Potbelly Corporation (NASDAQ:PBPB) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Adiya Dixon - Senior Vice President & Chief Legal Officer Bob Wright - President & Chief Executive Officer Steve Cirulis - Senior Vice President & Chief Financial Officer Lisa Fortuna - Investor Relations Conference Call Participants Matt Curtis – William Blair Operator Good afternoon, everyone, and welcome to the Potbelly Corporation Third Quarter 2022 Earnings Conference Call. All participa ...

- (m) - POTBEL S A N D W I C H W O R K S ® Third Quarter 2022 Earnings Presentation -- November 3, 2022 -- Cautionary Statements Forward-Looking Statements In addition to historical information, this presentation 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, repr ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements show significant revenue growth, a $9.1 million net income for the quarter due to PPP loan forgiveness, and improved equity [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) Total assets decreased to $241.6 million, while liabilities reduced, leading to a positive total equity of $0.9 million from a prior deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 25, 2022 | Dec 26, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,506 | $14,353 | | Total current assets | $25,708 | $28,054 | | **Total assets** | **$241,555** | **$253,237** | | Total current liabilities | $66,602 | $69,880 | | Long-term debt, net | $10,100 | $17,517 | | **Total liabilities** | **$240,646** | **$255,654** | | **Total equity (deficit)** | **$909** | **($2,417)** | [Condensed Consolidated Statements of Operations (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) Q3 2022 revenues rose 15.7% to $117.6 million, with a $9.1 million net income driven by PPP loan forgiveness Q3 2022 vs Q3 2021 Performance (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Total revenues | $117,649 | $101,694 | | Loss from operations | ($705) | ($2,603) | | Gain on extinguishment of debt | $10,191 | $0 | | **Net income (loss)** | **$9,136** | **($2,860)** | | Diluted EPS | $0.31 | ($0.10) | YTD 2022 vs YTD 2021 Performance (in thousands, except per share data) | Metric | YTD Sep 25, 2022 | YTD Sep 26, 2021 | | :--- | :--- | :--- | | Total revenues | $331,823 | $277,248 | | Loss from operations | ($7,049) | ($20,239) | | Gain on extinguishment of debt | $10,191 | $0 | | **Net income (loss)** | **$1,957** | **($21,182)** | | Diluted EPS | $0.06 | ($0.78) | [Condensed Consolidated Statements of Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20%28Unaudited%29) Total equity improved from a $2.4 million deficit to a positive $0.9 million, primarily due to year-to-date net income - Total equity shifted from a deficit of **($2,417) thousand** at the end of 2021 to a positive equity of **$909 thousand** at the end of Q3 2022[13](index=13&type=chunk) - The improvement was driven by a net income of **$9,029 thousand** in Q3 2022, offsetting earlier losses and reducing the accumulated deficit[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Operating activities provided $1.0 million cash year-to-date, a significant improvement, despite an overall $4.8 million decrease in cash Year-to-Date Cash Flow Summary (in thousands) | Cash Flow Activity | YTD Sep 25, 2022 | YTD Sep 26, 2021 | | :--- | :--- | :--- | | Net cash from Operating | $1,018 | ($7,138) | | Net cash from Investing | ($4,914) | ($7,543) | | Net cash from Financing | ($951) | $13,391 | | **Net decrease in cash** | **($4,847)** | **($1,290)** | | Cash at end of period | $9,506 | $9,836 | - A non-cash gain on the extinguishment of a **$10.2 million** PPP loan significantly adjusted net income to operating cash flow[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Notes detail operations, revenue recognition, debt, and contingencies, including PPP loan forgiveness and impairment charges - As of the report date, the company operates **388** shops, with franchisees operating an additional **46** shops in the United States[16](index=16&type=chunk) - On July 12, 2022, the SBA approved forgiveness of the **$10.0 million** PPP loan principal and **$0.2 million** accrued interest, resulting in a **$10.2 million** gain[65](index=65&type=chunk) - The company recorded impairment charges of **$1.0 million** for the quarter and **$3.0 million** year-to-date due to underperforming shops[42](index=42&type=chunk) - The revolving credit facility's maturity was extended to **December 31, 2023**, with **$10.1 million** outstanding as of September 25, 2022[61](index=61&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 15.7% quarterly revenue growth, improved shop-level profit margin, and the 'Franchise Growth Acceleration Initiative' [Business and Strategy](index=19&type=section&id=Business%20and%20Strategy) The company's strategy centers on a 5-pillar plan and a 'Franchise Growth Acceleration Initiative' to refranchise 25% of units - The company's strategy centers on the **"Traffic-Driven Profitability" 5-pillar plan** for growth and customer engagement[85](index=85&type=chunk) - A major strategic push is the **Franchise Growth Acceleration Initiative**, aiming to refranchise approximately **25%** of company units over three years[86](index=86&type=chunk) Shop Count Rollforward | Period | Company Operated | Franchise Operated | Total | | :--- | :--- | :--- | :--- | | Shops as of Dec 26, 2021 | 397 | 46 | 443 | | Shops opened YTD | 0 | 1 | 1 | | Shops closed YTD | (9) | (1) | (10) | | **Shops as of Sep 27, 2022** | **388** | **46** | **434** | [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q3 2022 revenues increased 15.7% to $117.6 million, driven by comparable store sales and price increases, with PPP loan forgiveness aiding profitability Q3 2022 vs Q3 2021 Results (in thousands) | Metric | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $117,649 | $101,694 | 15.7% | | Sandwich shop sales, net | $116,449 | $100,996 | 15.3% | | Loss from operations | ($705) | ($2,603) | 72.9% | | Net income (loss) | $9,029 | ($2,948) | NM | - Quarterly revenue growth was driven by recovery in central business districts, improved catering, marketing, and price increases[98](index=98&type=chunk) YTD 2022 vs YTD 2021 Results (in thousands) | Metric | YTD 2022 | YTD 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $331,823 | $277,248 | 19.7% | | Sandwich shop sales, net | $328,873 | $275,274 | 19.5% | | Loss from operations | ($7,049) | ($20,239) | 65.2% | | Net income (loss) | $1,690 | ($21,301) | NM | [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics show improved Q3 2022 shop-level profit margin at 10.6% and Adjusted EBITDA at $4.7 million Non-GAAP Performance Metrics | Metric | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Shop-level profit margin | 10.6% | 8.7% | 9.2% | 6.5% | | Adjusted EBITDA (in thousands) | $4,677 | $2,677 | $8,199 | ($2,036) | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $23.7 million in total liquidity, with operating activities providing $1.0 million cash year-to-date, bolstered by PPP loan forgiveness - At the end of Q3 2022, the company had a cash balance of **$9.5 million** and total liquidity of **$23.7 million**[135](index=135&type=chunk) - The company's **$10.0 million** PPP loan, with accrued interest, was fully forgiven in July 2022, resulting in a **$10.2 million** gain[147](index=147&type=chunk) - The company has an 'at the market' equity offering program for up to **$40.0 million**, with no shares sold as of September 25, 2022[150](index=150&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposures since December 26, 2021 - There have been no material changes in the company's market risk exposures since **December 26, 2021**[153](index=153&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 25, 2022, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of **September 25, 2022**[154](index=154&type=chunk) - No changes occurred during the quarter that materially affected internal control over financial reporting[155](index=155&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management expects no material adverse financial impact - Information regarding legal proceedings is provided in **Note 11** to the Condensed Consolidated Financial Statements[156](index=156&type=chunk) - Management does not expect current legal proceedings to materially impact the company's financials[81](index=81&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the fiscal year ended December 26, 2021 - No material changes to the company's Risk Factors have occurred since the Annual Report on Form 10-K for the fiscal year ended **December 26, 2021**[157](index=157&type=chunk) [Unregistered Sale of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its program year-to-date, acquiring 128,000 shares solely for tax withholding obligations - The company did not repurchase any shares under its stock repurchase program during the quarter[69](index=69&type=chunk)[148](index=148&type=chunk) - A total of **128,000** shares were acquired year-to-date, solely for employee tax withholding on vested equity awards[158](index=158&type=chunk)[161](index=161&type=chunk) - Approximately **$38.0 million** remains available for future purchases under the authorized stock repurchase program[158](index=158&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[159](index=159&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[160](index=160&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) Not applicable - Not applicable[161](index=161&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) The report includes key exhibits such as the credit agreement amendment and Sarbanes-Oxley Act certifications - Exhibit **10.1** is Amendment No. **8** to the Second Amended and Restated Credit Agreement, dated **September 23, 2022**[163](index=163&type=chunk) - Exhibits **31.1, 31.2, and 32.1** contain required CEO and CFO certifications under the Sarbanes-Oxley Act[163](index=163&type=chunk)

Potbelly Corporation (NASDAQ:PBPB) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Adiya Dixon – Senior Vice President and Chief Legal Officer Bob Wright – President and Chief Executive Officer Steve Cirulis – Senior Vice President and Chief Financial Officer Lisa Fortuna – Investor Relations Conference Call Participants Matt Curtis – William Blair Operator Good afternoon, everyone, and welcome to Potbelly Corporation's Second Quarter 2022 Earnings Conference Call. [Operator ...

QOTETI S A N D W I C H W O R K S ® Second Quarter 2022 Earnings Presentation -- August 4, 2022 -- Forward-Looking Statements In addition to historical information, this presentation 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ______________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 26, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ____to ____ Commission File Number: 001-36104 ______________________________________________ Potbelly Cor ...

Potbelly Corporation (NASDAQ:PBPB) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Adiya Dixon – Senior Vice President and Chief Legal Officer Bob Wright – President and Chief Executive Officer Steve Cirulis – Senior Vice President and Chief Financial Officer Conference Call Participants Matt Curtis – William Blair Operator Good afternoon, everyone, and welcome to Potbelly Corporation’s First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. ...

Potbelly is the sandwich shop with the craveable quality and good vibes of a first-class dive. First Quarter 2022 Earnings Presentation -- May 5, 2022 -- Cautionary Statements Forward-Looking Statements In addition to historical information, this presentation 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 st ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________ FORM 10-Q ______________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 27, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ____to ____ Commission File Number: 001-36104 ___________ ...

or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-36104 ___________________________________________________________________________ POTBELLY CORPORATION Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________________________ FORM 10-K ___________________________________________________________________________ x ANNUAL REPORT PURSUANT TO SECTION ...