Good Times Restaurants Inc. (NASDAQ:GTIM) Q2 2020 Earnings Conference Call - Preliminary Transcript
May 12, 2020 • 05:00 pm ET
Good afternoon, ladies and gentlemen, welcome to the Good Times Restaurants Inc. Fiscal 2020 Second Quarter Earnings Call. By now, everyone should have access to the company's earnings release which is available in the Investors section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. These statements are also Subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. And therefore, investors should not place undue reliance on them and the company undertakes no obligation to update these statements to reflect the events or circumstances that might arise after this call.The company refers you to their recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial conditions including risks related to the COVID-19 pandemic. Lastly, during today's call, the company will discuss non-GAAP measures, which they believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release. Please note this event is being recorded. And now I would like to turn the conference over to Ryan. Please go ahead.
Ryan M. Zink
Thank you, Chad. I would like to thank you all for joining us on the call today. Our earnings release contained a letter from me provided an update on our business and our response to the COVID-19 pandemic. At the onset of this pandemic, there was tremendous lack of visibility to what the future might hold, we took immediate action to ensure survival. Our actions included the reduction of pay of all management level team members with greater reductions in pay for our senior leaders. It also included initially reducing staffing at our restaurants to nearly bare bones at Bad Daddy's as we did not know whether or not to expect an increase in our off-premise sales.
Our Board members waved their fees we requested longer payment terms from our vendors, which were almost universally granted, and we've had productive discussions with many of our landlords in deferral or abatement of rents. We drew down our credit facility to provide immediate liquidity in what we believed would be a rapid cash burn environment. We are fortunate to have 2 brands with different service models in times like these. As our portfolio of restaurants has balance and resilience as people shift dining behavior and although initially we saw a sharp declines in our Good Times restaurant sales. We have recently seen a return to positive comps and are encouraged by operating trends that are drive through concept, which is well positioned for a market already focused on convenience, but now with greater interest in social distancing and a service model with