financial Review
Slide 17: Full-Year Guidance Summary – FY18 and FY19
Full - Year Guidance Summary – FY18 and FY19 FY 2018 Guidance as of August 9, 2018 □ Revenues: $99 to $100 million □ Q4 Comparable sales: +0.0% to +1.0% □ FY 2018 New Units: 9 restaurants □ Adjusted EBITDA: $5.3 - $5.6 million □ Year - end long - term debt: $9.0 - $9.5 million FY 2019 Guidance as of
Slide 18: Comparable Growth Company Valuations
Comparable Growth Company Valuations 18 GTIM trades a significant discount to it’s peers on an EV/Revenue and EV/EBITDA basis given its growth *Price and Market Cap effective as of market close October 26, 2018 FY2018P and FY2019P for GTIM represents the midpoint of the Company’s guidance, per the m
Slide 19: Appendix
Appendix
Slide 20: Consolidated Summary Financials
Good Times Restaurants Inc. Consolidated Summary Financials 20 Total Systemwide Restaurants Total Net Revenue Adjusted EBITDA Reconciliation of Adjusted EBITDA to Reported Net Loss ($ in Millions) ($ in Millions) 36 38 37 38 36 36 13 19 24 33 41 51 56 62 69 77 FY14A FY15A FY16A FY17A FY18A FY19P GTB
Slide 21: Tax Position
Tax Position 21 We have accumulated significant tax assets, although due to accumulated historical losses, combined with the expectation of future losses for the next few fiscal years, we have fully reserved against these tax assets. □ Future losses are primarily driven by the immediate expensing of
Slide 22: Reconciliation of Store-Level EBITDA to Segment Income from Operations
Reconciliation of Store - Level EBITDA to Segment Income from Operations 22 Adjusted EBITDA Margin ($ in Thousands) Bad Daddy’s Operating Segment 2015 2016 2017 Income from Operations (759) (520) (1,104) Net franchise/license income (18) (367) (361) Depreciation and Amortization 568 1,475 2,059 Pre-
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