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Good Times Restaurants' debt repayment paves way for acquisition

March 5, 2013

Good Times Restaurants Inc. announced it has paid off all of its term debt after the closing of its most recent sale leaseback transaction.

The company is now debt free, with the exception of a few smaller capitalized equipment leases and maintenance truck loans, according to Boyd Hoback, president and CEO.

"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," he added.

The company's most recent sale leaseback transaction was on a restaurant recently purchased from a franchisee.

"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," Hoback said.

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