Good Times Restaurants Inc. Expands Debt Facility to $12M
September 12 2017 - 9:29AM
Business Wire
Norman, OK Bad Daddy’s Opened on August
28th
Two Additional Bad Daddy’s to Open by
October 3rd
Good Times Restaurants Inc. (NASDAQ: GTIM), operator of Good
Times Burgers & Frozen Custard, a regional quick-service
restaurant chain focused on fresh, high-quality, all-natural
products and of Bad Daddy’s Burger Bar, a full-service, upscale
concept, today announced that it has amended its credit agreement
with Cadence Bank, which expands the facility from $9 million to
$12 million.
Ryan Zink, Chief Financial Officer, said, “Cadence Bank’s
significant experience in restaurant lending has enabled them to be
a great partner with us as they continue to show flexibility based
on our projected capital needs for growth and development. This
amendment retains the attractive pricing of the original agreement
with a larger commitment and terms that facilitate our continued
growth. We believe the expanded facility combined with cash on-hand
and projected internally generated cash flow will provide adequate
capital for us to achieve our fiscal 2018 growth objectives and
meet capital expenditure needs for both brands while maintaining a
reasonably conservative level of debt in our total capital
structure.”
The Company said that annualized sales for the six new Bad
Daddy’s opened so far this year are averaging above its $2.5
million annual sales target, laying the foundation for its growth
in fiscal 2018.
Commenting on development plans, Boyd Hoback, President and CEO,
said, “Our most recent opening in Norman, Oklahoma has gone very
well and initial sales and guest feedback are very encouraging in a
brand-new market for us. We plan to open our fifth Bad Daddy’s in
the Charlotte metropolitan area and one in Greenville, NC by
October 3 which will be our seventh and eighth new Bad Daddy’s this
year. We are also under construction on our first store in the
Atlanta market. We are thrilled with the relationship we’ve
established with Cadence Bank and hope to continue to expand that
relationship to meet our capital needs for continued growth into
fiscal 2019.”
About Good Times Restaurants Inc.: Good Times Restaurants
Inc. (GTIM) operates Good Times Burgers & Frozen Custard, a
regional chain of quick service restaurants located primarily in
Colorado, in its wholly owned subsidiary, Good Times Drive Thru
Inc. Good Times provides a menu of high-quality all-natural
hamburgers, 100% all-natural chicken tenderloins, fresh frozen
custard, natural-cut fries, fresh lemonades and other unique
offerings. Good Times currently operates and franchises a total of
38 restaurants.
GTIM owns, operates, franchises and licenses 24 Bad Daddy’s
Burger Bar restaurants through its wholly-owned subsidiaries. Bad
Daddy’s Burger Bar is a full-service, upscale, “small box”
restaurant concept featuring a chef-driven menu of gourmet
signature burgers, chopped salads, appetizers and sandwiches with a
full bar and a focus on a selection of craft microbrew beers in a
high-energy atmosphere that appeals to a broad consumer base.
Good Times Forward-Looking Statements: 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 the
Company’s 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 and
integrate new restaurants, 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 27, 2016 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170912005278/en/
Good Times Restaurants Inc.Investor Relations
Contacts:Boyd E. Hoback, President and CEO, 303-384-1411orRyan
Zink, CFO, 303-384-1432orChristi Pennington, 303-384-1440
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