POTBELLY CORPORATION Forward-Looking Statements
The following discussion of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year endedDecember 25, 2022 . This discussion 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 (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995, and involves numerous risks and uncertainties. Forward-looking statements may include, among others, statements relating to our future financial position and results of operations, our ability to grow our brand in new and existing markets, and the implementation and results of strategic initiatives, including our "Traffic-Driven Profitability" Five-Pillar strategic plan. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and generally contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "strives," "goal," "estimates," "forecasts," "projects" or "anticipates" and the negative of these terms or similar expressions. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement, due to reasons including, but not limited to, the potential future impact of COVID-19 on our business and results of operations; compliance with covenants in our credit facility; competition; general economic conditions including any impact from inflation; our ability to successfully implement our business strategy; the success of our initiatives to increase sales and traffic, including the success of our franchising initiatives; changes in commodity, energy, labor and other costs; our ability to attract and retain management and employees and adequately staff our restaurants; 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. 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 Note Regarding Forward-Looking Statements" included in our Annual Report on Form 10-K for the fiscal year endedDecember 25, 2022 , for a discussion of factors that could cause our actual results to differ from those expressed or implied by forward-looking statements. We undertake 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.
Business
Potbelly 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 owns and operatesPotbelly Sandwich Shop concepts inthe United States . We also have domestic franchise operations ofPotbelly Sandwich Shop concepts.Potbelly 's chief operating decision maker is our Chief Executive Officer. Based on how our Chief Executive Officer reviews financial performance and allocates resources on a recurring basis, we have one operating segment and one reportable segment. We strive to be proactive and deliberate in our efforts to drive profitable growth in our existing business. Our "Traffic-Driven Profitability" Five-Pillar strategic plan includes a prioritized set of low-cost strategic investments that we believe will deliver strong returns. The five pillars are: •Craveable Quality Food at a Great Value •People Creating Good Vibes •Customer Experiences that Drive Traffic Growth •Digitally Driven Awareness, Connection and Traffic •Franchise Focused Development Our shop model is designed to generate, and has generated, strong cash flow, attractive shop-level financial results and high returns on investment. We operate our shops successfully in a wide range of geographic markets, population densities and real estate settings. We aim to generate average shop-level profit margins, a non-GAAP measure, that range from the mid to high teens. Our ability to achieve such margins and returns depends on a number of factors. For example, we face increasing labor and commodity costs, which we have partially offset by increasing menu prices. Although there is 17
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no guarantee that we will be able to maintain these returns, we believe our attractive shop economics support our ability to profitably grow our brand in new and existing markets.
We are actively executing against our Franchise Growth Acceleration Initiative which includes the goal of refranchising approximately 25% of our company-operated shops over the next three years and executing area development agreements with franchisees to develop additionalPotbelly shops in specific markets. The table below sets forth a rollforward of company-operated and franchise operated activities: Company- Franchise- Total Operated Operated Company Shops as of December 26, 2021 397 46 443 Shops opened - - - Shops closed (3) - (3) Shops refranchised - - - Shops as of March 27, 2022 394 46 440 Shops as of December 25, 2022 384 45 429 Shops opened - - - Shops closed (3) - (3) Shops refranchised (8) 8 - Shops as of March 26, 2023 373 53 426
Impact of COVID-19 and Other Impacts on Our Business
The COVID-19 pandemic significantly impacted economic conditions inthe United States where all our shops are located during portions of 2020 and 2021. During the first quarter of 2022, there were increases in the number of COVID-19 cases, including the Omicron variant which impacted our shops during a portion of that quarter. The impact of COVID-19 on our financial results and operations decreased significantly throughout 2022. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, customers, franchisees, stakeholders and communities. Key Performance Indicators In assessing the performance of our business, we consider a variety of performance and financial measures. The key measures for determining how the business is performing are comparable store sales, number of company-operated shop openings, shop-level profit margins, and Adjusted EBITDA.
Company-Operated Comparable Store Sales
Comparable store sales reflect the change in year-over-year sales for the comparable company-operated store base. We define the comparable store base to include those shops open for 15 months or longer. As of the quarters endedMarch 26, 2023 andMarch 27, 2022 , there were 376 and 388 shops, respectively, in our comparable company-operated store base. Comparable store sales growth can be generated by an increase in number of transactions and/or by increases in the average check amount resulting from a shift in menu mix and/or increase in price. This measure highlights performance of existing shops as the impact of new shop openings is excluded. For purposes of the comparable store sales calculation, a transaction is defined as an entrée, which includes sandwiches, salads and bowls of soup or mac and cheese.
Number of Company-Operated Shop Openings
The number of company-operated shop openings reflects the number of shops opened
during a particular reporting period. Before we open new shops, we incur
pre-opening costs. Often, new shops open with an initial start-up period of
higher-than-normal sales volumes, which subsequently decrease to stabilized
levels. While sales volumes are generally higher during the initial opening
period, new shops typically experience normal inefficiencies in the form of
higher cost of sales, labor and other direct operating expenses and as a result,
shop-level profit margins are generally lower during the
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start-up period of operation. The average start-up period is 10 to 13 weeks. With our focus on franchise shop development, we expect company shop development to be limited in 2023.
Shop-Level Profit (Loss) Margin
Shop-level profit (loss) margin is defined as net company-operated sandwich shop sales less company-operated sandwich shop operating expenses, excluding depreciation, which consists of food, beverage and packaging costs, labor and related expenses, occupancy expenses, and other operating expenses, as a percentage of net company-operated sandwich shop sales. Other operating expenses include all other shop-level operating costs, excluding depreciation, the major components of which are credit card fees, fees to third-party marketplace partners, marketing and advertising, shop technology and software, supply chain costs, operating supplies, utilities, and repair and maintenance costs. Shop-level profit (loss) margin is not required by, or presented in accordance withU.S. GAAP. We believe shop-level profit (loss) margin is important in evaluating shop-level productivity, efficiency and performance.
Adjusted EBITDA
We define Adjusted EBITDA as net income before depreciation and amortization, interest expense and provision for income taxes, adjusted for the impact of the following items that we do not consider representative of ongoing operating performance: stock-based compensation expense, impairment and shop closure expenses, gain or loss on disposal of property and equipment, and gain or loss on Franchise Growth Acceleration Initiative activities, as well as other one-time, non-recurring charges. Adjusted EBITDA is not required by or presented in accordance withU.S. GAAP. We believe that Adjusted EBITDA is a useful measure of operating performance, as it provides a picture of operating results by eliminating expenses that management does not believe are reflective of underlying business performance. 19
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Quarter Ended
The following table presents information comparing the components of net loss for the periods indicated (dollars in thousands):
For the Quarter Ended
March 26, % of March 27, % of Increase Percent
2023 Revenues 2022 Revenues (Decrease) Change
Revenues
Sandwich shop sales, net $ 116,947 98.9 % $ 97,431 99.2 % $ 19,516 20.0 %
Franchise royalties, fees and rent
income 1,323 1.1 790 0.8 533 67.5
Total revenues 118,270 100.0 98,221 100.0 20,049 20.4
Expenses
(Percentages stated as a percent of
sandwich shop sales, net)
Sandwich shop operating expenses,
excluding depreciation
Food, beverage and packaging costs 32,620 27.9 27,308 28.0 5,312 19.5
Labor and related expenses 36,502 31.2 33,253 34.1 3,249 9.8
Occupancy expenses 13,310 11.4 13,845 14.2 (535) (3.9)
Other operating expenses 20,484 17.5 18,105 18.6 2,379 13.1
(Percentages stated as a percent of
total revenues)
Franchise support, rent and marketing
expenses 591 0.5 120 0.1 471 392.5
General and administrative expenses 9,969 8.4 8,518 8.7 1,451 17.0 Depreciation expense 2,971 2.5 3,136 3.2 (165) (5.3) Pre-opening costs 22 NM - NM 22 NM Loss on Franchise Growth Acceleration Initiative activities 949 0.8 - NM 949 NM Impairment, loss on disposal of property and equipment and shop closures 1,045 0.9 1,319 1.3 (274) (20.8) Total expenses 118,463 100.2 105,604 107.5 12,859 12.2 Loss from operations (193) (0.2) (7,383) (7.5) 7,190 NM Interest expense, net 667 0.6 327 0.3 340 104.0 Loss on extinguishment of debt 239 0.2 - NM 239 NM Loss before income taxes (1,099) (0.9) (7,710) (7.8) 6,611 NM Income tax expense 105 NM 177 0.2 (72) (40.7) Net loss (1,204) (1.0) (7,887) (8.0) 6,683 NM Net income attributable to non-controlling interest 123 0.1 26 NM 97 373.1 Net loss attributable toPotbelly Corporation $ (1,327) (1.1) %$ (7,913) (8.1) %$ 6,586 NM % For the Quarter Ended March 26, March 27,
Increase
Other Key Performance Indicators 2023 2022 (Decrease) Comparable store sales 22.2 % 24.4 % (2.2) % Shop-level profit margin(1) 12.0 % 5.0 % 6.9 % Adjusted EBITDA(1) $ 5,560 $ (2,279) $ 7,839
_____________________________________
(1) - Reconciliation below for Non-GAAP measures
"NM" - Amount is not meaningful
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Revenues
Total revenues increased by$20.0 million , or 20.4%, to$118.3 million during the quarter endedMarch 26, 2023 , from$98.2 million during the quarter endedMarch 27, 2022 . This increase was primarily driven by the sustained recovery of our shops in central business districts and airport locations, improved performance of our catering channel, successful marketing programs, and increased prices to offset cost inflation. Additionally, during the first quarter of 2022, there were increases in the number of COVID-19 cases, including the Omicron variant, which impacted our shops during a portion of that quarter. Company-operated comparable store sales resulted in an increase in revenue of$21.3 million , or 22.2%. The increase in revenue also included sales from shops that were temporarily closed in 2022. These increases were partially offset by a decrease in sales from shops that have either permanently closed or been refranchised since the first quarter of 2022. Additionally, revenue from franchise royalties, fees and rent income increased by$0.5 million , or 67.5%.
Food, beverage, and packaging costs
Food, beverage, and packaging costs increased by$5.3 million , or 19.5%, to$32.6 million during the quarter endedMarch 26, 2023 , from$27.3 million during the quarter endedMarch 27, 2022 . This increase was primarily driven by an increase in shop sales volume and increased costs of our food and paper supplies, specifically proteins and bread. As a percentage of sandwich shop sales, food, beverage, and packaging costs decreased to 27.9% during the quarter endedMarch 26, 2023 , from 28.0% during the quarter endedMarch 27, 2022 , primarily driven by increased menu prices, partially offset by the increased costs as previously noted. Labor and Related Expenses Labor and related expenses increased by$3.2 million , or 9.8%, to$36.5 million during the quarter endedMarch 26, 2023 , from$33.3 million for the quarter endedMarch 27, 2022 , primarily driven by an increase in shop sales volumes and higher shop labor wage rates as a result of labor availability challenges in certain restaurants. As a percentage of sandwich shop sales, labor and related expenses decreased to 31.2% during the quarter endedMarch 26, 2023 , from 34.1% for the quarter endedMarch 27, 2022 , primarily driven by sales leverage in certain labor related costs not directly variable with sales.
Occupancy Expenses
Occupancy expenses decreased by$0.5 million , or 3.9%, to$13.3 million during the quarter endedMarch 26, 2023 , from$13.8 million during the quarter endedMarch 27, 2022 , primarily due to a decrease in fixed lease expenses as a result of lease concessions and restructurings completed in the prior year, partially offset by an increase in variable lease expenses. As a percentage of sandwich shop sales, occupancy expenses decreased to 11.4% for the quarter endedMarch 26, 2023 , from 14.2% for the quarter endedMarch 27, 2022 , primarily due to increased sales leverage in certain occupancy related costs which are not variable with sales, as well as the impact of the lease concessions and restructurings as previously noted.
Other Operating Expenses
Other operating expenses increased by$2.4 million , or 13.1%, to$20.5 million during the quarter endedMarch 26, 2023 , from$18.1 million during the quarter endedMarch 27, 2022 . The increase was primarily related to an increase in marketing and advertising spend and certain items variable with sales, including fees to third-party delivery partners and credit card fees. As a percentage of sandwich shop sales, other operating expenses decreased to 17.5% for the quarter endedMarch 26, 2023 , from 18.6% for the quarter endedMarch 27, 2022 , primarily driven by sales leverage in operating expense items that are not directly variable with sales, such as utilities.
Franchise support, rent and marketing expenses
Franchise support, rent and marketing expenses increased by$471 thousand to$591 thousand during the quarter endedMarch 26, 2023 compared to$120 thousand during the quarter endedMarch 27, 2022 , driven by increased marketing and advertising expenses, as well as an increase in franchise rent expenses as a result of the refranchising transaction executed this quarter.
General and Administrative Expenses
General and administrative expenses increased by
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decreased to 8.4% for the quarter ended
Depreciation Expense
Depreciation expense decreased by$0.2 million , or 5.3%, to$3.0 million during the quarter endedMarch 26, 2023 , from$3.1 million during the quarter endedMarch 27, 2022 . The decrease was driven primarily by a lower depreciable base related to a decrease in the number of company-operated shops and impairment charges taken in prior periods. As a percentage of revenues, depreciation was 2.5% during the quarter endedMarch 26, 2023 , a decrease from 3.2% for the quarter endedMarch 27, 2022 .
Loss on Franchise Growth Acceleration Initiative activities
Loss on Franchise Growth Acceleration Initiative activities was$0.9 million during the quarter endedMarch 26, 2023 . We did not incur expenses related to these activities during the quarter endedMarch 27, 2022 .
Impairment, Loss on Disposal of Property and Equipment and Shop Closures
Impairment, loss on disposal of property and equipment and shop closures
decreased by
After performing a periodic review of our shops during the quarter endedMarch 26, 2023 , it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. We performed an impairment analysis related to these shops and recorded an impairment charge of$0.7 million for the quarter endedMarch 26, 2023 .
During the quarters ended
Interest Expense,Net Net interest expense was$667 thousand during the quarter endedMarch 26, 2023 compared to$327 thousand during the quarter endedMarch 27, 2022 , due to higher interest rates and average borrowings outstanding as a result of the Term Loan.
Income Tax Expense
We recognized income tax expense of
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Non-GAAP Financial Measures
Shop-Level Profit (Loss) Margin
Shop-level profit (loss) margin was 12.0% for the quarter endedMarch 26, 2023 . Shop-level profit (loss) margin is not required by, or presented in accordance withU.S. GAAP. We believe shop-level profit (loss) margin is important in evaluating shop-level productivity, efficiency and performance. For the Quarter Ended March 26, March 27, 2023 2022 ($ in thousands) Loss from operations$ (193) $ (7,383) Less: Franchise royalties, fees and rent income 1,323 790 Franchise support, rent and marketing expenses 591 120 General and administrative expenses 9,969 8,518 Pre-opening costs 22 - Loss on Franchise Growth Acceleration Initiative activities 949 - Depreciation expense 2,971 3,136 Impairment, loss on disposal of property and equipment and shop closures 1,045 1,319 Shop-level profit (loss) [Y]$ 14,031 $ 4,920 Total revenues$ 118,270 $ 98,221 Less: Franchise royalties, fees and rent income 1,323 790 Sandwich shop sales, net [X]$ 116,947 $ 97,431 Shop-level profit (loss) margin [Y÷X] 12.0 % 5.0 % Adjusted EBITDA Adjusted EBITDA was$5.6 million for the quarter endedMarch 26, 2023 . Adjusted EBITDA is not required by, or presented in accordance withU.S. GAAP. We believe that Adjusted EBITDA is a useful measure of operating performance, as it provides a picture of operating results by eliminating expenses that management does not believe are reflective of underlying business performance. For the Quarter Ended March 26, March 27, 2023 2022 ($ in thousands) Net loss attributable toPotbelly Corporation $ (1,327) $ (7,913) Depreciation expense 2,971 3,136 Interest expense 667 327 Income tax expense 105 177 EBITDA$ 2,416 $ (4,273)
Impairment, loss on disposal of property and equipment, and shop closures (a)
1,045 1,319
Stock-based compensation 911 675
Loss on extinguishment of debt 239 -
Loss on Franchise Growth Acceleration Initiative activities 949 -
Adjusted EBITDA $ 5,560 $ (2,279) ______________________________
(a)This adjustment includes costs related to impairment of long-lived assets, loss on disposal of property and equipment and shop closure expenses.
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Liquidity and Capital Resources
General
Our ongoing primary sources of liquidity and capital resources are cash provided from operating activities, existing cash and cash equivalents, and our Term Loan. In the short term, our primary requirements for liquidity and capital are existing shop capital investments, maintenance, lease obligations, working capital and general corporate needs. Our requirement for working capital is not significant since our customers pay for their food and beverage purchases in cash or payment cards (credit or debit) at the time of sale. Thus, we are able to sell certain inventory items before we need to pay our suppliers for such items. Company shops do not require significant inventories or receivables. As ofMarch 26, 2023 , we had a cash balance of$25.6 million and total liquidity (cash less restricted cash) of$24.8 million compared to a cash balance of$15.6 million and total liquidity (cash plus amounts available under our Former Credit Facility) of$31.4 million at the end of the previous quarter. We believe that cash from our operations and the cash proceeds received under our the Term Loan will be able to provide sufficient liquidity for at least the next twelve months.
Cash Flows
The following table presents summary cash flow information for the periods
indicated (in thousands):
For the Quarter Ended
March 26, March 27,
2023 2022
Net cash provided by (used in):
Operating activities $ (657) (7,739)
Investing activities (3,216) (1,378)
Financing activities 14,599 4,257
Net increase (decrease) in cash $ 10,726 $ (4,860)
Operating Activities
Net cash used in operating activities decreased to $0.7 million for the quarter
ended March 26, 2023 , from $7.7 million for the quarter ended March 27, 2022 .
The $7.1 million change in operating cash was primarily driven by a decrease in
loss from operations compared to the prior year.
Investing Activities
Net cash used in investing activities increased to$3.2 million for the quarter endedMarch 26, 2023 , from$1.4 million for the quarter endedMarch 27, 2022 . The$1.8 million increase was primarily due to an increase in capital expenditures. Capital expenditures consist primarily of ongoing investment in our company-owned shops and investment in our digital platforms.
Financing Activities
Net cash provided by financing activities increased to$14.6 million for the quarter endedMarch 26, 2023 , from$4.3 million for the quarter endedMarch 27, 2022 . The$10.3 million increase in financing cash was primarily driven by net proceeds from the Term Loan executed in the first quarter of 2023.
Term Loan
OnFebruary 7, 2023 (the "Closing Date"), we entered into a credit and guaranty agreement (the "Credit Agreement") withSagard Holdings Manager LP as administrative agent (the "Administrative Agent"). The Credit Agreement provides for a term loan facility with an aggregate commitment of$25 million (the "Term Loan"). Concurrent with entry into the Credit Agreement, we repaid in full and terminated the obligations and commitments under our existing 24
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senior secured credit facility (the "Former Credit Facility"). The remaining proceeds from the Term Loan were used to pay related transaction fees and expenses, and for general corporate purposes.
The Credit Agreement is scheduled to mature onFebruary 7, 2028 . We are required to make principal payments equal to 1.25% of the initial principal of the Term Loan on the last business day of each fiscal quarter. If not previously paid, any remaining principal balance must be repaid on the maturity date. Loans under the Credit Agreement will initially bear interest, at the Company's option, at either the term SOFR plus 9.25% per annum or base rate plus 8.25% per annum.
As of
We may prepay the Term Loan in agreed-upon minimum principal amounts, subject to prepayment fees equal to (a) if the prepayment occurs on or prior to the one (1) year anniversary of the Closing Date, a customary make-whole amount plus 3.00% of the outstanding principal balance of the Term Loan, (b) if the prepayment occurs after such one (1) year anniversary and prior to the two (2) year anniversary of the Closing Date, 3.00% of the outstanding principal balance of the Term Loan, (c) if the prepayment occurs after such second anniversary of the Closing Date and prior to the three (3) year anniversary of the Closing Date 1.00% of the outstanding principal balance of the Term Loan and (d) thereafter, no prepayment fee. Subject to certain customary exceptions, obligations under the Credit Agreement are guaranteed by the Company and all of the Company's current and future wholly owned material domestic subsidiaries and are secured by a first-priority security interest in substantially all of the assets of the Company and its subsidiary guarantors. The Credit Agreement contains customary representations and affirmative and negative covenants. Among other things, these covenants restrict the Company's and certain of its subsidiaries' ability to incur indebtedness, make certain investments, pay dividends or repurchase stock, and make dispositions and acquisitions. In addition, the Credit Agreement requires that the Company and its wholly-owned subsidiaries maintain certain total net leverage ratios as set forth in the Credit Agreement, an average liquidity amount that shall not be less than$10 million , maximum capital expenditures per year as set forth in the Credit Agreement and fixed charge coverage ratios as set forth in the Credit Agreement. The Credit Agreement also contains customary events of default. If an event of default occurs, the Administrative Agent and lenders are entitled to take various actions, including the acceleration of amounts due under the Credit Agreement, termination of commitments thereunder and all other actions permitted to be taken by a secured creditor.
As of
Stock Repurchase Program
OnMay 8, 2018 , we announced that our Board of Directors authorized a stock repurchase program for up to$65.0 million of our outstanding common stock. The program permits us, from time to time, to purchase shares in the open market (including in pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities and Exchange Act of 1934, as amended) or in privately negotiated transactions. The number of common shares actually repurchased, and the timing and price of repurchases, will depend upon market conditions,SEC requirements and other factors. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. For the quarter endedMarch 26, 2023 , we did not repurchase any shares of our common stock under the stock repurchase program. We do not have plans to repurchase any common stock under our stock repurchase program at this time. Equity Offering Program OnNovember 3, 2021 , we entered into a certain Equity Sales Agreement (the "Sales Agreement") withWilliam Blair & Company, L.L.C. , as agent ("William Blair") pursuant to which we may sell shares of our common stock having an aggregate offering price of up to$40.0 million (the "Shares"), from time to time, in our sole discretion, through an "at the market" equity offering program under which William Blair will act as sales agent. As ofMarch 26, 2023 , we have not sold any shares under the Sales Agreement. 25
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Critical Accounting Estimates
Our discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance withU.S. GAAP. The preparation of financial statements in conformity withU.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Critical accounting estimates are those that management believes are both most important to the portrayal of our financial condition and operating results, and require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We base our estimates on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions. We have made no significant changes in our critical accounting estimates since the last annual report. Our critical accounting estimates are identified and described in our annual consolidated financial statements and related notes.
New and Revised Financial Accounting Standards
See Note 1 to the Consolidated Financial Statements for a description of recently issued Financial Accounting Standards.
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