 Company has remained cash flow-positive at the store-level since the end of May, driven by significant SSS improvements since early April Productive conversations with landlords continue; Company reduces potential permanent store closure targets by over 50CHICAGO, Aug. 05, 2020 GLOBE NEWSWIRE -- Potbelly Corporation NASDAQ: PBPB, the iconic neighborhood sandwich shop, today reported financial results for the second fiscal quarter ended June 28, 2020.Second Quarter Strategic Successes: Same-store sales steadily improved throughout the quarter, from the late March low of down 68, to a decline in the mid- 20 range throughout the month of June. Cash flow-positive at the store-level since May 31, 2020. As a result of proactive operating tactics and improving health of the business, the factors that led to the going concern disclosure in the Companys first quarter financial statements have been resolved. Weekly cash burn trended lower throughout the quarter and is now down approximately 75, from 2.0 million per week early in the pandemic, to a projected 0.5 million per week average, including lease termination costs, for the second half of fiscal 2020. Excluding lease termination one-time expenses, estimated cash burn for the second half of 2020 would be approximately 0.2 million per week. Cash on hand was 29.1 million and the Company maintains 16.7 million of availability under its revolving credit facility. Total liquidity was 45.8 million, flat compared to the 45.8 million result at the end of the first quarter. The Company continues to have constructive discussions with its landlords, resulting in 16 permanent shop closures and 187 leases renegotiated as of early August. The number of potential permanent store closures has been reduced to fewer than 50, compared to up to 100 as previously contemplated. Recently amended the Companys credit facility, resulting in lowered borrowing costs at the same level of available liquidity through early 2021. Digital sales nearly tripled quarter-over-quarter to 46 of total sales. Opened two new franchised shops in North Carolina. Relaunched a simplified Perks loyalty program, which drove a 53 increase in membership quarter-over-quarter. Potbelly Perks membership eclipsed 2.0 million for the first time in its history.Key highlights for the thirteen weeks ended June 28, 2020 compared to June 30, 2019: Total revenues of 56.2 million compared to 105.6 million. GAAP net loss attributable to Potbelly Corporation was 22.2 million or 0.93 per share, compared to a net loss of 1.9 million or 0.08 per share. Adjusted net loss1 attributable to Potbelly Corporation was 14.9 million compared to an adjusted net loss of less than 0.1 million. Adjusted diluted EPS1 was a loss of 0.63 compared to an adjusted diluted EPS loss of less than 0.01. EBITDA1 decreased to 16.8 million from 4.0 million. Adjusted EBITDA1 decreased to 14.4 million from 6.8 million.Steve Cirulis, Chief Financial Officer of Potbelly Corporation, commented, We are pleased with Potbellys consistent progress throughout an incredibly challenging second quarter. Our team rapidly adapted to the new operating environment. We preserved cash, leveraged our strong off-premise platform, innovated with new offerings, reset our real estate portfolio, and enhanced the safety of our shops for both employees and customers. In addition, the relaunched Potbelly Perks loyalty program enhances our ability to use analytics to deepen engagement with our best customers. These efforts helped optimize our business for the pandemics circumstances and have us on the path to positive cash flow at the enterprise level, as well as growth beyond the pandemic. We also made significant progress in our conversations with landlords, and now anticipate permanently closing fewer than 50 shops. Lastly, we successfully renegotiated our covenants with our lending partners, providing a solid foundation for both risk mitigation and future growth.Bob Wright, President and Chief Executive Officer of Potbelly Corporation, added, While Ive just recently assumed the leadership position at Potbelly, Ive been a fan and loyal customer for years. We have a great opportunity in front of us to bring passion back to the brand and reignite long-term growth. We have a very talented team of associates and shop management that have shown tremendous dedication and resolve in supporting our customers through this crisis, along with a product offering that is loved by customers across the country. Further, we have a resilient structure and financially sound operation, which provide the foundation that I am eager to build upon. I look forward to leading Potbelly on the next leg of this turnaround and believe we have all the tools we need to drive long-term value for all of our stakeholders.Conference CallA conference call and audio webcast has been scheduled for 5:00 p.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call with accompanying presentation slides, available on the investor relations portion of the Companys website at For those that cannot join the webcast, you can participate by dialing 877-300-8521 in the U.S. Canada, or 412-317-6026 internationally, using the confirmation code of 10146720. For those unable to participate, an audio replay will be available from 8:00 p.m. Eastern Time on Wednesday, August 5, 2020 through midnight August 12, 2020. To access the replay, please call 844-512-2921 U.S. Canada or 412-317-6671 International and enter confirmation code 10146720. A web-based archive of the conference call will also be available at the above website.About PotbellyPotbelly Corporation is a neighborhood sandwich concept that has been feeding customers smiles with warm, toasty sandwiches, signature salads, hand-dipped shakes and other fresh menu items, customized just the way customers want them, for more than 40 years. Potbelly promises Fresh, Fast Friendly service in an environment that reflects the local neighborhood. Since opening its first shop in Chicago in 1977, Potbelly has expanded to neighborhoods across the country - with more than 400 company-owned shops in the United States. Additionally, Potbelly franchisees operate over 40 shops in the United States. For more information, please visit our website at following definitions apply to these terms as used throughout this press release: Revenues represents net company-operated sandwich shop sales and our franchise operations. Net company-operated shop sales consist of food and beverage sales, net of promotional allowances and employee meals. Franchise royalties and fees consist of an initial franchise fee, a franchise development agreement fee and royalty income from the franchisee. Company-operated comparable store sales represents the change in year-over-year sales for the comparable company-operated store base open for 15 months or longer. EBITDA represents income before depreciation and amortization expense, interest expense and the provision for income taxes. Adjusted EBITDA 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 as well as other items that we do not consider representative of our ongoing operating performance. Adjusted net income loss represents net income loss, excluding impairment, gain or loss on the disposal of property and equipment and store closure expense, as well as other items that we do not consider representative of our ongoing operating performance. Shop-level profit represents income loss from operations less franchise royalties and fees, general and administrative expenses, depreciation expense, pre-opening costs and impairment and loss on the disposal of property and equipment. Shop-level profit margin represents shop-level profit expressed as a percentage of net company-operated sandwich shop sales. Adjusted diluted earnings per share represents net income loss, excluding impairment, gain or loss on the disposal of property and equipment and store closure expense on a fully diluted per share basis as well as other items that we do not consider representative of our ongoing operating performance.1Non-GAAP Financial MeasuresWe prepare our financial statements in accordance with Generally Accepted Accounting Principles GAAP. Within this press release, we make reference to EBITDA, adjusted EBITDA, 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 and adjusted net income to evaluate the Companys performance and in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. Adjusted EBITDA and adjusted net income exclude the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. 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. 