Good Times Restaurants Inc. Reports Annual Results for the Fiscal Year Ended September 30, 2011

January 4, 2012

Good Times Restaurants, Inc. (NasdaqCM: GTIM) reported revenues for its year ended September 30, 2011 decreased 1.2% to $20.6 million compared to $20.86 million in fiscal 2010.  While same store sales increased $1.05 million or 6.2%, overall revenues declined primarily due to a drop of $1.18 million in restaurant sales as a result of the sale of a co-developed restaurant sold in fiscal 2010 and two company-owned restaurants sold in fiscal 2011.

The company reported that the loss from operations decreased significantly to $665 thousand in fiscal 2011 versus $1.91 million in fiscal 2010.  The decreased loss from operations was a result of lower payroll, occupancy, depreciation and amortization and selling, general and administrative expense.  The lower SG&A expenses were in part driven by a decrease in advertising costs, however the company expects advertising costs to increase in 2012 from the fiscal 2011 levels.

The net loss for fiscal 2011 was $1.01 million or $(0.42) per share compared to a net loss of $2.93 million or $(2.26) per share in fiscal 2010.  The lower net loss in fiscal 2011 was primarily attributable to lower operating expenses, lower interest expense and income from discontinued operation of $22 thousand versus a loss from discontinued operations of $590 thousand in fiscal 2010.

The balance sheet reflected cash/cash equivalents of $847 thousand, current assets of $1.2 million, total assets of $7.0 million, current liabilities of $1.68 million and total liabilities of $4.48 million.  Stockholders’ equity increased 48.8% in fiscal 2011 primarily as the result of the company selling 1,400,000 shares to Small Island Investments Ltd for $1.50 per share.  This transaction resulted in Small Island Investments owning 50.74% of the company’s outstanding shares.  The company’s chairman, David L. Dobbin, owns 100% of Small Island Investments.

Good Times Restaurants Inc., through its wholly-owned subsidiary Good Times Drive Thru Inc., develops, owns, operates, and franchises drive-through restaurants under the name Good Times Burgers & Frozen Custard.  Most of the company’s restaurants are located in Colorado, but has franchised restaurant locations in North Dakota and Wyoming.

Source: Good Times Restaurants, Inc.

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