 Recovery Gaining Momentum With Average Unit Volumes Nearly Flat vs. 2019 in July Fiscal PeriodBROOMFIELD, Colo., Aug. 06, 2020 GLOBE NEWSWIRE -- Noodles Company Nasdaq: NDLS today announced financial results for its second quarter ended June 30, 2020. Our second quarter saw a consistent sales recovery led by the strength and evolution of our digital and off-premise business, and Im pleased to report that the recovery has continued into the third quarter, said Dave Boennighausen, Chief Executive Officer of Noodles Company. In addition, average unit volumes, normalized for the impact of temporary closures, were nearly flat year-over-year during the recently completed July fiscal period. This continued improvement, coupled with the potential to utilize a smaller, off-premise focused footprint to take advantage of a more favorable real estate environment, gives me great confidence in the Companys ability to continue to gain momentum through the balance of 2020 and accelerate new unit growth in the years to come.Boennighausen added, I am extremely proud of all of our team members and partners for the progress we have made since the onset of the COVID-19 pandemic. The Companys competitive strengths in our people, off-premise resonance and the variety inherent in our menu - from our world famous Mac Cheese to healthy Zoodle and Caulifloodle offerings - have positioned Noodles Company to successfully navigate this challenging environment and thrive in the coming years.The cadence of comparable restaurant sales and average unit volumes during the second quarter and third quarter to-date are as set forth below. Company-owned restaurants were closed July 4th and 5th 2020 in appreciation of our teams efforts during the pandemic. All restaurants were open during that time frame in 2019, negatively impacting comparable restaurant sales during the same period in 2020:Comparable Restaurant Sales4 Weeks Ended April 28, 20204 Weeks Ended May 26, 20205 Weeks Ended June 30, 20202 Weeks Ended July 14, 2020 12 Weeks Ended July 28, 2020 Company-owned47.028.917.713.93.8 Franchise55.537.318.17.57.8 System-wide48.230.117.813.04.4 Average Unit Volumes 000s6859011,0441,1681,181 ___1 Company-owned restaurants were closed July 4 and July 5, 2020.Key highlights for the second quarter of 2020 versus the second quarter of 2019 include: Total revenue was 80.2 million compared to 120.2 million. Comparable restaurant sales decreased 30.9 system-wide, comprised of a 30.1 decrease at company-owned restaurants and a 35.4 decrease at franchise restaurants. Digital sales grew 135 and accounted for 74 of sales. Net loss was 13.5 million, or 0.30 per diluted share, compared to net income of 0.4 million, or 0.01 per diluted share. Adjusted net loss2 was 8.1 million, or 0.18 per diluted share, compared to an adjusted net income of 2.1 million, or 0.05 per diluted share. EBITDA2 was 7.1 million compared to 6.9 million for the second quarter of 2019. Adjusted EBITDA2 was 3.3 million compared to 10.9 million for the second quarter of 2019.___2 Adjusted net loss income, EBITDA and adjusted EBITDA are a non-GAAP measures. Reconciliations of net loss income to adjusted net loss income, EBITDA and adjusted EBITDA are included in the accompanying financial data. See Non-GAAP Financial Measures.Second Quarter 2020 Financial ResultsTotal revenue decreased to 80.2 million in the second quarter of 2020, compared to 120.2 million in the second quarter of 2019. This decrease was primarily due to a decline in traffic related to the impact of COVID-19 during the quarter, as well as the refranchising of 14 total restaurants since January 2019.In the second quarter of 2020, system-wide comparable restaurant sales declined 30.9, comprised of a 30.1 decrease at company-owned restaurants and a 35.4 decrease at franchise restaurants. Comparable restaurant sales improved throughout the quarter and that improvement has continued into the third quarter. During the last two weeks of the July fiscal period, comparable sales declined only 3.8 at company-owned restaurants.Average Unit Volumes, which normalizes for the impact of temporary restaurant closures, declined 0.5 during the fiscal period ending July 28, 2020.Digital sales during the second quarter grew 135 relative to prior year and accounted for 74 of total sales. Digital sales have continued to grow rapidly relative to the prior year thus far in the third quarter even as on-premise dining resumes in many restaurants, with 148 growth during the fiscal period ending July 28th, 2020.As of the end of the second quarter, 40 of company-owned restaurants and 100 of franchised restaurants offered seating either in-restaurant or patio seating. On-premise dining continues to re-open, and as of August 5th, the Company now has 92 of company locations and 100 of franchise locations offering either in-dining room or patio seating.In the second quarter of 2020, the Company closed one restaurant and franchisees closed one restaurant. There were 456 Noodles Co. restaurants at the end of the second quarter 2020, comprised of 380 company-owned restaurants and 76 franchise restaurants. During the second quarter, the six new restaurants not in the Companys comparable restaurant base, many of which offer order ahead drive-thru pick-up windows, achieved sales volumes 14 above the Company average and combined for restaurant level margin of 19.4. The Company anticipates three additional company openings during the balance of 2020 with a more rapid acceleration of unit growth beginning in 2021.For the second quarter of 2020, the Company reported a net loss of 13.5 million, or 0.30 per diluted share, compared with net income of 0.4 million in the second quarter of 2019, or 0.01 per diluted share. Loss from operations for the second quarter of 2020 was 12.5 million, compared to income of 1.2 million in the second quarter of 2019. Closure costs in the second quarter of 2020 included ongoing costs as well as adjustments to liabilities as lease terminations occur.Restaurant contribution margin decreased to 6.7 in the second quarter of 2020, compared to 17.1 in the second quarter of 2019. This decrease was primarily due to decreased sales volumes, increased costs related to COVID-19 and increased third-party delivery fees associated with higher delivery sales.Adjusted net loss was 8.1 million, or 0.18 per diluted share, in the second quarter of 2020, compared to adjusted net income of 2.1 million, or 0.05 per diluted share, in the second quarter of 2019. Adjusted EBITDA decreased to 3.3 million in the second quarter of 2020 from 10.9 million in the second quarter of 2019.Liquidity Update and Outlook:As of June 30, 2020, the Company continues to maintain a strong financial position with 62.1 million in cash on hand, compared with 50.5 million at the end of the first fiscal quarter. Long-term debt increased from 85.4 million at the end of the first quarter to 93.0 million as of the end of the second quarter The Company anticipates using its cash on hand to pay down a portion of its debt revolver in upcoming months.The Companys strengthening financial position reflects our continued discipline around capital investments and non-essential costs. Assuming we continue to see comparable sales improvement, we have increased confidence on our ability to generate positive cash flow for the rest of 2020 and support strategic investments.Given the ongoing uncertainty surrounding the impact of COVID-19 on the economy and any specific impact to the Company, we do not have any further updates on our fiscal year 2020 expectations following the withdrawal of our financial guidance on March 16, 2020.Non-GAAP Financial MeasuresThe Company believes that a quantitative reconciliation of the Companys non-GAAP financial measures guidance to the most comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to provide guidance for various reconciling items that are outside of the Companys control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. A reconciliation of certain non-GAAP financial measures would also require the Company to predict the timing and likelihood of outcomes that determine future impairments and the tax benefit thereof. None of these measures, nor their probable significance, can be reliably quantified. The non-GAAP financial measures noted above have limitations as analytical financial measures, as discussed below in the section entitled Non-GAAP Financial Measures. In addition, the guidance with respect to non-GAAP financial measures is a forward-looking statement, which by its nature involves risks and uncertainties that could cause actual results to differ materially from the Companys forward-looking statement, as discussed below in the section entitled Forward-Looking Statements.Key DefinitionsAverage Unit Volume represents the average annualized sales of all restaurants for a given time period. AUV is calculated by dividing restaurant revenue by the number of operating days within each time period and multiplying by the number of operating days we have in a typical year. This measurement allows management to assess changes in revenue patterns at our restaurants.Comparable Restaurant Sales represents year-over-year sales comparisons for the comparable restaurant base open for at least 18 full periods. 