Yes. What you describe is the result of a kerned font being translated to a monospaced font; by default spritefonts are 'monospaced', which means that each letter is the same width, and is spaced equally from each other. With most fonts this looks bad, because the letters are different sizes and shapes (kerned).
What makes GYFM indispensable is that it generates a json string that can be used to set your font to the correct kerning if monoscaping is not what you're looking for. It's pretty straightforward to do.
Go back here:
and search for and download this capx:
The JSON string is generated by GYFM when your export a spritefont; look for the similarly named text file that is exported with the spritesheet.