Good Times Restaurants Reports Results for the Fourth Quarter and Fiscal Year Ended September 26, 2023

GOLDEN, Colo.--()--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today reported financial results for the fiscal fourth quarter and fiscal year ended September 26, 2023.

Highlights of the Company’s financial results include:

  • Total Revenues decreased 0.1% to $138.1 million for the year compared to the 2022 fiscal year
  • Total Restaurant Sales for company-owned Good Times restaurants increased $0.6 million to $9.5 million for the fourth quarter compared to the same prior year fourth quarter and increased $1.0 million to $35.0 million for the year compared to the 2022 fiscal year
  • Same Store Sales for company-owned Good Times restaurants increased 2.4% for the fourth quarter compared to the prior year fourth quarter and increased 3.7% for the year compared to the 2022 fiscal year
  • Total Restaurant Sales for Bad Daddy’s restaurants decreased $1.4 million to $24.6 million for the fourth quarter compared to the prior year fourth quarter and decreased $1.0 million to $102.2 million for the year compared to the 2022 fiscal year
  • Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 4.9% for the fourth quarter compared to the prior year fourth quarter and increased 0.1% for the year compared to the 2022 fiscal year
  • Net Loss Attributable to Common Shareholders was $0.3 million for the fourth quarter. Net Income Attributable to Common Shareholders was $11.1 million for the year
  • Adjusted EBITDA2 (a non-GAAP measure) was $1.1 million for the fourth quarter and $5.5 million for the year
  • The Company ended the fourth quarter with $4.2 million in cash and $0.8 million of long-term debt

Ryan M. Zink, the Company’s Chief Executive Officer, said, “We are thrilled about the continued same store sales increases that we are seeing at Good Times. We are on the path to modernizing and re-energizing this 36-year-old regional brand and we believe the financial results this year, especially considering the unusual level of input cost inflation, demonstrate the impact that our investments in technology and in our facilities is making on the business.”

“Unfortunately, Bad Daddy’s did not perform to our expectations during the fourth quarter, and we know that this quarter’s results are not consistent with what the brand is capable of. We have never compromised on our food, and during this year we have only improved the quality and relevance of our product selection. We have missed the mark in the front-of-house, including at the bar, and we have identified specific priorities to address these opportunities and to improve the brand’s operational and financial performance.” Zink continued.

Mr. Zink concluded, “We made significant investments this year in both brands, including our purchase of the interests in certain Bad Daddy’s restaurants that were held by unaffiliated partners; the opening of a new Bad Daddy’s in Madison, Alabama; and our purchase of two Good Times restaurants from franchisees. I am optimistic about the continued strength of both of our brands and in the anticipated sales turnaround at Bad Daddy’s.”

Cash and Liquidity

As of September 26, 2023, the Company had outstanding borrowings of approximately $0.8 million under its credit facility, approximately $4.2 million of cash and cash equivalents, and total liquidity of approximately $11.4 million including cash and cash equivalents and amounts available for borrowing under its credit facility.

Share Repurchase Activity

During the fourth quarter of fiscal 2023 the Company repurchased 176,140 shares of common stock at an average price of $3.11 under its $5 million share repurchase program. During the full 2023 fiscal year, the Company repurchased 838,048 shares of common stock under its repurchase program. Repurchase activity is conditioned on compliance with certain financial covenants under the Company’s credit facility. Under the repurchase program, purchases may be made at the Company’s discretion and the Company is not obligated to purchase any certain amount of common stock.

Unit Development and Restaurant Acquisitions

During the fourth quarter of fiscal 2023, the Company opened a new Bad Daddy’s restaurant in Madison, Alabama, a suburb of Huntsville, Alabama. Additionally, during the fourth fiscal quarter, the Company repurchased a Good Times restaurant in Lafayette, Colorado from a franchisee, and purchased the land, building, and all restaurant assets associated with a Good Times restaurant in Greenwood Village, Colorado. The Company continues to operate both restaurants and expects to hold the real estate purchased in connection with the Greenwood Village location.

Conference Call

Management will host a conference call to discuss its fiscal fourth quarter and year ended September 26, 2023 financial results on Thursday, December 14, 2023 at 5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer.

The conference call can be accessed live over the phone by dialing 888-210-2831, access code 3024033. The conference call will also be webcast live from the Company's corporate website www.goodtimesburgers.com. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded.

Good Times Restaurants Inc. (Nasdaq: GTIM)

Good Times Restaurants Inc. owns, operates, and licenses 41 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “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 beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 31 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

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,” “plan” 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. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the disruption to our business from pandemics and other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, 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, other general economic and operating conditions, risks associated with our share repurchase program, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 26, 2023 filed with the SEC, and other filings with the SEC.

_______________

1 Same store sales are a metric used in evaluating the performance of established restaurants and is a commonly used metric in the restaurant industry. Same store sales for our brands are calculated using all units open for at least 18 full fiscal months and use the comparable operating weeks from the prior year to the current year period’s operating weeks.

2 For a reconciliation of Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands, except per share amounts

 

 

Fiscal Quarter Ended

 

Fiscal Year Ended

 

September 26,

2023

 

September 27,

2022

 

September 26,

2023

 

September 27,

2022

NET REVENUES:

 

 

 

 

 

 

 

Restaurant sales

$

34,106

 

 

$

34,945

 

 

$

137,229

 

 

$

137,250

 

Franchise revenues

 

217

 

 

245

 

 

893

 

 

950

 

Total net revenues

 

34,323

 

 

 

35,190

 

 

 

138,122

 

 

 

138,200

 

 

 

 

 

 

 

 

 

RESTAURANT OPERATING COSTS:

 

 

 

 

 

 

 

Food and packaging costs

 

10,725

 

 

 

11,427

 

 

 

42,910

 

 

 

43,877

 

Payroll and other employee benefit costs

 

12,072

 

 

 

11,488

 

 

 

47,549

 

 

 

46,515

 

Restaurant occupancy costs

 

2,289

 

 

 

2,352

 

 

 

9,607

 

 

 

9,440

 

Other restaurant operating costs

 

4,884

 

 

 

4,957

 

 

 

19,013

 

 

 

18,515

 

Preopening costs

 

374

 

 

 

1

 

 

 

484

 

 

 

51

 

Depreciation and amortization

 

923

 

 

905

 

 

3,663

 

 

3,895

 

Total restaurant operating costs

 

31,267

 

 

 

31,130

 

 

 

123,226

 

 

 

122,293

 

 

 

 

 

 

 

 

 

General and administrative costs

 

2,087

 

 

 

2,845

 

 

 

9,127

 

 

 

10,506

 

Advertising costs

 

835

 

 

 

904

 

 

 

3,258

 

 

 

3,164

 

Franchise costs

 

-

 

 

 

6

 

 

 

-

 

 

 

22

 

Impairment of long-lived assets

 

548

 

 

 

1,381

 

 

 

1,589

 

 

 

3,437

 

Gain on restaurant asset sale and lease termination

 

(9

)

 

(10

)

 

(41

)

 

(676

)

Litigation contingencies

 

-

 

 

-

 

 

-

 

 

332

 

 

(LOSS) INCOME FROM OPERATIONS:

 

(405

)

 

 

(1,066

)

 

 

963

 

 

 

(878

)

 

 

 

 

 

 

 

 

Other Expenses:

 

 

 

 

 

 

 

Interest and other expense, net

 

(22

)

 

 

(13

)

 

 

(78

)

 

 

(54

)

 

NET (LOSS) INCOME BEFORE INCOME TAXES:

 

(427

)

 

 

(1,079

)

 

 

885

 

 

 

(932

)

Provision for income taxes

 

284

 

 

14

 

 

10,787

 

 

5

 

 

NET (LOSS) INCOME:

$

(143

)

$

(1,065

)

 

$

11,672

 

$

(927

)

Income attributable to non-controlling interests

 

(107

)

 

 

(225

)

 

(586

)

 

 

(1,714

)

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

(250

)

$

(1,290

)

$

11,086

 

$

(2,641

)

 

 

 

 

 

 

 

 

NET (LOSS) INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:

 

 

 

 

 

 

 

Basic

$

(0.02

)

 

$

(0.10

)

 

$

0.94

 

 

$

(0.21

)

Diluted

$

(0.02

)

 

$

(0.10

)

 

$

0.94

 

 

$

(0.21

)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

11,531

 

 

 

12,350

 

 

 

11,773

 

 

 

12,464

 

Diluted

 

11,596

 

 

 

12,350

 

 

 

11,828

 

 

 

12,464

 

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

 

 

September 26, 2023

 

September 27, 2022

Selected Balance Sheet Data

 

 

 

 

 

Cash and cash equivalents

$

4,182

 

 

$

8,906

 

 

 

 

 

 

 

Current Assets

$

6,593

 

 

$

11,875

 

 

 

 

 

 

 

Total assets

$

91,088

 

 

$

86,388

 

 

 

 

 

 

 

Current Liabilities

$

14,890

 

 

$

12,897

 

 

 

 

 

 

 

Stockholders’ equity

$

32,994

 

 

$

27,788

Supplemental Information for Company-Owned Restaurants (dollars in thousands):

 

 

Bad Daddy’s Burger Bar

 

Good Times Burgers & Frozen Custard

 

Fourth Fiscal Quarter

 

Fiscal Year Ended

 

Fourth Fiscal Quarter

 

Fiscal Year Ended

 

2023

(13 weeks)

 

2022

(13 weeks)

 

2023

(52 weeks)

 

2022

(52 weeks)

 

2023

(13 weeks)

 

2022

(13 weeks)

 

2023

(52 weeks)

 

2022

(52 weeks)

Restaurant sales

$

24,649

 

$

26,006

 

$

102,241

 

$

103,216

 

$

9,457

 

$

8,939

 

$

34,988

 

$

34,034

Restaurants opened or acquired during period

 

1

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

Restaurants closed during period

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

1

 

Restaurants open at period end

 

40

 

 

 

40

 

 

 

40

 

 

 

40

 

 

 

25

 

 

 

23

 

 

 

25

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating weeks

 

512

 

 

 

520

 

 

 

2,042

 

 

 

2,054

 

 

 

313

 

 

 

299

 

 

 

1,210

 

 

 

1,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average weekly sales per restaurant

$

48.1

 

 

$

50.0

 

 

$

50.1

 

 

$

50.3

 

 

$

30.2

 

 

$

29.9

 

 

$

28.9

 

 

$

27.8

 

Reconciliation of Non-GAAP Measurements to U.S. GAAP Results

 

Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Loss from Operations

(In thousands, except percentage data)

 

 

Bad Daddy’s Burger Bar

 

Good Times Burgers & Frozen Custard

 

Good Times

Restaurants Inc.

 

----------Fiscal Quarter Ended (13 weeks)----------

 

September 26, 2023

 

September 27, 2022

 

September 26, 2023

 

September 27, 2022

 

Sept. 26, 2023

 

Sept. 27, 2022

Restaurant sales

$

24,649

100.0

%

 

$

26,006

100.0

%

 

$

9,457

100.0

%

 

$

8,939

100.0

%

 

$

34,106

 

 

$

34,945

 

Restaurant operating costs (exclusive of depreciation and amortization and preopening, shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and packaging costs

 

7,839

 

31.8

%

 

 

8,540

 

32.8

%

 

 

2,886

 

30.5

%

 

 

2,887

 

32.3

%

 

 

10,725

 

 

 

11,427

 

Payroll and benefits costs

 

8,942

 

36.3

%

 

 

8,635

 

33.2

%

 

 

3,130

 

33.1

%

 

 

2,853

 

31.9

%

 

 

12,072

 

 

 

11,488

 

Restaurant occupancy costs

 

1,517

 

6.2

%

 

 

1,657

 

6.4

%

 

 

772

 

8.2

%

 

 

695

 

7.8

%

 

 

2,289

 

 

 

2,352

 

Other restaurant operating costs

 

3,749

 

15.2

%

 

3,823

 

14.7

%

 

1,135

 

12.0

%

 

1,134

 

12.7

%

 

4,884

 

 

4,957

 

Restaurant-level operating profit

$

2,602

 

10.6

%

$

3,351

 

12.9

%

$

1,534

 

16.2

%

$

1,370

 

15.3

%

$

4,136

 

$

4,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

245

 

Deduct - Other operating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

923

 

 

 

905

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

2,087

 

 

 

2,845

 

Advertising costs

 

 

 

 

 

 

 

 

 

 

 

 

 

835

 

 

 

904

 

Franchise costs

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

6

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

 

 

548

 

 

 

1,381

 

Gain on restaurant asset sale

 

 

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

(10

)

Pre-opening costs

 

 

 

 

 

 

 

 

 

 

 

 

 

374

 

 

 

1

 

Total other operating

 

 

 

 

 

 

 

 

 

 

 

 

 

4,758

 

 

 

6,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

 

 

 

 

 

 

 

 

 

 

$

(405

)

 

$

(1,066

)

 

Certain percentage amounts in the table above do not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).

Reconciliation of Non-GAAP Measurements to U.S. GAAP Results

 

Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income (Loss) from Operations

(In thousands, except percentage data)

 

 

Bad Daddy’s Burger Bar

 

Good Times Burgers & Frozen Custard

 

Good Times

Restaurants Inc.

 

----------Fiscal Year Ended----------

 

September 26, 2023

 

September 27, 2022

 

September 26, 2023

 

September 27, 2022

 

Sept. 26, 2023

 

Sept. 27, 2022

Restaurant sales

$

102,241

100.0

%

 

$

103,216

100.0

%

 

$

34,988

100.0

%

 

$

34,034

100.0

%

 

$

137,229

 

 

$

137,250

 

Restaurant operating costs (exclusive of depreciation and amortization, and preopening, shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and packaging costs

 

31,972

 

31.3

%

 

 

33,155

 

32.1

%

 

 

10,938

 

31.3

%

 

 

10,722

 

31.5

%

 

 

42,910

 

 

 

43,877

 

Payroll and benefits costs

 

35,892

 

35.1

%

 

 

35,085

 

34.0

%

 

 

11,657

 

33.3

%

 

 

11,430

 

33.6

%

 

 

47,549

 

 

 

46,515

 

Restaurant occupancy costs

 

6,642

 

6.5

%

 

 

6,668

 

6.5

%

 

 

2,965

 

8.5

%

 

 

2,772

 

8.1

%

 

 

9,607

 

 

 

9,440

 

Other restaurant operating costs

 

14,834

 

14.5

%

 

14,519

 

14.1

%

 

4,179

 

11.9

%

 

3,996

 

11.7

%

 

19,013

 

 

18,515

 

Restaurant-level operating profit

$

12,901

 

12.6

%

$

13,789

 

13.4

%

$

5,249

 

15.0

%

$

5,114

 

15.0

%

$

18,150

 

$

18,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

893

 

 

 

950

 

Deduct - Other operating expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

3,663

 

 

 

3,895

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

9,127

 

 

 

10,506

 

Advertising costs

 

 

 

 

 

 

 

 

 

 

 

 

 

3,258

 

 

 

3,164

 

Litigation Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

332

 

Franchise costs

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

22

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

 

 

1,589

 

 

 

3,437

 

Gain on restaurant asset sale

 

 

 

 

 

 

 

 

 

 

 

 

 

(41

)

 

 

(676

)

Pre-opening costs

 

 

 

 

 

 

 

 

 

 

 

 

 

484

 

 

 

51

 

Total other operating expense (income)

 

 

 

 

 

 

 

 

 

 

 

 

 

18,080

 

 

 

20,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from operations

 

 

 

 

 

 

 

 

 

 

 

 

$

963

 

 

$

(878

)

 

Certain percentage amounts in the table above do not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).

The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general and administrative costs, and therefore excludes occupancy costs associated with selling, general and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded because, like depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation, or as an alternative, to (loss) income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The tables above set forth certain unaudited information for the current and prior year fiscal quarters and year-to-date periods for fiscal 2023 and fiscal 2022, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

 

Quarter Ended

 

Fiscal Year Ended

 

Sept. 26, 2023

(13 Weeks)

 

Sept. 27, 2022

(13 Weeks)

 

Sept. 26, 2023

(52 Weeks)

 

Sept. 27, 2022

(52 Weeks)

Adjusted EBITDA:

 

 

 

 

 

 

 

Net (Loss) Income, as reported

$

(250

)

 

$

(1,290

)

 

$

11,086

 

 

$

(2,641

)

Depreciation and amortization

 

926

 

 

 

863

 

 

 

3,617

 

 

 

3,796

 

Interest expense, net

 

22

 

 

13

 

 

78

 

 

 

54

 

Provision for income taxes

 

(284

)

 

(14

)

 

(10,787

)

 

 

(5

)

EBITDA

 

414

 

 

 

(428

)

 

 

3,994

 

 

 

1,204

 

Preopening expense

 

374

 

 

 

1

 

 

 

484

 

 

 

51

 

Non-cash stock-based compensation

 

28

 

 

 

43

 

 

 

131

 

 

 

250

 

Asset Impairment

 

548

 

 

 

1,381

 

 

 

1,589

 

 

 

3,437

 

GAAP rent-cash rent difference

 

(214

)

 

 

(117

)

 

 

(666

)

 

 

(403

)

Gain on restaurant asset sales and lease termination

 

(9

)

 

 

(10

)

 

 

(41

)

 

 

(538

)

Litigation Contingencies

 

-

 

 

 

-

 

 

 

-

 

 

 

332

 

One-time special allocation to Bad Daddy's partnerships

 

-

 

 

-

 

 

-

 

 

 

516

 

Adjusted EBITDA

$

1,141

 

$

870

 

$

5,491

 

 

$

4,849

 

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net (loss) income or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. This measure is presented because we believe that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for evaluating our ongoing results of operations.

Adjusted EBITDA is calculated as net (loss) income before interest expense, provision for income taxes and depreciation and amortization and further adjustments to reflect the additions and eliminations presented in the table above.

Adjusted EBITDA is presented because: (i) we believe it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and asset disposals, closure costs and restaurant impairments, and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that Adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.

Category: Financial

Contacts

Investor Relations:
Ryan M. Zink, Chief Executive Officer (303) 384-1432
Christi Pennington (303) 384-1440

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Contacts

Investor Relations:
Ryan M. Zink, Chief Executive Officer (303) 384-1432
Christi Pennington (303) 384-1440