第99.1展示文本
Potbelly公司報告2024年第二財季的業績
第二季度新增了22家新的特許經營店承諾
截至8月8日，今年迄今爲止已開業9家商鋪。
芝加哥，伊利諾伊州。2024年8月8日 - potbelly公司 (納斯達克: PBPB)， （「potbelly」或「公司」） 標誌性街區三明治店概念，今天公佈了截至2024年6月30日的第二財季財務業績。
2024年6月30日季度結束與2023年6月25日相比的重點亮點:
•平均每週銷售額（AWS）增長0.6%，達到26,110美元，並考慮到自2023年第一季度以來對26家前公司門店轉讓的影響。
•總收入下降了5.5%，從1.196億美元降至12660萬美元。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。公司經營的三明治店銷售淨額下降920萬美元，或下降7.4%，這主要是由於去年再特許經營的短期影響，其中包括自2023年第一季度以來已經出售了26家公司店鋪。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。特許經營費、費用和租金收入增加了220萬美元，增長了117.4%，主要是由於特許單位增加了53%。
•第二季度同店銷售增長了0.4%。
•Potbelly公司的歸屬於普通股股東的淨利潤爲3,470萬美元，相比之下爲220萬美元。 每股收益爲1.13美元，相比之下爲0.07美元。 這些增長包括2024年第二季度釋放公司遞延稅款準備金而產生的3,130萬美元所得稅益。
•調整後淨利潤1 歸屬於potbelly公司的淨利潤爲250萬美元，相比之下爲200萬美元。調整後的攤薄後每股收益1 爲0.08美元，相比之下爲0.07美元。
•調整後的EBITDA1 較800萬美元增長5.9%，達到850萬美元。
(1) 調整後的淨利潤、攤薄後每股收益和調整後的EBITDA均爲非GAAP指標。要查看這些指標與最直接可比的GAAP指標的調和，請參閱隨附的財務表。關於爲何我們認爲它們有用的討論，請參見下文的「非GAAP財務指標」部分。
波特貝利公司總裁兼首席執行官鮑勃·萊特評論道：「第二季度團隊成員的辛勤工作和奉獻精神使我們能夠在業務的三個關鍵領域繼續增長。我們實現了同店銷售增長0.4%，連續第13個季度實現年度店鋪利潤率的擴張，還開設了四家新店，同時還有22家加盟店的承諾。展望2024年下半年及未來，儘管面臨挑戰性的宏觀環境，我們對自家品牌的未來仍然充滿信心。首先，顧客滿意度評分繼續表明我們的顧客喜愛我們的食物和服務。其次，數字渠道，包括波特貝利優惠計劃，仍然是我們業務的關鍵推動力。最後，我們看到新店開業取得成功，平均表現超出我們的預期。總之，我們將繼續專注於執行我們的五柱策略，將我們的品牌打造成爲爲利益相關者創造價值的品牌。」
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財務展望
公司介紹了2024年第三季度及更新的2024年指引，同時重申先前提供的長期增長範圍。
| 2024年第三季度指引 | |||||
| 同店銷售額增長百分比 | 下降-3.5%至-1.5% | ||||
調整後的EBITDA (2) | $650萬至$8.0M | ||||
| 2024年度指導原則 | |||||
| 同店銷售額增長百分比 | -1.5%至+0.5% | ||||
| 新增單位增長 | 至少30家店 | ||||
調整後的EBITDA (2) | 2700萬美元至30.0百萬美元 | ||||
(2) 上述季度和全年指引反映了2023年公司轉讓了33家以前自有的位置的影響；2023年第53周的影響，在2024年不會再次出現；與公司在開發方面的投資增加有關的成本，以支持受控的特許經營增長和2024年第一季度與第三方配套軟件供應商-在線教育達成的110萬美元和解賠償金。2023年度的轉讓影響在2024年前三個季度中最爲顯著。
發展更新
在第二季度，公司開設了四家肚肚店，截至2024年第二季度結束，新店總數達到了七家，並截至2024年8月8日，全年新增店鋪數量達到了九家。此外，在第二季度，公司簽署了22家新肚肚店的承諾，使2024年簽署的新店承諾總數達到了54家。截至2024年6月30日，Potbelly擁有663家已開設和已承諾的店鋪，較2023年第二季度增長了25%。
股份回購計劃
在第二季度，公司回購了約8.6萬股普通股，總價約爲0.7百萬美元。截至2024年6月30日，公司在分股計劃下有19.3百萬美元。
公司可能會根據時間需求，通過公開市場購買、私下談判交易或其他方式回購普通股，包括通過旨在符合1934年證券交易法修正案第10b5-1條款的交易計劃，根據適用的證券法律和其他限制。普通股回購的時間和總量將取決於業務、經濟和市場條件，公司和監管要求，現行股價以及其他考慮因素。
電話會議
今天下午5:00，已安排了電話會議和音頻網絡廣播，以討論這些成果。鼓勵對投資者、分析師和媒體感興趣的人加入網頁呼叫的網絡廣播，配有演示幻燈片，在公司網站的投資者關係部分可獲取。 www.potbelly.com對於無法加入網絡廣播的人，可以通過撥打1-800-579-2543（美國和加拿大）或1-785-424-1789（國際）參與。會議ID爲potbelly。
對於無法參與的人士，在看漲之後到2024年8月15日星期四，可以通過電話重播來獲取。要獲取重播，請致電844-512-2921（美國和加拿大）或412-317-6671（國際），並輸入確認碼11156428。會議電話的網絡存檔也將在上述網站上提供。
關於肚子凸出部分
Potbelly公司是一個鄰里三明治概念，提供溫暖可口的三明治、招牌沙拉、手工奶昔和其他新鮮菜單項目，可根據客戶的喜好定製，已有40多年曆史。Potbelly承諾在體現當地社區特色的環境中提供新鮮、快捷友好的服務。自1977年在芝加哥開設第一家店以來，Potbelly已經在全國各地的社區擴張。
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在美國擁有超過425家分店，包括超過80家特許經營分店。欲了解更多信息，請訪問我們的網站 www.potbelly.com.
定義
以下定義適用於本新聞稿中使用的這些術語：
•收入 代表公司運營的三明治店的淨銷售額以及我們的特許權使用費和費用。公司運營的店鋪銷售額包括食品和飲料銷售淨額，扣除促銷津貼和員工餐。特許權使用費和費用包括特許權收入、特許費以及從特許人收取的廣告和租金等其他費用。
•Company-operated comparable store sales or same-store traffic – an operating measure that represents the change in year-over-year sales or entrée counts for the comparable company-operated store base open for 15 months or longer. In fiscal years that include a 53rd week, the last week of the fourth quarter and fiscal year is excluded from the year-over-year comparisons so that the time periods are consistent. In fiscal years that follow a 53-week year, the current period sales are compared to the trailing 52-week sales to compare against the most closely comparable weeks from the prior calendar year.
•Average Weekly Sales (AWS) – an operating measure that represents the average weekly sales of all company-operated shops which reported sales during the associated time period.
•Average Unit Volume (AUV) – an operating measure that represents the average annual sales of all company-operated shops which reported sales during the associated time period.
•System-wide sales – an operating measure that represents the sum of sales generated by company-operated shops and sales generated by franchised shops, net of all promotional allowances, discounts, and employee meals. Net sales from franchised shops are not included in total revenues. Rather, revenues are limited to the royalties, fees and other income collected from franchisees.
•EBITDA – a non-GAAP measure that represents income before depreciation and amortization expense, interest expense and the provision for income taxes.
•Adjusted EBITDA – a non-GAAP measure that represents income before depreciation and amortization expense, interest expense and the provision for income taxes, adjusted to eliminate the impact of other items, including certain non-cash and other items that we do not consider reflective of underlying business performance.
•Shop-level profit (loss) – a non-GAAP measure that represents income (loss) from operations excluding franchise royalties and fees, franchise support, marketing and rent expenses, general and administrative expenses, depreciation expense, pre-opening costs, restructuring costs, loss on Franchise Growth Acceleration Initiative activities and impairment, loss on the disposal of property and equipment and shop closures.
•Shop-level profit (loss) margin – a non-GAAP measure that represents shop-level profit expressed as a percentage of net company-operated sandwich shop sales.
•Adjusted net income (loss) – a non-GAAP measure that represents net income (loss), adjusted to eliminate the impact of restructuring costs, impairment, loss on the disposal of property and equipment, shop closures, and other items we do not consider representative of our ongoing operating performance, including the income tax effects of those adjustments and the change in our income tax valuation allowance.
•Adjusted diluted EPS – a non-GAAP measure that represents adjusted net income (loss) divided by the weighted average number of fully dilutive common shares outstanding.
•Shop commitments – an operating measure that represents the number of company and franchise shops that are committed to be developed. For franchise shops, a shop development area agreement (SDAA) or standalone franchise agreement represents a commitment. For company shops, a commitment is made through a good faith combination of business decision-making and capital allocation needed to develop and operate a new shop location.
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Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”). Within this press release, we make reference to EBITDA, adjusted EBITDA, adjusted diluted EPS, adjusted net income, shop-level profit, and shop-level profit margin, which are non-GAAP financial measures. The Company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
Management uses adjusted EBITDA, adjusted net income and adjusted diluted EPS to evaluate the Company’s performance and in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. Adjusted EBITDA, adjusted net income and adjusted diluted EPS exclude the impact of certain non-cash charges and other items that affect the comparability of results in past quarters and which we do not believe are reflective of underlying business performance. Management uses shop-level profit and shop-level profit margin as key metrics to evaluate the profitability of incremental sales at our shops, to evaluate our shop performance across periods and to evaluate our shop financial performance against our competitors.
Accordingly, the Company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the Company’s operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. This analysis, as well as the other information in this press release, should be read in conjunction with the Company’s financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies. For more information on the non-GAAP financial measures, please refer to the table, “Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures.” Because the Company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the Company's reported earnings in future periods, the Company is not providing a reconciliation for the 2024 guidance.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. Forward-looking statements, written, oral or otherwise made, represent the Company’s expectation or belief concerning future events. Without limiting the foregoing, the words “believes,” “expects,” “may,” “might,” “will,” “should,” “seeks,” “intends,” “plans,” “strives,” “goal,” “estimates,” “forecasts,” “projects” or “anticipates” or the negative of these terms and similar expressions are intended to identify forward-looking statements. Forward-looking statements included in this press release may include, among others, statements relating to our (i) future financial position and results of operations, (ii) 3Q’24 and full year 2024 outlook and guidance and (iii) expectations regarding our new stock repurchase program.
By nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statement, due to reasons including, but not limited to, risks related to the COVID-19 outbreak; compliance with our Credit Agreement covenants; competition; general economic conditions; our ability to successfully implement our business strategy; the success of our initiatives to increase sales and traffic; changes in commodity, energy and other costs; our ability to attract and retain management and employees; consumer reaction to industry-related public health issues and perceptions of food safety; our ability to manage our growth; reputational and brand issues; price and availability of commodities; consumer confidence and spending patterns; and weather conditions. In addition, there may be other factors of which we are presently unaware or that we currently deem immaterial that could cause our actual results to be materially different from the results referenced in the forward-looking statements. All forward-looking statements contained in this press release are qualified in their entirety by this cautionary statement. Although we believe that our plans, intentions and expectations are reasonable, we may not achieve our plans, intentions or expectations. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. See “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and other risk factors described from time to time in subsequent quarterly reports on Form 10-Q or other subsequent filings, all of which are available on our website at www.potbelly.com. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
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Investor Contact:
Jeff Priester
ICR
investor@potbelly.com
Media Contact:
ICR
PotbellyPR@icrinc.com
Potbelly Corporation
Consolidated Statements of Operations and Margin Analysis – Unaudited
(amounts in thousands, except per share data)
| For the Quarter Ended | For the Year to Date Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2024 | % of Revenue | Jun 25, 2023 | % of Revenue | Jun 30, 2024 | % of Revenue | Jun 25, 2023 | % of Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sandwich shop sales, net | $ | 115,536 | 96.5 | % | $ | 124,709 | 98.5 | % | $ | 223,113 | 96.6 | % | $ | 241,656 | 98.7 | % | |||||||||||||||||||||||||||||||||||||||||||
| Franchise royalties, fees and rent income | 4,161 | 3.5 | 1,914 | 1.5 | 7,737 | 3.4 | 3,237 | 1.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 119,697 | 100.0 | 126,623 | 100.0 | 230,850 | 100.0 | 244,893 | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Percentages stated as a percent of sandwich shop sales, net) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sandwich shop operating expenses, excluding depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Food, beverage and packaging costs | 31,306 | 27.1 | 34,903 | 28.0 | 60,576 | 27.2 | 67,523 | 27.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Labor and related expenses | 32,313 | 28.0 | 37,866 | 30.4 | 64,566 | 28.9 | 74,368 | 30.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy expenses | 12,543 | 10.9 | 13,083 | 10.5 | 24,257 | 10.9 | 26,393 | 10.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expenses | 21,264 | 18.4 | 20,925 | 16.8 | 41,093 | 18.4 | 41,409 | 17.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Percentages stated as a percent of total revenues) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Franchise support, rent and marketing expenses | 3,001 | 2.5 | 1,215 | 1.0 | 5,538 | 2.4 | 1,806 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 11,866 | 9.9 | 11,695 | 9.2 | 23,413 | 10.1 | 21,664 | 8.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation expense | 3,016 | 2.5 | 2,887 | 2.3 | 6,027 | 2.6 | 5,857 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-opening costs | 96 | NM | 33 | NM | 96 | NM | 55 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on Franchise Growth Acceleration Initiative activities | 28 | NM | 14 | NM | 161 | NM | 963 | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment, loss on disposal of property and equipment and shop closures | 145 | 0.1 | 658 | 0.5 | 886 | 0.4 | 1,703 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 115,578 | 96.6 | 123,279 | 97.4 | 226,613 | 98.2 | 241,741 | 98.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Income from operations | 4,119 | 3.4 | 3,344 | 2.6 | 4,237 | 1.8 | 3,152 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 181 | 0.2 | 1,011 | 0.8 | 545 | 0.2 | 1,678 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | NM | — | NM | 2,376 | NM | 239 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 3,938 | 3.3 | 2,333 | 1.8 | 1,316 | 0.6 | 1,235 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | (30,982) | (25.9) | (48) | NM | (30,931) | (13.4) | 57 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 34,920 | 29.2 | 2,381 | 1.9 | 32,247 | 14.0 | 1,178 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interest | 208 | 0.2 | 165 | 0.1 | 302 | 0.1 | 288 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Potbelly Corporation | $ | 34,712 | 29.0 | % | $ | 2,216 | 1.8 | % | $ | 31,945 | 13.9 | % | $ | 890 | 0.4 | % | |||||||||||||||||||||||||||||||||||||||||||
| Net income per common share attributable to common stockholders: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.16 | $ | 0.08 | $ | 1.07 | $ | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.13 | $ | 0.07 | $ | 1.04 | $ | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 29,926 | 29,199 | 29,903 | 29,053 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 30,714 | 30,088 | 30,842 | 29,776 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
"NM" - Amount is not meaningful
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Potbelly Corporation
Consolidated Balance Sheets – Unaudited
(amounts in thousands, except par value data)
| Jun 30, 2024 | Dec 31, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 8,322 | $ | 33,788 | |||||||
Accounts receivable, net of allowances of $20 and $26 as of June 30, 2024 and December 31, 2023, respectively | 8,973 | 7,960 | |||||||||
| Inventories | 3,353 | 3,516 | |||||||||
| Prepaid expenses and other current assets | 7,445 | 7,828 | |||||||||
| Assets classified as held-for-sale | — | — | |||||||||
| Total current assets | 28,093 | 53,092 | |||||||||
| Property and equipment, net | 46,730 | 45,087 | |||||||||
| Right-of-use assets for operating leases | 137,199 | 144,390 | |||||||||
| Indefinite-lived intangible assets | 3,404 | 3,404 | |||||||||
| Goodwill | 2,053 | 2,056 | |||||||||
| Restricted cash | 749 | 749 | |||||||||
| Deferred tax assets | 30,976 | — | |||||||||
| Deferred expenses, net and other assets | 5,406 | 3,681 | |||||||||
| Total assets | $ | 254,610 | $ | 252,460 | |||||||
| Liabilities and equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 9,216 | $ | 9,927 | |||||||
| Accrued expenses | 30,149 | 35,377 | |||||||||
| Short-term operating lease liabilities | 23,539 | 24,525 | |||||||||
| Current portion of long-term debt | — | 1,250 | |||||||||
| Total current liabilities | 62,904 | 71,078 | |||||||||
| Long-term debt, net of current portion | 4,000 | 19,168 | |||||||||
| Long-term operating lease liabilities | 133,222 | 142,050 | |||||||||
| Other long-term liabilities | 6,782 | 6,070 | |||||||||
| Total liabilities | 206,908 | 238,367 | |||||||||
| Equity | |||||||||||
Common stock, $0.01 par value—authorized 200,000 shares; outstanding 29,944 and 29,364 shares as of June 30, 2024 and December 31, 2023, respectively | 397 | 389 | |||||||||
| Warrants | 1,745 | 2,219 | |||||||||
| Additional paid-in-capital | 467,550 | 462,583 | |||||||||
Treasury stock, held at cost, 10,354 and 10,077 shares as of June 30, 2024, and December 31, 2023, respectively | (119,538) | (116,701) | |||||||||
| Accumulated deficit | (301,852) | (333,797) | |||||||||
| Total stockholders’ equity | 48,302 | 14,693 | |||||||||
| Non-controlling interest | (600) | (600) | |||||||||
| Total equity | 47,702 | 14,093 | |||||||||
| Total liabilities and equity | $ | 254,610 | $ | 252,460 | |||||||
7
Potbelly Corporation
Consolidated Statements of Cash Flows – Unaudited
(amounts in thousands)
| For the Year to Date Ended | |||||||||||
| Jun 30, 2024 | Jun 25, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 32,247 | $ | 1,178 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation expense | 6,027 | 5,857 | |||||||||
| Noncash lease expense | 12,568 | 12,386 | |||||||||
| Deferred income tax | (31,251) | (81) | |||||||||
| Stock-based compensation expense | 3,192 | 2,216 | |||||||||
| Asset impairment, loss on disposal of property and equipment and shop closures | 463 | 1,061 | |||||||||
| Loss on Franchise Growth Acceleration Initiative activities | 162 | 936 | |||||||||
| Loss on extinguishment of debt | 2,376 | 224 | |||||||||
| Other operating activities | 130 | 209 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | (1,035) | (1,862) | |||||||||
| Inventories | 169 | 281 | |||||||||
| Prepaid expenses and other assets | (900) | (240) | |||||||||
| Accounts payable | (522) | (1,222) | |||||||||
| Operating lease liabilities | (14,540) | (13,707) | |||||||||
| Accrued expenses and other liabilities | (5,236) | 4,786 | |||||||||
| Net cash provided by operating activities: | 3,850 | 12,022 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (8,687) | $ | (7,281) | ||||||||
| Proceeds from sale of refranchised shops and other assets | 227 | 1,362 | |||||||||
| Net cash used in investing activities: | (8,460) | (5,919) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings under Revolving Facility | 7,000 | — | |||||||||
| Borrowings under Term Loan | — | 25,000 | |||||||||
| Borrowings under Former Credit Facility | — | 14,600 | |||||||||
| Repayments under Revolving Facility | (3,000) | — | |||||||||
| Repayments under Term Loan | (22,827) | — | |||||||||
| Repayments under Former Credit Facility | — | (23,150) | |||||||||
| Payment of debt issuance costs | (623) | (2,204) | |||||||||
| Proceeds from exercise of warrants | 1,309 | 961 | |||||||||
| Employee taxes on certain stock-based payment arrangements | (1,710) | (976) | |||||||||
| Distributions to non-controlling interest | (302) | (318) | |||||||||
| Principal payments made for Term Loan | — | (625) | |||||||||
| Treasury Stock repurchase | (703) | — | |||||||||
| Net cash (used in) provided by financing activities: | (20,856) | 13,288 | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (25,466) | 19,391 | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 34,537 | 15,619 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 9,071 | $ | 35,010 | |||||||
| Supplemental cash flow information: | |||||||||||
| Income taxes paid | $ | 553 | $ | 245 | |||||||
| Interest paid | $ | 493 | $ | 1,446 | |||||||
| Supplemental non-cash investing and financing activities: | |||||||||||
| Unpaid liability for purchases of property and equipment | $ | 803 | $ | 1,035 | |||||||
| Unpaid liability for employee taxes on certain stock-based payment arrangements | $ | 424 | $ | 149 | |||||||
8
Potbelly Corporation
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures – Unaudited
(amounts in thousands, except per share data)
| For the Quarter Ended | For the Year To Date Ended | ||||||||||||||||||||||
| Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | ||||||||||||||||||||
| Net income attributable to Potbelly Corporation, as reported | $ | 34,712 | $ | 2,216 | $ | 31,945 | $ | 890 | |||||||||||||||
Impairment, loss on disposal of property and equipment and shop closures(1) | 145 | 658 | 886 | 1,703 | |||||||||||||||||||
Loss on extinguishment of debt(2) | — | — | 2,376 | 239 | |||||||||||||||||||
Loss on Franchise Growth Acceleration Initiative activities(3) | 28 | 14 | 161 | 963 | |||||||||||||||||||
| Total adjustments before income tax | 173 | 672 | 3,423 | 2,905 | |||||||||||||||||||
Income tax adjustments(4) | (32,361) | (857) | (32,615) | (1,180) | |||||||||||||||||||
| Total adjustments after income tax | (32,188) | (185) | (29,192) | 1,725 | |||||||||||||||||||
| Adjusted net income attributable to Potbelly Corporation | $ | 2,524 | $ | 2,031 | $ | 2,753 | $ | 2,615 | |||||||||||||||
| Adjusted net income attributable to Potbelly Corporation per share, basic | $ | 0.08 | $ | 0.07 | $ | 0.09 | $ | 0.09 | |||||||||||||||
| Adjusted net income attributable to Potbelly Corporation per share, diluted | $ | 0.08 | $ | 0.07 | $ | 0.09 | $ | 0.09 | |||||||||||||||
| Shares used in computing adjusted net income attributable to Potbelly Corporation per share: | |||||||||||||||||||||||
| Basic | 29,926 | 29,199 | 29,903 | 29,053 | |||||||||||||||||||
| Diluted | 30,714 | 30,088 | 30,842 | 29,776 | |||||||||||||||||||
| For the Quarter Ended | For the Year To Date Ended | ||||||||||||||||||||||
| Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | ||||||||||||||||||||
| Net income attributable to Potbelly Corporation, as reported | $ | 34,712 | $ | 2,216 | $ | 31,945 | $ | 890 | |||||||||||||||
| Depreciation expense | 3,016 | 2,887 | 6,027 | 5,857 | |||||||||||||||||||
| Interest expense, net | 181 | 1,011 | 545 | 1,678 | |||||||||||||||||||
| Income tax (benefit) expense | (30,982) | (48) | (30,931) | 57 | |||||||||||||||||||
| EBITDA | $ | 6,927 | $ | 6,066 | $ | 7,586 | $ | 8,482 | |||||||||||||||
Impairment, loss on disposal of property and equipment and shop closures(1) | 145 | 658 | 886 | 1,703 | |||||||||||||||||||
| Stock-based compensation expense | 1,421 | 1,305 | 3,192 | 2,216 | |||||||||||||||||||
Loss on extinguishment of debt(2) | — | — | 2,376 | 239 | |||||||||||||||||||
Loss on Franchise Growth Acceleration Initiative activities(3) | 28 | 14 | 161 | 963 | |||||||||||||||||||
| Adjusted EBITDA | $ | 8,521 | $ | 8,043 | $ | 14,201 | $ | 13,603 | |||||||||||||||
9
Potbelly Corporation
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures – Unaudited
(amounts in thousands, except per share data)
| For the Quarter Ended | For the Year To Date Ended | ||||||||||||||||||||||
| Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | ||||||||||||||||||||
| Income from operations [A] | $ | 4,119 | $ | 3,344 | $ | 4,237 | $ | 3,152 | |||||||||||||||
| Income from operations margin [A÷B] | 3.4 | % | 2.6 | % | 1.8 | % | 1.3 | % | |||||||||||||||
| Less: Franchise royalties, fees and rent income | 4,161 | 1,914 | 7,737 | 3,237 | |||||||||||||||||||
| Franchise support, rent and marketing expenses | 3,001 | 1,215 | 5,538 | 1,806 | |||||||||||||||||||
| General and administrative expenses | 11,866 | 11,695 | 23,413 | 21,664 | |||||||||||||||||||
| Depreciation expense | 3,016 | 2,887 | 6,027 | 5,857 | |||||||||||||||||||
| Pre-opening costs | 96 | 33 | 96 | 55 | |||||||||||||||||||
Loss on Franchise Growth Acceleration Initiative activities(3) | 28 | 14 | 161 | 963 | |||||||||||||||||||
Impairment, loss on disposal of property and equipment and shop closures(1) | 145 | 658 | 886 | 1,703 | |||||||||||||||||||
| Shop-level profit [C] | $ | 18,110 | $ | 17,932 | $ | 32,621 | $ | 31,963 | |||||||||||||||
| Total revenues [B] | $ | 119,697 | $ | 126,623 | $ | 230,850 | $ | 244,893 | |||||||||||||||
| Less: Franchise royalties, fees and rent income | 4,161 | 1,914 | 7,737 | 3,237 | |||||||||||||||||||
| Sandwich shop sales, net [D] | $ | 115,536 | $ | 124,709 | $ | 223,113 | $ | 241,656 | |||||||||||||||
| Shop-level profit margin [C÷D] | 15.7 | % | 14.4 | % | 14.6 | % | 13.2 | % | |||||||||||||||
10
Potbelly Corporation
Selected Operating Data – Unaudited
(amounts in thousands, except shop counts)
| For the Quarter Ended | For the Year to Date Ended | ||||||||||||||||||||||
| Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | ||||||||||||||||||||
| Selected Operating Data | |||||||||||||||||||||||
| Revenue Data: | |||||||||||||||||||||||
| Company-operated comparable store sales | 0.4 | % | 12.9 | % | 0.1 | % | 17.2 | % | |||||||||||||||
| System-Wide Sales: | |||||||||||||||||||||||
| Sales from company-operated shops, net | $ | 115,536 | $ | 124,709 | $ | 223,113 | $ | 241,656 | |||||||||||||||
| Sales from franchise shops, net | 26,782 | 17,608 | 53,393 | 32,340 | |||||||||||||||||||
| System-wide sales | $ | 142,318 | $ | 142,317 | $ | 276,506 | $ | 273,996 | |||||||||||||||
| For the Quarter Ended | For the Year to Date Ended | ||||||||||||||||||||||
| Jun 30, 2024 | Jun 25, 2023 | Jun 30, 2024 | Jun 25, 2023 | ||||||||||||||||||||
| Company-operated shops: | |||||||||||||||||||||||
| Beginning of period | 345 | 373 | 345 | 384 | |||||||||||||||||||
| Openings | 2 | — | 2 | — | |||||||||||||||||||
| Restaurant sale to franchisee | (1) | — | (1) | (8) | |||||||||||||||||||
| Closures | (1) | (1) | (1) | (4) | |||||||||||||||||||
| Restaurants at end of period | 345 | 372 | 345 | 372 | |||||||||||||||||||
| Franchised shops: | |||||||||||||||||||||||
| Beginning of period | 82 | 53 | 79 | 45 | |||||||||||||||||||
| Openings | 2 | 2 | 5 | 2 | |||||||||||||||||||
| Restaurant sale to franchisee | 1 | — | 1 | 8 | |||||||||||||||||||
| Closures | (1) | — | (1) | — | |||||||||||||||||||
| Restaurants at end of period | 84 | 55 | 84 | 55 | |||||||||||||||||||
| System-wide shops: | |||||||||||||||||||||||
| Beginning of period | 427 | 426 | 424 | 429 | |||||||||||||||||||
| Openings | 4 | 2 | 7 | 2 | |||||||||||||||||||
| Closures | (2) | (1) | (2) | (4) | |||||||||||||||||||
| Restaurants at end of period | 429 | 427 | 429 | 427 | |||||||||||||||||||
11
Potbelly Corporation
Footnotes to the Press Release, Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures & Selected Operating Data
1)This adjustment includes costs related to impairment of long-lived assets, loss on disposal of property and equipment and shop closure expenses.
2)This adjustment includes costs related to the loss recognized upon the termination of the Company’s term loan and former credit agreement for 2024 and 2023, respectively.
3)This adjustment includes costs related to our plan to grow our franchise units domestically through multi-unit shop development area agreements, which may include refranchising certain company-operated shops.
4)This adjustment includes the tax impacts of the other adjustments listed above based on the Company’s effective tax rate and the change in the Company’s income tax valuation allowance during the period.
12